Overview of Job Code and Pay Grade.

Usage of Job code – Job code is primary focus on the job attribute not the pay. As my suggestion is
for deriving the pay structure refrain using the job code and use pay grade.

Here the core usage of job code:

1. Mapping the Job roles and responsibilities using the JPB functionality.
2. Mapping the competency so this can be used in talent module
(succession,CDP,GM,PM,learning)
3. Role base learning course assignment.

If you use the job code base pay structure so I can foresee the challenge wherein the employee who
belongs to same kind of job role still his pay structure is different then you may need to create a new
job code so you can assign the pay structure which basically compromise the standard usage of Job
code.

To map the salary structure – SAP suggest use the pay grade as the pay grade has association with
the pay range and other pay attribute. This is purely designed to keep pay structure independent
from the job structure.

E.g. If two employees has performing the similar kind of role still his compensation or pay structure
is different than you can handle the scenario using this.

As you are assigning and using all the talent module functionality using the job code and can manage
the pay related functionality using the pay grade. In longer run this would be standard solution and
this can be integrate any third party payroll system.

Requirement fulfilment:

1. Multiple salary structures for the same country with the Job Code specific Salary Structure
Ans – Using the job code, we can write the business logic to derive the pay structure
however this is not a standard approach. By nature – Job code is primary focus on the
fulfilling the talent solution not the pay hence I can propose using the pay grade and create a
master table wherein we can keep all the structure (not hard code in Business rule) and
using the lookup functionality we can pull the info and set up the comp breakup.
The above mentioned solution we can perform in the job code as well however this is not
suggested by SAP standard practice.
2. Multi country salary structures
Ans – As the job code or Pay grade both are the FO object hence we can create a country
tagging and maintain the country specific pay grade or job code. And as mentioned the
above solution – system will refer the MDF table and then create a comp breakup.
Creating a MDF is my suggestion – as in longer run maintain MDF is much simpler compare
to modifying the hard coded rule.
3. Handle transition from One salary structure to another salary structure with the change of
Job Code due to internal movement
Ans – Yes, we can handle, as system will run the onchange rule and set the pay component
however data keying against the pay component will be manual activity.
 The Hire comp breakup – we can done using the business logic however we need to create a
custom field in jobinfo for CTC entry and then can break it up.
4. Link of Pay Range and ESOP Pay range with the Job Codes.
Ans – We can do however not advisable. IF you use the pay grade functionality then these
functionality will come by default.
5. Prorated amount calculation if the employee has components like variable pay in previous
role and transition to a new salary structure
Ans- Proration calculation would not be possible in one-time pay as this has payout date. As
HR Champion has to manually key the one-time pay (variable pay) into system as there has
no logic to pro-rate the amount. If yes then we can look for workaround.

Questions
1. How should organization configure the successfactors employee central module to meet the
above requirements.
Ans – We should not require any specific configuration. I already have tried answering the
question in the above statements. We should focus on configuring the pay structure, not use
the job structure to derive or define the pay structure.
2. What will be list of master tables that needs to be configured
Ans – Pay component, pay component group, pay grade, pay range, custom MDF table (if we
are automating the creation of pay component creation) or we can hard code at the
business rule level.
Pls note – the below KBA is to understand the pay structure in SAP-SF however until we have
not SAP replication, we never suggest to configure the pay scale area group and all. We
restrict ourselves with the above solution.
Reference: https://blogs.sap.com/2017/03/25/understanding-successfactors-pay-scale-
structure-and-its-related-features/
3. Any third party tools which needs to be integrated with successfactors to meet the above
requirements
Ans – Not needed.
4. What will be required configuration to meet the multi-country requirements
Ans – This is a standard configuration. Only we need to enable the country tagging and while
creating a pay component group, we should ensure the country is correctly tagged.
5. Implications, if any, for: Report requirements, Role-based permissions, Exchange rate
maintenance
Ans – maintenance would be the implication as either we need to maintain the master or
need to maintain the business rules and need to maintain the custom field, if we would like
to break the comp and use the custom flexi basket solution (MDF base).

I have tried to highlight the high level details, however, we can have a further detailed
discussion in solutioning.

KBA: Comp breakup using the business rule.

https://blogs.sap.com/2016/06/14/defaulting-pay-components-and-values-based-on-total-
ctc-in-employee-central/