Compensation professionals globally are feeling the technology pressure from their IT and HR leadership. Compensation and total rewards is just one small portion of the total talent management picture. Entire HR departments are being asked, or sometimes forced, to choose one vendor for all their HR talent management technology needs (recruiting, onboarding, performance, succession, compensation, learning, etc.)
Scenario: IT or HR leadership mandates one vendor for HR talent management technology.
Evaluation Process: Best case scenario the compensation leader is one of ten to fifteen other individuals that are trying to get the best technology fit for their department. Does the best solution for compensation get picked? Can the system be customized to the unique compensation programs globally? Does the compensation leader have as much input as leaders from larger departments like recruitment?
Implementation Process: The compensation module is one of six to seven different talent management modules getting implemented. How much time is spent configuring the compensation module? How do configurations in other modules affect the compensation module?
Ongoing Service: Typically ongoing service from full suite providers is not segmented by module. How do you make ongoing changes? How do you make adjustments for compensation plans year over year? Does your system administrator have the experience to make ongoing changes specific for the compensation department or do you have to go back to the vendor?
In the above scenario you can see why compensation departments in many instances are being forced to use a solution that is not a fit for their needs. Now consider an even tougher scenario where the entire organization is trying to pick one vendor for the HRIS and talent management technology. What kind of influence does the compensation leader have when financials, supply chain, and other enterprise modules are being considered with a new vendor?
As we all know, each organization has their own odd compensation programs. If every company did a simple merit increase or lump sum bonus at the end of the year, it would be extremely easy to find a technology that would work. Unfortunately, standardization with compensation programs is not the norm throughout an organization; many times specific divisions, locations, countries, or sub-sets of the employee population need a custom configuration.
Custom configurations, especially year over year, have compensation departments feeling the technology pressure!
Please contact us for more information on Harvest HCM and our compensation management software.