Foundation Data Workshop. 2 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved. Agenda Key Principles

Foundation Data Workshop

2 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved.

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



• 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



• Relationships (aka Associations) relationships to be built depend on the

customer internal organization filters will be automatically created

Legal Entity

Business Unit

Department Department

Cost Center Cost Center

Organization Structures

7


Foundation Data – Organization Structures

• 8 organization structures are available

Legal Entity Business Unit Division Department Cost Center Location Location Group Geo Zone



• 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



• 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



• 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



• Country of Legal Entity determines country specific attributes at employee level

Job Information attributes specific to USA are exposed

Country of Legal Entity is USA



• It is possible to define country specific attributes at Legal Entity level

Country = USA

USA country specific attributes

are exposed



• Business Unit

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



• Division

Division is one of the organizational entities; it can have a hierarchical structure using the 'parent' field



• 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



• 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



• Location

Location foundation object stores address information of all physical offices for a company

International address formats are supported



• Location

Selected Country determines Address

format



• 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.



• 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

22


Foundation Data – Job Structures

• 2 job structures are available

Job Classification Job Function



• Job structures

In Job Information, employee is assigned to a Job Classification

List of Job Classifications

comes from Foundation Data



• 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




Values defined at Job Classification

level can be used to populate employee

data



• When employee is assigned to a given Job Classification

Employee’s Job Classification is set

to Director of Human Resources



• 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




Country specific attributes can be

defined at Job Classification level




Select country from the list

Country specific attributes are

exposed



• 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



• Pay structures in Compensation Information

An employee belongs to one Pay Group

An employee can have multiple Pay Components

Pay Component Group amount is calculated and

displayed



• Pay Grade is entered in Job Information

Pay Grade is entered in Job Information



• 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



• Pay Group



• 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



• 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



• Pay Range

By default Pay Range is defined by Pay Grade, Geo Zone and Legal

Entity.This can be changed by

configuration.



• 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



• 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




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 levele.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




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



• Pay Component

Base Salary is recurring Pay Component.

Can Override = Yes

Target = No



• Only Recurring Pay Components with Target = No can be selected in Compensation section

Recurring = Yes Target = No

Can Override = YesAmount can be changed

or entered for Base Salary



• Pay Component

Can Override = No

Target = Yes

Type = Percentage, the amount on which

percentage is applied needs to be determined.



• Only Recurring Pay Components with Target = Yes can be selected in Pay Targets section

Recurring = YesTarget = Yes

Can Override = NoBonus amount cannot be

modified



• 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




Total Earning Opportunity amount will be provided in

USD

It is displayed on Compensation Information

UI




Various Pay Component Group amounts are

calculated and displayed

Compa Ratio = Employee Compensation / Mid-point

of Pay RangeRange Penetration = (Compensation – Range Min)

/ (Range Max – Range Min)



• 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



• Pay Calendar



• 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



• Frequency

Associations



• 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



• Associations

Location is associated to Legal Entity



• Associations

List of Locations proposed to the user depends on

Legal Entity


Data DefinitionRequirements 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.


Questions

?

Thank You


Documents

Foundation Data Workshop. 2 SuccessFactors Proprietary and Confidential © 2012 SuccessFactors, An SAP Company. All rights reserved. Agenda Key Principles