薪酬软件买家指南

1 Getting compensation rightCompensation is the single largest P&Lexpense for most organizations — and by “singlelargest P&L expense,” we mean greater than 70%of their operating cost base.Compensation is also an integral part of the employeevalue proposition — so you need to get it right.During economic growth, employers need to remaincompetitive, and in times of uncertainty, they need tospend wisely. With organizations changing day to dayaround the world, new trends are emerging, such ashybrid work models, skills-based pay, and personalizedrewards. Plus, the demand for fair pay has neverbeen stronger. What this means is that compensationcomplexity will continue to increase over time.One of the top predictors of employee sentiment is theability to communicate clearly about compensation andensure that individuals feel valued, with a clear path fordevelopment of their compensation package. 2The bottom line is this: If you don’t communicate to youremployees that they are being paid fairly compared totheir talent market, they may leave.So why not explore all the ways compensation softwarecan make these tasks easier for you and your team?Source: 2024 Compensation Best Practices Report51%51 percent of organizations trainmanagers on how to have payconversations with employees25%of organizations feel thatinsufficient pay is a leadingreason behind disengagementor a decline in productivity What drives organizations to consider adoptingcompensation technology?Each organization is different, but some of the most common forces that drive an orgto adopt compensation software include the following.Driver #1: Changing business prioritiesMost of us are working in organizations that are facing at least some level of uncertainty andteams that are transforming. Since your reward strategies should be linked to your businesspriorities, it’s important to note that many priorities have changed over the last couple of years.According to the 2024 Compensation Best Practices Report, 25 percent of organizationsconsider modernizing HR software to be a higher-priority investment than in previous years.Driver #2: Doing more with less spendWe’ve also seen economic turmoil in the past year. Some orgs have fared well, whileothers have not. Regardless of which side your organization falls on, the need to optimizecompensation spend while recruiting and retaining top talent is crucial. You and your team haveto allocate rewards responsibly.Driver #3: New workforce trends driving compensation complexityDue to recent global events and labor market changes, compensation is becoming increasinglycomplex. As a result, there has been a shift in work models, and a focus on hybrid work hasemerged. Compensation is tied to these different work models and solutions, with geo-pay issues emerging, the evolution of skills and skills-based pay expanding, and a growingemphasis on personalized rewards. As a result, the topics of how compensation works andhow pay plans need to be administered have become more complicated. This is another driverpushing many HR and compensation professionals toward technology.Driver #4: Growing pressure for pay transparencyThe topics of pay equity and DEIB (diversity, equity, inclusion, and belonging) have garneredmore attention than ever in recent years. With more eyes on equity and stakeholders bumpingup wage equality to the top of the priority list, the urgency of the need for employers toconduct pay equity analysis is at an all-time high. Employers need to understand how to makesure pay is allocated fairly and in a transparent manner, and compensation software can helporganizations achieve this goal as they are making all of their compensation decisions. 3 How to set yourself and your team up forsuccess with compensation softwareThinking about adopting compensation planning software? While this move canresult in streamlined workflows and improved outcomes, it’s still a big change.Making the right preparations ahead of time can help you set your team up forsuccess over the long term. Consider these steps as you move forward withthe process.First, consider your goals.Every organization and HR team will have their own objectives and goalsfor what compensation planning software will help them achieve. However,there are several common benefits that many find valuable:•Driving efficiency by delivering easy, flexible processes for administeringcompensation and reducing cycle time and the resources required•Improving effectiveness by providing a clear line of sight betweenemployee achievement and business outcomes•Promoting pay transparency and equity by ensuring all allocations arefair and consistent•Manage compliance by setting rules and guardrails to ensure payprinciples are enforced•Manage risk with confidence through the automation of complexcalculations and secure data managementWhile the focus has traditionally been on efficiency gains — which drivemany ROI models — you do want your investment to deliver broaderstrategic be