What is cliff vesting in SAP PA-CM - Compensation Management?

SAP Term: cliff vesting

• Component: PA-CM

• Component Name: Compensation Management

• Description: A form of vesting that implies that, for example, all awards vest at once after two years.

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• Key Concepts: 
  Cliff vesting is a type of vesting schedule used in employee compensation plans. It is a way of granting employees access to their benefits over time, rather than all at once. With cliff vesting, employees must wait a certain amount of time before they can access their benefits. After the waiting period, they are granted full access to their benefits. 
  
  How to use it: 
  Cliff vesting is used in SAP's PA-CM Compensation Management component. This component allows employers to set up and manage employee compensation plans. Employers can use cliff vesting to set up a vesting schedule for their employees' benefits. This allows them to control when and how much of the benefit their employees can access. 
  
  Tips & Tricks: 
  When setting up a cliff vesting schedule, employers should consider the length of the waiting period and the amount of benefit that will be granted after the waiting period has ended. Employers should also consider how long they want the vesting schedule to last and how often they want to review it. 
  
  Related Information: 
  Cliff vesting is just one type of vesting schedule that employers can use in SAP's PA-CM Compensation Management component. Other types of vesting schedules include graded vesting and accelerated vesting. Employers should consider which type of vesting schedule best fits their needs before setting up a plan in SAP's PA-CM Compensation Management component.