HR and compensation management are two critical aspects of any early-stage company. They are indispensable disciplines in enterprises and large scale companies because managing and processing compensation and benefits can take a large portion of a professional’s time. This is more evident in large companies but their importance gets diluted in small and medium businesses, and sometimes rightly so.
Most small and medium 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. They prefer using manual-labor-intensive tools like spreadsheets which cause a huge dent in their productivity and accuracy. This can be quite an alarming signal when it comes to audits and compliance where the records are marred with errors. Still, SMBs often disregard the benefits a compensation management tool brings to the table.
5 compelling reasons why every SMB needs compensation software
No matter the size of the company, C&B professionals face issues in determining the right pay and relevant perks that incentivize and motivate employees while rewarding them for their contributions to the company. They struggle to create a win-win situation for both the employees and the organization.
A near-perfect scenario is when employees are motivated to perform their best work and are rewarded fairly without causing a dent to the company’s bottom line. This is the gap compensation management software tools like Compport intend to fill.
When you use Manual methods like spreadsheets and other programs to manage compensation, the chance of error is high. A missing zero can have a tremendous impact on your reputation as well as when it comes to audits. In the case of a compensation tool, all the data is stored in one place. A record change in one place, say the employee details, automatically alters all other relevant records and significantly reduces the risk for human error.
Another reason why most small businesses struggle with spreadsheets is that there’s little to no control. Anyone can access the sheets and make changes. Though spreadsheets allow user-based permissions they lack the granularity a compensation tool offers. If you are using a tool like Compport fit, administrators can implement user-based restrictions and budget controls as fail-safes. You can create roles for employees based on the requirement and can generally have more control over the processes.
Ease of use
Compensation is a pivotal function to any company and when manually done it can suck up a lot of your time; precious hours that can be focused elsewhere that can benefit your organization in other ways. Using a compensation management tool is as simple as the push of a button. Once the initial set up is done, the rest of the process is mostly automated, thereby freeing up your time.
Improved data security
Data security is something companies should care about right from the start, no matter the size, particularly when they are dealing with sensitive payroll information of its workforce. Most modern compensation tools come with enterprise-grade security and privacy standards built-in. This ensures that your data cannot be accessed by unauthorized people and its integrity is protected.
Most SMBs make do with spreadsheets and they work to an extent. The real problem comes when the companies grow in size and the number of employees increases. It simply doesn’t mean the addition of a few more rows, in worst cases, it can mean dismantling the entire system and reassembling it to accommodate the growing needs. Using a compensation management tool future-proofs your business to growing compensation requirements.
Take the leap to automated compensation management
While medium and large enterprises have more complex processes, smaller enterprises require simpler processes in which there are little to no complications. Most compensation tools in the market are geared toward the former segment, completely neglecting the needs of SMBS.
With Compport FIT, what we have now is a fully digitized, self-serve model that is extremely independent and does not require a steep learning curve to get started. You can also now fill the expertrise gap. This means that the tool will help consolidate and automate some of the core HR processes in terms of compensation management, shrinking your dependency on an expert who more or less is a costlier alternative.
SMBs can now digitize core HR processes with the world’s first compensation management software that can be purchased and implemented, directly. Compport FIT is easy to use and designed with the needs of small and medium businesses in mind. It’s user-friendly, agile, flexible, and cost-effective. Start your free trial today.