Top 5 Robust Compensation Management Tools
Human capital is the business’s core asset. In most cases, it is the major contributor to its operating expense. A well-designed compensation plan is an absolute requirement to survive in today’s competitive environment to attract and retain talent, manage their costs and ensure equity. Employers should institute a compensation philosophy to ensure that their employees are neither overpaid – eroding the bottom-line – nor are they underpaid, eroding the resource pool.
A host of options are available to formulate a compensation plan. Thorough analysis is vital prior to deciding on options as they should fit into the overall strategy of the business. It is very important that the employee compensations align with the business objectives and reward efficiency. It is a well-researched and accepted fact that performance-based compensation plans boost productivity and maximize return on investment.
Now, why do you need compensation management software?
According to Mr. Kent Plunkett, CEO of Salary.com, “Compensation is complex, and for today’s employers to be successful, they need the tools and data that enable them to simplify the connections between people and pay.”
Spreadsheet-based compensation programs that were in use in the previous era were error-prone and data security was a serious issue. The inaccuracy and errors of such systems meant that the employees were not very confident with the calculation and engaged themselves in an absolutely wasteful activity like figuring out their compensation for the period in question. Compensation Planning Software Applications of Current generation are powerful and decidedly effective.
Then, which compensation management software is right for your business?
For the employer, zeroing in on the right system is absolutely imperative. Implementation of compensation policy in conjunction with a carefully chosen right tool will help the employer maximize the returns on available talent. Compensation management tool can optimize salary, bonus, stock options and benefits budgets to yield the maximum profit per employee or per work hour. The solutions offer excellent reporting with what if scenario for analysis.
Major Compensation Management Platform features
- Pay Structuring: Structure the components of compensation as per company policy.
- Event Management: Set rules associating events to compensation. The events may, for instance, be fresh recruitment, promotion or termination. The tool will trigger necessary change in the compensation according to the rules, without any need for our intervention.
- Workflow: Configure rules to trigger mails and messages of intimation of the events to the persons as per the set rules.
- Compensation Evaluation: User authorized in the system shall get access to resource’s data for the purpose of evaluation.
- Government Regulations: The tool should have features to specify the corporate policy, state mandates, and government regulations. The tool should alert us in case any action is non-compliant.
- Performance Management Integration – In case the company is using a different vendor’s tool for managing Performance assessment, then it is advisable to choose a tool that can integrate with the compensation management tool. Compensation changes are based on performance ratings.
- Compensation Data Analytics: Annual increments in compensation cannot exceed the approved budget estimates. The HR Manager should have all the compensation data and trends related to individuals and teams in graphic representation to get the picture in quick time.
- Reporting Capabilities: The tool should allow easy report generation. Inclusion of graphical representations from the analytics module should be enabled.
- Data Management: Feature to import data from a spreadsheet and export to a spreadsheet should be included in the tool. A manager may like to see an individual’s as well his entire team’ data arranged according to the compensation package to them.
- Globalization: Country settings such as compliance with the taxation rules and laws of the country that your resources are working in, option to choose the language for that country and currency conversion tools should be available in the software.
Top Compensation Management Software
1. Compensation @Work (part of Saba’s Intelligent Talent Management suite running on Saba Cloud platform)
Saba is an important global player offering cloud solutions for talent management. Saba solutions are based on the Saba Cloud platform, a scalable, sound, and secure architecture. Saba has been in the talent management industry for more than 16 years. Saba Cloud platform was recently upgraded with the latest technology and its talent management solution too underwent a major rebuild. Their headquarters are in USA and they have offices in more than 8 countries.
2. GlocentfromGlocent, Inc.
Glocent provides a web-based information technology solution for the compensation management needs of medium to large companies globally. Glocent’s offer is a web-based solution for compensation management for customers from real estate, recruiting IT, power, transportation, finance, insurance, and communications and manufacturing industries. This company has been in existence since 2001 and is based at Englewood, Colorado.
PeopleFluent is a leading human capital management software vendor providing the same as service on cloud. PeopleFluent’s end-to-end talent management suite provides a comprehensive platform for Recruiting and Vendor management, performance, compensation, learning, succession, as well as workforce planning and diversity. Combine all this with embedded social collaboration, video and analytics and you get PeopleFluent Mirror Suite for Talent Management. The company was founded in 2010 and works from its headquarters in the States.
4. Oracle HCM Cloud from Oracle
Oracleprovides a complete on-premiseHCM suite on a SaaS-based platform. Oracle Fusion Workforce Compensation provides seamless integration and intuitive user experience with modules essential to the compensation planning process. Oracle Corporation (Oracle), incorporated on October 9, 2005, provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company’s businesses include cloud and on-premise software, hardware and services. It operates from its headquarters in the States and other offices located across the globe.
5. CuroComp from CURO
Curo is a specialist cloud-based compensation management solution provider. With CuroComp, organizations can make informed decisions throughout the salary and bonus review process with scenario plans, benchmarks and validation of decisions. TalentGuard has integrated with CuroComp to streamline the performance to pay lifecycle. It works from its head office in UK.
Conclusion: So, which is the right one for my business?
What we have tried to do precisely is to identify the multiple factors that businesses, successful with their implementations have considered for evaluation of a compensation management tool. We have also tried to rank them based on the functionalities, ease of use and platforms that they can work on. Evaluation based on the above discussed points may alone not help you conclude on a right product. While these factors should be part of your evaluation, you should also see if the tool can adapt to your current methods of running the operations in total. You should also take a look at applications that specifically address the needs of certain types of industry or business.