07 Aug Need a Compensation Solution? Here’s What to Do
Compensation planning is wrought with countless challenges, and factors like changing labor laws and a diverse workforce are making it even more difficult for compensation teams to keep up. It’s no surprise that many employers are seeking compensation solutions to successfully navigate planning obstacles and create a compensation structure that works for both the company and its people. In fact, Ventana Research indicates 78% of survey respondents consider improving compensation planning to be a high priority.
If your company is overwhelmed by compensation planning complications, don’t stress. Instead, develop a plan to find a solution by following these steps:
- Identify Your Struggles
What are you finding most difficult about the compensation planning process? Are you losing hours trying to find out why numbers aren’t matching up? If so, spreadsheet errors could be to blame. Or, are you struggling to pay your top performers what they deserve? In that case, a tool with intuitive budget allocation capabilities could come to your rescue.
- Assess Your Goals
In addition to determining where your challenges lie, it’s also important to assess what you hope to achieve with your compensation tool. Specifically, what are the areas you’d like to improve upon through a well-crafted compensation plan? Are you trying to reduce turnover, or are you trying to use compensation as a motivator to drive engagement scores? HRlab cites a survey which found that adopting a transparent, cloud-based compensation system actually increased company sales growth, compared to organizations without similar tools.
- Look for These Must-Haves
The perfect compensation tool for your company will depend on your specific needs and goals, but there are a few features all compensation systems should have across the board. We recommend looking for a few must-have functionalities, including real-time updates and pay-for-performance options.
Above all else, remember that the right compensation tool shouldn’t just be a solution to your planning woes. Instead of just getting rid of challenges, it should also actually improve the way your company approaches compensation by allowing you to reward your top talent, make informed pay decisions when recruiting, and maintain a pay policy that supports your overall business strategy.
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!