As your company succeeds in developing effective pay levels with the use of a high-end compensation software, it will soon be time to look ahead, for ways to continue to grow and advance to an even stronger compensation strategy in the future.
Technology has improved to enable more in-depth analysis and control over pay and rewards decisions, for highly successful approaches to compensation. In order to improve on current approaches, the future of compensation strategies will include three essentials.
Additional Access to Data
Without relevant data, you and your company are running blind when it comes to employee information, trends, and appropriate pay strategies. Business intelligence tools have already made data more accessible in the past few years than had previously been possible. So now that the data blockade has been lifted, which had kept too many organizations from fully exploring their analytics, there is room for customers to glean tons of valuable information, both from references they already had and through the investigation of additional sources.
More Sophisticated Analytics
It isn’t enough to have the data if your organization is unable to process it in relation to other pieces of information, and at higher levels. In addition to using performance metrics to make pay decisions, increased analytics enables you to access projections, simulations, and predictive modeling as well.
Investing in comprehensive talent management systems is key, capturing the details and minute data that can reveal key signs about an employee’s performance. With this higher level of analytics, your company can get the answers to questions like:
- Which employees are our top talent and are they being compensated accordingly?
- Do we have managers who are capable of managing that talent?
- Are current practices contributing to the development of future leaders?
- Do our employees feel supported?
- How can we better retain good employees?
- Are we attracting the right talent?
- How is the growth and movement of our talent?
If your current systems aren’t nearing that level of analysis, then it’s time to start talking about how you can get there, if you want to continue to compete with a strong compensation strategy in the future.
Available Skilled Talent
Too often organizations assume that when it is needed, the talent will be there ready to step in. This often overlooked focus on individuals is highly critical, and is linked to the ability to analyze some of these characteristics about promotable employees as well as the potential job pool. Leaders must recognize that this level of analytics is crucial for investing in the right talent and the right expertise to fulfill the needed jobs.
Talent who can understand how data can be turned into actionable information and who know which aspects to focus on will be key in supporting and managing compensation analytic tools in your organization. Be careful to retain valuable talent like this, those who can organize and assemble data in a way that can impact business decisions and be a part of the evolution of compensation technology.
When your organization leverages technology to its full potential, it can have a better understanding of internal equity, and be able to better evaluate current and future jobs.
So while analytics is key to weaving information together and creating informed compensation and talent conversations, your organization must also invest in access to data and especially in equipping talent with the skills and experience that will be needed for a strong future for your whole company.
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