What is weighted average in SAP PA-CM - Compensation Management?

SAP Term: weighted average

• Component: PA-CM

• Component Name: Compensation Management

• Description: Weighted Average is the salary that represents the total salaries of all employees in a particular job, divided by the number of employees. It is a good indicator of competitiveness because it relates to the salaries that employees are actually being paid.

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• Key Concepts: 
  Weighted average is a calculation used in SAP's PA-CM Compensation Management component to determine the average of a set of values, where each value has a different weight or importance. The weighted average calculation takes into account the relative importance of each value in the set, and assigns a greater weight to values that are more important. 
  
  How to use it: 
  Weighted average can be used in SAP's PA-CM Compensation Management component to calculate the average of a set of values. To calculate the weighted average, first assign a weight to each value in the set. Then, multiply each value by its weight and add up all the results. Finally, divide the sum by the total weight of all the values. 
  
  Tips & Tricks: 
  When calculating weighted averages, it is important to make sure that all weights add up to 1 (or 100%). This ensures that all values in the set are taken into account when calculating the average. 
  
  Related Information: 
  Weighted averages can also be used in other areas of SAP, such as inventory management and financial reporting. For more information on how to use weighted averages in SAP, please refer to SAP's official documentation.