Compensation Management

What is Compensation Management? 

Compensation management is vital for corporate efficiency, growth, and organization. Processes include managing employees’ base pay, overtime pay, bonuses, and non-monetary rewards. Compensation management coincides with benefits administration, as it involves creating and managing pensions, savings plans, vacation and sick days, and health insurance.

Why is Compensation Management Important? 

Compensation management can be tedious and time-consuming. Cumbersome spreadsheets, manual approval processes, and emailing worksheets back and forth is just not efficient. However, without compensation management, businesses cannot continue to grow and maintain compensational effectiveness and fairness. Prospective employees seek out companies with competitive compensation packages, and with our software, you can improve and upgrade your management system.

Objectives of Compensation Management

Here's a few things effective compensation management solutions should help organizations accomplish:

• Setting up annual or non-annual compensation cycles quickly and easily.
• Providing a framework off-cycle salary increases for merit or promotion-based increases.
• Defining eligibility and managing compensation plans that cross multiple business units.
• Making it simpler to award pay increases and view accurate current, date-audited compensation data.

Compensation Management Solutions

Compensation management solutions, typically an add-on to an HR solution or payroll software, should automate and streamline the entire compensation management process — from defining programs and guidelines to budgeting and modeling to routing proposals for approval, all while improving compensation data consistency and reliability.

With compensation management software, you should have robust decision-making tools at your fingertips and better visibility into all phases of the compensation planning process.

Compensation Management Solution Features

Key compensation management solution features should, at a minimum, include:

• Automated tools & workflows to streamline compensation planning.
• Compensation rules and guidelines allowing for enforcement of fair, equitable compensation decisions across the organization.
• Seamless integration with HR and payroll software to reduce error-prone data entry.
• Ready access to employee profiles and performance history.

Compensation Management Solution Benefits

Key benefits attained from a compensation management solution should include:

• Reduced administrative burdens.
• Improved corporate governance.
• More equitable distribution of rewards.
• Greater control over compensation budgeted spend.
• Increased visibility into all phases of compensation planning.