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

SAP Term: incentive plan

• Component: LOD-SF-CMP

• Component Name: Compensation Management

• Description: A reward system that determines how much money an employee receives when they attain a set goal or part of a goal.

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• Key Concepts: 
  Incentive plans are a type of compensation management component in SAP. They are used to reward employees for achieving certain goals or objectives. Incentive plans can be based on individual performance, team performance, or a combination of both. They can also be based on financial metrics such as sales, profits, or customer satisfaction. 
  
  How to use it: 
  Incentive plans can be set up in SAP by creating a plan template and then assigning it to employees. The plan template defines the criteria for the incentive plan, such as the goals or objectives that must be met in order to receive the incentive. Once the plan is assigned to an employee, they can track their progress towards meeting the criteria and receive their incentive when they have achieved the goals. 
  
  Tips & Tricks: 
  When setting up an incentive plan in SAP, it is important to ensure that the criteria are clear and achievable. It is also important to ensure that the incentives are meaningful and motivating for employees. Additionally, it is important to track employee progress towards meeting the criteria in order to ensure that they receive their incentive when they have achieved their goals. 
  
  Related Information: 
  For more information about setting up and managing incentive plans in SAP, please refer to the SAP Help Portal or contact your local SAP support team.