As your company begins to consider what an effective compensation software system looks like for their intents and purposes, it’s important to consider three key elements essential to any worthwhile software.

Intuitive and Informational

Rather than just a place to store data, a well-designed compensation system will be able to give users the tools with which to make informed decisions, presenting key information in useful and actionable ways.

It’s not enough to just give users access to various pieces of data. As managers build out compensation plans for each employee and pay level, an effective program will display relevant information for reference, recognizing the additional data that is needed at each point of the process.

Powerful Yet Simple

A well-designed compensation technology will be powerful enough to handle massive amounts of information for hundreds of employees. And, as compensation administrators are frequently tasked with inputting updated employee information, such as title and bonus targets, it must be simple enough that non-experts can work with it as needed. In fact, a truly powerful software will require little from its users, supplying much of the legwork for you.

Outdated Excel-based programs relied on the ability of individual managers to use the right spreadsheets and algorithms for each employee, and made it nearly impossible to follow up with multiple users for confirmation. A central compensation tool is convenient and precise and individual management can be much more easily assessed.

Flexible

Changes are inevitable over time, the more flexibility you can build into your program now, the easier it will be to modify as needed later on. Administrators should be able to implement different compensation processes according to what is most appropriate for their sector of the business and in particular time periods. As a company’s processes become more refined, the compensation tool should also be able to evolve and enable better implementation.

Adoption of compensation technology has become widespread, and is key to providing a long-term solution for companies looking to transform their compensation system. These tools also pave the way for other HR business functions to become more easy and simpler, contributing to a more efficient performance management system best site.

Leverage effective technology to build a system that rewards workers based on merit and encourages employees to grow and advance based on skills, and your organization can see improved employee retention and a more motivated workplace for an ever-changing modern era.

 

Source: https://www.successfactors.com/en_us/lp/articles/compensation-planning-software.html

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