What is Compensation Structure in SAP AP-CMP - HCM Compensation Management?

SAP Term: Compensation Structure

• Component: AP-CMP

• Component Name: HCM Compensation Management

• Description: An organized structure of pay grade ranges. A pay grade range reflects the value of tasks and activities in the company. Employees can be assigned to a pay grade range based on the activities they perform. It can be company-specific or can be defined according to pay scale regulations. It comprises classification information, a defined sequence of pay grade ranges including their values, and proposed compensation components.

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• Key Concepts: 
  Compensation Structure is a component of SAP HCM Compensation Management (AP-CMP) that allows organizations to define and manage their compensation plans. It enables users to create and maintain a library of compensation plans, including salary, bonus, and other types of compensation. It also provides the ability to assign these plans to employees and track their performance against the plans. 
  
  How to use it: 
  Compensation Structure can be used to create and maintain a library of compensation plans. This includes setting up salary structures, bonus plans, and other types of compensation. It also allows users to assign these plans to employees and track their performance against the plans. 
  
  Tips & Tricks: 
  When creating a compensation plan, it is important to consider the needs of the organization as well as the goals of the employees. It is also important to ensure that the plan is fair and equitable for all employees. Additionally, it is important to review the plan regularly to ensure that it is still meeting the needs of the organization and its employees. 
  
  Related Information: 
  For more information on SAP HCM Compensation Management (AP-CMP), please visit the SAP Help Portal at https://help.sap.com/viewer/product/SAP_HCM_COMPENSATION_MANAGEMENT/latest/en-US.