25 Feb Incentive Compensation Management Software: The Framework
Compensation planning on its own is a complex topic. A robust compensation framework must be internally equitable, externally competitive and compliant with pay and labor laws. Incentive compensation planning takes the concept a step further. Incentive Compensation is variable pay that is given to deserving candidates for exceptional performance. It includes merit based bonuses, restricted stocks, retirement plans and deferred bonus plans among other arrangements.
When done right, incentive compensation:
- Pushes all employees to give their very best
- Establishes a concrete and tangible goal to strive towards
- Aligns employees with the enterprise vision by rewarding behavior that progresses objectives important to the company
Incentive compensation management software offers support to comp managers and help them take decisions that optimally utilize the incentive budget. These platforms:
- Are intuitive and easy to use.
- Help identify the employees who are worthy of incentives and even gauge how effective the individuals have been at aligning their efforts with the company’s vision.
- Have an auditable planning process for incentive compensation so that award decisions can be easily justified.
- Allow managers to create custom workflows that consolidate information pertinent to incentive planning and also determine the right value of awards based on pay scale and market/global requirements.
- Facilitate surveys that bring to light employee opinion about the fairness of their incentive compensation.
And in the process they make the job of line and compensation managers that much easier!
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!