28 Jun Why so many Companies Are Searching for Compensation Software Vendors
Compensation software features automated tools that transform compensation planning into a strategic, simplified process. While a growing number of organizations have already turned to compensation software vendors to help streamline their compensation planning processes, now even more companies are taking note.
Why is it that so many professionals are seeking compensation management solutions?
Getting Compensation Right
While a simplified compensation planning process is certainly one benefit of compensation software, many companies are finding additional reasons to consider making the switch. For one thing, research is showing that Millennials – the largest age group of today’s workforce – are economically restrained. Consider the following recent findings from Gallup:
- Millennials are financially able to cover their needs, but not their wants
- 50% of millennial employees would make a job change for a pay raise of 20% or less
It’s thus critically important that employers give their millennial associates a valid reason to believe that they’re being paid competitively. When 20% (or perhaps even less) is the make-or-break factor that could cause you to lose your best performers, it’s too risky to try to handle compensation planning all on your own. Instead, managers need a compensation management solution that eliminates all risk of errors from mistakes that could be made using spreadsheets.
1 in 5 of Your Employees May Not be Compensated Appropriately
CIO reports that 80% of spreadsheets have errors – or in other words, for every five spreadsheets, only one will be error-free. Now apply those figures to your compensation planning. If you’re using spreadsheets, it’s possible that as few as one in five of your employees is being compensated appropriately.
If an associate discovers that his or her pay isn’t closely in line with the market, you can bet that it won’t be long before that employee is seeking work elsewhere – possibly with your competitor.
Compensation planning software offers a simple solution, and implementing a solution from a compensation software vendor is the one factor that could put you a step ahead of your competitors.
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!