There are many ways to manage the allocation of stock and equity programs. By automating stock, equity, and other non-cash rewards, companies can eliminate the need for spreadsheets. Typically spreadsheets are sent around to all managers for manual editing and updating. This manual process is not only time consuming and labor intensive, but also has a very high chance of errors. By automating the entire process, companies can reduce the time taken to allocate rewards and compensate employees, while ensuring the process is foolproof and error free. The automatic process also provides more transparency in the reward allocation process, resulting in increased employee engagement and employee motivation.
Many organizations have moved past spreadsheets and now use online compensation management software to help allocate all pay programs. Here at Harvest HCM we provide an integrated compensation management solution, which is very customizable for each individual client. Employee performance and program eligibility are all tracked within our compensation solution.
Here is the typical process our clients take to automate the compensation administration:
- When salary administration begins, managers receive an email notification to log into the system and review their direct reports
- Depending on the configuration, managers distribute funds for the different programs their direct reports are eligible for (merit, stock, bonus, equity, etc)
- Managers are only able to make changes according to the organizations matrix, which has been configured for each division, location, etc
- Managers submit their recommendations for HR review
- HR reviews the adjustment in pay and once finalized exports the information to the client’s system of record
- Each individual receives a compensation statement that tracks the changes year over year to their compensation
Once an online compensation management system is configured, the process of actually logging and administrating the pay is very simple for managers. Utilizing an online compensation system versus spreadsheets is a much easier way to allocate all cash and non-cash rewards.