A Simple Way to Create and Distribute Your Own Total Compensation Statements

By Posted April 27th, 2015

A Simple Way to Create and Distribute Your Own Total Compensation Statements

For many companies, the annual process to produce total compensation statements (TCS) has become a staple of year-end processing. Each year, companies produce documents for their employees that contain the total amounts that make up an employee’s total compensation package. These statements not only contain wages earned, but also display the cost of employment to the employer (including any fringes, company paid benefits and imputed income amounts). The goal of a TCS is to give each employee a view into the total cost and value of their employment.

Creating a TCS is not easy and I have only seen a few companies successfully do it in-house via custom development. Most others hire a third-party vendor to create and distribute the statements. It’s not cheap, either. Companies can spend from tens of thousands of dollars to more than one hundred thousand on TCS creation.

I wrote this blog to show you a third alternative to creating a TCS – using SpinifexIT solutions. I’ll demonstrate how to create a flexible, easy-to-use TCS process that will eliminate the need for custom development and costly third-party vendors. The process I’ll describe below was actually created by one of our customers, so while the data is fictional in this example, the process is real-world.

To build a TCS, our customer leveraged our Easy Reporter solution to gather the data and our Easy Documents solution to generate the statements. Easy Reporter is capable of pulling earnings, benefits and miscellaneous from the payroll results clusters. In the image below, we’ve created a report that contains columns representing the data or line items we want to include in our TCS such as base earnings, bonus, and even Medicare contributions. These are of course individual or even groups of wage types retrieved from our payroll cluster.

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Easy Documents can then take this data and present it in a PDF format, complete with conditional text and logos and graphs. Think of it as mail merge that you can perform right inside of SAP. As you can see in the next screenshot of our header page, we’ve included a graphic header that describes the document as well as text that explains the purpose of this statement.

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What we also need to do is get the employee compensation data into the document, format it and display it so it totals all compensation based on the results stored in SAP. We’ve done this visually and also included the detail. In this example, we used Easy Documents to create a pie chart, but you could insert line and bar charts, too. In addition to the chart, we included the detail that makes up the total compensation values of each slice of the pie graph. What we have done is displayed the results of our report (pulled in real-time from SAP using Easy Reporter) into a nicely formatted document.

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The issue many companies have with these statements is that different groups of employees may not have or be eligible for certain benefits. For example, in our statement we show that this employee received $48,225 dollars of income for a car. This is probably not a line item that every employee in the company will have. Most employees probably have a 0 in this value and we wouldn’t want to display it on the statement if they didn’t receive the benefit. The next image displays how we use filter criteria in Easy Documents to only display line items and data that are applicable to each employee. In this case, we don’t want to display the line item for the car if the value is less than one dollar. Easy Documents filter criteria allow you to create a single document that can be run for all varieties of employees and compensation structures.

 

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Now that the data is gathered and the document is formatted, we need to run and distribute the statements to employees. If you plan on mailing a hard copy of the TCS to employees, you could automatically generate a page that includes the employee’s address formatted to show up in the envelope window. But, since we’re in the digital age, we have electronic distribution methods baked right into Easy Documents to help distribute the documents. Employees that have their email addressed stored in SAP can have their TCS sent automatically to their inbox.

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If you use ESS in your portal, you can embed any document or report generated by SpinifexIT solutions to be run on demand by an employee in real-time. If you want to push documents and reports out to mobile devices, our UI5 interface will make them available on browsers and mobile devices, too.

While the thought of generating and distributing complex total compensation statements without custom code or expensive third-party vendors seems hard to believe, it’s possible with SpinifexIT. This is just one example of the time and cost savings you can achieve with SpinifexIT. If you want to see more, just ask for a demo. I love showing the possibilities of our solutions!

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