While we have largely moved past the spreadsheet phase of compensation management, compensation experts in many industries have yet to embrace and apply the available technology to its full potential. Once we do, we have the chance to fully incorporate compensation survey management, market pricing, survey participation, salary structure development, and ongoing analysis of comp programs for an in-depth picture.
When making the case to your company for a market pricing technology, it may be challenging initially to demonstrate just how great an impact this tool could have on your organization. But even though it doesn’t make an immediate footprint in the way some investments do, compensation technology has far reaching effects on every corner of the business.
If your compensation team is spending its time marking down data, analyzing the minutia, and even comparing spreadsheets, they are stuck in managing the chaos rather than reducing it. Instead of helping HR business partners, line managers, and employees understand how compensation works and how to make the most of the resources at hand, they are overwhelmed with pieces of information that cannot show the whole picture at once.
Using your compensation team as data management does not make adequate use of the resources at hand. The opportunity cost for failing to implement compensation technology is too great for businesses looking to thrive and grow.
The only way to truly apply and use data effectively is to create a structure to better leverage data, in a way that manual management cannot. Manual market analysis and structure development cannot give high-level visibility into how compensation dollars are being spent across the organization. Examining the data by hand won’t easily reveal where hard-earned resources are being best used, or indicate how to improve the current status of the pay structure. The functionality with technology far outstrips what is possible without it.
Updating and Adapting
In every other sector of the business, HR departments and others have risen to new heights with rocketing technology. To grow, every sector of the business knows it must morph to take advantage of the changing opportunities. Compensation is no different.
Research from the Aberdeen Group revealed that organizations that leverage technology in supporting all compensation processes actually outperform their peers on a number of key financial metrics. But when compensation is not treated as the foundational aspect of talent strategy that it is, your business becomes stuck in simple administration and mirroring of other companies’ compensation decisions, instead of becoming an innovative leader and making well-informed, unique decisions. In order to develop meaningful compensation strategies that are appropriate for your business to improve hiring and retention, it’s essential that you give your teams the tools with which to do so.
Making the case to decision-makers for using a compensation tool must demonstrate the loss of valuable time, the inefficient use of human resources, and the potential reach to be achieved. A compensation technology, like MarketPay’s software, opens up a whole new level of talent acquisition and retention potential.