01 Nov How Compensation Planning Software Prevents Your Company from Losing Money
Compensation planning software delivers a number of benefits for companies that use it. With the ability to simplify calculations through tools like automated currency conversions, approval hierarchies and workflows to support collaboration, and a centralized planning dashboard, enterprises can drastically shorten their planning cycles and save a significant amount of hassle. Yet, one of the most noteworthy benefits of all is compensation software’s ability to help you save.
How Does Compensation Software Save Your Company Money?
Recent research published by Citizen Tribune shows that 83% of companies have payment inaccuracies with a rate of 5% or higher on average. For large enterprises, the cost of these mistakes could exceed hundreds of thousands of dollars.
Frustratingly, spreadsheets lack the tools and features needed to support the demands of compensation planning. With a compensation planning system, however, the risk of costly errors is greatly reduced. Built-in controls can trigger alerts, notifying users when inputted data exceeds acceptable ranges. As a result, errors are caught the moment they happen, thereby saving the time it would otherwise take to trace the mistake back through previous work.
Employee Engagement & Satisfaction
In addition to hard dollar savings resulting from fewer compensation planning errors, software may also support better employee engagement. Through features such as employee compensation statements, your company will increase visibility into the many ways it rewards its employees. This can support a more attractive employee value proposition, which may ultimately contribute to reduced turnover and improved employee engagement.
Moreover, getting compensation right is important to overall employee satisfaction. While factors such as trust in leadership, meaningful work, a positive work environment, and growth opportunities all contribute to employee engagement, pay is still the number-one reason employees leave. Compensation software makes it easier for your management teams to stay consistently aligned with your company’s pay philosophy, which can support your ability to keep top performers satisfied with their pay.
HRsoft is the trusted global leader in compensation management software whose COMPview solution is proven to control and simplify the full process and allocation of merit, bonus and equity awards to drive manager and employee engagement.