One of the many benefits technology has introduced into the realm of compensation and salary is the advent of real-time reporting. Real-time reporting allows users of compensation management software the ability to automatically track changes in the overall compensation pool. It allows complex calculations, which once took a long time to complete, be performed in the blink of an eye. Let’s go into a little more detail on some of the specific benefits of real-time reporting in compensation management software.
First, real-time reporting allows you to track the allocation of compensation funds to various employees at-a-glance. This allows you to know, at any moment, how much of your compensation budget remains to be allocated to employees within your organization. The same is true for merit increases. Let’s say you wanted to increase an employee’s salary by 2%. A compensation management system with real-time reporting would allow you to instantly see how that impacted your merit budget, and how that employee’s salary would relate to others with the same or analogous positions. Not only that, but it can show you then how that employee’s salary compares to averages within your organization, or within the industry as a whole.
Speaking of keeping track of your compensation and merit pools, let’s discuss guidelines for a bit. Depending on what you set as hard or soft guidelines, the software can let you know when one of those have been crossed immediately. Instead of having to calculate percent increases, say, and then compare them against the total merit pool to ensure you haven’t gone over what’s been allocated, the software can automatically let you know.
Finally, currency conversion is handled completely behind the scenes, updating totals in real-time. This is especially useful for international organizations who operate in multiple regions. The compensation and merit budgets still are automatically updated to show the allocation to employees. But the need to convert funds in and out of various currencies is gone. Real-time reporting makes the salary planning process quick and painless.
The result is a much more simple and intuitive solution for compensation management. Especially if your organization has a large number of employees, is decentralized, or operates in multiple regions. Compensation management software with real-time reporting allows you to see the changes you’re making to employee salaries dynamically, notifying you of any discrepancies or violations of guidelines. The software handles all of the necessary calculations and conversions, allowing you to get in, manage salaries and employee compensation as you see fit.