Proper compensation management is key to any successful business. For some organizations, the compensation management process can become a chore. Anything worth doing takes some effort, but is your compensation team being put through undue stress when trying to administer compensation? Here are 10 signs that you might want to invest in a compensation management solution:
- Your organization is large or structurally decentralized enough to where your current method of compensation management has become unwieldy.
- You’re still using Excel spreadsheets and email to gather and centralize your compensation data, leaving valuable information vulnerable as well as scattered.
- You find the waiting periods between requesting compensation data from managers and receiving said data agonizingly long.
- The approval process is broken, meaning that compensation management has to wait until someone somewhere along the approval chain finally gets back to you to accept any changes you may have made.
- You spend a lot of time fixing errors in your compensation management system. Whether they’re simple user input errors, miscalculations regarding taxes or currency conversion, or other assorted miscalculations that require you to pore over your compensation data until you find the exact spot where things went south.
- Your compensation team spends more time manually entering data into your compensation management system and performing basic calculations than they do planning your compensation strategy to reward and retain valuable, hardworking employees.
- Your organization’s computer equipment is unable to keep up with advances in compensation management software, requiring costly upgrades as advances in technology are made.
- The compensation management process takes your organization more than two weeks, wasting valuable time and resources that could be more productively applied elsewhere.
- Your employees have to keep track of merit pools, bonus pools, compensation budgets and performance data in seperate places, then try to incorporate each into a single system by hand – leaving the compensation management process open to not only errors, but lengthy waiting on approval by higher-ups in your organization.
- Your compensation team views the compensation management process as something to dread rather than just another aspect of their jobs.
These are just a few reasons of many why your organization might want to consider investing in compensation management solutions. The most important thing to keep in mind is that compensation management should be something that works for you – not something you have to work unnecessarily hard to make sense of.