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

SAP Term: discretionary bonus

• Component: LOD-SF-CMP

• Component Name: Compensation Management

• Description: Additional benefit given to an employee at the manager's option.

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• Key Concepts: 
  Discretionary bonus is a type of compensation that is awarded to employees at the discretion of the employer. It is not part of an employee's regular salary or wages, and is usually given as a reward for exceptional performance or for meeting certain goals. 
  
  How to use it: 
  In SAP, discretionary bonuses are managed through the Compensation Management component. This component allows employers to set up bonus plans and award bonuses to employees based on their performance. The bonus amount can be determined by the employer, and can be paid out in a lump sum or in installments. 
  
  Tips & Tricks: 
  When setting up a discretionary bonus plan, it is important to ensure that the criteria for awarding bonuses are clearly defined and communicated to employees. This will help ensure that bonuses are awarded fairly and consistently. 
  
  Related Information: 
  For more information on how to use the Compensation Management component in SAP, please refer to the official SAP documentation.