What is retention allowance in SAP PSM-FG - Functions for U.S. Federal Government?

SAP Term: retention allowance

• Component: PSM-FG

• Component Name: Functions for U.S. Federal Government

• Description: The annual total dollar amount up to 25 percent of basic pay paid to an essential employee with unusually high qualifications or special skills in those cases where the agency determines that the employee would be likely to leave Federal employment if no allowance were paid.

Smart SAP Assistant

• Key Concepts: 
  Retention allowance is a feature of the SAP PSM-FG Functions for U.S. Federal Government component that allows an employer to pay an employee a bonus for staying with the company for a certain period of time. This bonus is typically paid out in addition to the employee's regular salary and is meant to incentivize them to remain with the company. 
  
  How to use it: 
  Retention allowance can be set up in SAP by navigating to the “Retention Allowance” tab in the PSM-FG Functions for U.S. Federal Government component. From there, you can enter the details of the allowance, such as the amount, duration, and payment frequency. Once these details are entered, you can save the allowance and it will be applied to any employee who meets the criteria. 
  
  Tips & Tricks: 
  When setting up a retention allowance, it is important to ensure that all of the details are accurate and up-to-date. Additionally, it is important to keep track of any changes that may occur over time, such as changes in payment frequency or duration. 
  
  Related Information: 
  For more information on setting up retention allowances in SAP, please refer to the official SAP documentation on PSM-FG Functions for U.S. Federal Government. Additionally, you can find more information on retention allowances in general by searching online or consulting with a financial advisor.