An employee compensation philosophy is closely entwined with employee satisfaction rates. Without a basic compensation plan, the company will lose its talents and potential hires.
Many candidates believe that a strong employee compensation strategy is the most attractive element of a new job. However, designing this strategy is quite challenging, as you need to create something that accommodates everyone.
In this article, you’ll learn about the key features a compensation software should have and more. Let’s get started!
What is a Compensation Management Software?
Compensation management software is a program that enables a computer user to design and implement compensation packages for a company.
Compensation management software differs according to the industry. Some basic features and functionalities remain the same, though.
The software package should provide the organization with a central place. The compensation planning, policies, strategies, data, and reports will be placed here.
The software must also streamline different HR processes through automation. This process decreases the need for employees to do repetitive low-value tasks.
What the Compensation Software Does
Compensation management software manages salaries through an administrative dashboard. You can develop metrics matrices based on company data. Organizations can optimize salary budgets as well.
Companies use this software to adjust compensation policies and plans. For example, you can make pay adjustments and change employees. The HR department typically implements this tool. It allows managers to streamline strategies for their teams.
What Makes a Good Compensation Software
To become a good compensation software, it must a product must:
- Provide a dashboard to visualize data
- Enable users to publish compensation policies
- Facilitate different bonus structures
- Help the company create comprehensive salary budgets
- Allow export and import of data for reporting
Some other evaluation criteria may include:
- User Interface (UI):
Are the different types of compensation strategies easy to access? Will you be able to grasp a holistic view of the programs? - Usability
Is the tool easy to learn? Can anyone pick it up? Does it come with additional tech support and training? - Integrations
Can the tool connect with other platforms? How does it improve your workflow? Does it make things seamless? - Value for Money
The most important question is whether the price is worth it. Is the pricing scalable? What happens when you need additional functions or space?
In the end, HR managers should generate insights with these tools. The data should be able to design the company’s compensation strategies seamlessly. Automation is also essential. All rewards and pay programs should be administered with ease.
Moreover, the software should have self-service functionalities. Employees should be able to sort out their queries automatically. The HR team should be able to focus on more value-added projects. All the top performers should be detected and awarded without intervention.
The Best Compensation Management Software
Organizations want to upgrade to modern, personalized software to streamline the compensation process. But, which is the best management software you can pick? What works best for your company?
Here’s a list of the best compensation management systems in the market.
1. Decusoft Compose
The Decusoft Compose is the most flexible compensation management system. The user profile gives you a quick look at the compensation settings.
This software is a web-based platform designed for teams seeking flexibility. The designers aimed to simplify the entire administrative process by incorporating numerous pay programs. You’ll find both long and short-term compensation plans.
More importantly, this was extremely easy to learn. You won’t have to spend endless days training your team. You can also customize the pricing according to your needs. Enjoy the free demo to see if this software works for your team!
2. Xactly
Xactly is best for quota-based work. The employee profiles depict sales targets and plot bonuses. The sales team will appear in different sizes and forms. Therefore, the compensation benefits will vary accordingly.
You can continuously monitor the sales teams. HR professionals can pinpoint ways to motivate them. The software also comes with a multitude of benefits. You can integrate with numerous applications and encourage collaboration between teams.
3. Balanced Comp
If you’re in the finance industry, this software is the one you seek. Not only can you track your employee details, but you can also determine the best compensation strategies. In addition, the tool can help companies ensure equity, inclusion, and diversity.
The software is best for the financial industry. However, you can also customize the pricing according to your needs. There’s also a free demo you can use.
4. Pay factors
Pay factors are best for market benchmarking strategies. The software can plot salary ranges across a company for a 360-degree compensation review. In addition, you can customize job descriptions through this tool and offer over 25,000 compensations.
This tool can be used to share knowledge within the company community too. You can also benchmark salaries with the market average. It comes with a nifty survey tool that helps you collect and organize data.
5. Workday
This software is the best for data integrations. It can track merit, bonuses, and even stock options. You can also customize job descriptions and reward statements. Enjoy over 25,000 compensation plans.
This tool helps you benchmark your salaries with the market average. You can also collect and organize data to get an idea of how your employees feel regarding the company’s compensation strategy.
Final Thoughts
Good compensation management software helps the HR team. An excellent software alleviates all their problems. This tool should deal with talent acquisition, forecasting, defining metrics, and onboarding.
This software helps companies structure the way they pay people with different skills. Of course, no one should be underpaid or overpaid. Instead, everyone should work in a place of fairness. Otherwise, companies will not be able to attract or retain talent.
Compensation management tools should also reduce the costs of managing employee compensation. HR employees should be able to focus on high-value tasks more. These tools will help you establish a favorable relationship with all stakeholders.