What is incentive wages in SAP LE - Logistics Execution?

SAP Term: incentive wages

• Component: LE

• Component Name: Logistics Execution

• Description: A calculation of wages based on productivity. In the WM application component, this calculation is based on the time required to process transfer orders. For this calculation, the planned time is compared to the actual processing time, that is the start to end time.

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• Key Concepts: 
  Incentive wages are a type of wage payment system used in SAP Logistics Execution (LE) to reward employees for meeting certain performance criteria. This system is based on the idea that employees should be rewarded for their efforts and that their performance should be taken into account when determining their wages. The incentive wage system is designed to motivate employees to work harder and more efficiently, resulting in increased productivity and profitability for the company. 
  
  How to use it: 
  In SAP LE, incentive wages are set up by defining the criteria for payment and the amount of the incentive wage. This can be done by setting up a wage type in the payroll system and assigning it to the employee or group of employees who will receive the incentive wage. The criteria for payment can include factors such as number of orders completed, number of hours worked, or any other performance-based criteria. Once the criteria have been set up, the incentive wage will be automatically calculated and paid out to the employee or group of employees who meet the criteria. 
  
  Tips & Tricks: 
  When setting up an incentive wage system in SAP LE, it is important to ensure that the criteria are clearly defined and that they are achievable. It is also important to ensure that the incentive wage is fair and reasonable so that employees are motivated to work hard and achieve their goals. Additionally, it is important to monitor the performance of employees who are receiving an incentive wage so that any changes in performance can be addressed quickly. 
  
  Related Information: 
  Incentive wages are just one type of wage payment system used in SAP LE. Other types of wage payment systems include fixed wages, variable wages, and piece-rate wages. Additionally, SAP LE also offers a range of other features such as time management, payroll processing, and reporting tools which can help companies manage their workforce more effectively.