More and more organizations are looking to utilize an automated compensation management solution because of the numerous benefits associated with them. These benefits include increased employee retention, reduced labor costs and increased productivity.
The following list of ‘must have’ features in a compensation management software are very crucial to successfully manage employee compensation:
1. Data Segmentation
It is critical that a compensation management solution is able to be segmented by different departments, organizations, countries, etc. Typically each group will have different pay programs, and the system needs to be configurable enough to segment the data for each manager.
2. Easy Access
Data should be easy to access. If you have to probe over hundreds of lines on spreadsheets to find the data related to a given employee in order to compile appraisals, incentive plans, etc., the automation is of no use. It should be very apparent to the manager where their direct report is, and what pay programs they are eligible for.
3. Automated Workflows
Compensation management tools should be able to automate workflows related to the compensation planning process and provide necessary notifications for efficient data delivery. With this function, information is routed quickly and efficiently to the right person, simplifying the process for everyone involved.
4. On-Demand Reporting
A reporting feature that allows you to view budgetary allocations by department, or view compensation information related to a single employee or department, is definitely a must have
5. Linking to Pay-For-Performance
Nothing can be as important as linking your compensation management system to your performance management system. By effectively tying goals and contributions to merit, bonus and incentive payouts, the company can deploy the right pay-for-performance behavior.
Please contact us for more information on Harvest HCM and our talent management tools.