What is compensation structure in SAP SRD-HR-CMS - HCM-Compensation?

SAP Term: compensation structure

• Component: SRD-HR-CMS

• Component Name: HCM-Compensation

• Description: A collection of remuneration grades. Grades may be points, as in the case of collective bargaining agreements, or ranges.

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• Key Concepts: 
  Compensation structure is a feature of SAP Human Capital Management (HCM) that allows organizations to define and manage their compensation plans. It enables users to create and manage salary structures, bonus plans, and other compensation-related elements. It also provides the ability to track and analyze employee compensation data.
  
  How to use it: 
  To use the compensation structure feature, users must first create a salary structure. This is done by defining the salary components, such as base pay, bonuses, and other allowances. Once the salary structure is created, users can then assign it to employees or groups of employees. They can also set up bonus plans and other compensation-related elements.
  
  Tips & Tricks: 
  When creating a salary structure, it is important to consider the organization’s goals and objectives. This will help ensure that the structure is tailored to meet the organization’s needs. Additionally, it is important to review the salary structure regularly to ensure that it remains up-to-date with changing market conditions.
  
  Related Information: 
  The compensation structure feature is part of SAP HCM’s Compensation Management System (CMS). It is closely related to other features such as payroll processing, performance management, and workforce analytics. Additionally, it can be integrated with other SAP modules such as Financial Accounting (FI) and Controlling (CO).