Each year, employers face the challenge of successfully navigating their compensation planning cycle. The difficulty lies in compensating teams in a way that drives performance and stays in line with market value – without compromising the budget. Luckily, there’s a tool available that can help you reward all of your employees fairly without exceeding your financial plan: compensation planning software.
If your organization has dreaded compensation planning for as long as you can remember, it’s time to ditch the spreadsheets once and for all. Compensation management software has innovative tools that simplify the complex planning process, such as cascading budget functions and an audit-able planning progression that your teams can follow for company-wide alignment.
Moreover, you can optimize your budget allocation to make sure that your top performers are getting paid accordingly. Not only does this give your managers and compensation planning professionals peace of mind, but it also fosters commitment and aids in driving engagement across your workforce.
Certain types of compensation planning software, such as the product provided by HRsoft, even offer survey data integration capabilities to help you make informed pay decisions. You can also use the reporting tools to help make award decisions and give line managers more of an active role in deciding which members of their teams deserve what.
When the compensation planning process becomes so much more streamlined and easy to carry out, it affords you the option to take a closer look at salaries to ensure that you’re maximizing your budget. You might even be able to analyze your market value research in greater depth, because the time you’ll be saving on your compensation planning process as a result of the software will give you the opportunity to make sure your benchmarking steps are on track.
This could allow for you to make some eye-opening discoveries about how you’re paying your people. This is especially important for positions that could have broad salary ranges, such as executives and individuals with in-demand skills. For instance, a Colorado lawyer typically earns something in between $77,724 and $102,779 (salary.com). That’s more than a $25,055 difference – more than what some positions pay for a starting salary!
If compensation planning has become too complicated in your organization, it may be time to consider implementing an automated tool to streamline your processes. While the immediate advantages will be realized first and foremost by your HR team, they’ll extend throughout your entire organization as you achieve a compensation plan that’s equitable for your business yet motivating for your workforce.