Retain and Empower Employees with SuccessFactors Compensation Management
The success of any corporate organisation ultimately depends on its employees. The more productive they are, the more innovative they are, the better your company’s chances at taking the lead in your industry. All things being equal, more innovation and more production drive revenue.
If your company culture doesn’t compensate innovative, productive employees for their efforts, costs rise – because employees won’t stay around in such an environment. Without a system to reward highly engaged employees, such as SuccessFactors’ compensation management module, your organisation runs the risk of losing them.
As employee engagement expert Michael Brenner points out, hiring new employees to replace disgruntled ones can increase costs anywhere from 30 to 400 per cent of each employee’s salary. SAP SuccessFactors’ Compensation module, along with its companion module, Succession & Development, can help align these employees with your business strategy through a pay-for-performance culture. Here’s how this module can benefit your organisation:
Take the Guesswork out of Employee Engagement
SAP SuccessFactors Compensation uses leading-edge forecasting and modelling capabilities to find the ‘sweet spot’ that keeps employee pay within your budget while tying employee compensation to bottom-line results. With this module, you can plug in your company objectives, the going rate for each role, and your yearly budget to arrive at bonus pay and long-term incentives (LTIPs) for those employees who help meet your objectives.
As your business goals and challenges shift with the changing times, you can adapt your compensation plan to ensure that you remain on budget. With all the factors that impact compensation already tied into the software’s algorithm, you can stay competitive with other possible offers yet never go over budget on performance-based pay.
Keep Up with Local Compensation Regulations
With SuccessFactors Compensation, corporate organisations can tailor their employee payment arrangements to country- or state-specific statutes. If your company, like so many these days, employs freelance or contract workers, the module can help you reward them for superb performance as well, regardless of where they reside.
Ensure Stability and Growth with SuccessFactors Succession & Career Development
Even with optimum employee engagement driven by rewarding outstanding performance, your organisation will lose a valued employee from time to time. Whether from illness, injury, retirement, or moving away, some employees will leave your company.
Like in sport, a winning business team needs a deep bench. When you take a proactive approach and provide for a ready backup workforce, you can ensure continuity and improvement among your teams.
SuccessFactors Succession & Career Development module can enable you to fill these essential spots quickly while providing your employees with the chance to advance their careers. This tool helps you create development plans with mentoring programs that train current employees to move into other roles seamlessly.
Not only does this module ease the succession process, but it can also provide automated recommendations for employees who have the potential to fill possible openings. Hiring from your in-house teams also helps you trim costs since you won’t need to go through the recruiting, hiring, and onboarding processes.
When your entry-level employees see the potential for advancement your organisation offers, they’ll be less likely to look for greener pastures with one of your competitors. Additionally, these opportunities will likely motivate them to boost their performance in their current role, making them more valuable even now.
Leverage the Power of SuccessFactors, the Single Platform Solution
Compensating superb performance and developing promising employees into better-paying, more challenging roles are two sides of the same coin. SuccessFactors’ developers created all its human capital management modules on a single platform to simplify human resources workflows, engage and provide career advancement for current employees, and have a seamless succession plan for employees who leave the organisation.
SuccessFactors modules share common data to best meet your organisation’s needs, giving your organisation a comprehensive approach to everything from recruitment to retirement. Before you get started with your SuccessFactors suite, though, make sure that you have all the documentation ready. Once you’ve inputted all the data, SuccessFactors will automate many of the tasks you once needed to perform manually.
Create rules that define the performance levels that qualify an employee for raises, bonuses, promotions, or other perks. If you include the Succession & Career Development module in your suite, define the criteria that identify promising employees in each department or field of interest.
Larger organisations might want to assign responsibility for promotions and other rewards to departmental heads rather than HR leadership. Since they are the ones who see their direct reports’ work every day, they are usually a better judge of what criteria constitute an outstanding performance.
Allowing specialists to be the final arbiter is even more essential for highly technical or creative teams since they have expertise in those areas. With SuccessFactors, you can grant them permission to access the files within their respective departments.
Finally, document your organisation’s compensation and succession workflows to ensure that everything works as it should within the tool’s automation feature. Once the system in place, it can save your HR team's time while empowering your employees to perform at their best.
With a culture that rewards those employees who help meet your corporate goals, your organisation will rise to its potential and surpass its competitors. To get started with SuccessFactors Compensation and its companion module, Succession & Career Development, get in touch with the Discovery Consulting team today.