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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

The Beginner’s Guide to Compensation Management

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

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

What is compensation management?

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

The different types of compensation include:

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

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

Why is it important?

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

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

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

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

Equity 

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

Rewards and recognition

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

Attraction and Retention

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

Legality

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

Challenges in compensation management

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

Disparity with employee expectations

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

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

Keeping up with market trends

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

Growing employee needs 

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

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

The components of a solid compensation management plan

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

Pay structure 

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

Salary statistics

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

Job evaluation 

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

Job description

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

Best practices to manage an effective compensation strategy

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

Allocate proper budget

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

Develop salary ranges

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

Ensure legal compliance

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

Use the necessary tools

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

Document your compensation strategy

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

Review the plan regularly

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

How can Compport help you?

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

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

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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.

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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.

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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/

Categories
compensation management

How People Analytics Software are Upping the HR Processes?

The phrase “data-driven” has found its application in every department and processes of the corporate industry, be it marketing, sales or HR. Analytics has become an important aspect of optimizing business assets. Here, talking about the assets, let’s drift our attention to the most valuable asset of an organization: its people. People Analytics-the practice of drawing insights from employee data to make important decisions makes an eminent part of modern HR practices. 

For years, HR professionals have faced multiple obstacles while managing employees’ data manually which results in delayed and inefficient decision making. As per Deloitte’s 2018 Human Capital Trends report, 85% of companies envision people analytics as a high priority, but only 42% believe they are either ‘very ready’ or ‘ready’ to meet expectations. But the scenario has changed with the arrival of cloud-based, sophisticated analytics tools or software that allow HR professionals to digitally manage the employees’ data and draw valuable insights from it in a very efficient manner.

HR professionals now have the technology-based, advanced software at their disposal that automates the process of employee management and data handling. The digitalization of people analytics has optimized the HR processes and enabled businesses to employ people data in more timely and effective ways. 

A renewed and intense focus on people analytics in Human Resource also signifies the shift in how C-suite views the workforce. Ian Cook, vice president of people solutions at Visier, an analytics provider in Vancouver, British Columbia, Canada says,” There’s been a shift away from viewing people as a commodity and the thinking that ‘as long as we have enough workers to fill jobs and it’s not costing us too much, we’re fine. Now more often CEOs want to know that they have the right people with the right skills in the right jobs to execute on their strategy. There is a growing focus on talent quality, not just the talent costs.”

Growing Options For People Analytics

The evolution of analytics tools and software has created a highly competitive marketplace. Businesses have multiple options when it comes to choosing the right tool for their business needs. Most HR professionals prefer cloud-based people analytics software like Compport that is an all-in-one system for managing the complete analytics and compensation processes. Depending upon the nature of the organization and its work structure, the HR functions may employ a single software or a variety of software tools for people analytics. In a study of the people analytics technology market by Deloitte, it was revealed that the most mature organizations use an average of seven analytical tools. Nonetheless, you must ensure that the software or analytics tools you implement in your firm generate accurate and up-to-date data and enable real-time access to insights in order to generate a high return over technology investments. 

Make Better Sense of Data

As the process of people analytics turns more sophisticated, data-driven, versatile and optimized with analytics software, the scope of employee data evaluation has expanded beyond the standard and traditional measures like employee headcount and turnover data. HR professionals use these flexible tools to measure areas such as the progress of diversity, inclusion initiatives, and worker overtime trends. The focus has been shifted from mere numbers to the value they bring to the organization. 

Compensation & Productivity Analytics

When it comes to automating the HR processes, the businesses seek to employ flexible software that covers all the major verticals of the HR department i,e, compensation, analytics, and employee surveys. The cloud-based easy to use software such as Compport covers all the major aspects of HR management and automates compensation, analytics, and employee feedback processes. The software takes the burden off the HR professional by analyzing the data and generating valuable compensation plans, and employee surveys. 

Data Security & Access Issues

One of the major concerns of HR professionals that have been taken care of by the analytics software is data security. The traditional people analytics methods required HR professionals to take sensitive employee data out of HR systems and put into spreadsheets or data-visualization tools for analysis, that incorporated various security risks. The technology-based analytics tools ensure the optimum security of data as the data is encrypted and is only accessible to those who are authorized to access it.

Workforce parity & Inclusion Analytics

The global businesses have been making great efforts to bring gender parity among the workforce and have sought more sophisticated analytics to measure the impact of their diversity and inclusion (D&I) initiatives. People analytics software has made it possible for HR professionals to apply a data-driven approach to attain workforce diversity. The software extends smart solutions to address issues like pay equity, unconscious bias in hiring or promotion decisions with analytics. Moreover, the software helps businesses to ensure that members of underrepresented communities feel included through insights drawn from analytics and advanced surveys. 

It takes a combination of the right technology, agile functionality, and flexible structure in software to generate a good ROI from people analytics. A right and competent analytics software like Compport can scale your organization’s and its employees’ growth to an unmatchable pace. The software offers exemplary solutions for compensation, analytics, and surveys. It offers 1000+ multi-dimensional intuitive analytics and tools for better analysis and decision making. What makes Compport the most efficient compensation & people analytics software is its capability to design a fully-fledged compensation plan in just 30 seconds. Contact us to get this software for your HR department to manage various compensation tasks with a single tool making the process of HR management simpler, optimized and more agile. 

Also Read: Benefits of Systematic Compensation Management on Employees’ Performance

Categories
compensation management

Silicon India Magazine Lists Compport Among 10 Most Promising HRMS Solution Providers

Adding to our accomplishments, India’s renowned Business & Technology magazine, Silicon India has ranked us among the 10 most promising HRMS solution providers for 2019. We have acquired this position by laying a solid foundation for HR operations, providing an epicenter for employee records, work-force analytics, and administrative applications.

It was the unique vision and proven capabilities of Compport that empowered companies to drive a significant value out of their investments with a boon of 40x ROI. Being a potential platform that effortlessly generates a salary increase grid in mere 30 seconds, or sales/bonus incentive plans with a processing time of less than 90 percent, the smart and flexible functionalities of Compport has streamlined the HR operations for the enterprises.  

“Compport with Analytics & Survey Tools provides clients valuable insights not just for data or metrics but which later enables the customers to grab better by taking corrective actions for the organisations" says Sachin Bajaj, the Founder and Managing Partner of Compport IT Solutions.   

With a deep focus on compensation management, employee surveys, and analytics, our cloud-based & customized compensation management software has catered to numerous marketing giants for transcending their processes through digital magic.

At Compport, we deliver top-notch results with utmost precision and perfection. To witness an advanced and agile solution for compensation, advanced analytics and feedback management, stay tuned with us.