02 Nov What Is Compensation Software & Why Should You Consider It?
Compensation software is a solution that allows you to streamline the process of planning and administering your company’s pay strategy. It guides, controls, and simplifies the allocation of your compensation budget to provide both line managers and HR leaders with the data and tools they need for effective decision-making. Through features such as automation, budget modeling, and real-time visibility, it makes complex compensation planning activities simpler to manage, helping your teams save time and eliminate confusion.
Why Should You Consider It?
Many HR and compensation professionals already know that their organizations could benefit from a compensation planning solution. Yet, if you’re seeking a few more reasons to take the leap, here are some of the most noteworthy benefits to consider:
- You Can Put an End to Spreadsheet Trails
If your company is still using Excel or Google Docs to keep track of compensation data, you may struggle with issues like version control, missing files, and navigating between multiple spreadsheets to gather all the information needed for pay decisions. Compensation planning tools eliminate spreadsheets and provide all the features you need for guiding and simplifying pay decisions in one convenient place.
- You’ll Reduce the Risk of Human Error
The average human error rate in manual data entry is just 1%, but when you consider the 1-10-100 rule, it’s obvious that the cost of human errors can climb quite high in large organizations. This states it costs $1 to verify data accuracy at the point of entry, $10 to address mistakes, and $100 if nothing is done to correct a flawed record. Compensation planning systems have features in place to prevent mistakes, including controls to prevent values from exceeding a specific amount.
- You Can Stop Frustrating Roadblocks
It’s easy for compensation cycles to get stuck in limbo when approvals are needed. To keep the compensation cycle moving forward, compensation planning software allows users to automatically move certain approvals up to the next level in the hierarchy when needed. It can also trigger notification and route workflows to the appropriate individuals, helping to further streamline the compensation planning process.
HRsoft is the trusted global leader in compensation management software whose COMPview solution is proven to control and simplify the full process and allocation of merit, bonus and equity awards to drive manager and employee engagement.