Compensation isn’t an exact science. The metrics by which compensation is determined vary from company to company, as does the types of pay programs and total rewards offered to employees. As much as we’d like to have a simple answer to every problem, there is no magic formula to determine the right combination for every organization. Though compensation involves sometimes difficult decisions, there are ways to make the process less grueling. One of these ways is decreasing the workload of the compensation department through automation and integration. The other is through knowledge, achieved by the surfacing of relevant data so that it’s easily accessed and analyzed. How can both of these objectives be accomplished?
It’s no secret that handling compensation through Excel spreadsheets isn’t the most efficient method. And while knowing how to create macros and automate tasks within the spreadsheet can ease the burden a bit, there are still many roadblocks which can stop the process dead in its tracks. Sending data back-and-forth between managers and HR, generally through unsecured email, can turn the process into a waiting game. Waiting for budget allocations and approval from executives can also slow the process. And keeping track of those budgets can create more work, either through calculating budgets on the side or configuring the spreadsheet to do it for you.
The more segmented or decentralized an organization, the more complicated the compensation process becomes – the same is true with the number of employees you need to keep track of and the overall number of managers. If your organization is still using Excel, you have to manually create a spreadsheet for each manager, which is extremely time consuming and prone to errors. Taking all of these factors into account, planning compensation can become a massive undertaking. A process which should only take a couple of weeks to accomplish balloons quickly into something which requires months of tedious work. You know that there are solutions which can handle this process more adeptly than a spreadsheet, but you’re not quite sure how well it will fit your organization’s needs.
If you’re looking for a system to ease your compensation woes, you need to find one which can successfully integrate with your existing performance management and HRIS systems, as well as automate approvals. Most importantly, the system has to be easy to use for the managers. More than likely, you are only going through this process once or twice a year. You don’t want to have to re-train the managers each year when it comes time to administer compensation. The more that the system can interact with your existing HRIS solutions, the easier the process will be.
This integration also facilitates the knowledge necessary to administer compensation effectively. If you have one space in which all of the necessary data lives, which can be organized in whichever ways the user needs, you no longer have to cross-reference multiple programs and documents. Automation means the system can automatically notify each user down the workflow, and provide notifications when certain employees are eligible for merit increases or promotions. This way, you’re equipped with all of the necessary data needed to strategically administer compensation throughout your organization.
There’s no magical formula, no objectively best way to plan compensation. But with the right tools and the right information, you can ensure that you’re informed enough to make the best decisions for your organization. For more information about the customized compensation solutions we offer, feel free to contact us.