Foundation Data Workshop

Agenda Key Principles Organization Structures Job Structures Pay Structures Associations

Key Principles

Foundation Data – Key Principles Some attributes in Employee Records refer to referential data called Foundation Objects Use of Foundation Data ensures consistency and facilitates reporting Foundation Objects include Organization, Job and Pay structures Values defined in Foundation Data can be automatically propagated or defaulted in employee records Relationships can be built between Foundation Objects in order to filter lists of values that are proposed to users in employee records

Foundation Data – Key Principles Typical use cases Every employee in Paris office has the same business address => it is not needed to enter this address for every employee based in Paris office All employees working in French legal entity should have standard weekly hours defaulted to 35 The list of locations (offices) depends on the legal entity the employee works in Reports need to be generated for all employees based in Western Europe

Foundation Data – Key Principles Relationships (aka Associations) relationships to be built depend on the customer internal organization filters will be automatically created Legal Entity Business Unit Department Cost Center

Organization Structures

Foundation Data – Organization Structures 8 organization structures are available Legal Entity Business Unit Division Department Cost Center Location Location Group Geo Zone

Foundation Data – Organization Structures In Job Information, employee is assigned to Legal Entity, Business Unit, Division, Department, Location and Cost Center Lists of Legal Entities, Business Units, Divisions, Departments, Locations, Cost Centers come from Foundation Data

Foundation Data – Organization Structures Legal Entity A Legal Entity represents a company as registered against country laws. It cannot span across more than one country The country in Legal Entity determines the country of the employee for Job Information, Employment Details and Compensation Information It is mandatory to define and use Legal Entities in Employee Central Country specific attributes can be configured at Legal Entity level

Foundation Data – Organization Structures Legal Entity Country is mandatory – Legal Entity cannot span across multiple countries Standard Hours and Currency can be used as default values at employee level

Foundation Data – Organization Structures Country of Legal Entity determines country specific attributes at employee level Country of Legal Entity is USA Job Information attributes specific to USA are exposed

Foundation Data – Organization Structures It is possible to define country specific attributes at Legal Entity level Country = USA The USA attributes are specific to the legal entity (they are usually not tracked at employee level) but usually needed for reporting purpose USA country specific attributes are exposed

Foundation Data – Organization Structures Business Unit One Business Unit record represents one operating unit. It is a logical segment of a company representing a specific business function

Foundation Data – Organization Structures Division Division is one of the organizational entities; it can have a hierarchical structure using the 'parent' field

Foundation Data – Organization Structures Department Department foundation object stores all the departments of a company for example Human Resources, Finance, Sale etc. A Department is usually founded by a Cost Center It is possible to configure the application in such way that the link between department and cost center is ignored

Foundation Data – Organization Structures Cost Center Cost Center foundation object stores all the cost centers of a company. Generally cost centers are defined in the ERP Financial system and cost centers information can be imported from this system

Foundation Data – Organization Structures Location Location foundation object stores address information of all physical offices for a company International address formats are supported

Foundation Data – Organization Structures Location Selected Country determines Address format

Foundation Data – Organization Structures Location Group Location groups are primarily used for reporting purposes and can be used to group multiple locations; for example location group Western Europe might contain locations Munich, London and Paris etc.

Foundation Data – Organization Structures Geo Zone Geo Zone can be used to group multiple locations; for example geo zone EMEA contains locations Munich, London, Paris, and Warsaw etc. Geo Zone is commonly used with Pay Range definition to allow for regional pay variations

Job Structures

Foundation Data – Job Structures 2 job structures are available Job Classification Job Function

Foundation Data – Organization Structures Job structures In Job Information, employee is assigned to a Job Classification List of Job Classifications comes from Foundation Data

Foundation Data – Job Structures Job Classification Job Classification foundation object stores all job codes defined in a company and information associated with these job codes Country specific attributes can be configured at Job Classification level

Foundation Data – Job Structures Job Classification Values defined at Job Classification level can be used to populate employee data

Foundation Data – Job Structures When employee is assigned to a given Job Classification Employee’s Job Classification is set to Director of Human Resources

Foundation Data – Job Structures The system can be configured in such way that employee Job Title, Pay Grade, and Standard Weekly Hours are pre populated by values stored in Job Classification Foundation Object Job Title, Pay Grade and Standard Hours of employee are pre populated with vlaues defined for Director of Human Resources Propagation can be configured for most foundation objects as soon as attribute is tracked at employee level

Foundation Data – Job Structures Job Classification Country specific attributes can be defined at Job Classification level

Foundation Data – Job Structures Job Classification Select country from the list Several countries and corresponding attributes can be added if configured Country specific attributes are exposed

Foundation Data – Job Structures Job Function Job Function describes main functions such as HR, Finance... Several Job Classifications can be linked to the same job function.

Pay Structures

Foundation Data – Pay Structures 7 pay structures are available Pay Group Pay Grade Pay Range Pay Component Pay Component Group Pay Calendar Frequency

Foundation Data – Pay Structures Pay structures in Compensation Information An employee belongs to one Pay Group Pay Component Group amount is calculated and displayed An employee can have multiple Pay Components

Foundation Data – Pay Structures Pay Grade is entered in Job Information Pay Grade is entered in Job Information

Foundation Data – Pay Structures Pay Group People who share the same payroll related attributes can be grouped into one pay group, for example, EMEA employees who are all paid by SAP Payroll Pay Groups generally do not span multiple countries Pay Groups are mostly used for payroll interface

Foundation Data – Pay Structures Pay Group

Foundation Data – Pay Structures Pay Grade Pay Grade represents the grading structure that is in place in an organization, and is normally associated with Job Classification Pay Grade is used to regroup Job Classifications sharing same Pay Ranges

Foundation Data – Pay Structures Pay Range Pay Ranges are used to define minimum, median and maximum points of salary range The system calculates compa ratio and range penetration using Pay Ranges Pay Ranges are by default associated to Pay Grade, Geo Zone and Legal Entity

Foundation Data – Pay Structures Pay Range By default Pay Range is defined by Pay Grade, Geo Zone and Legal Entity. This can be changed by configuration.

Foundation Data – Pay Structures Pay Component Pay Component foundation object stores all elements that are paid to employees, like: base salary, bonus target, car allowance etc. An employee may have an unlimited number of Pay Components

Foundation Data – Pay Structures Pay Component have the following attributes Type: Amount or Percentage. If type = Percentage, the amount on which the percentage is applied needs to be defined Recurring: recurring components are components that are paid every month, quarter, year… such as base salary, car allowance etc. Non recurring components are used for exceptional payments Is Earning indicates whether the component is an earning or a deduction

Foundation Data – Pay Structures Pay Component have the following attributes Currency, Frequency, Value: by default, it is possible to define the amount, currency and frequency of the component. In such case, these values can be propagated at employee level e.g. 5000 EUR / month Can Override: if this attribute is set to no, then Currency, Frequency and Value cannot be modified by the user at employee level. The values defined at the component level cannot be changed once the component is assigned to the employee

Foundation Data – Pay Structures Pay Component have the following attributes Target: this attribute enables to identify components that will be used to define target pay such as target bonus Tax Treatment: can be used to indicate if a component is taxable or not

Foundation Data – Pay Structures Pay Component Base Salary is recurring Pay Component. Can Override = Yes Target = No

Foundation Data – Pay Structures Only Recurring Pay Components with Target = No can be selected in Compensation section Recurring = Yes Target = No Can Override = Yes Amount can be changed or entered for Base Salary

Foundation Data – Pay Structures Pay Component Type = Percentage, the amount on which percentage is applied needs to be determined. Can Override = No Target = Yes

Foundation Data – Pay Structures Only Recurring Pay Components with Target = Yes can be selected in Pay Targets section Recurring = Yes Target = Yes Can Override = No Bonus amount cannot be modified

Foundation Data – Pay Structures Pay Component Group A Pay Component Group is an aggregation of Pay Components The amount of a Pay Component group is equal to the sum of the pay components it includes. The system automatically does annualization and currency conversion during the calculation Typically 2 Pay Component Groups are defined : Total Earning Opportunity and Annualized Salary Only one Pay Component Group can be used for Compa Ratio and Range Penetration calculation

Foundation Data – Pay Structures Pay Component Group Total Earning Opportunity amount will be provided in USD It is displayed on Compensation Information UI

Foundation Data – Pay Structures Pay Component Group Compa Ratio = Employee Compensation / Mid-point of Pay Range Range Penetration = (Compensation – Range Min) / (Range Max – Range Min) Various Pay Component Group amounts are calculated and displayed

Foundation Data – Pay Structures Pay Calendar Pay Calendar foundation object stores all the pay periods within a year Pay Calendar can only be created if it is linked to a Pay Group This is mostly used for integration with payroll system

Foundation Data – Pay Structures Pay Calendar

Foundation Data – Pay Structures Frequency Frequency is used by Pay Component foundation object, to indicate the frequency at which a pay component is paid, for example, Annually, Monthly, etc. It is also used at employee level The most frequently used frequencies are delivered by SuccessFactors

Foundation Data – Pay Structures Frequency

Associations

Foundation Data – Pay Structures Associations It is possible to create relationships between Foundation Objects in order to filter lists of values that are proposed to the user Associations are optional and configurable

Foundation Data – Pay Structures Associations Location is associated to Legal Entity

Foundation Data – Pay Structures Associations List of Locations proposed to the user depends on Legal Entity

Data Definition Requirements definition For Referential Data, the customer must determine The Foundation Objects that will be used The countries that will be supported For each structure which standard attributes are used which custom attributes should be added if country specific attributes are needed If relationships need to be built between Foundation Objects The detailed definition of each attribute label, type (date, text, …), maximum length if the attribute is required if a picklist should be associated to the attribute NOTE: Foundation Objects need to be configured first. Referential data should be loaded first.

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