10 Feb Objectives of a Compensation Management System
Compensation was and always will be one of the biggest factors influencing employee engagement and thus retention. Not only is compensation critical to boosting employee morale it is also the largest expense in an organization that can be directly controlled. Keeping these factors in mind, the practice of compensation management implements a strategy to deliver unique business results.
Here is a short list of the key objectives of a compensation management system:
- Compensation management brings order to the chaos of random awards and salary hikes. It takes into consideration company goals and then rewards employees who are the most aligned in their productivity.
- Comp management adheres to all labor and salary laws and ensures that no instances of inequity transpire in the organization. This eliminates the risk of compensation related disputes that are expensive and damaging to company reputation.
- It creates a well-balanced mix of direct pay and performance inspired bonuses. Comp planning also adds shares and retirement plans to the rewards line up to maximize the impact of a business’ compensation budget.
- Good comp management attracts top talent from across the market. The satisfaction of existing employees is hard to hide. With a solid comp program, organizations acquire the reputation of being generous employers, representing rewarding careers to new prospects.
Compensation planning is critical, but the process can be tedious. Compensation planning software solutions act as a decision support tool for line managers, based on best HR processes, practices and technologies.
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!