19 Apr Can Compensation Software Solve Performance Issues?
Managers today are seeking creative ways to drive performance in their companies. While some tactics work better than others, it seems that financial rewards are – and always will be – some of the most successful motivators. But in order to know how to use pay so that it affectively motivates and rewards employees while still being equitable for your company, you may need to implement a compensation software tool to help.
These tools incentivize high, expectation-exceeding performance. Compensation software can indeed solve performance issues while providing additional benefits for your company. Here’s how:
- It Bridges The “Fair Compensation” Gap: BenefitsPRO recently revealed an interesting statistic: while 73% of employers feel that they are compensating their workforce fairly, only 36% of employees agree. And, it’s safe to assume that these employees who feel undervalued and underpaid are less likely to stay engaged and dedicated to contributing their best efforts at work. Compensation software increases accuracy and aligns well with pay-for-performance systems, which allows employees to see that they’re being rewarded fairly for their hard work.
- It Aligns Incentives With Business Goals: With strategic tools such as budget controls and manager notifications, you can use compensation to drive results in the areas that your organization needs to improve upon. For instance, The HRIS World recommends using small bonuses to encourage employees to meet specific business targets. You could reward employees who get the best customer service feedback if this is an area in which you need to improve, for instance.
- It Achieves Simplicity: Oftentimes, pay structures can be difficult for employees to understand. CNBC encourages implementing a compensation plan that has an incentive part measuring no more than two to four performance factors. It should also be easy to explain and understand. Compensation planning software can help you achieve simplicity, because by nature, it encourages uncomplicated yet effective plans that help your employees understand their value while simultaneously driving results in your company.
Ultimately, Compensation planning software provides helpful tools for busy HR departments which allow them to create a plan that shows each employee his or her value to the company.
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!