A German automotive supplier, established as a global system partner for car manufacturers, had introduced the SuccessFactors human capital management (HCM) system from SAP. After a short time, however, it became clear that the planned increases in efficiency were not being realized. As an external consultant, the current interim manager was tasked with creating the basis for efficient use of SuccessFactors by harmonizing the compensation systems.
Generic job catalog hinders efficient use of SuccessFactors
The company had already identified the cause of the lack of efficiency gains through SuccessFactors. During implementation, a generic job catalog with cluster jobs had been used, which lacked a direct link to the organizational structure and personnel systems. There were also different remuneration and personnel systems, which unnecessarily increased the level of complexity for the planned introduction of additional system modules.
In consultation with the client, the interim manager developed a project plan with the following milestones after analyzing the status quo:
- Determination of the different jobs to map the organizational structure
- Evaluation of the jobs to define globally uniform job levels
- Consolidation of the information in a company-specific job catalog as an optimal starting point for SuccessFactors and the HCM
- Harmonization of the compensation systems for the introduction of further SuccessFactors modules
Job level: internal value of jobs made transparent within a uniform framework
After analysing the organizational structure, the interim manager agreed on the different jobs and their requirement profiles with each business unit. He then used a job evaluation system to derive job levels. This made the internal value of the positions transparent. The biggest challenge was to gain the acceptance of the management, as jobs had previously often only been differentiated according to reporting. Thanks to the transparent coordination in two validation rounds, however, the new job levels were ultimately confirmed by management. This provided the basis for a uniform job catalog, which was finalized in the project team.
New remuneration bands and incentive levels based on benchmarks and actual remuneration
In the next step, the interim manager defined alternative remuneration bands and incentive levels based on benchmarks in the respective markets and actual remuneration. He presented the key points in focus groups and incorporated comments from the participants. In this way, it was possible to generate management acceptance for the model variants.
After the Management Board approved the specific model proposals and the roadmap, implementation began. The framework has now been created to fully exploit the efficiency potential of SuccessFactors:
- Applicable job structure and uniform job catalog as a starting point for HR management
- Transparent job levels that enable both remuneration and career development
- Market-oriented remuneration systems as a uniform framework that are also results- and future-oriented
The requirements placed on modern performance management and personnel development, for example, can now be tackled in an integrated manner and also enable the use of other SuccessFactors modules.
