What is bonus plan in SAP LOD-SF-CMP - Compensation Management?

SAP Term: bonus plan

• Component: LOD-SF-CMP

• Component Name: Compensation Management

• Description: A plan for how an employee should receive additional compensation on topof his or her basic compensation, to reflect how well he or she has performed.

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• Key Concepts: 
  A bonus plan is a type of compensation plan used in SAP's Compensation Management component. It is used to reward employees for their performance and loyalty. The bonus plan allows employers to set up a system of rewards based on predetermined criteria, such as performance goals or length of service. 
  
  How to use it: 
  The bonus plan can be used to reward employees for meeting certain goals or milestones. Employers can set up a system of rewards based on predetermined criteria, such as performance goals or length of service. The bonus plan can also be used to reward employees for their loyalty and dedication to the company. 
  
  Tips & Tricks: 
  When setting up a bonus plan, it is important to consider the criteria that will be used to determine the rewards. It is also important to consider the amount of the reward and how it will be distributed among employees. Additionally, employers should ensure that the bonus plan is fair and equitable for all employees. 
  
  Related Information: 
  The bonus plan is part of SAP's Compensation Management component, which also includes other features such as salary planning, job evaluation, and performance management. Additionally, SAP offers a variety of other tools and services related to compensation management, such as payroll processing and employee benefits administration.