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CompTrak's single platform brings simplicity, visibility, and security to all aspects of your compensation program. As a comprehensive compensation management solution, CompTrak is transforming the way variable incentive, merit re...Read more
Engagedly is a cloud-based workforce management solution that offers integrated applications to manage on-boarding, employee learning, performance review and goal management. The solution focuses on communication and collaboration...Read more
Certent Cap Table and Equity Management software and services offer everything private and public companies need to manage, administer, account for, and report on equity compensation plans, including the most comprehensive account...Read more
Designed for global workforces, Remote is a complete HR solution that enables businesses of all sizes to onboard, pay, and manage remote employees from anywhere. Remote can manage remote workforces around the work with a global ne...Read more
Deel is a cloud-based payroll and compliance software that simplifies international hiring for businesses of all sizes. With automated onboarding, payroll, and compliance, companies can hire anyone, anywhere in just a few minutes....Read more
Papaya Global is an end-to-end people and payroll management solution for global enterprises. It can be used to manage all employee types, including domestic and foreign contractors. Papaya Global can automate payroll processing i...Read more
Performio is a cloud-based commission and compensation management software that is specifically designed for sales team within the automotive, retail, software, telecommunications, and business service industries. Performio allows...Read more
BizMerlinHR is a cloud-based human resource management solution that helps mid to large enterprises manage the entire employee lifecycle, from onboarding to comprehensive employee records to performance management to team retentio...Read more
Ascentis offers a cloud-based human capital management (HCM) suite designed for midsize companies of all industries. It includes HR and benefits, recruiting and onboarding, talent management, time and attendance and payroll.
Cornerstone HR is a new way to manage people that quickly and cost effectively centralizes employee data, simplifies administrative processes, and engages employees through self-service. By having accurate information about your t...Read more
CompLogix Compensation (formerly Harvest HCM) helps organizations automate any pay/compensation program (merit, bonus, stock, equity, STIP/LTIP, promotion, etc) through an easy to use web-based software solution. Our compensation...Read more
UKG Dimensions is a global workforce management solution. Discover the power of a global leader in workforce management with UKG Dimensions. Built on an intelligent platform, UKG Dimensions provides operational insights and elevat...Read more
Dayforce, provided by Ceridian, is a solution for payroll, benefits, workforce management, human resources, talent management, document management, and analytics. As a single application, Dayforce provides organizations with acces...Read more
If you are using spreadsheets to collect compensation data for merit, bonus, incentive, etc...SecureSheet will turn your spreadsheet into a powerful, multi-user, web based application.
Securesheet is a cloud-based human resource ...Read more
Performance Pro by HR Performance Solutions is a cloud-based performance appraisal solution for HR professionals. Performance Pro is customizable and allows users to align the solution with company’s strategic goals. The system ca...Read more
Sprigg Performance Management is a cloud-based human resource solution for small and midsize companies. It caters to insurance, banking, hospitality and manufacturing industries. Primary features include goal management, performan...Read more
Zenefits is an all-encompassing HR SaaS platform designed specifically for small to midsize businesses. The Zenefits People Platform includes a robust offering spanning HR, Benefits, Payroll, Well-being and Performance apps that c...Read more
CuroEnterprise is a compensation management system designed to manage the compensation spend of a company. The solution tracks budget and spends to ensure that the correct level of compensation is paid to employees. It also offers...Read more
Employment Hero is a cloud-based human resource (HRM) management system for small and medium businesses on the up. The solution helps manage the entire employee lifecycle, with modules for recruiting, onboarding, payroll, time and...Read more
Natively built for the cloud, Oracle Fusion Cloud Human Capital Management is a complete solution connecting every human resource process from hire to retire. This provides a consistent experience across devices, enables one sourc...Read more
Every company is different when it comes to compensation management. While budgets are usually based on company earnings, the ratio of employee salaries to overall revenue can vary significantly depending on the industry.
For example, it would make sense for a landscaping company that depends on employee labor to allocate a higher percentage of their revenue to compensation compared to a manufacturing plant that handles the majority of its production through machines.
This is why some businesses struggle to calculate compensation plans that align with business goals and allow them to attract or retain top-notch employees. Luckily, there are a variety of software solutions that can help.
In this guide, we’ll break down everything you need to know about compensation management solutions. Here's what we'll cover:
Compensation management software allows HR managers to conduct salary planning, calculate bonus payouts by factoring in achievement and performance metrics for individuals or departments. The tool is available as a separate module that can be added to a vendor’s talent management suite, along with performance and learning management programs.
Common features of compensation management software include:
Compensation and salary planning
Budgeting and reporting
Automated incentive program administration
Self-service access for all employees
Whether your work for a large company or a small startup, it’s critical to invest in the right platform to balance the business’ compensation structure. Many affordable and efficient options are available to streamline the planning process and automate necessary tasks. This allows HR professionals to make more informed decisions and recommendations.
Benefits of Compensation Management Software
Effectively managing compensation means ensuring that employees are paid the right amount on time, every time. To do so, companies must keep current, accurate and accessible records, which is often a complex task. Some companies may use Excel spreadsheets or email to track compensation history, which can be inefficient as well as insecure. Compensation management software can eliminate recordkeeping problems, and comes with a range of other benefits, such as:
Increased accuracy and efficiency. Instead of spending time tracking and calculating employee compensation in multiple spreadsheets—which often leads to errors—business owners and managers can save time, and plan for pay increases and incentives, by tracking all employee data in one place.
Ready-made worksheets guide managers through the salary planning process, and allow them to enter discretionary rewards when an employee performs well. As a result, employers can reduce the risk of overpayment, manual errors and shadow accounting.
Improved security. By storing all compensation information in one online system, companies reduce the risk of misplacing employee compensation data. And since most systems are password-protected, there is also less of a risk that sensitive information will fall into unauthorized hands.
Increased insight into your budget. In addition to streamlining the initial compensation planning process, most solutions automatically monitor payouts and store the information in the system. This data can then be used by managers and business owners to produce built-in reports, ensuring the company stays within its budget and conforms to federal regulations.
Improved transparency and employee satisfaction. A lack of transparency about the compensation planning process can lead to misunderstandings between management and employees about their pay—which may, in turn, cause diminished employee satisfaction. This may be especially true for organizations with more than one reward type, such as stock rewards, pay-for-performance or commission-based pay.
Because employees and managers can view past payments with this software, there is greater transparency in the compensation process. This can help eliminate confusion about current and past compensation, and allows for clear and open communication about compensation practices.
Higher employee productivity. Studies have shown that employees highly value having their documented performance tied see their base pay, as well as increases or decreases in incentive-based. If your company is having difficulty tying performance goals to rewards, compensation management software can streamline the process and ensure employees are aware of the monetary benefits of a job well done—resulting in a culture of high performance.
Common Functionality of Compensation Management Software
Facilitates collaboration so that multiple business leaders can collaborate on compensation plans. For example, users can set compensation adjustment tasks and assign them to colleagues for approval.
Reporting and analytics
Generates data-based reports on a variety of values (e.g., cost of living adjustments, performance metrics and promotions) so managers can track and compare these values for the company at large or for individual employees.
Sends alerts when compensation allocations exceed predetermined budgets.
Allows managers to view compa-ratios, goals, guidelines and other determining factors so they can best evaluate compensation allocations.
Creates employee benefits statements that include all of a business’ perks and incentives. These may be customized depending on the platform.
Calculates bonus payouts by factoring in achievement and performance metrics for individuals, departments or the company at large.
Job market pricing
Provides roles-based market price data to determine how much employees should be paid as per the going market rate.
Some organizations claim a lack of integration with their talent management system prevents them from adopting a compensation management solution. While most compensation management programs are designed to integrate with your current human resources information system (HRIS) and payroll software systems, ask the vendor to ensure that their compensation management module is compatible with your current system.
Another thing your company may want to consider is deployment models. Traditionally, many organizations went with on-premise software, meaning the system is installed on location and maintained by the company. However, there has recently been a move toward hosting software “in the cloud” and paying for it using a subscription model (i.e., Software as a Service). This means the software is located on external servers, and updated automatically by the vendor. Each deployment model has its pros and cons. They also have different upfront and recurring costs, so your final selection should be based on your needs and budget.