What is guideline in SAP PA-EC - Enterprise Compensation Management?

SAP Term: guideline

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: A calculation rule that helps you determine the default amount, percentage or number suggested in SAP Manager Self-Service. Additionally, you can define a minimum and/or a maximum limit to be checked against and tell the system how to react when you exceed these limits.

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• Key Concepts: 
  A guideline in SAP PA-EC Enterprise Compensation Management is a set of rules and regulations that define how compensation should be managed. It includes information such as the criteria for awarding bonuses, the amount of salary increases, and the criteria for determining performance ratings. 
  
  How to Use It: 
  Guidelines are used to ensure that compensation is managed in a consistent and fair manner. They provide a framework for managers to use when making decisions about employee compensation. Guidelines can also be used to ensure that employees are rewarded for their performance and contributions to the organization. 
  
  Tips & Tricks: 
  When creating guidelines, it is important to consider the needs of the organization and its employees. Guidelines should be tailored to the specific needs of the organization and should be regularly reviewed and updated as needed. Additionally, it is important to ensure that guidelines are communicated clearly to all employees so that they understand how their compensation will be managed. 
  
  Related Information: 
  SAP PA-EC Enterprise Compensation Management also includes features such as salary planning, bonus planning, and performance management. These features can be used in conjunction with guidelines to ensure that compensation is managed in an effective and efficient manner.