SuccessFactors Compensation
Armando Ortega
Senior Manager, Product Marketing
3100+
Customers
185
Countries
60+
Industries
35
Languages
Enabling Customer Success
Around the World Since 2001
8+
Million Users
Challenges of Compensation Management
More Complexity
•Merit pay
•Lump sum adjustments
•Bonus Pay
Less Satisfaction
Executive
65% of Executives think that performance is
linked to compensation at their company, but
only 38% of employees agree
•Stock Awards
•Focal salary planning
•Off-cycle Adjustments
Employee
As many as 57% of employees don’t understand
how their pay is determined
•Global Currency
•Compliance
Since early 90’s the usage of variable pay in
the US has almost doubled to 80% of all
companies
Source: U.S. Department of Labor Bureau of Labor Statistics
Manager
Only 29% of employees say that when they do a
good job, their performance is rewarded
Source: Watson Wyatt Work, Mercer US compensation practice
SuccessFactors Compensation
Management Overview
Create a high performance culture
Through pay-for-performance, signal your
commitment to high performance, reward
top performers that increases engagement
and retention
All Pay
Components





Optimize your budget and maintain
compliance
Save time and cost, and
eliminate errors
Determine compensation based on
objective performance metrics, ensure
managers stay within their budgets, stop
overpaying low performers and defend your
compensation strategy with objective data
Through an easy-to-use automated
system, comp administrators and
managers save time and costs as
well as reducing errors
Best-in-class Compensation Management Solution
Compliance
Planning and
Pay for
Analysis
Performance
Salary
Bonus
Stock
Promotions
Global Currency
 On individual goals
and performance
 Incentive pay on
various division and
company metrics
 Secure environment
 Compensation audit
trail
 Budget overage rules
and alerts
 Executive and
Manager Dashboards
 Support what-if
scenario planning
 Benchmarking
 Complex calculations
Easy to use | Integrated Talent Management Suite | Self - Service
Benefits at Every Level
Create a high performance culture
Maintain greater plan compliance, plus reduced budget risk
Better return on workforce investment, an organization’s costliest asset
Executives
Increased retention of top performers
Better compensation decision making with suggestions based upon
actual performance and budget data
Managers
 Greater ability to drive productivity with performance-based rewards
Increased engagement and motivation in a pay-for-performance culture
More influence over and understanding of total compensation package
Employee
Seamlessly handle complex compensation rules
Save time through powerful and easy to use admin interface
Admin
Avoid calculation errors and ensure privacy through calculation engine
and secure environment
Compensation as part of SuccessFactors
Integrated Suite is the Most Powerful Solution
SuccessFactors has Strongest
Integrated Talent Management Suite
• 3100+ customers, majority have multiple modules
including goal and performance
• Positioned in Leaders Quadrant for the Gartner’s
Magic Quadrant for EPM Software
• Single code-base organically built resulting in tight
integration and consistent user experience
Insights from Suite drive Powerful
Compensation
Insights based on
• Overall performance ratings by managers and
peers
• Performance on specific goals and competencies
most important to organization
• How critical the position or role is to organization
• Industry benchmarks and similar roles in
organization
Extend the value of your investment in
goal and performance by optimizing
employee compensation
Integrated Pay for Performance Process
Calibration
View ALL Performance and
Compensation data in
Calibration module
Make adjustments in
Calibration module;
write them back in
source forms
Performance Management
Compensation Management
7
SuccessFactors Compensation
Management - Salary
Administrator can easily define eligibility rules for which employees can
Managers
Compensation
Managers
Managers
Merit
Managers
increases
can
can
cancan
view
Administrator
view
view
are
see
their
their
auto-calculated
detailed
additional
allocated
employee
can
performance
details
easily
budget
information
based
set
ofset
their
review
on
the
by
performance
merit
employees
in
the
information
a single
administrator,
guidelines
place
through
rating,
through
and
and
and
which
tight
limits
make
tight
are
receive
a promotion,
merit
increase,
lump
sum
pay
components
Managers
Multi-currency
can promote
support
eligible
to manage
employees
employees
andand
further
inother
different
adjust
countries
their salary
integration
informed
integration
alerted
with
for
managers
Goal
manager
ifmerit
budget
with
and
increase
Employee
can
Performance
adjustments
is
adjust
exceeded
decisions
Profile
Management
such
as
bonus
and
stock
SuccessFactors Compensation
Management - Bonus
Corporate
Administrator
payout can
automatically
easily define
calculated
incentive
based
pay rules
on company
for the company
and division-level
or specific
Incentive pay based on individual as well as corporate goal and performance metrics
metrics
division
SuccessFactors Compensation
Management - Stock
Managers can also easily allocate stock and options based on administrator-set
guidelines and limits
Fully integrated with SuccessFactors Calibration
Pay for performance
SuccessFactors Compensation
Customers are seeing Business Impact
Business Impact Study by Top 3 Management Consulting Firm (n=520)
Business Impact
Average
Compensation Customers
Productivity improvement
2.9%
3.68%
Faster communication of strategy change
1 week
1.5 weeks
Increased time spent on strategic priorities
5.5%
5.65%
Increase in high performers
4.9%
11%
Decrease in low performers
13.9%
16.5%
Decrease in turnover rate
8.9%
12.67%
Business Impact
Add 1% of revenue to the bottom line
Earn 10X return on SuccessFactors investment In one year
Increase engagement and reduce turnover especially for high performers
Shift performance to right through performance discrepancy and pay for performance
Case Study - Vail Resorts
Pay for performance and variable pay calculated based on unique needs of each division
Situation
Vail Resorts has 3 division; mountain, lodging and real estate.
Each division had different pay component ratios for merit, bonus and stock
Each division tied pay to different performance metrics. For example, for the real
estate division tied performance to property units sold whereas mountain division tied
to customer satisfaction.
SuccessFactors
Solution
Calculation engine seamlessly handled multiple complex compensation rules
Supported all pay components of merit, bonus and stock with flexibility to tailor for each
division
Integration with Goal and Performance management allowed for automatic
compensation calculations based on goal completion and performance reviews
Transparency- Empowered executive
and managers to make real time
decisions and check process status
Results
Time savings and Error free– no more
spreadsheets, better approval workflow
and in-built analytics
High Performance Distribution .. And
pay tied to it.
Successful Compensation Management
Customers
“SuccessFactors has been especially helpful with compensation. There was
inconsistency in the way we paid people. Employees hired from outside were often
paid differently than workers in same role who were promoted internally — a disparity
that was more arbitrary than performance-based.”
Brian Reilly, CFO
“I am really happy with compensation. The linkage between performance and
compensation is excellent. It has surpassed my expectations. This is really best in
breed.”
Don Hopkins, VP and CIO
This is an investment in your business so that you can properly manage goals,
performance and tie that all into your compensation in a seamless, efficient, productive
manner so that you can go about your business of growing your company, and that's
really the most important thing that you need to be doing.
Dr. Jay Greenstein, CEO
Select Compensation Management
Customers