Choosing Compensation Management Software
It may have been a while since compensation management software was first developed. Recently, however, software vendors have leveled up from basic spreadsheet replacements, now offering more sophisticated and integrated systems. Solutions that can make a direct and substantial difference in any organization's performance and bottomline have undoubtedly come to fore.
Truth is, while HR software developers keep increasing market share by way of acquisitions and mergers, one pattern that could not be denied is the focus on dedicated compensation management technology products that supplement developers' talent management suites.
Nonetheless, developers aren't the only ones interested. Research shows more and more organizations jumping into this compensation bandwagon, although a mere 17% of organizations presently use compensation analysis software that is integrated with talent management, with about 23% planning to do so in the near future. It is not as popular as other HCM applications, but the fascination for compensation management software is rapidly increasing, both among vendors and consumers.
Therefore, whether your organization is thinking of using this HCM software as a stand-alone approach or as part of a bigger whole, consider the following factors before making a purchase:
Features and Functionality
Before you decide on any compensation management system, you have to devise your organization's compensation strategy first. Then you can look for software that offers the features and functionality you need. There are common ones, like incentive compensation, pay-for-performance and stock-based/deferred compensation, but remember that different software have different strengths. You want to pick the one that is in line with your compensation strategy. For more details about compensation software, visit https://en.wikipedia.org/wiki/Workers%27_compensation#Privatization.
Extensive Integration
Alone, compensation management software doesn't offer so much apart from accuracy (though that is definitely a huge benefit). When integrated with other business systems, overall efficiency rises almost exponentially. When choosing a system, always consider what other systems it integrates with and how well it does.
Deployment
When buying compensation management software or any other related systems, you always have a choice in terms of deployment. And while compensation management may be far behind in certain areas like learning management in Saas (software-as-a-service), it is certainly increasing in popularity because of hassle-free configurability and speedy implementation times.
Scalability
Lastly, choosing compensation management solution based on your organization's current requirements gives you short-term benefits. If you're looking for gains today and tomorrow, you have to factor that into your selection criteria. Compensation software is only truly beneficial if it can be scaled according to its user's evolving needs.