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

SAP Term: point-based compensation structure

• Component: SRD-HR-CMS

• Component Name: HCM-Compensation

• Description: A compensation structure constructed of a series of discrete points and arranged from minimum to maximum value.

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• Key Concepts: 
  A point-based compensation structure is a type of compensation system used in SAP Human Capital Management (HCM) that assigns points to different job roles and responsibilities. These points are then used to determine the salary of an employee. This system allows for a more equitable and transparent way of determining salaries, as it takes into account the complexity and importance of each role. 
  
  How to use it: 
  In order to use the point-based compensation structure, an organization must first define the job roles and responsibilities that will be assigned points. This can be done by creating a job profile for each role, which outlines the duties and responsibilities associated with it. Once the job profiles have been created, points can be assigned to each role based on its complexity and importance. Finally, these points can be used to determine the salary of an employee. 
  
  Tips & Tricks: 
  When assigning points to job roles, it is important to consider the complexity and importance of each role in order to ensure that salaries are fair and equitable. Additionally, it is important to regularly review and update the point-based compensation structure in order to ensure that it remains up-to-date with changing market conditions. 
  
  Related Information: 
  The point-based compensation structure is part of SAP’s Human Capital Management (HCM) module, which provides organizations with tools for managing their human resources. Other features of HCM include employee self-service, payroll processing, performance management, and talent management.