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Case Study

Performance-Management in SAP HCM:
simple and GDPR-compliant

Target and bonus agreements: Simplify processes significantly.

Find out here how to make targets and target agreements GDPR-compliant, time-efficient and traceable at all times.

Initial situation

A large customer with over 9,000 employees and several hundred target and bonus agreements wanted to optimize performance management. 

Until then, the individual targets and the business unit and group targets were maintained manually for each employee.


A change was to be made from personalized customizing to organizational assignment in order to simplify the processes.

Targets defined at company level and thus relevant for bonuses should be able to be passed on to the various organizational units.

Individual goals should be able to be entered by the employee and approved by the supervisor. On the basis of the agreed 

and evaluated targets, the calculation and payment of the target-variable portion is then carried out.


Employee objects are used to determine and “freeze” all data required for the calculations. 

The calculation basis must be available in a comprehensible and persistent manner. First, the personnel numbers are determined 

using the parameterized logical database PNP and the eligibility is determined using the selection parameters “pay scale group” and 

“pay scale level”. It is adequate if at least one suitable data record is found in the evaluation period.

Relevant absences as well as entries and exits during the year result in the daily average employment level.

Together with salary information (bonus agreement), the target evaluation (company target) and individual target weighting taking 

into account MIN and MAX values, the actual bonus paid is derived from this.

In order to be able to delete the data from the variable compensation report in compliance with data protection regulations, an additional 

program is implemented. This determines the objects to be deleted on the basis of Customizing settings and removes them.

Benefits for the company

  • Centrally controllable: All relevant information is stored and managed centrally.
  • Easy to maintain: Customizing is maintained object-oriented in an FPM application with UI5 look & feel.
  • Transparent: All processes can be tracked at any time with a time stamp. Calculation runs and steps are stored in the application log (BAL).
  • GDPR-compliant: Data to be deleted from the reports is determined automatically.

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