06 Mar What Should All Compensation Systems Have in 2017?
Compensation planning will always require a fair amount of strategic planning, but today there are tools available that make it easier than ever to ensure you’re rewarding top performers, aligning pay decisions with corporate goals, and always staying within budget. Many organizations are implementing cloud-based compensation systems to ease the complexities of the planning process.
If you’re considering a compensation management solution to assist you through your next planning cycle and beyond, here are a few components to look for:
Line managers act as critical links between HR and employees. Compensation management software can help you communicate with managers to ensure they’re identifying their standout team members, which in turn helps you make critical compensation decisions.
Pay For Performance Options
The topic of using compensation to incentivize high performance is highly debated, but many professionals recognize the need to reward standout performers financially, at least to some degree. The level to which you use bonuses and base pay to motivate your teams depends on your corporate culture and enterprise goals, among a number of other variables. Ultimately, however, in 2017 all compensation tools should at least have this option, because as the Oklahoma HR Blog states, pay for performance “puts the employee front and in the center of their financial future.”
CBR calls real-time capabilities “the Holy Grail” of data, saying that implementing up-to-the-moment insights can help companies move away from gut-instinct decisions and instead towards more informed, data-driven choices. By having instant access to reviews and other key reports, HR can fast-track award decisions to fairly and efficiently reward top performers, thereby driving engagement, commitment, and ultimately, retention.
Spreadsheets simply don’t provide the high-level of technical support required to manage, store, and secure sensitive compensation data. Forbes writes that outdated tools are “bad for business,” so make sure you steer clear of antiquated systems, especially when it comes to something as important as compensation.
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!