08 Feb How Multi Country Compensation Planning Software Helps Companies Maintain a Global Pay Philosophy
Companies with multiple locations across the globe face unique compensation challenges beyond those with only domestic facilities. Between differences in currencies, languages, and regional markets, there are many factors to account for. Yet, research shows that many multi-national organizations maintain a global pay philosophy. Multi country compensation planning software can effectively maintain this philosophy across all of your locations.
According to a WorldatWork survey, 82% of multi country companies polled had compensation philosophies that were universal or companywide, instead of just 18% that varied their philosophy by region. Moreover, 84% consistently applied their performance management programs to all countries. It’s not surprising that the overwhelming majority of companies take this approach: a single, cohesive pay philosophy is both simpler to manage and makes it easier to align multiple locations around the company mission, values, and overarching strategy.
In order to effectively apply your compensation philosophy to pay plans across all of your locations, you need a unified system. Not only does one single, multi country solution make it easy for you to align all of your locations with your compensation philosophy, but it also features tools such as the ability to factor in market data by region, multiple languages, and automatic currency conversions.
In an article titled “Factors Affecting Global Compensation & Benefits,” HR leader Sanjeev Himachali writes that while strategies should be standardized to keep with the organization’s overall compensation and benefits philosophy, “definite practices tend to be localized to fit the context of the country, regional, or local conditions.” The beauty of international compensation planning tools is that they allow you to achieve this exact approach: aligning pay with your company’s overall strategy wherever possible, but making differences as needed based on specific regional conditions.
HRsoft is a cloud-based, High Impact Talent Management™ software company that specializes in improving employee engagement and retention for mid-large sized employers. Our High Impact Talent Management System™ includes modules for compensation management, applicant tracking, management software, total rewards, stay interviews, and content management. To learn more about our Compensation Management Software, COMPview, click the button below!