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compensation management HRMS Solution

How to Ensure Pay Equity in Your Organization

Pay equity is a real fragile concept that makes sure that all your employees are paid the amount equal to their efforts.  In recent days HR professionals and hiring managers are paying real attention to Pay equity inside the Organization.

It’s really important for every organization to ensure pay equity to:

  • Reduce the risk of litigation and cases
  • Prevent your brand image from public damages
  • Prevent the feeling of unfair treatment between employees

There has come a culture shift where employees have understood that it is their right to be paid fairly. They want to be paid on their efforts, rather than on their race, religion or other external factors. In short, Pay Equity has become a necessity to retain top talent and build a healthy culture in your organization.

What do you need to maintain Pay Equity?

Maintaining Pay Equity has become a huge stressor as your organization gets bigger. But it can be maintained if you have collected the right data before deciding an Employee’s salary.

Document your pay processes and policies

Your Primary step towards Pay Equity is to maintain a recorded schedule of pay processes and policies. You need to Document all your processes and create Standard Operating Procedures ( SOP’s ) for it. This will make sure that you have a set of policies to maintain Pay Equity in your organization.

Collect data

For the next step, you need to focus on collecting data about your current payment policies and your employee satisfaction towards it. You need to collect a ton of data points to asses the current condition of Pay Equity in your organization.

This step will help you understand where your organization is currently lacking and how you can improve it.

Find out the efficiency and contribution of each employee

Now you need to set up data collection methods to constantly monitor the efficiency and contribution of each employee to your organization. The bigger you get, the more confusing this will be without a set procedure.

You need to set up foolproof systems that will constantly monitor each employee and present that data in the form of a readable report.

Analyze the data and deliver results

When all your data is collected and Analyzed, you need to schedule a separate time to review it. This can be done on a monthly or weekly basis depending upon your employee count and size of your organization.

But you should always take some to take a look at the results and get meaningful results from them.

Doing all these steps mentioned above manually is excruciating. That’s where a compensation management tool like Compport will come handy.

How do you use software to ensure pay equity?

Here are 5 reasons ( and 1 Bonus Reason ) how compensation analytics software will be beneficial for you in ensuring equal pay:.

You can get employee level suggestions

Pay Equity software will help you get a suggestion from each employee inside your organization. When you are able to identify the opinions of each employee and act, two things happen in tandem.

  1. You Identify your opinion of each employee and that gives you a new perspective towards your business.
  2. When each employee can get a seperate platform to voice their opinion, they feel empowered.

At the end of the day, getting suggestions from each employee will empower you to take better business decisions on a pace unseen.

You can conduct a quick analysis to determine pay gaps

With a Pay Equity Analytics tool, you can also drill down on your employees salary and performance on a department-wise basis. This will allow you to perform quick analysis of employees who are overpaid or underpaid in your organization.

You can also compare the salary of each employee according to the Industry benchmarks and identity where you stand. 

Find employees are paid higher or lower than the average compensation

As I’ve stated above, a Pay Equity Analytics tool will help you identify employees who are paid above or below the standard compensation rates in the market. You can get a detailed report and cut down on your budgets wherever it is unnecessary.

Find Instant suggestions for salary packages( for new hires )

It can be hard to set up compensation for a new hire. This is even harder if the employee is hired in a completely new role in your organization. 

A pay analytics tool will help you solve this problem by identifying role wise suggestions fr each new hire. With these suggestions and industry specific insights, you can identify the compensation that will be the best for each hire.

We live in a world where data is abundant, so it’s always better to make your decision backed with solid Data.

Identify pay gaps based on gender, demography and other factors:

A Pay Analytics tool will help you identify if employees of a certain age, gender, religion or race are underpaid. This will allow you to recognize discrimination inside your organization and identify the person responsible for it.

You can then set up foolproof systems to prevent any sort of these discriminations in the future. As you know a healthy culture with Pay Equity equals a successful Organization.

Most Important: You can perform Cost Analysis to identify areas of improvement

Finally, when you have information on the payment policies of all the employees in your organization, it becomes easy to perform a Cost Analysis. You can identify the departments and roles where excessive budgets are allocated.

You can also identify employees who are underpaid in your organization. With all this data you can set the right metrics and reallocate your budget to the right department..

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compensation management HRMS Solution

Data is the new oil and Compensation Analytics is the modern way of being smart with your business

Compensation professionals strive to ensure equity in pay and fair rewards depending on an employee’s contribution. Unlike Sales, Marketing, and Customer Support teams, they do not have the right solutions to increase employee satisfaction and retention.

Having a compensation analytics tool like Compport enables your HR department to hire and retain the top talent based on data. A solid process will make sure that you have high employee retention rates and productivity.

Let’s take a look at how analytics tools can help your HR team manage compensation structure across the organization.

There is no shortage of data in your organization. All the data in the world wouldn’t be useful if you don’t know how to use it. But, you have to identify two things before you choose an HR analytic software for your organization.

  • The data points which you’re going to tap in your organization
  • How you are going to measure it against other data points

Once you’re sure about your data points and the priority of a data point, you can select an HR Analytics for your organization.

There’s a reason why we are pressing on the importance of choosing the right data point. For example, here are some data points your HR department can track on a primary level:

  • Employee Classification
  • Roles and Capabilities
  • Impact of an Employee’s budget
  • Employee satisfaction
  • Staffing levels in the organization

It’s up to you to choose which of these metrics you want to prioritize and track with your compensation analytics software.

Benefits of choosing a compensation analytics software

Make logical decisions

Whenever an employee wants to leave an organization for better pay, your manager’s first move is to try and match their new salary. But might not always be the right option for your business.

What if you already have a better employee to fill his ranks? Wouldn’t it be less costly to just promote a junior employee to the place of the person leaving the organization?

A dedicated analytics software will help you judge your employees against each other when deciding for a raise or a promotion. With solid data, your manager will now decide to let go of this employee and instead promote the junior employee to his position.

Ensure pay equity

Pay equity is a major issue in large and medium-sized organizations. All employees want a fair pay that is irrespective of race, religion, gender, age, and tenure. Employees want to work in a place where the pay is decided upon their performance. Compensation analytics software provides you with data about pay scales for different employees across departments. You can use the software to drill down on various questions like:

  • Is there any ethnic group that’s being paid less?
  • Is there a difference in salary based on the Age of an employee?
  • Is there a pay scale difference between male and female employees?

You can answer all these questions from a single dashboard and identify any discrepancies in the system. When you see a repetitive discrepancy, you can talk with the manager or the administrator responsible for it. You can also set up systems and procedures to ensure pay equity across your organization.

Manage Compensation costs

Your analytics software must be connected to the different departments across your organization. It should always be fed with up to date data across departments.

Once you have a steady stream of data, you can identify if your compensation is actually increasing the profitability of your organization. The changes you make in compensation should have a direct impact on overall revenue for your organization. With this insight, you can identify key places where a higher compensation spend could be beneficial for your organization.  

In short, HR analytics allows you to do two things

  • Cut costs where it doesn’t add value
  • Add compensation to departments which raise your organization’s value

Bring transparency

An organization that is transparent about its goals and current state will cultivate a healthy culture. When you have a healthy culture, your retention rates improve.

Letting your employees know your compensation policies and their pay structure clearly is the highest form of transparency. Your employees can be sure that they will only be judged on their performance and not on any other external criteria. At the end of the day, when your decisions are fair in the eyes of your employees, they will definitely stay loyal to your goal and your brand.

Plan your workforce requirements with Compport

When you have data-driven insights about the performance of every individual employee, you tend to make better hiring decisions. You can analyze the places where you need more manpower in the future and hire accordingly.

If you feel about making a certain change in the business, you can take a look at your employees and understand how you can change their roles.

Here are three things you can do better with Compport

  • Design fact-based/data-backed model to attract and retain top talent
  • Make strategic decisions to address talent shortfalls in the future
  • Discover new talent that is underutilized in your organization

The right software will help your HR department make the right compensation decisions at the right time. You can help them navigate through tough salary negotiation moments with data-backed insights. It will not just dissolve your challenges with compensation, it will make your organization more efficient  in the longer run.

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compensation management HRMS Solution

3 Ways Automation Can Help You Streamline Employee Total Rewards Statement

All organizations realize the importance of having a solid employee total rewards program in place. For, it is the key to successfully reinforce and drive employees to fulfill an organization’s mission and business goals. However, implementing an effective employee total rewards statement is anything but easy. 

What’s more, outdated employee rewards programs that are paper-based are not only redundant but also trivial. To make their employee rewards process effective, organizations need to shift their focus and make it futuristic instead of taking a retrospective stand. And, employers need to think beyond monetary rewards to keep their employees engaged.  

While an archaic rewards program can help you reward top performers of the past, automation can help you get a step beyond that. It can help businesses take their employee satisfaction to the next level with factors like recognition for achievement, learning and development opportunities, and career advancement possibilities. 

Listed below are three ways that automation can make your employee total rewards statement provide the impact you always dreamed of. 

1. Focus more on strategic execution

Manual employee rewards and recognition programs are labor-intensive. From creating nomination forms to printing them and forwarding the nominations to the committee which is incharge of selecting and rewarding employees, it relies on the manual effort exerted by the HR team and functional managers.

Automation eases the administrative burden involved in the process, reduces the need to chase after stakeholders, and provides HR managers more time to focus more on the strategic parts of their employee recognition process. Reduced manual intervention will not only enable process accuracy but also ensure 100% on-time completion of the nomination process.

2. Eliminate bias and favoritism 

Businesses that rely on outdated tools like paper forms and spreadsheets to run their employee rewards program pose a higher risk of bias and favoritism running rampant since it is hard to perform due diligence on every stage of the employee rewards program.

Whereas, an automated employee rewards statement which is supported by rule-based workflows will prevent erroneous and inappropriate nominations eliminating the chance for any bias or compliance risks completely. With detailed audit trails and 360-degree visibility, business leaders can overcome the recency effect and make an accurate decision that is backed by data. 

3. See if your employee rewards are impactful

Rolling out your employee rewards program and failing to measure the impact it leaves on your employee morale is equivalent to throwing away your hard-earned money down the drain. While you can easily measure the cost of your employee rewards program, in a manual environment, it is impossible to track the data that is required to measure the impact your program creates. 

With automation, you can easily know who was recognized and who wasn’t, how well the program is received in each of your internal departments, and other critical data points at the touch of a button. With built-in reports, HR leaders can turn their data into actionable insights based on which they can make informed improvements to their existing employee rewards program.

Summary

Automating your employee rewards program can provide your employees the experience they are looking for and the impact you’re trying to create. Instead of looking at it as an unnecessary investment, SMBs need to understand that it is a growing necessity. For, without it, businesses can not do justice to their employee rewards statement. 

Using automation can eliminate repetitive tasks involved in the employee rewards process and improve your employee satisfaction rates significantly. The ability to digitize nominations can improve employee experience, the transparency of your selection process can imbibe trust, and data analytics can make sure that your employee rewards statement remains in top shape.  

What’s more, automating your employee rewards process will neither dehumanize it nor will it replace the interactions that you have with your employees. It helps HR leaders and functional managers to leverage the power of technology to break conventional barriers in your employee rewards program to achieve greater efficiency, improve employee trust, and eventually motivate your employees to do their best possible work.

If you’re searching for ways to transform your employee rewards and recognition statements for the better, embracing automation must be your first choice to make your dream come true.

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compensation management HRMS Solution

Managing Employee Compensation Effortlessly with Technology at Every Level

Gone are the days of flat rate employee pay raises. Nowadays, a compensation decision includes an array of attributes ranging from market rate to peer parity and performance-pay matrix. What makes the existing compensation process more complex is that all compensation-related information is spread across disparate systems.

Employees often assume that all employee-related information is accessible, visible, structured, and accurate. With HR leaders battling fragmented data and inconsistent information to get a complete picture of components that contribute to compensation-related decisions, the compensation management process drags on for what feels like forever. 

Improved employee data management and technology adoption can do wonders to your compensation management process by improving employee engagement and reducing turnover. To stay ahead of the curve, organizations need to streamline the end-to-end compensation management process.

Here’s a breakdown of the positive impact technology can have on your compensation management lifecycle across a range of functionalities.

Six Stages of Compensation Management

The compensation management lifecycle starts when an employee decides to join the organization and goes on until the employee exits the organization. It is the common thread that leverages employee performance data as the foundation and glue to build a win-win employee-employer relationship. 

Ideally, compensation management consists of six stages that are listed below:

  1. Setting an overarching organizational strategy

Though it is not really a starting point for compensation management, determining which route your organization will take ensures that your compensation decisions align with your business goals.

  1. Crafting a standard compensation policy

Having a clear-cut compensation policy will eliminate any ambiguity in compensation decisions and simplify the calculation of  base pay, benefits and other important components while extending an offer to a promising candidate . 

  1. Performing analysis of available job roles

The research done during this stage comes in handy while HR managers draft job descriptions for an open position. The process will help determine the relative worth of a job and the compensation package aligned to it. 

  1. Evaluating contingent factors like cost of living

Ideally, a compensation plan must be formulated only after taking contingent factors both internal and external into consideration. While internal factors can be something akin to seniority, external factors can include anything ranging from labor laws to economic downturn and market value.

  1. Designing and implementing a compensation plan

Once the steps listed above are completed, you will have enough information to craft a compensation plan that aligns with your business goals and employee expectations.

  1. Evaluating and reviewing the existing process

Your compensation plan can never stay rigid as it is affected by an array of dynamic aspects like economic condition, cost of living, and more. So, rather than taking an once-and-done approach, businesses need to check whether or not their existing compensation practices leave a positive impact on end variables like employee productivity. 

The Role of Technology at Every Stage Of Compensation Management 

Ever-evolving employee expectations and economic conditions demand a complete revamp of traditional compensation management processes to avoid disengagement and turnover. A recent compensation Deloitte survey shows that most organizations are reinventing their compensation practices and making them more human-focused in nature. 

An automated compensation management tool will not only standardize the compensation process but will also cater to the unique compensation needs of an organization like taking a more human-centric approach without exposing itself to the risk of human errors and biases. A compensation management system will help businesses to:

  1. Inject pay transparency into their compensation lifecycle
  2. Enhance employee experience and trust
  3. Add credibility to the performance evaluation process
  4. Shorten the compensation management cycle
  5. Eliminate inherent compensation-related biases
  6. Improve stakeholder engagement and collaboration
  7. Enforce regulations and policies as and when required

The Only Way to Move Forward

Today, technology is an integral part of all HR practices including compensation management. HR leaders and functional management can gain the ability to do more with less by embracing compensation automation.

Automated compensation management process is more seamless and efficient. It improves employee relationships by enhancing engagement and transparency while lowering the chance for biases. With organizations across the world automating their compensation management process at a rapid pace, it is time to act or risk being left behind.

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Blogs compensation management HRMS Solution

5 Steps for Selecting the Right Compensation Tool for Your Business

Compensation management is a balancing act. HR leaders need to match their priorities such as employee compensation, performance bonuses, and operational budget against pressing issues like disparity, employee needs, economic fluctuations, and war for talent. 

In order to play the balancing act well, there is a dire need for meaningful insights and process transparency. This is precisely why HR leaders need to take the first step towards streamlining their compensation management process. 

However, you can’t jump start the search by diving head first into the sea of HR technology offerings. Even if you manage to narrow a few compensation tools based on your employee size and budgetary restrictions, it is still hard to pinpoint the best software. 

To select their first compensation management tool, small businesses need to determine their business requirements and identify the functionalities they need. Listed below are five steps that can set you up on the right path to find the best compensation tool for your small business.

1. Determine your goals

The first step is to understand what exactly you’re trying to achieve with a compensation management tool and assess whether or not these goals align with the overall objectives of your business. 

Once you’ve taken this step, you can move on to understand how you intend to use the compensation management tool. Do you plan to let all your employees’ access the tool or restrict it to just the HR team and finance department? Do you really want an exhaustive compensation system or can you make do with a light-weight compensation tool that keeps your data organized and secure?

By asking yourselves these questions you can kick start your search in the right direction and narrow down your search. 

2. Talk to your users 

Talking to the people who will be using the system can give you a better idea of the features it needs and the data points your tool must handle. Business owners need to have these conversations with both end-users like employees and power-users like HR leaders and the finance department.

These discussions will not only help businesses get a clear picture of specific requirements that a compensation tool needs but also offer insights on the level of training that needs to be provided before onboarding everyone onto the new tool. 

3. Zero in on features that you need

The third step is to gain in-depth insights of the features and functionalities you need in your compensation management system. When you take a look at the compensation software offerings in the market, you can find a range of tools from light-weight systems that offer basic functionalities to a feature-heavy offering that comes with SSO, workflow automation, and more. 

To find the right compensation tool, businesses need to understand which features offer real benefit and which are just a vanity offering. The key here is understanding the fact that even the most sophisticated and feature-rich compensation management tools are worthless is they are too complex to operate or if they are not suited for your day-to-day activities. 

4. Look for integration-friendly tools

The fourth and the most important aspect for any business software hunt is to check whether the tool of your choices plays well with your existing software stack. You need to see for yourself how well your shortlisted compensation management tool connects with all your existing software stack through API and built-in connectors. 

5. Assess its mobile-friendly nature

The digital life your employees lead demands that any and all business tools you make them use must have mobile offering for easy accessibility. This means that all your HR leaders, functional managers, and employees should be free to access their payslip and other compensation-related aspects anywhere, anytime. 

Bonus: Top 5 Compensation Management Tools in the Market

There are an array of compensation management tools available in the market today making the selection process challenging. To help you cut to the chase, we have compiled a list of compensation software that stand out from the crowd.

  1. Compport

Compport is an agile compensation management tool that is flexible to serve the simplest need for an SMB and powerful enough to meet the most complex compensation demands in an enterprise. It empowers businesses by incorporating cost efficiencies, productivity, and engagement in the compensation process. 

Compport accommodates nearly all the scenarios that help analyze compensation data for any organization. What’s more, it helps organizations implement and communicate all compensation related information in a single platform without any hiccups. 

  1. Anaplan

Being a financial forecasting tool by nature, it helps businesses solve their compensation troubles by replacing their old excel files and manual updating process. While it can do nearly anything from analyzing large data sets to offering complete transparency, it has trouble with metadata management and sharing data across modules.

  1. CompensationXL

CompensationXL standardizes the compensation management workflow by streamlining the approval process, ensuring timeliness and accuracy in end-of-cycle statements, and making actionable recommendations. 

  1. Harvest HCM

Harvest HCM enables businesses to automate their end-to-end compensation program including stocks, equity, and promotion with an easily accessible, web-based interface. 

  1. Payscale

PayScale provides businesses with on-demand compensation data to create, track and analyze a compensation strategy that meets their business needs. 

Closing thoughts

Businesses of all sizes have started using compensation management tools to streamline the process and track their hard dollar spend better. With the evolution of technology, compensation tools have evolved as well.

While all the compensation solutions listed above offer an incredibly powerful compensation management experience, their feature sets and functionalities set them apart. So, before leaping onto a specific product, it would be better to take a look at each tool and verify whether or not they suit your unique compensation management needs. 

If you’re on the lookout for the right compensation management tool, give Compport a try and see if it’s the right fit for your organization. We’ll get on a free call with you to understand your requirements and help you make the right compensation management decison.

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compensation management HRMS Solution

3 Ways Small Businesses Can See the ROI on HR Automation Investment

 

SMBs depend on efficient process flows and effective documentation to keep their employee lifecycle seamless. Businesses that fail to keep up with the technological transformations run the risk of falling behind and losing to their competitors in the war for talent. 

HR automation can transform their day-to-day HR processes and pave the road for employee engagement and satisfaction. However, without measuring the ROI of HR process automation, SMBs may as well throw out a bunch of process initiatives and hope some miracle makes their employees stay. 

Ultimately, when it comes to any process automation investment, it all comes down to ROI. And if the HR team has trouble showcasing the benefits of their automation investment, then the management may start retracting their decision to embrace automation. 

In order to help HR business units bring themselves up to speed on the benefits of HR automation, we have broken down three areas where SMBs can accelerate ROI and their business growth using automation.

1. Offer an onboarding experience

Research shows that traditional, paper-driven onboarding processes drown employees in paperwork and drag on for over 11 hours. Boring employees to death with paperwork will force new hires to exit the company twice as fast. What’s more, statistics show that 58% of employees tend to stay for 3 or years if they go through a structured onboarding experience.  

Onboarding process automation can simplify labor-intensive tasks like documentation, manual follow ups, and file storage. It can also enforce accountability and ensure policy compliance with automated checklists and rule-based workflows. With all these features by their side, small businesses save more than 50% of the time and expenses they typically spend on their onboarding process. 

2. Create a performance-driven culture

Proper measurement and evaluation are at the heart of growth. Timely evaluations show how things are progressing and whether or not preset goals were achieved. That’s the core of employee performance management as well. 

Are your employees delivering the top-tier result that is expected out of them and how do you go about restructuring their compensation into something they truly deserve? However, depending on outdated tools like paperwork, excel sheets, and manual workflow management, makes it impossible to get a clear overview of an employee’s performance. As a result, businesses end up relying on instincts and gut feel, falling into the trap of favoritism and bias.

An automated performance management process can help SMBs ensure that confidential employee performance data and sensitive compensation information remains secure while streamlining the process with timely performance check-ins, historical performance comparison, and accurate documentation.

3. Give your employees the gift of hassle-free payroll

Manual payroll processing is the most redundant HR process in existence. It is a daunting task that needs to be accurate and error-free, else there will be a ton of repercussions to face. Small businesses that cling to excel-based timesheets and email payslips are depriving themselves of the productivity that process automation can offer them.

A robust payroll processing platform can streamline the payroll and compensation management process within an organization by catering to every HR and payroll processing needs with a user-friendly and accessible interface. Automation simplifies the tedious wage calculation process by generating accurate, error-free results within a few clicks.

On top of that, an automated compensation management process can facilitate hassle-free financial planning, ensure accurate timekeeping, improve the productivity of HR staff, and enhance employee satisfaction. 

Conclusion

The conventional way of executing HR processes is run completely on human efforts, consuming a ton of time and effort. A well-thought out and implemented HR automation project can help small businesses save time and money no matter which process you decide to automate. 

If you’re having trouble managing your HR processes manually, simply focusing on automating repetitive tasks and eliminating manual intervention can leave a huge impact on your process efficiency. If your manual dependency is holding you back from scaling up, then speeding up the implementation by restructuring your existing processes is very high leverage. Using a tool like Compport FIT for only $0.3/employee, can give you greater peace of mind for a fraction of the cost.

Either way, any small business (irrespective of industry) can extract high-impact ROI with HR process automation. Start with these three HR processes outlined in this blog, further along the way, start automating more HR processes like vacation management, recruitment, more, to multiply the ROI even further. 

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compensation management HRMS Solution

4 Ways HR Automation Can Add Value to Your Small Business

HR managers in a small business battle against feral processes everyday. While they know that wearing multiple hats and keeping a close eye on everything is how they keep their organization in the black, there is only 24 hours in a day. Managing fragmented records, overflowing inboxes, and irate employees with manual HR processes is a recipe for disaster (and sleepless nights).

As they become engrossed in all these heavy-lifting, they tend to miss out on the latest developments in the HR tech arena, that can save a penny or two and slash down a couple of hours. What’s more, HR is a domain that is ripe for automation and by eliminating redundant tasks and repetitive processes can make the life of a HR manager easy.

It doesn’t matter what industry vertical your organization belongs to or what kind of products or services it offers, placing your employees and HR processes can take your ROI up a notch. By automating their HR processes, businesses can save valuable employee time, reduce manual errors, identify process bottlenecks, and gain valuable insights. 

While HR automation will require some substantial upfront investment to set up the technology and standardized HR processes, small businesses can enjoy several benefits by embracing automation. HR automation can help small businesses:

1. Reduce Operational Costs

Typically, small businesses tend to follow this formula that hiring more people to manage labor-intensive and time-consuming tasks can solve their problems. In reality, it just makes the problem worse. 

Similar to the old saying, “too many cooks spoil the broth”, adding employees will only make them spend a lot of money and yet doesn’t add much value to the business. HR automation, on the other hand, can lower administrative overhead, cut down process time, streamline processes, and increase your profitability. 

2. Bridge Process Gaps

As small businesses start to grow, their processes become mature and there comes the need to document and enforce them properly. However, when you try and enforce HR policies using an outdated HR system, there are an array of challenges from approvals getting lost in the email to accountability being tossed out of the window. 

As a result, HR managers are forced to create and manage more spreadsheets to keep their HR processes up and running all the time. However, after investing so much time and effort, all it takes is one manual error to bring all their hard work crashing down. 

In this scenario, HR automation will not only eliminate the need for constant manual interference but also standardize all HR processes fso that it delivers a consistent experience for all stakeholders meeting their demands, keeping them informed, and ultimately, securing employee trust. 

3. Ensure Policy Compliance

When there is a ton of confidential employee information involved, having proper security measures in place and adhering to government and industry regulations is pivotal. Outdated HR tools pave the way for data manipulation and non compliance issues that can result in hardcore penalties like prison time, hefty fines, and more.

By automating their HR processes, businesses of all sizes can ensure and enforce policy compliance across their company. Automation can turn an arduous compensation management process into a breeze by incorporating rules into process flows and automating checklists to ensure that the necessary criteria is met before the approval is signed off. 

4. Provide Actionable Data

When information is scattered across an array of spreadsheets and email threads it is impossible to attain a clear view of it. What’s more, this lack of transparency hinders the data visualization and insight extraction process pushing HR managers to rely on their gut feel to decide on a course of action.

With an automated system in place, HR managers will not only have a bird’s eye view of all pertinent information but they can also create visual-rich reports on an array of HR metrics in the touch of a button. Such features like graphical data and visualization aspects empower HR staff to take prompt action and prevent process disasters before they occur. 

Conclusion

These four unbeatable values of HR automation will eventually help small businesses improve their overall operational efficiency. While automation itself is a tried-and-tested course of action that will save SMBs a ton of time and money, the HR domain is ripe for it. 

The key to extracting maximum value out of an HR automation project is simply identifying the right platform that can offer all the benefits you need without drilling a sizable hole in your bank account. 

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HRMS Solution

Benefits of HR Analytics In The Workplace That Every HR Professional Needs To Know

The role of a HR in an organization has evolved over the years. The responsibilities of HR professionals are not limited to finding & attracting the best talent, improving employee engagement, motivating the organization, paying the salaries, delivering training etc. The evolving market norms have resulted in businesses considering their human capital as the most valuable asset. That lays a huge responsibility for the HR professionals to understand the workforce, anticipate the potential future changes and prepare the individual/ organizational capabilities for today and tomorrow. All the above-said roles of HR can be supported by smart HR Analytics/ Insights. 

HR Analytics should aim to provide value-adding insights, not traditional, basic KPIs like headcount/ attrition/ time-to-fill/ learning hrs per employee etc. Like Marketing functions deal with customer data to enhance the customer experience, HR should target evolving the employee experience using talent insights and intelligence. And data should give insights for the future, that’s where ‘predictive analytics’ come into the picture. 

Having advanced/ strategic analytics or predictive analytics in your organization and utilising them in the right way requires expertise, you can either build this expertise in house or explore automation opportunities which can really streamline the process.

HR Analytics Software automates the process of gathering, organizing and analyzing the data to help HR professionals efficiently perform various functions like recruitment, talent management, employee engagement, performance analysis, productivity analysis, and engagement/ attrition/ budget prediction. 

Smart Approach To Talent Acquisition

The competition in the industry to hire the best talent is as intense as among the applicants to bag a good job. According to an article published by Forbes, a bad hire costs at least 30% of the employee’s first-year earnings. The stats emphasize the importance of hiring the best-suited talent for a job profile. By using HR Analytics, the recruiters can easily sift through thousands of resumes and sort the most promising one. A Candidate Experience Survey conducted by Zety reveals that companies lose as many as 89% of potential candidates due to the prolonged process of manual screening. The HR analytics software analyzes the applicants’ data and sorts the best matching talent for the vacant job profile, thus making the process faster & more efficient. 

Improving Employee Experience

One of the major work responsibilities of HR professionals is to analyze the problems that employees face at the workplace and resolve them. The reason for employees’ dissatisfaction may vary from lack of appraisal for their hard work & promotion to a salary increase or compensation. Using the analytical approach helps HR professionals to draw meaningful insights from the data organized by the software and enables them to take important decisions like granting promotion, incentives, compensation, etc based on the metrics and data. When employees’ needs are taken care of, they feel connected to the company and contribute to their best in the company’s growth & success.

Staying One Step Ahead With Predictive Analysis

The modern-day HR likes to stay one step ahead of employees. Using HR analytics enables the HRs to predict and fulfill the requirements that can arise in the near future. The software helps the management to predict the skills and positions that can be added to the company for growth. Also, the data collected can be used to predict the turnover, salary increase, and employees’ needs in terms of training, skill enhancement sessions, appraisal, compensation, and bonus. 

Similar Read: https://www.compport.com/factors-to-consider-for-selecting-the-right-compensation-management-software/

Automating Complex HR Processes

The HR function is the most active department of the company with multitudes of tasks lined up to be executed. The performance of the HR department has a direct effect on the overall company’s performance. With cloud-based HR analytics, various complex and time taking processes can be automated. Automation of tasks generates faster, accurate and more efficient results, enhancing the quality of work related to the HR department. Also, it leaves HR professionals with plenty of time to execute more important work that requires manual efforts and decision making. 

Retaining Valuable Employees

Using the employee data generated and arranged by the HR analytics software, recruiters can recognize the high performing employees and strategize ways to provide better job satisfaction to retain them for the longest period.  The software helps the HRs to identify departments with a high attrition rate and the reasons behind it. Moreover, the analysis can be used to identify various activities that improve employee engagement and satisfaction hence the company can invest more in those areas to improve the rate of retention. 

Analyzing Performance & Streamlining Corporate Training

HR analytics enables HR professionals to analyze and evaluate employees’ performance using effective analytical tools. This practice ensures accurate evaluation and eliminates biased decision making. Also, using analytics, HRs can identify areas where employees’ may need training and organize skill enhancement sessions to increase employees’ productivity.

Conclusion

HR analytics play a vital role to enable HR professionals to add more value to their organizations. HR Analytics Softwares can streamline the process of acquiring and utilizing the data and they offer multiple intuitive tools that enable HR professionals, recruiters, and upper management to draw insights into various processes of the organization. Compport, even though a young one, is one of the distinguished HR Analytics Software which offers 1000+ HR analytics in a multidimensional and intuitive way. It is a cost effective tool which can be integrated with any global or local HRIS at max 2 weeks time.  Using the data, managers can make decisions like a salary increase, promotions, bonus, etc with more accuracy. The software not only simplifies various HR processes but also contributes to the company’s development. A survey conducted by MIT & IBM demonstrated the fact that companies with advanced HR analytics systems had 8% higher sales growth, 24% higher net operating income, and 58% higher sales per employee. The statistics are clear proof of the utmost importance of a flexible HR analytics software for a company’s scaling growth. 

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HRMS Solution

How to Choose the Right HR Software for your Company?

Choosing the right online HR platform as per the needs of your organization can be a complicated and time-consuming process. However, your organization can accelerate and automate current HR processes. HR software solutions come with modules and functionalities that will eliminate manual processes and reduce the time that goes into HR processes.

Human resource management system features will allow the organization to automate the process of attendance tracking, performance reviews, employee benefits, compensation, and other functions. Let’s have a look at an optimal method of choosing the right HR software for your company.

Why organizations evaluate HR software solutions?

Grand View Research has forecasted 13% growth in the use of talent management tools. Most businesses who rely on manual methods are evaluating HR software. One of the main reasons for shifting to HR software is to improve the efficiency of the organization and automate certain processes. Some of the other reasons include reduced paperwork and modernization of processes.

If you’re in the search for an HR software for your company, here are some steps to help you find the right solution:

  • Document the needs of your organization

Trying to look for various HR platforms without documenting the organizational requirements for HR software is a waste of time and money. HR software solutions come with a variety of features, including ATS (Applicant Tracking System), payroll, interview scheduling, and many others. Purchasing the best HR software with the highest number of features will come at a higher cost and increased complexity.

On the other hand, if you opt for the cheapest HR platform available in the market, you might end up missing a lot of essential features. Hence, you should list down your most required human resource management system features and then start browsing through different HR management vendors whose solutions match your needs. 

  • Decide on the budget based on essential parameters

Once you have identified the most critical features required by your HR department, the next step is to arrive at how much your company is willing to spend on human resource management system software. It should include the total cost of ownership (how much it will cost to purchase and implement a new system and approximate cost of future upgrades). Besides, the return on investment should also be calculated.

  • Research the market for HR software within your price range

The next step is to find a suitable HR software which has all the features your organization needs. Research the market and finalize the top software, which passes your checks of requirements and budget. Once you have shortlisted top HR software solutions, check out detailed online reviews of the platforms.

  • Request a demo or a trial

As you’ll be purchasing and implementing the software for the long term, trying it out firsthand or learning about the software in depth is highly recommended. You can contact the online HR software solutions provider and ask for a trial version or a demo. A trial version or a full-demo allows you to check if the product meets your requirements or not.

The software you are planning to purchase should be easy to use and data entry should be simple. You can also check for the reporting capabilities and performance of the software. You should also check how the software can fulfill your company’s requirements.

  • Check feasibility of implementation and integration

The next thing is to check the ease of implementation and integration with existing applications in your organization such as payroll. The software you are planning to purchase should be easy to implement. If you want to be able to use it from anywhere at any time, opt for a cloud HR software. One more aspect to consider is how much time it will take for implementation. 

  • Validate the support and after-sales provided by the vendor

Once you have narrowed down your search and almost finalized your decision, you need to do a detailed check about the technical support and after-sales service provided by the vendor. Some vendors also offer onsite support for implementation and employee training.

The vendor should be able to help you automate HR processes in your company as well as provide consistent support whenever required. Besides, it would be best if you also ask for the software update, software upgrade and software maintenance and data security policies.

  • Make the final call

If you have more than a vendor in your shortlist after following the above six steps then, it's time to take the last call. If you have two or more options in mind, then you can make a list of the pros and cons of each software you shortlisted. Compare the HR Software on parameters such as the relevance of features, cost, possibilities of customization and report generation capabilities. Based on the essential metrics, you should be able to finalize one human resource management system software.

The right HR software solutions will streamline the recruiting process

Being careful in choosing the right tool and taking the time to conduct research is crucial as you’ll be using the tool for the long term. Besides, the right software will help the HR team to save time and resources by providing meaningful insights and reports and ensuring you win the top talents.

Hence, it is important to choose the right HR software which will fulfill your company’s requirements and help the HR department to streamline and automate HR processes. If you are looking for options, you can check out this expert’s review of Compport to get an overview about the HR software’s key features and benefits.