What is total cash compensation in SAP PA-EC - Enterprise Compensation Management?

SAP Term: total cash compensation

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: Total Cash Compensation is calculated as base salary plus any supplemental cash annual bonus/incentive awards paid over the past year.

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• Key Concepts: 
  Total cash compensation is a term used to describe the total amount of money an employee receives from their employer. This includes salary, bonuses, and other forms of compensation such as stock options or benefits. It is important to note that total cash compensation does not include non-cash benefits such as health insurance or vacation time. 
  
  How to use it: 
  The SAP PA-EC Enterprise Compensation Management component allows employers to manage their total cash compensation for employees. This includes setting salary levels, bonuses, and other forms of compensation. The component also allows employers to track and analyze employee performance and make adjustments to their total cash compensation accordingly. 
  
  Tips & Tricks: 
  When setting total cash compensation for employees, it is important to consider the current market rate for similar positions in the same industry. This will help ensure that employees are being fairly compensated for their work. Additionally, employers should consider the cost of living in the area where the employee is located when setting total cash compensation. 
  
  Related Information: 
  The SAP PA-EC Enterprise Compensation Management component is part of the SAP Human Capital Management suite of products. It can be used in conjunction with other components such as SAP SuccessFactors Performance & Goals and SAP SuccessFactors Compensation & Benefits to create a comprehensive system for managing employee performance and total cash compensation.