Any healthy workplace has its foundation in a positive culture. Although culture is hard to define and even harder to instill, there are several components that healthy workplaces have in common. One of these commonalities is equitable salaries and benefits that match the needs of your workforce and your corporate values.
One way to help facilitate compensation and benefits is using a robust Compensation Management software solution. For companies of all sizes, but especially for those that are rapidly growing, Compensation management software can be a real game-changer and ensure employees are being compensated equitably.
How Compensation and Benefits Tie to Corporate Culture
According to the Department of Management at Washington University, compensation systems play a critical role in shaping organizational culture; they affect employee motivation, satisfaction, and behavior, and help determine perceptions of what an organization values. An effective Compensation Management process, backed up by robust management tools that can be configured to meet individual corporate needs and cultures, can lead to better retention, streamlined hiring processes and heightened employee engagement.
The Risks of Underestimating Compensation Management’s Impact
As competitive as today’s job market is and the scarcity of talent means businesses simply cannot afford to ignore compensation and benefits as part of an active HR process. Salaries, bonuses and benefits go hand-in-hand to attract and retain quality talent. At best, employees who don’t feel supported with equitable compensation benefits will underperform. At worst, they seek employment elsewhere.
Employee Benefit News reports that employers spend an average of 33% of a worker’s annual salary to replace just one employee. Using this simple example, losing an entry-level employee making $36,000 per year will cost about $12,000 to replace. The cost of losing more experienced workers increases to as much as $50,000 for management and executive-level employees. This doesn’t even factor in the knowledge and experience lost that must be relearned by someone new when a seasoned employee moves on.
Compensation Management Software to the Rescue
Making sure your company is truly providing equitable compensation and benefits can no longer be left to chance and disparate spreadsheets. It requires a software platform that is more than an “out-of-the-box” solution. Your workplace is unique and your Compensation Management platform must be designed around the needs of your employees and the values of the organization.
So, what do you look for in Compensation Management software? An effective Compensation Management system should include:
- Processes that allow managers to make evidence-based pay decisions, enable collaboration and be user-friendly so all managers can adjust and manage compensation packages.
- The ability to present employees with a comprehensive look at their compensation and benefits plans.
- Reporting and Analysis tools that empower managers in their decision making.
Really great Compensation Management software platforms also include these features:
- Solutions created in-house to your exact specifications
- Custom dashboards and reports
- Configurable business rules and calculations
- User-defined planning calculations, columns and behaviors
- Configurable user permissions with custom roles
If you aren’t sure where to start looking for Compensation management solutions that fit the characteristics listed above, Complogix is just a click away. We’d love to discuss your unique Compensation Management challenges and how our award-winning software can set your company up for success in today’s competitive job market. If you are ready to hear more about Compensation Management solutions, Contact us today for a complimentary demo.