What is flexible payout curve in SAP LOD-SF-CMP - Compensation Management?

SAP Term: flexible payout curve

• Component: LOD-SF-CMP

• Component Name: Compensation Management

• Description: A curved line that represents, on a graph, an unlimited number of threshold values, called "points", for the "goal achieved vs payout" percentage used to calculate bonus payouts.

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• Key Concepts: 
  Flexible payout curve is a feature of the SAP Compensation Management component that allows users to customize the payout of compensation plans. This feature allows users to define different payout curves for different types of compensation plans, such as bonus, salary, and stock options. The payout curve can be adjusted to reflect the desired level of reward for each type of plan. 
  
  How to use it: 
  To use the flexible payout curve feature, users must first define the desired payout curve for each type of compensation plan. This can be done by setting the desired payout percentage for each type of plan. Once the desired payout curve is set, users can then adjust the payout percentage for each type of plan as needed. 
  
  Tips & Tricks: 
  When setting up a flexible payout curve, it is important to consider the overall goals of the compensation plan. For example, if the goal is to reward employees for their performance, then a higher payout percentage should be set for higher performing employees. Additionally, it is important to consider how changes in the payout curve will affect other aspects of the compensation plan, such as taxes and employee morale. 
  
  Related Information: 
  For more information on how to use the flexible payout curve feature in SAP Compensation Management, please refer to SAP Help documentation or contact your local SAP representative. Additionally, there are several online resources available that provide detailed information on how to use this feature.