1. Foundation Data Workshop

2. Agenda Key Principles Organization Structures Job Structures
Pay Structures
Associations

3. Key Principles

4. 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

5. 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

6. 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

7. Organization Structures

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

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

16. 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

17. 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

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

19. Foundation Data – Organization Structures
Location
Selected Country determines Address format

20. 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.

21. 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

22. Job Structures

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

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

25. 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

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

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

28. 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

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

30. 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

31. 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.

32. Pay Structures

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

34. 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

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

36. 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

37. Foundation Data – Pay Structures
Pay Group

38. 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

39. 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

40. 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.

41. 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

42. 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

43. 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 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

44. 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

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

46. 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

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

48. 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

49. 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

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

51. 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

52. 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

53. Foundation Data – Pay Structures
Pay Calendar

54. 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

55. Foundation Data – Pay Structures
Frequency

56. Associations

57. 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

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

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

60. 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.

61. Questions ?