20 Apr Thinking About Incentive Compensation Software? Here are 5 Things to Consider
If you’re considering incentive compensation software, then you’re probably aware of this dilemma: while incentive compensation plans can be very powerful motivators for encouraging high performance in an organization, they can be tricky to implement effectively.
So, when exploring your HR software solutions, you’ll need to carefully consider a few important factors. Here are some things you may want to think about when searching for the best incentive compensation software to fit your company’s needs:
- Does It Help To Simplify Your Plan?
The Society for Human Resource Management states that confusing metrics are one of the biggest pitfalls of incentive compensation plans. There shouldn’t be a need for complex spreadsheets or formulas. Your compensation management software should simplify the entire process – including incentive compensation planning – into one strategic, organized system.
- Is It Secure?
Compensation data should be kept as secure as possible. No matter what functionalities you need for your incentive compensation software, security should be considered non-negotiable. Make sure that your software of choice meets Web Content Accessibility Guidelines.
- Does It Help You Meet Your Organizational Goals?
Because the goal of an incentive compensation plan is to encourage above-and-beyond performance, you must make sure that your compensation management software works in a way that allows all line managers to effectively motivate and reward their top performers. In other words, the software you choose should have the ability to put your goals in action through tools like real-time alerts, messaging, and automated capabilities so that managers can continue to drive performance through incentives.
- Does It Facilitate Communication?
Poor communication is another common reason why incentive plans fail, according to Construction Executive. When you have a software solution that simplifies incentive compensation and offers real-time alerts, it strengthens the feedback loop between managers and their direct reports and allows for a simplified, timely exchange of communication.
- Does It Function In Real-Time?
Entrepreneur says that the timeframe in which you reward employees is a critical component of your incentive plan. Yet, only a compensation planning software solution with reporting tools like real-time reviews will allow managers to make timely reward decisions.
Overall, incentive compensation management software should motivate employees to achieve excellence in ways that are aligned with your company goals. Most importantly, it should be effective, but uncomplicated.
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!