Many organizations implement compensation management solutions as a way to simplify employee pay. Yet, there are far more benefits outside the simplification of processes alone. From making more informed, accurate pay reward decisions to ensuring your sensitive pay data is protected, here are a just a few noteworthy ways a compensation management system are revolutionizing organizations.
1. Enabling the Removal of Spreadsheets
Compensation planning tools are built specifically for the purpose of helping you and your managers make timely and accurate pay decisions. While spreadsheets may suffice for keeping track of pay in very small companies, larger enterprises tend to have more inherent complexity involved in their compensation strategies. To accommodate these needs, you need advanced tools designed to guide, control, and simplify merit, bonus, and equity awards.
2. Preventing Roadblocks in Approval Hierarchies
Traditional compensation cycles tend to get held up when approvals are needed. With cloud-based compensation tools, you can bypass certain steps, automatically triggering notifications up the chain to streamline the approval process.
3. Providing Automated Workflows
You can rely on an intelligent tool to minimize or altogether eliminate human error. Using automated calculations as well as controls and alerts based on established guidelines and limits, you can prevent potentially serious mistakes from being made during award allocations.
4. Promoting Data Security
Over the years, billions of records have been stolen online through high-profile data breaches. Your company’s compensation data is among its most sensitive information. To keep it safeguarded, you need a tool that has security features built directly in, rather than making data security an afterthought.
5. Supporting Employee Rewards
Finally, but perhaps most importantly, compensation management tools make it easy to reward employees fairly for their contributions. Rewarding employee commitment and dedication is essential for retaining your top talent, and many employees need to understand the full scope of how they’re rewarded in order to feel recognized and fairly rewarded. Compensation tools not only support better pay decisions with features like recommended awards, but they also support communication throughout the organization to provide insights into the “big picture” of the many ways your company rewards them outside of base pay alone.
HRsoft is the trusted global leader in compensation management software whose COMPview solution is proven to control and simplify the full process and allocation of merit, bonus and equity awards to drive manager and employee engagement.