27 Aug Why Automate Compensation Planning?
Compensation planning is an essential element of any successful business. Making strategic pay decisions can help to support an engaged workforce, as compensation is an important factor in employee satisfaction. Pay can also be leveraged to support your retention and talent acquisition strategy, as compensation can be factored into formulating an attractive employee value proposition.
Yet, while compensation is essential to rewarding your workforce, it continues to demand a significant investment of time and labor. To streamline their compensation management activities, many companies have implemented compensation software. Here are a few of the benefits achieved by automating compensation:
1 Reduced Confusion & Errors
While many companies use spreadsheets to calculate and track employee pay, these systems were not designed for compensation teams. Using spreadsheets to manage compensation can lead to costly errors and inefficiencies. Compensation management software, on the other hand, simplifies calculations through automated features like currency conversions. Alerts can also be set up to notify users when entered data falls out of a predetermined range, helping you to catch mistakes early and reduce errors.
2 Boost Collaboration
The compensation planning process can lead to delays and force your busiest employees to scramble with last-minute approvals. With an easy-to-use tool for compensation, users are better able to collaborate and accept or reject changes right in the system. You can set up approval hierarchies and workflows to accommodate your organization’s unique needs and to support collaboration among line managers, upper management, and compensation professionals. This also improves pay transparency and makes it easy for all parties to stay aligned when making important salary decisions.
3 Shortened Planning Cycles
One of the greatest benefits of an automated compensation management system is the significant amount of time savings it can produce. With features like automated budget controls, manager decision support, review and reporting tools, and a centralized planning dashboard, these tools make it easy for managers and compensation professionals to make accurate and timely pay decisions. As a result, you can enjoy significant time savings and an overall streamlined planning cycle.
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.