CompLogix Insights

Why We Love Compensation Management (And You Should, Too)

Feb 13, 2017

Believe it or not, we’re big fans of compensation management. Far from seeing it as a necessary evil required for running a business, we see compensation management as an opportunity – or, to be more precise, a multitude of opportunities. Opportunities for growth, for improvement, and for learning; not just for you, but for your organization and employees as well. Here are just a few different ways in which compensation management can make your business better:

-Motivation: People want to be recognized for the effort they put in. It’s just human nature. And if somebody goes above and beyond their expected duties and really puts forth an effort for your organization, it’s only fair that they should be recognized for it, right? By keeping tabs on employee performance and rewarding those who go the extra mile (and beyond), you actually help boost employee morale. When people feel like they work for a company that encourages them to do their best, and rewards them appropriately, they’ll want to work harder so that they too can be recognized and rewarded for their hard work. And when combining compensation management with total rewards, you can give your employees an even more accurate idea of how valuable they are to your organization. Not to mention that employees who feel like they have a path of progression at their current organization are less likely to look for greener pastures elsewhere.

-Strategizing: One of the most important aspects to running a business is data. If you’re not aware of the numbers, you likely don’t have a full picture of what’s going on within your business. Compensation management allows you to see where your compensation budget is going within your business, how each sector is performing, and allows you to tweak and adjust appropriately. Like we mentioned earlier, if you want to keep hold of your most valuable and hardworking employees, you need to offer them the proper recognition for their work and opportunities for advancement. And on the flip side, you can make sure that more of your compensation budget is going to those who earned it so you’re not misallocating valuable resources which could better serve you elsewhere.

-Learning: Bringing these last two sections together is learning. Every day, every new experience is a learning process; compensation management is no different. Those tweaks and adjustments mentioned earlier will help you learn what works best for your organization, and how to most efficiently administer compensation in order to maximize productivity and employee morale. Even if you’re a hardened compensation professional who thinks they know it all, trust us – learning is a constant process. There will always be something new, something more which will make you better at what you do, and knowing the ins-and-outs of compensation management and the relevant data that makes it up empowers you to make the best decisions for your organization.

As you can see, there’s clearly a lot to love about compensation management. But maybe the most lovable part of all is how easy it can be, given the right tools. If your relationship with compensation management is on the rocks, it might be time to look into a compensation management solution. That way, you can get this powerful process back to working for you, and not the other way around!

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