In most organizations, compensation statements are system-generated letters that communicate the total compensation approved for an employee. The information provided includes salary, short- and long-term incentives, and other benefits, such as tuition reimbursement, different types of insurance, and retirement plan contributions, among others.
The SAP SuccessFactors HCM suite has an admin tool which allows an administrator to configure a standard statement based on system compensation and variable pay forms. There are advantages and disadvantages to using these standard compensation statements, listed below:
Advantages of standard statements:
- Configured through Admin Tools
- Easy to edit and update text body
- Drag & drop elements
- Rich text editing
- Single image links can be used in the heading
- Displayed field components can have logic (i.e., Display if>0, Hide if Null, Hide if not eligible, etc.)
- Easy to maintain year over year
Disadvantages of standard statements:
- Page layout is static
- Multiple languages require setup of multiple statements
- Can only place a single image on the form, usually the SuccessFactors client logo
- Cannot have a “CEO signature” image
- Cannot embed text/information in the message other than employee name
- Number formatting adheres to that on the compensation planning sheet
- Employee and manager names cannot be easily added anywhere else than in the heading
- Statement spacing often wraps into 2 pages
If the disadvantages of standard statements outweigh the advantages, then you might want to consider using a more flexible custom statement.
What is a custom statement? Simply, a custom statement allows an organization to display more information in more attractive and appealing ways than the current static form provided by SAP SuccessFactors. Custom statements provide employees with compensation statements that reflect the organization’s culture, brand, and business needs.
This is something nearly all compensation clients have asked for, and 3D Results has developed the capability to fulfil these requests.
To help you decide if your organization would benefit from custom statements, here are those advantages and disadvantages for comparison.
Advantages of custom statements:
- Multiple currency and international date formats are handled dynamically
- Multiple logos, graphics, colors
- Multiple text messages based on conditional logic
- Fields are not limited to compensation form data
- Layout can be customized in almost any way
- HTML/CSS can be used to brand statements according to company standards
- Allows a true CEO signature
Disadvantages of custom statements:
- No longer editable in admin tools
- Year over year maintenance required
- Additional scoping and costs may be associated if using multiple forms or variable pay
- Landscape statements only print in portrait format