smartHR Enterprise Compensation Management (ECM) is a preconfigured template using SAP HCM, enabling customers to streamline the process for handling compensation and bonus reviews.

ECM enables organisations to completely get away from the traditional Excel based payroll adjustment/simulation and bonus distribution models, which are particularly error prone due to the significant logistic and multiple manual updating requirements to complete the process.

ECM uses the web based functionality available in Manager Self Service (MSS).  Managers can update their employees’ salaries or bonuses directly via MSS.   ECM enables centrally managed pay adjustment targets or bonus pools to be distributed down through the various organisational units.   Compliance with the centrally defined targets be can continuously monitored and reported upon.   Pay and bonus levels can be approved by management and/or HR.    Approved levels then automatically update the payroll system, thus enabling a process where all pay and bonus related changes are documented and transparent, supporting SOX and internal control requirements, combined with a reduction of the significant risk of error from manual data entry.

The standard smartHR ECM template includes the following:

• Compensation Budgeting (control the compensation process by connecting budget targets to different reviews)
• Salary review with approval (planning and approval of Yearly reviews), for example merit-based annual or hourly wage increase
• Bonus review with approval (planning and approval of Bonus reviews), for example individual performance-based or profit-sharing bonus.
• Off Cycle Bonus with approval (The off-cycle payments functionality enables you to perform one-time payments without having to wait until the next payroll period)
• Predefined guidelines to match your requirements (such as comp. ratio and reference salary comparison)
• Total Compensation Form (in PDF form and accessible in ESS for employees to monitor  all received compensation components during a given period)

 As an option the following customer specific functionality can be provided:

• Dynamic customer-specific Business Intelligence (BI) reports via MSS
• Specific solutions with regards to union requirements
• Specific solutions connected to deviation of compensation costs
• Talent Management compatibility (grading and appraisal connected to your compensation process)