What is market movement rate in SAP PA-CM - Compensation Management?

SAP Term: market movement rate

• Component: PA-CM

• Component Name: Compensation Management

• Description: Market movement rate is a percentage that represents the average market adjustment for pay increases for a specific period of time.

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• Key Concepts: 
  Market movement rate is a feature of SAP’s Compensation Management (PA-CM) module. It allows companies to adjust employee salaries based on changes in the market rate for a particular job or position. The market movement rate is calculated by comparing the current market rate for a job or position to the rate that was in effect when the employee was hired. 
  
  How to Use It: 
  The market movement rate can be used to adjust employee salaries when the market rate for their job or position has changed. This adjustment can be done manually or automatically, depending on the company’s preferences. To manually adjust an employee’s salary, the user must enter the new market rate and the date of the adjustment into the system. The system will then calculate the difference between the current and previous market rates and apply it to the employee’s salary. 
  
  Tips & Tricks: 
  It is important to keep track of changes in the market rate for each job or position in order to ensure that employees are being paid fairly. Companies should also consider setting up an automated system for adjusting salaries based on changes in the market rate. This will help ensure that employees are always being paid according to current market rates. 
  
  Related Information: 
  The SAP Compensation Management (PA-CM) module also includes features such as salary planning, performance management, and bonus calculation. These features can be used in conjunction with the market movement rate feature to ensure that employees are being paid fairly and accurately.