29 Dec Expensive Lessons – The Danger of Using Spreadsheets For Compensation Management
Earlier this month, it was widely reported by the New York Times (you can read the full story here), and virtually every other media outlet, that Sony Pictures was the target of a massive data breach. The hack leaked thousands of confidential documents, emails, scripts and among other things – the salaries of over 6,000 Sony employees, including top executives and Hollywood talent.
While many companies may think that they would never be the target of such a high profile hack, the reality is that this type of data breach for compensation data happens every day. Companies large and small are still using spreadsheets, just as Sony was, to manage highly complicated and confidential compensation data – and it’s not safe.
From unsecure emails and servers to (and probably most common) simple keystroke errors that send the wrong data to the wrong people. Regardless of how it happens, it can lead to serious consequences including legal liability, lost jobs and a very large PR nightmare.
So the question becomes – how safe is your compensation information? If you are still using compensation management spreadsheets, the reality is that it’s more about “when” it will happen, not “if.”
The bottom line is that spreadsheets are an insecure means for storing, sending and usage of compensation planning and management. Software specifically designed for compensation management, offers a simple process which won’t compromise your organizations internal processes, but still allows you to easily plan, budget and track salary, merit, bonuses, stock, equity and other compensation elements. Compensation Management Software allows you to eliminate costly spreadsheet formula errors and secure your data in an online portal rather than multiple spreadsheets.
Compensation Management Systems are not only a secure means of storage, but can also increase employee engagement and retention, simplify calculations, offer easy HIRS integration and work with your existing processes to make them more efficient and effective!
If you are like most companies, it’s time to reconsider your compensation spreadsheet strategy.
HRsoft – The Compensation Management Software Leader
HRsoft is a leading provider of compensation management solutions for strategic HR departments. To learn more about our compensation management software, COMPview™, visit http://hrsoft.com.