As SaaS (software as a service) and cloud technology become more commonplace in Compensation Management, it’s important for companies to understand how the cloud can bring security, transparency and increased focus to their organization. With an increasing trend towards a remote workforce, the importance of the cloud and SaaS Compensation Management will continue to grow over time.
Pros of SaaS Compensation Management
It is still commonplace for organizations to utilize spreadsheets and mail merges for compensation management. While that has been normal for many years, we cannot overlook the immense risks of human error and security breaches. The days of emailing spreadsheets with sensitive information should be behind us as cloud technology and SaaS becomes more prevalent. Organizations can benefit enormously from the use of a SaaS provider for compensation management. Here are a few examples:
Reliability
Because information can be accessed from any location, the cloud provides the perfect environment for storing data, especially for members of the remote workforce. Employees can log on anywhere, using any device that’s connected to the internet. This method is not only convenient, it eliminates the need for a paper trail, which means your compensation management data will remain safe and secure.
Cloud computing can eliminate the risk of human error when it comes to calculations in your compensation management process. While spreadsheets may be useful, they aren’t foolproof. In compensation management, computing errors are costly in terms of both time and money and it’s in the company’s best interests to avoid them whenever possible.
Using the cloud and SaaS models can also help keep sensitive data from falling into the wrong hands. With a Compensation Management SaaS provider like CompTrak, hardened security protocols and role-based access prevent sensitive information from falling into the wrong hands. There is no danger of accidentally emailing sensitive compensation information to the wrong person.
Reduced Costs
The SaaS platform is a subscription-based pricing model. Knowing how much the services will cost per month can also help the accounting department keep the budget in line.
Because there’s no need to invest in dedicated hardware this translates into lower overhead costs.
Another financial benefit? With SaaS, you only pay for the functions you need. CompTrak’s platform includes modules for Annual Salary Review, Promotions, Deferred Compensation, Long-Term Incentives and a Total Rewards Experience. If a certain function is not applicable to your business, you are under no obligation to activate that module, thereby lowering costs even further.
Scalability
Cloud technology provides high scalability. Add additional services and functions at the click of a button and expand your user base easily. CompTrak’s Compensation Management SaaS platform provides you with the opportunity to grow your business without compromising the process. The opposite is true as well. If you need to downsize or access fewer services, that option is available too.
Support
Even the most efficient and dynamic business models could benefit from a little technical support every now and then. With a Compensation Management SaaS provider like CompTrak, you will have access to a dedicated team of seasoned experts who understand the software and your organization’s compensation program.
Each technical team is highly trained on the software, meaning that they’ll be able to provide fast and reliable answers to consumer queries. Thanks to increased data analytics, any issues are usually resolved quickly.
Mistakes are an inevitable fact of life, but having a team of professionals as a backup can provide business administrators with the peace of mind that they deserve.
Increased Focus
Although financial savings are a huge plus, they’re just the beginning. A compensation management SaaS provider allows businesses to shift the focus back where it belongs: On the core competencies of the organizations.
When a business chooses to utilize a best in breed compensation management SaaS like CompTrak, their administrative and IT departments will be free to concentrate on other tasks. Bring the focus back on the actions and results of your compensation program and not the administration of them.
Security
If security is a concern, the SaaS model provides you will the latest security technologies and enhancements. The SaaS provider will update the software on a continual basis and will also track and audit major changes in the system, so any potential red flags can be dealt with in a timely fashion.
Perhaps most importantly, using a third-party provider eliminates the need to store data on any single computer or spreadsheet. Backups can be accessed months and years afterwards. This is important for all aspects of the business, but when it comes to sensitive information that relates to compensation management, it’s essential.
Pitfalls of Compensation Management Legacy Systems
Sticking with a legacy system can be problematic in several respects. First of all, these systems are rigid in their methods of storing and handling information. If any changes need to be implemented, the entire system needs to be rebooted from scratch. That’s a time-consuming and archaic way to operate, especially when there are more appealing alternatives.
Due to the increased age of legacy systems, they also make certain security issues difficult to address. Since these methods are becoming a thing of the past, developers are less likely to invest their time and effort into creating troubleshooting solutions for legacy systems.
Also, a legacy system is far less likely to be cloud-based. That means that companies who stick to these outdated models won’t be able to access the latest applications and platforms, which will erode their competitive edge.
Making the shift to cloud-based technology represents the first step into a more dynamic future. By taking this step, you’ll be able to shift the focus to the essential aspects of your business. To learn more about how your company might benefit, request a CompTrak demo today.
