Selecting A Compensation Management Solution
With compensation at the heart of employee rewards strategy-and one of the largest expenses for most businesses-selecting the right solution for your organization is challenging. Taking a strategic view helps to ensure the selected solution will position you for growth; engage, develop, and retain top performers; and improve corporate performance. We'll explore eight considerations for organizations selecting a solution.
1. Align with your talent management strategy
A compensation platform is a link in the overall talent-management chain that that includes performance management and succession planning. Properly executed, a pay-for-performance compensation program supported by the right system improves retention, optimizes organizational performance, and increases employee motivation.
2. Link Compensation Results To Performance
High-performing organizations have incorporated pay-for-performance into their talent management initiatives to improve individual performance and overall corporate results. Align performance and compensation by integrating performance-based scoring metrics with compensation-by linking rewards to performance and shifting award spending up the performance ladder, you can focus incentives on the organization's top performers, and drive higher employee satisfaction and retention, and foster a culture of accountability.
3. Drive Consistency and Alignment with Reporting and Analytic Tools
Management teams need reports for planning, budgeting, and compliance. An effective compensation solution provides detailed analytics, modeling tools, graphics, and summary statistics to support strategic decisions. It also must provide dynamic update and drill-down capabilities for real-time visibility into the planning process to identify and resolve issues proactively.
4. Verify Information Security
Employee and compensation information is a tempting target for hackers, disgruntled subordinates, and nosy coworkers. Can your technology partner demonstrate the frequency, depth, and strength of its third-party auditing methods? What security measures are in place to prevent data interception and corruption?
With sensitive compensation data, you must ensure your vendors, partners, and employees meet company and industry standards for security.
5. Establish Project …
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Publication information: Article title: Selecting A Compensation Management Solution. Contributors: Not available. Magazine title: Workforce Management. Volume: 87. Issue: 17 Publication date: October 2, 2008. Page number: S7. © 2009 Crain Communications, Inc. Provided by ProQuest LLC. All Rights Reserved.
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