CompLogix Insights

3 Key Things to Look at When Purchasing a Compensation System

Dec 6, 2019

Purchasing compensation software is a big decision, and it is not one that should be made lightly. Think of it this way: you just bought a new home and want to buy a security system to protect it. Your home is very important to you, and you want to have a system that fits your exact needs. Maybe you do a lot of online shopping and want a front door camera to make sure your packages don’t get stolen. Perhaps you have rowdy teenagers and want a system that stops them from sneaking out at night. It might be important that your system has the fastest response time in case of a robbery.

           The point is that there are dozens of options to choose from when it comes to choosing the right security system, and there are a lot of factors to consider when finding the perfect one for you. To make it very simple, you want to choose the company that has the features that you want, provides excellent customer service and is customizable to fit your house. As it turns out, these are the exact same three things that you want to look for when you are purchasing a compensation software plan.

           Today we are going to look closely at these three important factors of finding the right compensation system and how they affect your business.

1. The Perfect Features

The first thing to look for when you are looking for the right compensation software system is to make sure that the plan has the features that you want. As mentioned in this article featured on LinkedIn, there are at least 10 key elements to compensation software. They include but are not limited to base salary, stock options/ units, bonuses, health and wellness, and 401k contributions. The truth is that there are so many different elements of a compensation plan that you need to consider when creating the best and most competitive plan for your employees.

Other than the specific features, you might want to consider how the compensation software system lets you differentiate these features and how they are offered to different departments or levels of employees. If you have consultants or salespeople that do significant travel, you might want to consider things like food and travel stipends and company vehicles. If you value highly educated employees or want to promote growth within your company, you might want to offer scholarships or tuition reimbursement for specific degree programs. It is important that there are a variety of options when it comes to the different types of compensation.

Another crucial feature that you will want to look into is performance metrics. Some compensation software plans, like the ones at Harvest HCM, offer programs that measure performance, set and track goals, and provide rewards for excellent job performance. This is an aspect of compensation that is highly related to both company growth and employee engagement, so it is something that you should be looking for in your compensation software.

2. Excellent Customer Service

The next thing to look for when purchasing compensation software is to consider how well the software is going to serve you. You don’t want to simply be handed over the software and then ignored if you have any questions or changes that need to be made. What you do want is to purchase your compensation software from a company that will provide excellent customer service along with their excellent software. The service that is provided by the compensation software company is equally if not even more important than the software itself.

Additionally, you want a compensation solution that will grow and adapt with you just as your company does. It is very likely that the compensation plan that you have one year may not be the best option for your company in the next year. It is important that you find a company that is will to adapt the plan with you so that you are always providing your employees with the best and most cost-efficient compensation.

One of the ways to ensure that you are getting the best customer service is to research the company that you are going to be purchasing from. For example, on the Harvest HCM website, we have testimonials from existing clients that have used and loved our service. Cathy Arrendale, the Director of Global Compensation at Davita, stated that “Harvest HCM will respond to my emails or phone calls any time of the day or night!” That is exactly the kind of dedication that you need from your compensation software system.

3. Customization

           Last, but certainly not least, you want to find a compensation management system that customizes exactly to your needs as a company. As discussed in this post, compensation plans are not one-size-fits-all. In fact, they actually need to be extremely specific to the exact needs of your company to be able to promote growth and engage your employees! Therefore, it is necessary that you find a compensation software company that will work closely with you to create the best compensation management system for your company.

           There are a few key points of customization that you want to look for in your compensation software. The first is that it will work with your existing HR and payroll software. When you are implementing a new program into your company, the last thing you want to do is change more things than necessary. Even if you have the best and most easy-to-use software, there will still be a period of time where you have to learn and adjust to the system. The last thing that you will want to do is learn multiple new ways of managing your business instead of one.

           Finally, another thing you want to consider when looking for compensation software is your budget. There may be some parts of a compensation plan that are simply unnecessary for the size and nature of your company. You don’t want to be paying for something that you don’t use. Instead, you want a company that offers several additional products like performance management, succession planning, and total rewards statements, but you do not want to be paying for these things if you are not going to use them. A company that offers highly customizable plans is your best bet for getting all of the features that you want and none that you don’t need. 

           Ultimately, you want to look for a compensation software program that is going to provide the best product and service for you. This means they must offer new and extensive features, provide great customer service, and be completely customizable to your exact needs. At Harvest HCM we focus on those three exact things to create the best possible products for our clients, so they can continue to run great and successful companies.

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