Calculating the ROI on Compensation Software

No matter the size of your company, whether it is a 1000-person strong workforce or a company that is just starting out, compensation management is crucial for success. To ensure your employees’ needs and expectations are met, they must be rewarded fairly for their contributions to the business objectives. Compensation is an essential element in attracting and retaining top talent, and in achieving the strategic goals of a company. 

The need for tech in compensation management

When companies are small, say less than 50 employees, organizations tend to handle compensation manually using spreadsheets with reasonable accuracy and ease. According to Ventana, 35-40 percent of organizations use spreadsheets to manage their compensation. And with good reason. Spreadsheets are versatile tools and are effective for tracking, calculating, and charting the numbers. But, they lack the critical functionalities you need to effectively administer compensation.

As the workforce increase in size, compensation management becomes a strategic element for you to achieve your business objectives, and manually managing compensation may lead to disastrous results:

  • Expensive data entry errors 
  • Compliance issues
  • A lack of transparency
  • Workflows become inefficient
  • Difficulty in scaling operations
  • Not sufficiently empowering managers in compensation decisions

The risks of using spreadsheets for managing compensation planning are enough to inspire a search for something more efficient. Savvy HR leaders know that there are a lot of moving parts like commissions, bonuses, long-term incentives and organizations must go from a manual, tedious, and error-prone approach to more sophisticated ways and reap the many benefits compensation management tools offer.

A comprehensive compensation management system like Compport is built specifically to manage the entire process–from planning to budgeting to execution and communication–can save you significant time while increasing the accuracy and efficiency.  It helps HR leaders and compensation professionals manage ‘total rewards’ as a strategic enabler in their organizations. Further, Compport can:

  • Handle any compensation related complexity with ease and serve diverse needs in your organization
  • Link market data to compensation and rewards decisions to ensure pay equity across your organization.
  • Run multiple simulations, compare the budget impact, and chose the best-fit one
  • Ensure strong compensation governance
  • Access to real-time, multi-dimensional, and intuitive compensation, reward and benefit analytics, and reports
  • Empower managers to make informed rewards decisions
  • Make your compensation communication more efficient and effective and increase the perception of fairness

But, given HR is a non-revenue producing department, how do you justify the use of compensation software?

Calculating the ROI of compensation software

Return on investment (ROI) is a critical metric in the selection of any tool and compensation management is no different. We conducted a study with our existing customers to examine the value organizations realize by deploying Compport and to better understand the benefits and risks associated with using compensation management software in general. We aggregated the evidence and feedback from organizations of varying sizes, to create a financial model that justifies the benefits derived from such an investment.

We estimated an average of 

  • 40 times return on investment,
  • 90 percent resource efficiency, and 
  • 10 percent impact on turnover. 

Please note the numbers mentioned here were derived, as unbiasedly as possible, from Compport’s customers and might not accurately reflect the ROI your organization will realize. Use your own framework to estimate the ROI of an investment in either Compport or other compensation management software. 

You can calculate the estimated ROI for your organization by taking into account the costs and the benefits reaped. Add all your costs toward the software like set up fees, implementation charges, support, and maintenance fees. If there’s a steep learning curve, add labor hours to the cost as well. It’s important to calculate the entire value of the investment to truly reflect the ROI.

For calculating the return, consider the following factors:

Reduced turnover costs

When employees have more clarity and control around their compensation, using self-service portals it can increase job satisfaction and thus has an impact on the attrition. At least 40 percent of employees quit because they feel they are not paid fairly. With a tool like Compport, you can gain insights into pay gaps and inequities and take measures to fix them before they cause irreparable damage. And, reduced turnover means reduced hiring needs.

Employees who are satisfied in their current roles are likely to stick around and thus your retention rate will be high and you can save on hiring new employees as well as the cost of training them. A good way to go about this is to compare data from other companies in your industry.

Estimate the costs associated with interviews, onboarding, and training new hires.

Speed and agility in rewards processes

Manual work costs real dollars. Track the actual hours your team spends on reviewing compensation, calculating pay, delivering up to date job descriptions, updating employee information, onboarding, and convert that into its monetary equivalent.  You also need to consider peak months when audits are frequent and the benefits of using software tools are at their peak.

It can be daunting to keep track of the hours worked and can raise some eyebrows but explain the reasons behind this clearly so the people doing these manual work understand how much time they could save by automating the drudgery.

Compensation teams becoming less administrative and more strategic 

Try to figure out the efficiency in the workforce when you automate all the administrative tasks in managing compensation. Depending on the complexity of the compensation processes, automation may lead to optimization in the headcount in the HR Team and/or it can help you better utilize the intellectual resources that you have since you will be shifting from being administrative to strategic.    

Accountability and ownership 

If the compensation processes are not sufficiently automated, organizations tend to cascade compensation decisions to a certain level only, not whole levels of managers in the organization. This limits the empowerment of managers and the accountability & ownership around the rewards decisions. If an organization can not create ownership at all managers, there is only little chance to create full-understanding and trust among the employees with regards to their compensations. Automation can help you to give better experience to your managers and employees in any compensation processes, which would yield engagement/ productivity and performance benefits.

Whether it is sales incentive simulation or clarity on bonus calculation for non-sales, automation will enable it all with ease across the board. If a scheme is not working well, no one needs to wait for the end of the period – automation will make it quick and easy to change schemes on the fly.

Also, if your compensation technology is enabling you to effectively and efficiently communicate compensation and rewards decisions with your employees, this would surely contribute to the ‘fairness’ perception and increase the trust to compensation related decisions. If you can achieve this with the power of automation, this would bring more engagement, productivity and thus higher performance.

Closing thoughts

Add up all monetary and non-monetary values and divide that by the total costs incurred for implementing the software and you arrive at your estimated ROI. Extrapolate these numbers to future years to see how you can continuously derive benefit from using a compensation management tool. 

Given the business impacts at stake, organizations have a compelling business case for investing in a compensation management solution. With the right solution in place, HR teams can shift from a tactical approach to more strategic efforts, including improving the quality of manager decisions about compensation and refining and communicating compensation strategy.


5 Compensation Management Challenges You’re Likely to Face as an HR

Managing compensation is one of the most difficult aspects of being an HR professional, irrespective of the size of the company. Compensation professionals in the HR department face issues in determining the right pay and relevant perks that recognize and reward employees for the contributions they make to the company.

The operations and processing can take a huge chunk of your time. It is more pronounced in companies with a workforce that spans across different geographies. In smaller companies, the challenges are of a different kind; most small businesses are limited by budget and so the extent to which these companies can go to attract new talent in a competitive landscape while being fiscally responsible to themselves is small.

Let’s take a look at the most common challenges when it comes to compensation management and how you can overcome them.

External competition

We live in an incredibly competitive world where businesses are willing to pay top dollar to get the cream of the crop talent. In order to attract and retain talent, your company must establish a compensation package that’s on par with other companies in the same industry and location. 

There are several market surveys to gauge the right pay for different roles. If you’re constrained by budget, you can innovate by offering attractive vacation time offs, child care facilities, and other benefits that don’t cause a dent on your budget.

Executive compensation

The many nuances of compensation management come into play when deciding the salaries of senior executives. This is particularly important for public companies that need to reveal the salaries of their top 5 employees which might not go well with shareholders and the general public. Even if that’s not the case, the pay packages need to strike a balance between attracting good talent while being acceptable.

Internal equity

Take a pay review and we’re sure you’ll be surprised by the results. Even though the government and businesses strive to achieve pay equity, the wage gap persists. In fact, the World Economic Forum estimates that it will take at least 202 years to close the wage gap.

You should continuously assess your pay gap efforts and create awareness in the senior management to fix this issue. Managing gender wage gaps is something that’s so close to our hearts so much so that we wrote a whole blog about it. You’ll find it here

Gaps in employee expectations

There’s always a conflicting disparity between what the employee expects to be paid and what the organization wants to pay. And, the HR is stuck in between. Also, employees usually don’t take into account the entirety of their compensation package. They only consider the net pay. 

You can bridge this gap by providing total compensation statements to clearly communicate the value of their compensation in its entirety.

Lack of digitization 

Managing compensation and communicating the outcomes is a very effort-driven task. When not done digitally, it can take up to several months from design to implementation and finally to communication and requires a lot of data crunching/ formulas/ sheets on Excel. Obviously, it’s not the best use of your time nor skills. 

Spreadsheets and legacy software force you to focus on administrative details, most of which can be automated by using online compensation management software like Compport. It can simplify your processes, save your time and resources, and enable you to design smarter, engaging compensation plans for your workforce. According to real-life examples with different Compport clients, it has been proven that Compport can bring in 95 percent more efficiency.

Closing thoughts

Your compensation strategy should be connected to business goals and financial data so you can get a complete picture of its effectiveness. When wrongly handled, it can cause a rift between employees and management. Though these challenges may seem daunting, proper planning and diligent efforts can help you overcome them. The right tools will help you move beyond manual work and transactions and focus on what’s important–motivating your employees and building a great culture.

compensation management

Everything You Need to Know About Total Compensation Statements

It’s quite common that employees only take salary into consideration when thinking about compensation. Your benefits package might be substantial yet employees may not fully understand the total value of the compensation they receive. These might include “hidden benefits”, which are usually non-monetary, like healthcare, paid vacation days, and many others. 

According to this report, the value of employer-paid benefits in private industries in 2017 was 30.5 percent of the average worker’s total salary. This means an employee perceives his compensation to be only two-thirds its actual value. To show the true value of their compensation package, businesses provide total compensation statements to all employees with the benefits factored in.

What is a total compensation statement?

Most of an employee’s compensation extends beyond the base salary. The total compensation statement (also known as total rewards statement) is a document that communicates the full value of an employee’s compensation package–both direct and indirect benefits. 

It gives employees a broader, high-level picture of the compensation they receive and is usually sent to employees once a year.

Why are total compensation statements important?

By the late 2000s, organizations realized they needed to offer a lot more than the base salary to keep employees incentivized to do great work and offer value. But, offering more perks isn’t enough. You need to make sure that employees are aware of what the business provides. One of the key ways top-performing organizations improve employee engagement and retention is by being transparent and sharing the entirety of their compensation. 

Helps employees understand their contributions

According to employee engagement expert Leigh Branham, “There is no more emotionally charged issue for employees than what they are paid for their contributions. What we make doesn’t just pay the bills—it measures our worth in the most material way.” The total compensation statement empowers employees by giving them a clear picture of their compensation and helping them understand the extent to which the organization has invested in them. 

Increases retention and loyalty

Knowing the full value of their compensation can boost employee morale and loyalty. Total compensation statements can be powerful retention tools.  In fact, CEB research shows that improving total rewards communication can lead to a 50% decrease in turnover risk. 

Improves employee performance

Providing these statements are also beneficial for encouraging high performance because they reiterate the ways in which top-performing employees are recognized for their contributions. When employees feel that their efforts are appreciated, they may be more inclined to contribute their best efforts to the company continuously.

What should you include in the total compensation statement?

Total compensation statements provide a complete break down of all aspects of the job’s benefits. It includes the monetary equivalent of all forms of compensation from the employer. The more detailed your statement is the more beneficial it is. 

The TCS consists of two major sections–direct and indirect compensation. Direct compensation includes the base salary and other extra financial compensation like incentives and bonuses. Indirect compensation includes the dollar value of the employer’s contribution to taxes and other benefits. This summary is often referred to as the hidden paycheck.

The following are the components of a typical total rewards statement:

  • Base Salary/Wages
  • Bonuses and commissions
  • Paid time off
  • Health/Dental insurance
  • Retirement funds
  • Tax contributions
  • Stock options
  • Perks like child daycare, gym membership, commute passes, etc.

Tips for creating effective total rewards statements

Here are some useful tips to keep in mind when creating total compensation statements:

  • Make it visually appealing with charts and graphs
  • Provide comparison with market data
  • Ensure all the data is accurate
  • Don’t double count line items–it’s quite easy to add paid time off on top of base salary
  • Consider adding net benefit amounts i.e. take into account the expenses incurred by the employees for any particular benefit
  • Only add the benefits employees are eligible for

Challenges in creating total compensation statements

PayScale’s 2018 Compensation Best Practices Report says 40 percent of top-performing companies are likely to use total compensation statements, compared to 36% of typical companies. If total compensations were so effective then why are a lot of companies not doing them?

Employee dissatisfaction

One of the main reasons companies refrain from creating total reward statements is because they feel employees might not be satisfied with the benefits they receive. The statement makes it easy for the workforce to compare it with peers as well as market standards.

But, these statements are actually doorways to open communication and career path conversations. If employees feel their earning potential is limited at your company, and not at par with the market standards, it’s critical you explain why that’s the case.

Accuracy of data

Another reason companies avoid these statements is in fear of giving inaccurate data. Accuracy of data is pivotal when it comes to creating any payroll-related statements. Also, the monetary value of the benefits changes with time and your statements need to reflect those.

If employees feel the data provided is not accurate, it may erode their trust in your organization. There might be benefits they are either not entitled to use or indifferent. In such cases, the statement might seem like a ploy to artificially inflate their compensation.

More paperwork

This is one of the most common reasons for organizations not handing out these statements. Creating total compensation statements for all employees can be a lot of work and can take weeks to process. 

How can Compport help?

Total compensation statements are crucial–but creating them manually isn’t the best use of your time or your skills. 

Our easy-to-use solution will help you communicate the full value of the compensation you provide to your employees, helping you drive loyalty and retention. The best part is that you don’t have to spend days and weeks on it. With Compport, you can create total rewards statements for all your employees in just 4 basic steps;.

 1-Upload your data

2- Choose a total rewards statement template from our template library or simply create your own

3- Generate the statements, and 

4- Distribute it to all employees with one click, digitally.

Closing thoughts

A company can invest a lot of money on its employees but if they don’t recognize the value of that investment, the organization is, in fact, wasting money. Helping members of your workforce understand the value of the benefits you offer may make them reconsider taking another job, especially if your benefits package is robust. Ensure the statement is accurate and that employees know where to find it, and it will be that much harder for your top talent to jump ship.

compensation management

Compensation 101: What Are Long-term Incentive Plans?

When employees reach goals that lead to increased shareholder values, you can reward them with performance shares and special capped options in addition to stock awards. Such reward systems that improve the employee’s performance are called long-term incentive plans or LTIP. In some cases, it may not be even tied to the company’s share price. 

They are a common compensation vehicle in startup companies as a means to attract top talent, employee retention, and to drive performance in the longer run.

Who does Long-term Incentive Plan(LTIP) apply to?

LTIP is specifically designed for executive employees who fulfill certain requirements that contribute to an increase in shareholder value. 

Executives know which factors to focus on to improve the business when the company’s growth plan matches the LTIP. While geared toward their incentivization, it also functions to assist the business’ long-term growth. 

When do employees receive the benefit of the LTIP?

The performance period for the LTIP usually runs between three to five years, before the full benefit of the incentive is received at the end of that pre-defined period. Now, companies can give these payouts either all at once or gradually over a period of time depending on the vesting schedule.

When companies set up LTIP, they decide on a period of time when the employees will receive full ownership of the asset, stocks or retirement funds, that come as a result of the LTIP. It can either be:

Cliff vesting: The employee receives the full benefit at a pre-defined point in the future.

Graduated vesting: The employee gets a certain portion of the reward, usually a specific percentage, over a period of time until the asset is fully vested.

Employees will be able to reap the benefits only if they stay with the company until the vesting date.

Why is LTIP important?

Hiring new employees is incredibly hard. Replacing an executive can cost up to nine times their monthly salary. This cost comes in the form of recruitment and training, in addition to the time spent by senior employees in the company.

The LTIP is a way to stimulate and retain talent in a highly competitive environment. It rewards employees who help the company achieve its strategic objectives. It makes their contributions acknowledged and makes them feel valued. This, in turn, serves as a motivator for the employee and can lead to job satisfaction.

By offering lucrative rewards such as equity, retirement funds, and options, you reduce the turn over of the company.

Types of LTIP

Depending on your goals, business size, and organizational value, you can choose to offer different long-term incentive compensations like restricted stock, performance shares, stock options, retirement funds, and cash awards.

Restricted stocks

In this LTIP, employees are granted unregistered equity shares that are non-transferable and can not be sold until the vesting date. Restricted stocks can be awarded as:

  • Restricted stock units, with no voting rights and immediate ownership
  • Restricted stock awards, with voting rights and immediate ownership

Employee stock options (ESO)

These are some of the most common kinds of long-term incentive plans. Every five to ten years, companies reward best-performing executives with the right to purchase shares at a pre-determined price. It aligns the objectives of the company’s shareholders and the employees; since when the share price goes up, shareholder value goes up and employees get shares at higher prices.

Since there’s no cash outflow, it can reduce expenses. On the flip side, the earnings per share for shareholders can get diluted.

Performance shares

Performance shares are when companies allocate stocks to employees when company-wide performance objectives are met, based on certain metrics, like earnings per share. They’re meant to drive activities that directly impact the shareholder value. They are different from stock options in that the executives receive the actual shares as opposed to receiving the option to purchase shares.

Cash awards

This is a popular option in private companies where stock options are non-existent. When employees achieve pre-defined performance objectives over a long period of time, they become eligible to receive cash awards that reflect the company’s gratitude.

Phantom stocks

Phantom stocks are contractual agreements between the organization and the executive employees that gives the benefit of stock ownership without actually transferring the ownership of shares. Like regular stocks, phantom stocks also follow the rise and fall of the share price and employees are compensated with profits incurred from the shares’ appreciation.

In addition to these LTIP, there are other reward systems like extended vacation days, paid sabbaticals, and more.

What are the drawbacks of LTIP?

Alexander Pepper, in his article on the Harvard Business Review titled The Case Against Long-Term Incentive Plans says companies are better off using that cash to pay larger salaries and annual cash rewards to incentivize desired behavior. There are several theories that suggest LTIPs do not work. 

Here are some of the disadvantages of long-term incentives:

  • LTIPs are so far into the future that it may not actually serve as an incentive.
  • Performance metrics may depend on external, non-controllable economic conditions. This can demoralize executives when things don’t go their way.
  • It can lead to deception, i.e. to falsify reports to cover their own poor performance, such as the infamous VA scandal.
  • Stock options can dilute the profit per share and reduce the number of allocated shares.

Closing thoughts

When designed properly, long-term incentives can be a great vehicle to promote retention and to align the employee and shareholder interests. It’s a win for everyone involved:

  • Employees get rewarded handsomely
  • Company’s performance is improved
  • Shareholder value is increased

There is no one perfect LTIP that’s appropriate to all companies. You need to assess your culture, strategies, and goals to select the right mix of amounts, stocks, and vesting mechanics.


The Beginner’s Guide to Compensation Management

The payday keeps us all looking forward to it, but it can be intense and distressing for the people processing your salary. If there’s something even more complicated than that, it’s planning and administering the equivalent financial value (called compensation) you provide in exchange for your employees’ work. 

Growing and large businesses need to come up with a process to ensure they offer fair compensation to all employees. They also need to analyze market trends, come up with creative perks and policies. That’s where compensation management comes into the picture.

What is compensation management?

Compensation management is the HR discipline that ensures that the company’s compensation, both monetary and non-monetary, are competitive, fair, and appropriate. It includes designing, implementing, and managing the compensation components that play an important factor in a prospective employee’s decision to join an organization.

The different types of compensation include:

  • Salary 
  • Overtime pay
  • Commission
  • Bonuses
  • Long-term incentives, equity awards
  • Several allowances
  • Health and life insurance
  • Vacation time
  • Retirement savings

Simply put, it’s how a company strategically manages employee compensation and its components so as to attract and retain good talent while staying within the budget.

Why is it important?

According to a study, 38 percent of the employees surveyed say inadequate salary and benefits are the main reason for them to hand over their resignation letters. And 57 percent report benefits and perk are at the top of their consideration factors before accepting a job offer.

Good compensation management is important for any business as it keeps employees happy and the business thriving. It gives candidates a good reason to join the company and existing employees a reason to stay. The organization benefits in several ways by compensation management:

  • It keeps the employees motivated and incentivized to offer their best work
  • Recognition and rewards have a positive impact on employee productivity and help reduce turnover rates
  • A competitive compensation package taking market trends into consideration attracts and retains top talent
  • It helps in creating a realistic budget
  • It reduces conflicts and disputes and creates organizational harmony
  • The 4 main objectives of compensation management

The main objectives of compensation management are to ensure pay equity, reward productive employees, retain employees, and comply with legal requirements.


A transparent, well-structured compensation management plan ensures pay equity and there are no wage gaps based on gender, ethnicity, or race.

Rewards and recognition

Employees need to be motivated and incentivized to take on challenges and perform better. They also need to feel valued and their contributions acknowledged to address their psychological and social needs.

Attraction and Retention

Employees are the most valuable resources for any company. Effective compensation, based on the performance, potential, and qualifications, should be administered so employees don’t feel compelled to leave the organization based on monetary factors alone. Also, it needs to be competitive enough to attract top talent.


A good compensation management system considers legal challenges and governmental regulations and ensures that proper compliance requirements are met.

Challenges in compensation management

Designing a fair compensation plan that accurately reflects an employee’s worth is a challenge by itself. Apart from that, HR professionals are faced with several other challenges:

Disparity with employee expectations

The biggest challenge in compensating employees is achieving fairness. Organizations seek to optimize their costs as they can. But, employees want the best compensation possible, either adequate or higher than some comparable standard. 

Fairness is a subjective term. What the organization deems appropriate and fair might not seem like equivalent remuneration to employees for their time and work. Because of this perceived imbalance, both parties will act to correct this disparity.

Keeping up with market trends

Another challenge of compensation management is keeping up with market trends and coming up with a competitive pay structure for the multitude of roles in the organization. You need to make informed decisions based on the salary market data, location, industry, and company size.

Growing employee needs 

It may be surprising to someone from a previous generation that the current workforce seldom gets any pension. 90 percent of millennial employees reported in a survey that they prefer additional benefits and perks over a pay raise.

The needs of employees have evolved over the years and HR professionals need to come up with creative policies and perks, sometimes offering tailor-made packages to meet employee needs. Some of the most common benefits these days are unlimited vacation days, child daycare, flexible work hours, and well-being benefits.

The components of a solid compensation management plan

Your strategy should serve as a guide toward fair and transparent compensation payments. A proper plan should Some of the elements used to decide how much compensation every employee receives are:

Pay structure 

HR professionals use specific approaches when coming up with compensation for a particular role. Sometimes it involves creating pay grades, based on complexity and scope of the job, qualifications and experiences required. It’s also a common practice to enforce step increments that act as markers for salary increments. They decide on the base salary, bonuses and commissions, if applicable, equity in the company stocks, and other non-monetary perks.

Salary statistics

Once the pay structure is complete, you need to gather data to see competitors in the same industry are paying their employees. You need to consider the average salary, cost of living in the location, inflation statistics, and more. This justifies to the management and the employees why they’re paying the compensation they get.

Job evaluation 

You’ve got the foundation of your compensation management plan ready now. You need to analyze the roles and responsibilities of the different job roles in your organization to narrow down suitable compensation for each role.

Job description

The job description not only shows the tasks that are expected of an employee, but also denotes the level of difficulty and the uniqueness of a specific role. This forms the why behind your employees getting a certain compensation for the work they do.

Best practices to manage an effective compensation strategy

Compensation management should follow a scientific, structured approach for it to achieve its objectives. It should be fair and transparent. 

Allocate proper budget

Your compensation budget needs to be in line with the organizational strategy and vision. The budget determines how much of the total compensation budget will be spent on salary and what percentage will be spent on benefits and other incentives.

Develop salary ranges

With the compensation plan in place, you need to come up with upper and lower limits for salaries to get a competitive edge.

Ensure legal compliance

Some countries have minimum wage laws and you need to make sure that your pay structure meets such governmental requirements.

Use the necessary tools

If your business is small and you have less than 10 employees, it doesn’t pose a huge challenge. You could use spreadsheets to track the different aspects of compensation. As your workforce grows, it becomes less efficient. You’ll have to use total compensation management software like Compport to help you with budgeting and compliance.

Document your compensation strategy

The strategy serves as a guide and should be outlined in a written document that clearly articulates the organization’s approach to managing employee compensation.

Review the plan regularly

A compensation plan is not set in stone. You need to go back to it once in a while to make sure it reflects the current market trends. The goal of the audit is to pay attention to market changes, how competitive some jobs are, and what external markets are demanding.

How can Compport help you?

The abstract concept of compensation management is not a challenging one; its successful implementation, on the other hand, is a different hurdle. 

Designing, managing, and monitoring compensation plans can be a complex and time-consuming HR activity. You need to analyze pay scale data, keep up with workforce trends, optimize your budget, understand the expectations of your workforce and come up with unique selling points for your organization. Managing each aspect manually is practically impossible. That’s why you need compensation management tools like Compport.It can help with automating salary review, bonus, sales incentive and long-term incentive processes aligned with your compensation policy and budget. The software is designed to give HR professionals a 360-degree view of employee data needed to make smarter and data-driven decisions. It can help you to reduce your overall time-to-process by 95 percent. Get your free demo today and see the difference it can bring to your organization.


Compport Advisory Board

Compport Advisory Board

We are very excited and proud to onboard some of the strongest minds as part of our advisory board. This step is a key milestone in our vision to “transcend the world of compensation management through digital magic". We are happy to welcome our valuable members of the advisory board:

  • Asher Siddiqui (Advisor – Investment, M&A Strategies and Financial Excellence)
  • Emre Tok (Advisor – Growth & Global GTM Strategy)
  • Erdal Bozdogan (Advisory – Branding, Marketing & Customer Experience)

Asher Siddiqui (Investor / Advisor / Mentor)

A growth-stage investor, a significant shareholder in 500 Startups, dividing his time between Dubai and San Francisco. Asher has ~20+ years of experience in mergers & acquisitions, venture capital, portfolio management, capital raising, restructuring, corporate innovation, and startups.

Asher was Head of M&A and later Head of Venture Capital at Etisalat Group where, for 10 years, he was part of the management team that led the transformation of Etisalat. He led ~36 advanced stage TMT deals valued at ~$34bn+ and closed ~20 M&A and CVC transactions valued at ~$7bn+.

Asher is currently also active in several non-executive roles, and is a board member, advisor, or member of the board of advisors to several Silicon Valley-based VC firms, GCC-based corporations & PE Firms and a Silicon Valley-based think tank.

Asher started his career in the late ’90s and founded several startups in the U.K. and in the US. Asher has a BA with Honors in Business Administration and an MSc in Software Development, and as a life-long learner since 2005, he has participated in several development programs led by MIT, Harvard, INSEAD, and Stanford Universities.

Asher has experience from both the LP and the GP side of the table and continues to advise both LPs and GPs in deploying capital into venture.

Emre Tok (Growth Marketing Consultant, Investor)

Growth marketing consultant with 21 years of experience in Product Marketing, Development & Management, Digital, Customer Analytics, Growth, and Internet Business Development.

  • Former VP of Growth Careem (acquired by Uber for $3.2 billion)
  • Ex-Microsoft Product and Partner Marketing Leader for the UK
  • Ex-Turkcell Product and Marketing Head (Leading TELCO in Turkey)

Emre has embarked on many successful projects in multinational companies in UAE, the UK, and Turkey. He has worked with industries covering direct-to-consumer brands, technology start-ups, media, SaaS, MaaS, B2B, and much more.

He tries to excel in delivering high impact technology innovations to internal and external audiences within and beyond KPIs and ROI. His leadership has led and participated in various business transformations such as:

  • Leading the holistic strategy for customer growth in the first unicorn of MENAPT region,
  • Leading the product partner and marketing activities for the 2nd largest search engine in the UK,

Emre is currently also active in several non-executive roles, and as a consultant, member of the board of advisors to several start-ups. His core focus is on helping organizations to achieve their full potential through full-funnel marketing. He is an industrial engineer with an MBA and is most proud of the talented teams that he has built.

Erdal Bozdogan (Global Business & Marketing Leader, Medical Doctor, Photography Artist, Blogger)

Business leader and marketing expert with 20-years of experience in the pharmaceutical industry, with a deep know-how of US and Emerging Markets.

  • Former General Manager of Takeda Turkey
  • South Asia, Middle East, Turkey and Africa Oncology and Osteoporosis Marketing Leader of Eli Lilly
  • Oncology Regional Commercialization Leader, Emerging Markets of Eli Lilly and many other roles

Erdal has delivered commercial strategy development in product launch at the national and regional levels coupled with operational leadership in the delivery of strategy and customer experiences. He is a Master of Marketing, Branding, Customer Journey/ Excellence, and highly experienced in managing large teams and P&L in turbulent times.

He is a Doctor of Medicine, as an individual with diverse areas of interest, in 2019 he has studied Photography in New York Film Academy and as an artist he had his first personal exhibition in Paris. He is currently studying Sociology and Artificial Intelligence and writing disruptive anecdotes on his own blog.

Outstanding results come from a passion for winning, serving customers, diversity, developing and inspiring people, and having fun in the job. With 20 years in business behind him, he defined himself as a positive leader and dedicated himself to develop people. For him, “Success comes much more easily when we’re passionately engaged and positively inspired by what we’re doing and where we’re going”.


How to manage Gender Pay Gap?

How to manage Gender Pay Gap?

The gender pay gap is the difference between men’s and women’s median annual earnings from full-time, year-round work. It is a measurable indicator of inequality between women and men.

The International Labour Organization (ILO) estimates that women on average continue to be paid about 20 per cent less than men across the world. There are large variations between countries, from a high of over 45 per cent to hardly any difference, please see the figures below for different economies.

Most governments are trying to guarantee equality of treatment between men and women in remuneration. Yet, the gender pay gap persists and the World Economic Forum estimates it will take 202 years to close the global gender pay gap, based on the trend observed over the past 12 years.

What can we do to Close the Gap?

The very first step should be:

  • Undertaking a gender pay review to assess whether there is a gender pay gap and to what extent? This review/ assessment should be a continuous effort not something that we do at the beginning of the year while we set some KPIs and at the end of the year while we are reviewing the achievement level on the set measures. Regular pay gap assessment should be followed with the second step which is:
  • Creating awareness and flourishing a culture where leaders/ decision-makers in the organization own and put effort to fix it. If the leaders assume the accountability, promoting a gender-inclusive culture while adopting a holistic approach to equal remuneration for women and men for work of equal value; making equitable salary offers to men and women, it would be an easier mission to achieve.

Another essential step for HR & Leaders in the organization should be:

3-Having a strategic plan in place and acknowledging the fact that it requires time/ effort to manage gender pay disparity, there is no magic wand to close the gap in 1 month/ quarter or a year. The amount of time required would depend where the organization stands at the start point. Keeping eye on core metrics/ insights should be an integral part of your strategic plan, below are some of the sample KPIs that may find value in tracking:

  • Gender Diversity (Male/ Female Ratio)
  • Gender Recruitment (& Candidate) Rate
  • Gender Promotion Rate
  • Gender Turnover Rate (voluntary & involuntary)
  • Salary Growth/ Genders (across various levels)
  • Salary Competitiveness/ Genders (across various levels)
  • Gender Successor Rate
  • Managerial Role Distribution Across Genders
  • Leadership Role Distribution Across Genders
  • Engagement Level/ Gender

Setting KPIs, tracking them with real/ live data can be only effective when it is digitized, especially for Mid & Large Enterprises, you can find some more ideas in Compport Analytics section.

Once pay gaps are seen and understood, then begins the work of deciding how best to address them. But that work will pay off. By investing in pay equity analysis and relevant analytics/ KPIs, companies can begin to close their gender pay gaps, and realize the benefits.

The ILO estimates that reducing the gap in participation rates between men and women by 25 per cent by the year 2025, could raise global GDP by 3.9 per cent, or US$5.8 trillion.

To make that happen, we are responsible, we are all accountable. Pay Equity is the topic which was supposed to be handled as on yesterday so better handle it today.

*For more insights feel free to connect with us anytime,


Understanding Gender Pay Gap

Understanding Gender Pay Gap

The gender pay gap is the difference between men’s and women’s median annual earnings from full-time, year-round work. The International Labour Organization (ILO) estimates that women on average continue to be paid about 20 per cent less than men across the world. There are large variations between countries, from a high of over 45 per cent to hardly any difference, please see the figures below for different economies.

The gender pay gap is a measurable indicator of inequality between women and men. Most governments are trying to guarantee equality of treatment between men and women in remuneration. Yet, the gender pay gap persists and the World Economic Forum estimates it will take 202 years to close the global gender pay gap, based on the trend observed over the past 12 years.

What causes the gender pay gap?

Under-representation in leadership: Far fewer women than men are in management and leadership positions, especially at higher levels. This brings down the average salary of female managers compared to that of male managers.

Working hours: The gender pay gap is often a consequence of the different patterns of workforce engagement by women and men. The ILO highlights that women work on a part-time basis more than men do. This is often linked to women taking on more of the unpaid family responsibilities.

Career breaks: Women more than men are likely to take career breaks from their employment in order to raise children or care for the family. This means that when they return to work, they are likely to have fallen behind in advancement and in remuneration.

Education: Women still lag behind men in STEM areas that are associated with higher paid jobs. Even when women are qualified in STEM subjects, it can be challenging for them to obtain and maintain a job in these areas because they are traditionally male dominated.

Feminized jobs: Occupational gender stereotyping results in certain jobs being held predominately by women, and that leads to “female jobs” being undervalued for purposes of wage rate determination.

Benefits of closing the gender pay gap?

The benefits of women earning the same as men include an increase in their purchasing power which in turn helps stimulate consumer spending and the economy. According to a research conducted by ILO, across all economies that increasing gender participation adds a significant amount. The ILO estimates that reducing the gap in participation rates between men and women by 25 per cent by the year 2025, could raise global GDP by 3.9 per cent, or US$5.8 trillion.

What can organizations do to close the gender pay gap?

As a first step, recognition of the business benefits of improved gender diversity at all levels is critical as well as commitment from top leadership. More specific actions can be:

  • Promoting a gender-inclusive culture while adopting a holistic approach to equal remuneration for women and men for work of equal value.
  • Making equitable salary offers to men and women.
  • Undertaking a gender pay review to assess whether there is a gender pay gap and to what extent – conducting regular pay reviews can help a company keep on top of any inequalities.
  • Making jobs more flexible so that more women access higher-level jobs and, therefore, higher pay.
  • Ensuring that unconscious gender bias does not affect performance reviews. Selecting and applying a job evaluation methodology to assess the skills and responsibilities of the various jobs in the organization with a view to adjust job titles, contents and corresponding pay overtime.
  • Sharing the effort, results and benefits with the stakeholders in the organization’s ecosystem and being an inspiring example for others.

Ref: This brief is based on findings from the ILO report on Women in Business and Management: The business case for change (Geneva, 2019)


Why the Demand for a Compensation Software is Increasing?

Why the Demand for a Compensation Software is Increasing?

According to various market researches done by several intelligence companies, the Global Compensation Software Market is expected to grow at a CAGR of 9% during the forecasting period of 2019-2026.  More than 50%+of the market share is originated from the Americas and the market in APAC is expected to register highest CAGR.  And Small/ Medium size enterprises are expected to show higher growth rate in demand than Large enterprise segment. In 2018, on-premises compensation software accounted for the significant share in the global compensation software market however demand for cloud-based compensation software is growing sharply and it is expected to witness the growth of over 12%, during the forecast period, which is higher than the overall market CAGR.

What are the key drivers in the Market? What is Changing?

Highly Attractive Benefits Offered by Compensation Software:

The benefits offered by compensation software, which includes optimized utilization of company revenue, enhancing positive reinforcement, boosting of employee performance, and improving company reputation during talent acquisition are expected to fuel growth in the market. On the other hand, automated compensation management process simplifies administration processes by reducing errors caused by manual work coupled with saving organizations’ money and time while improving efficiency and productivity.

Increasing Competitive Edge:

A smart compensation software helps organizations to take their strategy beyond numbers and budgets. It ensures that the incentives provided to employees are in line with the recent market trends, which helps organizations in maintaining low attrition rates. Moreover, employers can also identify top-performing employees by their work management, thus rewarding such employees for their effort. Also, it improves the workplace environment of the company, which plays a significant role in the performance and productivity of an employee. Thus, more companies are looking to adopt compensation software tools into their organizational activities to attract and keep top performers, build a solid employer brand and ultimately to sharpen their competitive edge.

Technological Advancements and New User-Friendly Software Launches by Market Players:

There is a clear shift from Core HR Suite to end-to-end Compensation Software since organizations do not want to rely on their core HR Suite and compromise their compensation strategy. A typical HR Suite can only manage certain aspects of a typical compensation process; thus, companies still manage some part of their processes offline, basically through traditional spreadsheets. But with the technological advancements and the smart offerings by “boutique' compensation software companies, the rules of the game are changing, more and more companies shifting their compensation processes out of their HCM.  Unlike HCM market, approximately one quarter of the Compensation software market is dominated by major global vendors who offers full HCM suite, (for HCM market it is more than 50%). The concept of ‘integration’ is surely helping this change, most of the compensation software can be easily integrated to ERP/ HRIS and allows organizations to leverage their investments in existing processes and systems.


Nowadays, for any size of enterprise, for any type of compensation process, for any set of expectation, there is a compensation software available in the market. It is “the time” to manage employee compensation with confidence; the right tool can bring data intelligence, workforce agility and administrative efficiency to human resources while providing transparency of all compensation detail for reporting, total compensation statements and letters, and audit/ compliance reporting.

There is a compensation software out there which would help you to optimize the utilization of company revenue, to enhance positive reinforcement, to boost employee performance and engagement. Wishing you all the success and highest return on investment. For any queries/ feedback please feel free to reach out.

Thank you

Co-founder/ Managing Partner Compport


What is the Likely Recovery Path? If the Covid-19 Induced Recession is on the way

What is the Likely Recovery Path?

If the Covid-19 Induced Recession is on the way

Last week’s brutal drawdown in global financial markets might seem to indicate that the world economy is on a path to recession. Does the market drawdown truly signal a recession, how bad the recession would be, etc? We do not know the answers yet, but there is one thing we know is that we all need to have a Recovery Path. Most of the companies started to initiate some actions, and mostly they are employing several cost-cutting measures, such as:

  • Pay cuts and reduced bonus pay-outs
  • Deferred pay increase or no increase this year
  • Asking employees to take unpaid leaves
  • Freeze on hire for indefinite period
  • Terminate consultancy spend and temp consultant contracts immediately
  • And 70% organisation plan to invest more in technology

Above initiatives and some others would probably drive employees into the “fear of recession” and boost the ‘feeling of insecurity’, and obviously none of them would help the organizations to succeed in the current environment. Here are some of the key suggestions we would like to share.

Walk the talk: We all have heard that some of the CEOs have taken pay cuts. Now this is a fantastic first step, one that makes them a normal human as any other employees. Organisations taking any of the above steps for their employees have to make their employees feel that CEOs and Presidents or top management is part of them and equally contributes to manage the difficult time. Perhaps I would recommend higher % cuts at the top down compare to lower levels considering the contribution in terms of real value would be more. Also the fact of life is that beyond a reasonable career level, we all have secured our future for such difficult times but it is not the case for the front line staff which is earning and spending on month-to-month basis.

Connect with your employees: If you are a CEO or a management team member who was continuously communicating company’s success, challenges, future, etc. regularly, do it more. If not, start doing it more often than ever. It is the perfect time to build that real connection between organisation, it’s leaders and employees, that will last forever in maneuvering through such difficult times. Share the past success, current challenges and future perspective TRANSPARENTLY and more importantly ask them how they can contribute to ensure that they don’t loose the momentum of life and keep their motivation high. Give them courage, support, environment and channels to continue performing at their best in whatever way they can and use these channels yourself e.g. using technology to connect. Create whats app or any other chatting platform group led by the CEO herself/himself and keep the nerve of the organisation all the times. Keep sharing and reflecting your perspective, may be on daily basis. If as a CEO or top leaders, you will have to do a half an hour call every week with all your employees, do so. Ultimately you are saving time to go and come back from office, use it wisely.

Share the pain, to have collective gain: There are tons of ideas floating around to manage the costs – read them, understand them, see what is useful and apply them without wasting any time. One of the best is to replace the pain of “cutting the headcount” with “Sharing the pain together”. While things were normal, we were always looking forward to creating more and more ideas to motivate our employees. Today the only motivation employees need is that their job is safe. Built trust by giving this motivation to them while you can do a lot of other things to save costs.

More importantly, split yours cost saving ideas into two parts, one for immediate actions and others as permanent fixes. It is extremely important that we learn our lessons from this difficult time and try to be conservative in spending now and in future. Here is my take on them, which includes are collection of various ideas already ..

There are tons of intelligent minds out there which can further add to this list and not necessary all organisations have to take all the steps collectively but think aloud, engage wider audience and start taking actions on now is the key here.

In nutshell, this is not an easy time, for any country, any industry. Plan for the best and prepare for the worst. It is our collectively efforts with just few intelligent moves, very quickly, that can convert this dim and sluggish time to a progressive and smart future for all of us.

Stay Safe

Sachin Bajaj, Founder & Managing Partner Compport