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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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compensation management Uncategorized

7 Major Risks of Using Spreadsheets for Compensation Management

Your classic spreadsheet-based compensation management is a ticking time bomb waiting to explode. One wrong spreadsheet entry can cause payroll errors, employee dissatisfaction, and blow your payroll process right up your face. What SMBs don’t realize is that while spreadsheets are useful in their own way, they are useful only to a certain extent. 

Adapting an “It ain’t broke, don’t fix it” will only make existing risks spiral out of control and leave a hefty financial impact on your organization’s bottom line. While band-aid solutions like adding more staff members or creating an exhaustive compensation strategy checklist may help a bit, these instant fixtures will make little to no difference in the long run.

Before you get all geared up to fix the mess left behind by your manual compensation management process, you need to have a clear understanding of the worst parts of the spreadsheet-centric compensation management process. While there are an array of challenges involved, listed below are seven major risks of using spreadsheets for compensation management.

1. Spreadsheets are cost-intensive and not collaboration-friendly 

Compensation management is a crucial process that has multiple stakeholders and a slew of compliance restrictions that need to be met. When data is spread across a series of spreadsheets, stakeholders are forced to sift through overflowing spreadsheets and long email threads to track an employee’s compensation.

When the only way to exchange information is cumbersome and time-intensive, its time-intensive nature impacts the productivity and efficiency of stakeholders ranging from employees to functional managers and HR leaders, making it injurious to your organization’s growth by increasing operational costs and shrinking profit margins. 

2. Spreadsheets are prone to manual errors and inaccuracies

Despite being vitally important to the operation of a company, the compensation spreadsheet is not as rigorously tested as it needs to be. Even when it is subjected to critical reviews, there are chances of people involved to misinterpret the data and overlook incorrect formulas paving the way to create yet another spreadsheet blunder like an hefty $11 million severance error.

3. Spreadsheets are obstructive to compliance

The biggest roadblock for enforcing leave policies is the most trusted spreadsheet. Inherent lack of controls in spreadsheets make it easy for people to edit or update data without being detected. Often, edit history isn’t just enough to keep security risks at bay. 

When there aren’t proper measures in place to prevent people from viewing or editing their compensation details, it can open an extremely potent can of compliance worms that range from time theft to outright money laundering.

4. Spreadsheets lack transparency and visibility

When there is no visibility into historical employee compensation details, organizations will not have enough data to compare compensation metrics and analyze whether their employees are being paid in a fair way. 

Both functional and HR managers need a bird’s eye view of every little detail that matters from pay policy to payment cycle and miscellaneous employee benefits. Trying to extract this information from emails and excel sheets is futile. Drawing up a conclusion from inaccurate data, or banking on your intuition, is a huge gamble that can affect the brand’s reputation.  

5. Spreadsheets cause confusion and chaos

When compensation is completely managed using spreadsheets, there’s a high chance for older versions of these documents being circulated and used by both functional managers and employees. Such instances of data mismatch can cause endless disputes, employee dissatisfaction, and more.

6. Spreadsheets lead to long and windy approval cycles

When all confidential compensation data is saved on online forms and spreadsheets, getting things done at the right time is impossible and leads to a long and complex cycle. In such instances, HR managers are forced to create endless copies of compensation-related documents and distribute it manually to the team. 

7. Spreadsheets cannot establish accountability

While old-school compensation management excel templates can help organizations save a few bucks in investment, it’s siloed interface that doesn’t communicate with other payroll administrative apps. As a result, HR managers end up spending too many hours tying up loose ends on spreadsheets and chasing after stakeholders to get necessary input or approval.  

Switch to sophisticated compensation management

Manual compensation management processes impede day-to-day HR operations, and also cost a lot more than you may realize. Your compensation management practices are unique and so is the way you use spreadsheets to manage employee remuneration. 

For you to get a clear idea of whether a spreadsheet is sufficient for your compensation management practices or if you can benefit from a cloud-based compensation management software like Compport, it’s best to see for yourself how each tool works with your employee compensation information, carrying out the operational tasks that you normally require. 

Get a free demo today and see the magic it can bring to your business.

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compensation management Uncategorized

Do SMBs need compensation software?

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.

Greater accuracy

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. 

Better control

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.

Scalability

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.

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Blogs

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.

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Blogs

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.

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Blogs

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

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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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compensation management

Industries That Must Have Sales Incentive Software For a Sustainable Growth

As ‘Sales’ continues to be the growth-driving factor of various industries, the expectations of people in sales are a little higher in terms of compensation than employees working in other departments. And acknowledging the number of efforts they put in to bring value to the company, it is imperative to have an efficient sales commission or sales incentive software in an organization. Moreover, compensation and incentive play a vital role in motivating, attracting, and retaining employees, especially in sales. An Employee Engagement Report by TINYpulse reveals that 43% of workers would be willing to leave their companies for a salary increase of 10%. No matter what industry you are in or what type of business you run, if you are facing the problem of employees frequently leaving your company then you might need to get a reliable sales incentive software. 

Though every business that sells products or services in any form, and has a team dedicated to increase the company’s sales must employ an effective compensation management software that can create well-strategized sales-commission plans but there are few industries that can greatly benefit from having a good sales incentive software. 

Financial Services

To sell financial services is something that requires plenty of effort and motivation. No matter your team sells merchant payment services or help clients to sensibly invest their money, having a sales commission software can boost their morale along with reducing your efforts and cost of manual commission management without sacrificing security. The software creates optimized sales commission plans for rewarding those employees who go the extra mile to achieve great results.

Tech/IT Industry

Do you offer technology solutions or IT services? You must be well aware of the importance of a goal-oriented sales team. Sales commission software adds on to the perks of working in a company. When employees see their efforts and hard work is paid off in a very systematic manner, they feel valued and show loyalty towards the company. Getting software for managing sales commissions and incentives automates the process of logging conversations and managing targets of multi-tiered packages. Whether your area of expertise is in selling ‘Software as a Service’, web-based services, cloud storage, cybersecurity products or AI-based products, compensation management software will surely enhance the workflow of your organization.

Retail Industry

To manage sales in the retail industry is one of the toughest jobs that pose challenges like high employee turnover, endless sales channels, and product lines changing on a daily basis. The sales commission software exhibiting high performance, accuracy, and security, can help you stay ahead in the fast-paced retail industry. If you have been investing a lot of time every day in testing the accuracy of your manual commission calculations, you are wasting a lot of resources. A smart and agile sales commission software like Compport can help you save your company’s resources and create a positive work environment.

Digital Services

With a flexible commission management system at your company, you can give your sales force access to transparent reporting. The software makes it very simple for you to reward your employees on the basis of data and analytics by tracking the performance of account managers or employees selling PPC, online advertising or SEO services. You can easily integrate the sales representatives’ performance with the software and evaluate their efficiency on the basis of targets achieved. 

Medical/Pharma Industry

There is an immense pressure on the pharma companies to use their budget wisely as their business model revolves around sales and marketing. It is very crucial for these companies to boost their sales representative’s morale through bonuses, commissions or incentives. Sales commission software simplifies the work for the HR department by optimizing the process of performance-based compensation planning. The software supports multi-currency conversions simplifying the execution of commission plans for multinational pharma companies trading globally. 

If you are looking to improve your sales conversions irrespective of the industry you belong to, get an easy-to-use sales commission software like Compport and witness the power of technology. The sales incentive management software is the best way to optimize complex HR processes and save the time & efforts of the HR department for manual calculation of incentives. Investing in software that maximizes your employees’ potential is the investment that will always be beneficial to your company.

Categories
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.

Categories
compensation management

Factors to Consider for Selecting the Right Compensation Management Software

There is no dispute in the fact that a happy employee is the most productive one and that nothing makes an employee happier than a well planned and timely executed compensation and incentive plans in the industry. It has been revealed by research on the effect of compensation on employees’ performance that compensation in the form of salary, bonuses, incentives, facilities, travel or holiday packages or allowance has a direct and positive impact on employees’ performance.

Since compensation management falls under one of the most complex HR processes, HR professionals are turning towards compensation management software for assistance. The traditional methods of compensation management with spreadsheets and paper are prone to errors and obsolete leading to the rising need for compensation management software in companies. 

A robust compensation management software automates the complete process of compliance management and helps the HR department to manage the company’s budget in a profound manner. The software optimizes the planning and execution of the compensation plan and helps businesses to save time and resources. If getting an advanced compensation management software for your organization is on your to-do list, then you must know how to choose an ideal software that will scale your business growth.

Here we discuss a few important factors that you should consider before selecting the right software for your firm.

Go For Cloud Technology: Cloud-based software is considered more reliable than solutions based on other technologies. Since the cloud-based compensation software is built with advanced methodologies and hybrid infrastructure, it delivers more ROI than traditional software solutions. Also, cloud solutions are more economical than on-premise software. The data is stored on the cloud and can be accessed from anywhere. The managers or HR professionals can work on the application from anywhere with a simple login and be assured that the data would be secured. 

Assess The Software’s Configurability: One of the most important points that you should consider is the configurability of the software with your existing business systems. The compensation software that you choose for your business may be easy-to-use or well designed but if it’s not integrated easily into your system, then it will prove to be unproductive. The right compensation management system for your company is the one that works along with your existing processes and improves them instead of requiring changes in the processes. 

Accuracy Is Must: To eliminate errors in the compensation plan is likely to be the major reason for you to switch to compensation software. According to a report published by MarketWatch, 88% of spreadsheet documents have errors and there is simply no room for errors when it comes to something as important as the company’s compensation plan. Errors in compensation planning can lead to the downfall of your business and pose a great threat to your business growth. Therefore, it is important to take a trial of the software and be sure of its accuracy. 

Data Security Should Be The Primary Concern: All the data managed by the upper management or the HR department is very sensitive and important for the company. Data security is a very important aspect of HR management and should be your major concern while selecting the compensation management software for your organization. The software you choose should be compliant with all the data security and accessibility guidelines. The software should be reliable and secure to keep your company’s most sensitive compensation data safe from being breached.  

Take Demos & Trials: Investing in compensation management software to digitize the HR processes is a big and important step that you will take for your company’s growth. So don’t just settle for anything instead do thorough market research, list the software that you feel would be compatible with your existing system, and take demos and trials of those software. Product demos will give you an overview of the software functionality and features. It will help you decide whether the functions and features exhibited by the software meet your business requirements. 

Having a flexible compensation management software in a company not only simplifies the complex HR processes but also helps to attract and retain valuable employees. Providing good compensation motivates the employees to give their best and improves their efficiency. A survey conducted by the Society of Human Resource Management demonstrated that 60% of employees consider compensation as a very important factor contributing to their job satisfaction and 36% consider it important.

Though the right compensation management software for your company would be the one that caters to your specific business requirements but considering the above-mentioned points, we suggest you check out Compport as it is one of the most promising HRMS solution that is capable of designing a fully-fledged compensation plan in just 30 seconds. Implementing a robust, flexible, and efficient compensation management software like Compport can prove to be extremely beneficial for the companies as it simplifies various HR processes and synchronizes the work performance with analytics. Compport is a cloud-based smart and agile

This post is originally published at here: https://www.techinexpert.com/how-to-choose-the-right-compensation-management-software/