22 Jun Why Pay is So Important, and How to Use Compensation Management Software to Get It Right
While there are certainly many motivators that drive employees, it’s an undeniable truth that most employees work for a paycheck, regardless of what actually affects their engagement level most.
As such, compensation is a critical element in any organization, and there’s simply no room for mistakes. Using compensation management software can help reduce your risk of errors, make more informed decisions linking pay to performance, and help you develop a compensation plan that’s both equitable and competitive.
Here’s some more compelling evidence as to why a foolproof compensation management system is so important:
- The OC Register cites competitive pay as one of the eight things that great workplaces offer, and points to Society for Human Resource Management (SHRM) data indicating that 62% of employees quit due to insufficient pay
- sheds light on the importance of pay: while it may just be a “line item” to HR, to your associates it’s the most important figure in the family budget
- A SHRM survey found that 60% of employees consider compensation “very important,” while 36% consider it important – overall, this makes pay the most important factor for job satisfaction
So, now that we have evidence supporting the importance of pay, the question becomes: how can HR leaders use compensation management software to strengthen their processes?
Here’s what a compensation management system supported by cloud-based software can do:
- Eliminate risks of spreadsheet errors, which are both common and costly
- Protect your sensitive compensation data against security threats
- Make it easier to fairly compensate top performers with tools like pay-for-performance system configurability and active advice and alerts for line managers to recommend awards to deserving teams
- Stay within budgetary requirements with built-in budget controls
Again, while pay may not be the only contributor for employee satisfaction, there are many sources that say that it’s most important. To keep your employees from leaving, make sure that you’re making pay a priority and avoiding costly mistakes with the help of compensation management software.
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!