Compensation Management Software
Compensation management software is software that’s designed to make it easier for employers to create and manage compensation and benefits packages for employees. Creating an employee compensation strategy involves managing all of the ways your employees are compensated, as well as the ways those compensation decisions are made.
Effective compensation planning is an important factor in talent management and payroll solutions as well. A well-considered total rewards package can play a major role in attracting and retaining top talent and improving employee engagement within your company. Many organizations offer complex compensation packages, including both monetary and non-monetary payments, but the base components generally include:
That’s a lot to manage by hand, so many HR leaders rely on compensation management software for saving time and improving accuracy. Automated compensation management solutions are invaluable tools for analyzing real-time market data that help you decide on competitive compensation packages and plan performance-based compensation to reward your organization’s high performers. Cloud-based human capital management software helps you link performance management tasks, like employee reviews, to your compensation program while keeping all personal data confidential.
- Annual salary or hourly wage
- Health care benefits
- Retirement accounts
- Bonuses and non-monetary incentives
How does compensation management software help employers?
As an employer, it’s your responsibility to provide compensation to your employees. Compensation management software takes some of the hassles out of this process, just like human resources software helps streamline HR tasks. The more processes you can streamline, the more time you have to focus on the big picture and grow your business, making compensation management software a big help.
One way using compensation software helps your business is the fact that it improves your hiring process as well as employee engagement. A good benefits package shows your employees that they’re appreciated, plus it gives the best employees an incentive to choose your business over another. Not only does this make it easier to attract top talent, but it also helps improve employee retention, so you don’t have to worry about high turnover.
Compensation software solutions can also make it easier for you to make a fair compensation package offer. It can be difficult to decide what sort of compensation to offer employees, especially if you’re focusing more on benefits than bonuses and salary increases. With compensation management software, you can make sure you’re making a fair and competitive offer in terms of employee compensation and benefits, so you can compete for top talent.
While skill-based compensation can be a good way to boost employee morale and encourage people to strive to do better, pay inequity is a big problem. Compensation management software can help you spot pay inequity, such as the gender pay gap, and put a stop to it as soon as possible. Not only is pay inequity a big compliance problem in some cases, but it can also lead to a lack of employee engagement and high turnover if you’re not careful.
What are the benefits of compensation software solutions?
Now that you’ve got a basic compensation management software definition, you might be wondering how it can benefit you, your business, and your employees. Fortunately, there are lots of benefits to investing in the best compensation management software.
One of the best benefits of using compensation management software is the fact that you get a better idea of what to offer your employees. While it’s important to create a competitive compensation package to attract the best talent, you also need to stay within your company’s budget. With compensation software, it’s easy to decide on a fair and competitive offer that works for your company’s finances.
From pay inequity to offering required compensation, there are several potential compliance issues you can run into if you don’t use compensation management software. Using this software eliminates some of the potentials for human error, so you can rest easy knowing you’re not going to face an unexpected payroll or benefits compliance issue down the road.
Compensation management software, like other HRIS software, can help improve your company culture. Most employees want to work for a business that’s embracing modern technology and business practices, and using this software to offer competitive compensation shows your employees you’re committed.
It’s not uncommon for employees to talk about how much money they make these days, even if it was taboo at one point. With compensation software, you can work with your employees to figure out the best way to pay everybody, whether some people want more benefits or a higher salary. This transparency will, in turn, help boost your company culture and employee engagement.
Whether you want to save time or use strategies to reduce overtime costs, compensation management software is a good tool to have at your disposal. With the right software, you’ll save time and money while improving business operations.
What to look for in compensation management software
Cloud-based software is one of the most important things to look for when it comes to finding the best compensation management software. With cloud-based software, you don’t have to install applications to several different computers, and you don’t have to update every computer separately. Everything lives on the cloud, so you simply have to pay for a service and use your software when you need it.
The last thing you want is to land yourself in hot water because you’re using compensation management or time and attendance software that’s not compliant with local or federal laws. Compliance is a hugely important part of doing business and one of the biggest benefits of using HR software, so that’s a minimum requirement for compensation management software.
You need data to make important business decisions, but the way you analyze that data matters. With top-notch compensation management software, you’ll get analytics tools that make it easier to drill down or get a big-picture view of the compensation you’re offering your employees, which allows you to take action.
Of course, functionality is essential as well. You need software that’s intuitive and offers all the features you need. If you want to leverage modern technology and boost your business with HRIS and compensation management software, Ascentis HRIS solutions can help.