What is Range-based Compensation Structure in SAP (SRD-HR-CMS - HCM-Compensation)?

SAP Term: Range-based Compensation Structure

• Component: SRD-HR-CMS

• Component Name: HCM-Compensation

• Description: A business option allows you to set up compensation structures that consist of a series of compensation ranges.

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• Key Concepts: 
  Range-based compensation structure is a feature of the SAP SRD-HR-CMS HCM-Compensation component. It allows for the creation of a range of compensation levels for different job roles within an organization. This structure allows for the setting of different salary levels for different job roles, based on the skills and experience required for each role. 
  
  How to use it: 
  To use the range-based compensation structure, an organization must first define the job roles and their associated salary ranges. This can be done by creating a salary range table in the SAP system. Once the salary ranges have been defined, they can be assigned to each job role. The system will then automatically calculate the salary for each job role based on the salary range assigned to it. 
  
  Tips & Tricks: 
  When setting up a range-based compensation structure, it is important to ensure that the salary ranges are appropriate for each job role. It is also important to ensure that the salary ranges are regularly reviewed and updated to reflect changes in market conditions and employee performance. 
  
  Related Information: 
  The range-based compensation structure is just one of many features available in the SAP SRD-HR-CMS HCM-Compensation component. Other features include performance management, bonus management, and employee benefits management.