What is variable pay in SAP LOD-SF-EC - Employee Central?

SAP Term: variable pay

• Component: LOD-SF-EC

• Component Name: Employee Central

• Description: An element of an employee's compensation that is subject to management discretion and generally tied to the performance of the employee and/or the company.

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• Key Concepts: 
  Variable pay is a type of compensation that is based on performance or other criteria. It is a form of incentive pay that is used to reward employees for meeting or exceeding certain goals. It can be used to motivate employees to work harder and achieve better results. 
  
  How to use it: 
  In SAP Employee Central, variable pay can be used to reward employees for meeting or exceeding certain goals. The system allows employers to set up different types of variable pay plans, such as performance-based bonuses, spot awards, and recognition awards. Employers can also set up different criteria for each type of plan, such as sales targets, customer satisfaction ratings, or other metrics. 
  
  Tips & Tricks: 
  When setting up variable pay plans in SAP Employee Central, it is important to ensure that the criteria are clear and measurable. This will help ensure that the plans are fair and effective in motivating employees. It is also important to ensure that the plans are regularly reviewed and updated to reflect changing business needs. 
  
  Related Information: 
  For more information on setting up variable pay plans in SAP Employee Central, please refer to the official documentation here: https://help.sap.com/viewer/product/SAP_EMPLOYEE_CENTRAL/1711/en-US/f3d7f9a8b2c14e6f9a7d3c8b2f5e4d1a.html