Daily Archives: September 26, 2018

Compensation Management Software: Everything You Need to Know

What is Compensation? Technically, this question is important to both the employee and the employer; it is one of the central questions in the relationship between the employer and the employee. Compensation refers to the full non-cash and cash payments that an employee receives for his or her labor in a specific organization.  Compensation is among the most substantial expenses that a business can incur in matters concerning employees. Compensation may include overtime wages, sales commissions, base pay (this may be in the form of a salary or hourly wages), merit pay or recognition, bonus pay, tip income, different benefits (retirement; paid vacations, insurances) and other non-cash benefits. Compensation is a type of tool that the management of a business or organization uses to achieve several ends for the benefit of the company. Some of these ends include:

  •    Attaining internal and external equity
  •    Modifying union practices
  •    Recruiting quality talent
  •    Retaining quality talent
  •    Reducing turnover
  •    Encouraging company loyalty
  •    Increasing job satisfaction and performance.

What is Compensation management software?

Having understood what compensation management entails it is important now to understand what a compensation software is? A Compensation Management Software is a software that is used by organizations to enhance the effectiveness of a company’s compensation and benefits strategy. The application allows the necessary players in your organization to get involved. You see when everything is stuck in the spreadsheets such as Excel or the old school paperwork then efficiency is lost. Use of old-school paperwork and spreadsheets makes people in your company get bogged down with busywork. Using the old spreadsheets can make key decision makers in your organization to get excluded. By use of a proper compensation software such as Laserbeam, anyone who wants to get involved will get a streamlined view of the plan that you have put in place. Each person who is interested in getting involved will also view the necessary steps that are needed to meet the organization’s objectives.

Attract and Retain Top employees

Among the benefits of using a compensation management software is to help the organization to retain and attract top employees. This is because the software will enable you to make all the necessary adjustments needed for compensation plans and you will be in a position to spot any employee achievements when they happen and reward them accordingly.  For faster distribution, employee rewards and adjustments will be tracked digitally; this will provide employees with a clearer view for their compensation statement.

Enrich HR operations

A compensation management software is capable of enriching your company’s HR operations and complimenting your existing software.  Performance assessments, succession planning, annual reviews, forecasting, and budgets, recruiting, reviewing organizational structure, recognition and more can all tie int your organization’s compensation management software. This will allow for more accurate personalized reports, data analysis and other ways that can funnel any useful information that is capable of optimizing your day-to-day processes. It may be quite a challenge to implement a new compensation management software all by yourself however with an expert by your side; the process is quite simple and easy.