Compensation Planning

Metrics Pack
SuccessFactors NA

Workforce Analytics
Measure and Dimension Definitions
Compensation Planning Metrics Pack | NA www.successfactors.com

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Table of Contents
1. Overview ____________________________________________________________________________ 4

2. Drill to Detail _________________________________________________________________________ 4

3. Data Graphic _________________________________________________________________________ 5

4. Base Input Measures __________________________________________________________________ 6

5. Reporting Structures __________________________________________________________________ 8

5.1 Time Dimensions ......................................................................................................................................... 8

5.2 Structural Dimensions ................................................................................................................................. 8
5.3 Employment Dimensions ............................................................................................................................. 9

6. Result Measures _____________________________________________________________________ 10

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1. Overview
Monitoring compensation efficiently and effectively is a key issue for organizations wanting to maintain the balance
between costs and providing competitive compensation packages to employees.

Compensation measures relate to the volume of wages, bonuses and other amounts paid to employees for their
efforts. Equity measures relate to stock options and other incentives granted to and exercised by employees as
part of their overall compensation.

Key business questions organizations will be able to answer through this metrics pack include:
How does average annual salary compare across organizational segments?
What is the relative amount and frequency of employee pay adjustments across our organization?
How much extra compensation do we pay by promoting internally?
How well is compensation tied to performance within our organization?
What percentage of total compensation is direct compensation versus benefits?

When combined with other metrics packs, organizations will gain additional insights into Compensation Planning
and its impact on the business:

Performance Management:
Do we pay for performance against goals?
What is the percent increase in employee performance as the result of every one percent increase in pay?

2. Drill to Detail
Drill to Detail functionality is provided via the SuccessFactors website and allows users to build data queries that
return the details of the individual employees meeting the criteria of the query. Using these results and the
standard website Query Workspace, analytical users can see how the transactional data feeds they provide to
SuccessFactors are transformed into the metrics presented on their Human Capital website.

Drill to Detail enables power users to quickly isolate individual pieces of data and to verify which employee data
records are included within a particular measure. It is also a valuable tool for project teams who routinely conduct
verification tasks via the website or who are required to handle requests from casual website users for
transactional information.

The Drill to Detail functionality (if applicable) is represented within this document using the following symbol .

Note: If the employee has multiple distinct contributions towards a metric (e.g. two absences within the same
month) there are different ways in which this can be displayed within the drill to detail output. In these instances
the result may not match the counts that are being drill to detail.

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3. Data Graphic

The following diagram provides a summary view of the Compensation Planning measurement framework. Denotes Drill to Detail functionality (if applicable).
Source Data Fields Base Input Measures Result Measures
Compensation Data Number of Employees (Compensation) Final Annual Salary
User ID Number of Employees Derived Input Measures Total Pay
Gender ID - Eligible for Merit #
n/a Total Increase
Future Leader ID - Comp-Ratio recorded #
Total Average Annual Salary
Impact of Loss ID - Eligible for Stock #
Risk of Loss ID Average Comp-Ratio
- Eligible for Options #
Managerial ID - Lump Sum Payment recorded # Merit % of Annual Salary
Manager ID - Compensation Adjustment recorded # Lump Sum % of Annual Salary
Division ID - Promotion Pay recorded # Adjustment % of Annual Salary
Department ID Total Current Annual Salary1 Promotion % of Annual Salary
Location ID Total Target Amount Average Stock
SuccessFactors Data Transformation

Merit Guideline ID
Lump Sum Average Options
Salary
Merit Average days since Last Pay Increase
Total Target
Final Payout Adjustment % of Target Payout
Lump Sum Promotion Pay Total % Increase
Merit Total Stock
Average Lump Sum Payment per Employee
Adjustment Total Options Average Adjustment per Employee
Promotion Pay Comp-Ratio
Total Stock Average Promotion Pay per Employee
Range Penetration Average Merit per Employee
Total Options
Comp-Ratio Total Days since Last Pay Increase Average Stock per FTE
Range Penetration Comp-Ratio - Terminations Average Options per FTE
Corporate Payout Total Days Since Last Pay Increase per Termination
Individual Guideline Dimensions/Hierarchies
Average Comp-Ratio per Termination
Individual % Payout
Time Period / Calendar Total Pay per FTE
Time Period / Fiscal Final Annual Salary per FTE
Configuration Data
Hierarchy 1 (Organizational Unit)
Codes & Descriptions Promotion Pay per FTE
Hierarchy 2 (eg. Location)
Reporting Structures Promotion Pay per Promotion
Future Leader
Impact of Loss
Risk of Loss

1 Total Workforce Annual Salary will be sourced from Core Workforce and Mobility Analytics. If unavailable, Annual Salary from Compensation Planning Analytics will be used.
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4. Base Input Measures

The Compensation Planning measurement framework supports the generation of the following Base Input

Measures. Denotes Drill to Detail functionality (if applicable).

Measure
Base Input Measure Description
Category

Number of Employees (Compensation) The number of employees in the
Compensation module.
#
Number of Employees Eligible for Merit The number of employees eligible for Merit
during the reporting period.
Number of Employees (Comp-Ratio recorded) The number of employees that have a
#
Comp-Ratio value recorded during the
reporting period.
#
Number of Employees Eligible for Stock The number of employees eligible for Stock
during the reporting period.
#
Number of Employees Eligible for Options The number of employees eligible for
Options during the reporting period.
Number of Employees (Lump Sum Payment The number of employees that have a
#
recorded) Lump Sum Payment recorded during the
reporting period.
Number of Employees (Compensation The number of employees that have a
#
Adjustment recorded) Compensation Adjustment recorded during
the reporting period.

Workforce Number of Employees (Promotion Pay The number of employees that have a
#
Compensation recorded) Promotion Pay recorded during the
and Benefits reporting period.
Total Current Annual Salary (Restricted Input) The combined annual salary for all
employees at the end of the reporting
period.

Total Target Amount The sum of each employee's Incentive
Plan Target amount.

Lump Sum The total amount of Lump Sum Payment
during the reporting period.

Merit The total Merit amount during the reporting
period.

Adjustment The total amount of Adjustment during the
reporting period.

Promotion Pay The total amount of Promotion Pay
payments during the reporting period.

Total Stock The number of restricted stock grants that
have been granted during the period.

Total Options The number of stock options that have
been granted during the period.

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Comp-Ratio Comparison between an employees actual
base salary and the midpoint of their salary
structure.

Range Penetration The total range penetration during the
reporting period.

Total Days Since Last Pay Increase The total number of days since the last pay
increase.
Comp-Ratio - Terminations Comparison between an employees actual
base salary and the midpoint of their salary
structure at the time of termination.

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5. Reporting Structures
The Compensation Planning measurement framework supports the generation of the following dimension
hierarchies.

Dimension Dimension /
Description
Category Hierarchy
Time Period / Allows analysis of measures across calendar years with breakdowns at
Calendar quarter and month level.
Time
Allows analysis of measures across fiscal years with breakdowns at
Time Period / Fiscal
quarter and month level.
Hierarchy 1 Allows analysis of measures across the organizations reporting
(Organizational Unit) structure with breakdowns for each level in the structure tree.
Structure Allows analysis of measures across another of the organizations
Hierarchy 2
reporting structures with breakdowns for each level in the structure
(e.g. Location)
tree.
Future Leader Allows analysis of measures by an employees future leader status.
Impact of Loss Allows analysis of measures by the impact employees make when they
Employment
leave the organization.
Risk of Loss Allows analysis of measures according to the employees risk of loss.

5.1 Time Dimensions

Time dimensions provide for the breakdown of measure values across consecutive periods of time (years, quarters
and months).

Refer to the Core Workforce and Mobility Metrics Pack for further information and example views of the time period
dimension for a calendar and a fiscal reporting year.

5.2 Structural Dimensions

Structural dimensions provide for the breakdown of measure values across administrative and geographic
structures.

Refer to the Core Workforce and Mobility Metrics Pack for further information and example hierarchies.

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5.3 Employment Dimensions

The standard framework provides a single tree for
each of the following dimensions:

5.3.1 Future Leader

This dimension provides a single breakdown level.
The top of the tree is referred to as All Future
Leaders.

Future Leader Grouping

Yes, a future leader
No, not a future leader
Not Rated

5.3.2 Impact of Loss

This dimension provides a single breakdown level.
The top of the tree is referred to as All Impacts of
Loss.

Impact of Loss Grouping

High
Medium
Low
Not Rated

5.3.3 Risk of Loss

This dimension provides a single breakdown level.
The top of the tree is referred to as All Risks of
Loss.

Risk of Loss Grouping

High
Medium
Low
Not Rated

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6. Result Measures
Base Input Measures and Derived Input Measures are combined in formulas to calculate result measures. Through the specification of formulas combining
both base and derived input measures a rich set of result measures can be calculated.

Sub-
Category Measure Calculation
Category
#
Final Annual Salary Merit + Adjustment + Promotion Pay + Total Workforce Annual Salary

Total Pay Merit + Lump Sum + Adjustment + Promotion Pay + Total Workforce Annual
#
Salary

Total Increase Merit + Lump Sum + Adjustment + Promotion Pay
#
Total Average Annual Salary Total Workforce Annual Salary / Number of Employees (Compensation)
#
Average Comp-Ratio Comp-Ratio / Number of Employees (Comp-Ratio recorded)
#
Merit % of Annual Salary (Merit / Total Workforce Annual Salary ) * 100
#
Lump Sum % of Annual Salary (Lump Sum / Total Workforce Annual Salary ) * 100
#
Adjustment % of Annual Salary (Adjustment / Total Workforce Annual Salary ) * 100
Workforce #
Promotion % of Annual Salary (Promotion Pay / Total Workforce Annual Salary ) * 100
Compensation Compensation
#
and Benefits Average Stock Total Stock / Number of Employees Eligible for Stock
#
Average Options Total Options / Number of Employees Eligible for Options

Average days since Last Pay Increase Total Days Since Last Pay Increase / Number of Employees (Compensation)
#
% of Target Payout (Total Target Amount / Total Workforce Annual Salary ) * 100

Total % Increase (Merit + Lump Sum + Adjustment + Promotion Pay / Total Workforce Annual
#
Salary ) * 100
#
Average Lump Sum Payment per Lump Sum / Number of Employees (Lump Sum Payment recorded)

Employee
#
Average Adjustment per Employee Adjustment / Number of Employees (Compensation Adjustment recorded)
#
Average Promotion Pay per Employee Promotion Pay / Number of Employees (Promotion Pay recorded)

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Sub-
Category Measure Calculation
Category
#
Average Merit per Employee Merit / Number of Employees Eligible for Merit
#
Total Days Since Last Pay Increase per Total Days Since Last Pay Increase at Termination / Terminations

Termination

Average Comp-Ratio per Termination Comp-Ratio Terminations / Terminations

Total Pay per FTE Total Pay / FTE

Final Annual Salary per FTE Final Annual Salary / FTE

Promotion Pay per FTE Promotion Pay / FTE

Average Stock per FTE Total Stock / FTE

Average Options per FTE Total Options / FTE

Promotion Pay per Promotion Promotion Pay / Promotions
# Denotes restricted input

Denotes Drill to Detail functionality (if applicable).

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