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Five Benefits of a Compensation Management System

Is your organization interested in a compensation management system?  After a certain point in an organization’s growth, there comes a time when spreadsheets and manual inputs just won’t cut it anymore.  If your current compensation solution is causing your organization some growing pains, then it might be time to invest in something more in line with what needs to get done.  Here are five benefits that a compensation management solution can offer to your organization:

  1. Flexibility – How is your organization structured? Is it more decentralized, or just larger than your previous system can accommodate? Compensation management solutions can be custom-tailored to fit your organization’s structure and thus help achieve its goals without trying to shoehorn it into something that just doesn’t fit.
  1. International Flexibility – Does your organization operate in more than just one territory? Do you have to account for currency conversions, separate financial regulations and tax laws because of global operations? A compensation management system can account for this, instantly converting currency and taking the different needs of different branches of your organization into account.
  1. Simplicity – No longer does your HR or Comp department have to pore over spreadsheets and enter data by hand, increasing the risk for human error and thus more unnecessary busywork. With a compensation management system, managers can log in, input the relevant data for their direct reports, and it’s instantly sent up the approval chain and into the system as a whole. This way you don’t have to wait for each person up the chain to sign off – they will simply be automatically notified when it’s time for them to review the compensation data.  Merit and bonus pools also update in real time, so users can see at-a-glance what resources they have to work with when administering compensation.
  1. Security – Now more than ever, security is a top concern among professionals. If you’re managing compensation data through email and spreadsheets, you’re leaving sensitive information vulnerable to exploitation by people who have no business accessing it. Compensation management systems are secure, and are able to audit users so that whenever a change is made there is a record of who made it and when.  Data is stored on secure servers which only those with the proper password can access. And users can be structured so that they only see what they need to know to complete the compensation administration process.
  1. Automation – No more calculating by hand or through excel macros; the compensation management system will handle all necessary calculations in real time, allowing users to quickly and easily administer compensation. This saves employees time and your organization money, as the compensation management process no longer needs to take weeks when it could only need to take days.

 

Compensation management solutions can help take the pain and stress out of the compensation cycle and keep your organization running smoothly.  This is because they do most of the work so your employees can return to theirs.

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