What is 'total compensation' in SAP LOD-SF-CMP - Compensation Management?

total compensation - Overview

• Component: LOD-SF-CMP

• Component Name: Compensation Management

• Description: The aggregate financial benefit an employee receives from a company in return for work performed.

total compensation - Details

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  Key Concepts: 
  Total compensation is a term used to describe the total amount of money an employee receives from their employer. This includes salary, bonuses, stock options, and other forms of compensation. It is important to note that total compensation does not include benefits such as health insurance or vacation time. 
  
  How to use it: 
  The SAP LOD-SF-CMP Compensation Management component allows employers to manage their total compensation packages for employees. This includes setting salary levels, awarding bonuses, and tracking stock options. It also allows employers to track the performance of their employees and adjust their total compensation accordingly. 
  
  Tips & Tricks: 
  When setting up a total compensation package for an employee, it is important to consider the employee’s performance and potential for growth. This will help ensure that the package is fair and competitive. Additionally, employers should review their total compensation packages regularly to ensure they are up-to-date with market trends and competitive salaries. 
  
  Related Information: 
  Total compensation is an important part of any employee’s overall job satisfaction. Employers should be aware of the different types of compensation available and how they can be used to attract and retain top talent. Additionally, employers should consider the tax implications of different types of compensation when creating a total compensation package for an employee.