1.0 Overview
Compensation reports is part of the HR Data domain and it is composed of 3 reports. Data came from Compensation tools: Success Factor module Compensation Easy Comp. The aim of theses reports is to make data relating to the Compensation Campaign available to managers and HR. They can follow the progress of the campaign with Progress Status report and look into Merit and Variable pay data. Variable compensation is the part of total cash compensation that will vary in amount from year to year considering the performance of the employee individually, the Entity and the Group. There are multiple types of variable compensation and recognition programs that can be short term (evaluation of achievements and performance less than or one year) or long term (evaluation cycle longer than one year) as well different considering the type of program – is it local or group-wide. The Compensation Campaign is held every year in March. |
HR - Team Reward & Self Services Support Team Managers *Compensation data is not available for Non-HR scope |
Target Users: HR - Team Reward & Self Services Support Team and Managers |
VERSION | DATE | MODIFIED BY | DESCRIPTION |
0.01 | 04.10.2023 | Emma Glasson | Initial draft |
|
2.0 Business Process
1) Annual salary review
Annual salary review is part of the Compensation campaign (usually in March/April of each year) salaries are being reviewed by the Line managers for alignment with pay for performance, internal pay fairness and external market competitiveness. During Compensation Campaign Line managers recommend salary increases for direct reports within allocated Total Merit Budget that is given by the COMEX each year depending of the group performance.
2) Variable compensation :
Non Cadre employee :
Locally Graded Employees (S14 and below) are eligible to participate in the Global Performance Sharing program intended to provide a motivational element that recognizes employees' contributions by involving them in the Group's results at the global level, thereby strengthening their sense of belonging to the Solvay Group.
Besides that, specific Short Term Incentive programs at local (country) or GBU level can be prevalent and are intended to recognize individual or team achievements, similar to the objectives of the Solvay STI plan.
Cadre employee :
A) Short Term Incentive (STI) plan
All S15 and above graded employees (except employees on Solvay’s Sales Incentive Plan - see below) are eligible to participate in the Solvay STI program, which is designed to reward employees for the results delivered by individuals, by teams, and by the Group as a whole, thus reinforcing our purpose and working as ONE Team.
The STI Bonus Target is determined as a percentage of annual base salary for positions graded at S15 and above and has been set by region and grade. For grades S23 and above, the @Target percentage of annual base salary is set globally and is the same in all countries.
STI Targets for eligible participants as a percent of Annual base salary:
The payout of Solvay STI plan is based on the achievement of predetermined annual Group and Entity specific goals as well as individual objectives. The weight of these elements varies by the grade of the employee. Since 2022 the link between STI payout and our progress towards One Planet objectives is being strengthened by linking 15% of total STI results to One Planet progress and this equally applies to all Employee categories participating in the Plan.
B) Sales Incentive Plan (SIP) - Commercial team ONLY
Solvay is customer obsessed and your role, as part of the Commercial team, is key to bond with our clients, ensuring that we create long-term shared value and top line growth. To support and reward those efforts, the leadership and the significant contributions, a new Solvay Global Sales Incentive Plan (SIP) has been recently implemented for the professional development and personal motivation of Solvay’s Commercial teams.
C) Long Term Incentive plans
The purpose of the Long Term Incentive plans is to align compensation, decisions and interests of our senior leaders with Solvay's long term strategy and the company’s sustained performance. Currently, these plans are applicable to grades S23 and above.
3) Recognition programs
Recognition programs are periodical or ad-hoc (as needed, "spot") award programs that can be monetary or non-monetary programs to formally recognize an achievement, a performance, a behavior or celebrate the success of a particular initiative, project or individual contribution.
There is a wide spectrum of recognition programs in Solvay that are usually GBU or country specific, with the exception of the Solvay Special Recognition Award program, which is consistent around the globe in multiple GBUs/Functions.
The Solvay Special Recognition Award program is designed to provide a cash vehicle for recognizing individual employees or small teams for outstanding achievement that clearly demonstrates elements of Solvay Management and People Models.
Business Processes :
Exemple of a compensation campaign timing :
3.0 Application Feature Overview
| Reports | Definition | Prompts | BW Workbook Query | Query Technical Name |
|---|---|---|---|---|
Compensation - MERIT data | Report linked to MERIT data. | Functional Roles Calendar Year | n.a | BW_QRY_CPHRCOMP01_0001 |
| Compensation - Progress Status | Report to monitor progress of the compensation campaign. | n.a | BW_QRY_CPHRCOMP01_0003 | |
| Compensation - Variable Pay Data | Report linked to STI/SIP plan data. | n.a | BW_QRY_CPHRCOMP01_0002 |
mandatory field
4.0 Functional Specification
4.1 General Data/Calculations
Please find bellow general dimension, commun to all BW HR reports:
| Dimension | Definition |
Company Code | Company code to which an employee belongs on the time period selected in the report |
Country of the company | Country of company where the employee has his employment contract |
Calendar | Time dimensions available: Day, Month, Year, Year/Month |
Division (Entity) | Division (former entity) to which an employee belongs on the time period selected in the report |
Employee NR (NS) Employee PERN | Employee payroll number |
Employee status | Active, Active Leave, Inactive Leave Dormant, reported No Show Terminated, Inactive |
Employment status | Valid for historical data - the period before 1 November 2020. Equivalent to the current dimension Employee status |
Employee sub-group grouping (Gr) | Identification of employee by:
The employee sub-group grouping is a grouping definition of the employment type. |
Location Grp (Site) | Employee’s site |
Person ID | Unique identifier code for an employee. EC number. (person name available in the text option for this dimension) |
User Name | User account name (to access system/tool) |
4.2 Process Detail
4.2.1. Report/Process Definition
| Domain | HR |
|---|---|
| Application | BW Compensation queries |
| Provider | CPHRCOMP |
| Existing Documentation |
4.2.2. KPI's/Calculations/Indicators
Compensation - MERIT data:
Indicatores/KPI's | Definition | Calculation/Extraction of data |
|---|---|---|
| Current Salary (EUR) | Current salary in EUR | |
| Current Salary | Current salary in local currency | |
| Current TCT CR % | ||
| Merit Gdline Low EUR | Each year the COMEX is given a MERIT guideline for the group and then to each GBU and function following the Year group results. This is a range comprising a lowest and a highest amount. This field provide the lowest Merit amount that can be received in EUR. | |
| Merit Guidelines Low | This field provide the lowest Merit amount that can be received in local country currency. | |
| Merit Gdline Hgh EUR | This field provide the highest Merit amount that can be received in EUR. | |
| Merit Guideline High | This field provide the highest Merit amount that can be received in country local currency. | |
| Merit Proposal (EUR) | Proposition done by the manager to the employee for his Merit bonus in EUR. | |
| Merit Proposal | Proposition done by the manager to the employee for his Merit bonus in country local currency. | |
| Merit Proposal % | Merit proposal in a %. | |
| Lump Sum (EUR) | When the employee ratio is above 120%, the manager can propose a Lump Sum instead of a Merit increased. It's not a salary increase but a one shot payement once during the year link to Merit. | |
| Lump Sum | in Country local currency. | |
| Lump Sum % | % of the current salary propose as a Lump Sum. | |
| Adjustment (EUR) | ||
| Adjustment | ||
| Adjustment % | ||
| New Salary (EUR) | Salary after compensation in EUR | Current Salary (EUR) + Merit Proposal (EUR) + Lump Sum (EUR) |
| New Salary in Local | Salary after compensation in country local currency | |
| New TCT CR % | ||
| Total Increase EUR | Merit Proposal (EUR) + Lump Sum (EUR) | |
| Total Increase | ||
| Total Increase % | ||
| Prop Inc vs Std Inc% | ||
| MERIT Budget Assigned (EUR) | ||
| MERIT Budget Used (EUR) | ||
| MERIT Budget Remaining (EUR) | ||
| Compensation Group B | ||
| Comp Group Budget | ||
| Compensation Budget | ||
| Standard Increase(%) | ||
| Mandatory Increase % | ||
| Target STI | ||
| Current Compa Ratio% | ||
| New Compa Ratio % | ||
| New Salary in Local | ||
| Total Increase % | ||
| Total Increase |
Compensation - Progress Status:
Indicatores/KPI's | Definition | Calculation/Extraction of data |
|---|---|---|
| Number of Compensations | ||
| Number Completed | Number of Compensation completed. | |
| Completed % | ||
| Variable Pay Budget Assigned (EUR) | ||
| Variable Pay Budget Used (EUR) | ||
| Variable Pay Budget Remaining (EUR) | ||
| MERIT Budget Assigned (EUR) | same as previous report ?? | |
| MERIT Budget Used (EUR) | same as previous report ?? | |
| MERIT Budget Remaining (EUR) | same as previous report ?? |
Compensation - Variable Pay Data:
Indicatores/KPI's | Definition | Calculation/Extraction of data |
|---|---|---|
| Prorated Target % | What are we looking for ? Why has this KPI been created/developed? What is the goal of monitoring this data ? | How is the calculation, or if it's a program what are the steps or how the data is extracted if it's by files |
| STI/SIP Budget | ||
| STI/SIP Budget EUR | ||
| Current Salary Prorated (EUR) | ||
| Current Salary Prorated | ||
| Total Pro.Target EUR | ||
| Total Prorat. Target | ||
| Indiv. Target EUR | ||
| Individual Target | ||
| Ind Reco Payout Fact | ||
| Ind Reco Payout EUR | ||
| Ind Reco Payout | ||
| Entity Target EUR | ||
| Entity Target Amount | ||
| Entity Calculated EUR | ||
| Entity Calculat. Amount | ||
| Pror. Entity Payout EUR | ||
| Prorated Entity Payout | ||
| Group Target EUR | ||
| Group Target Amount | ||
| Group Calculated EUR | ||
| Group Calculated Amount | ||
| Pror. Group Payout EUR | ||
| Prorated Group Payout | ||
| Tot. Incent. Payout | ||
| Tot Incent. Payout | ||
| Payout as % of Targe | ||
| Payout as % of Base | ||
| Customer Sales Factor | ||
| Entity Factor | ||
| Group Factor | ||
| EPP Budget (EUR) | ||
| EPP Budget | ||
| Variable Pay Budget Assigned (EUR) | ||
| Variable Pay Budget Used (EUR) | ||
| Variable Pay Budget Remaining (EUR) |
5.0 Non-functional Descriptions
5.1 Usability
as per standards
5.2 Regulatory Compliance
Reports that contain sensitive data: Salary with People names.
GDPR compliant.
5.3 Security
- Only authorised Users be able to access data.
- Data are not yet split between SCO or ECO. The report contains both companies data.
5.4 Performance
as per standards
5.5 Reliability
as per standards
5.6 Scalability
as per standards
5.7 Compatibility
as per standards
5.8 Availability
as per standards
5.9 Refresh of the Data
Only during Compensation campaign period , 4 times per day, 6am, 12pm, 18pm, 24pm CET.