17 May 4 Signs That It’s Time to Implement Compensation Software
Compensation software can provide many benefits for your company’s HR team, but if you’ve never used it before, you may wonder why you’d need it. If your compensation team is unable to keep up with their workload, that’s one clear signal that compensation management software could help your organization, but there are other less-obvious signs as well.
Here are some tell-tale indicators that your company should consider compensation software:
- You’re Still Using Spreadsheets
Only 28% of organizations still use Microsoft Excel for designing, tracking, and organizing compensation data, according to Business Finance. As organizations grow, spreadsheets become more and more insufficient for compensation management. Compensation software helps protect your data against security risks in ways that spreadsheets cannot, and it also helps prevent errors that can occur easily in spreadsheets.
- Retention Is Sinking
Effective compensation management isn’t just a good practice; it’s absolutely essential for retaining your key talent. According to The HR Digest, the key purposes of compensation in any organization are to attract and retain employees, motivate the workforce and sustain high morale levels, and encourage personal growth. Most compensation software has tools that allow managers to make strategic award decisions, incorporate pay-for-performance models, and create a compensation program that appropriately rewards your company’s talent for their commitment and hard work.
- Your Company Is Growing Fast
If your organization is growing rapidly, that’s great news – but it can also present new, complex challenges for compensation managers. Compensation management software has scalability built in, so that it can keep up with the demands of your growing organization.
- Performance Is Dropping
While managers can (and should) use performance management tactics like increased communication and regular praise to drive their employees’ performance levels, associates still expect to be compensated fairly for their efforts. Compensation software solutions make it easy to link performance to pay. More importantly, having a clear compensation strategy in place makes it easier for employees to understand how their pay is calculated, which is critical because only 65% of employees know how their pay is determined, according to an Insight Link
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Compensation Management Software, COMPview, click the button below!