HR Compensation Management Software
Compensation Management software is typically the solution for the creation and management of employee compensation plans. Focused on flexible compensation plan design; compensation rules assignment; compensation process definitions; compensation-performance linkage; and analysis, this HR software solution seeks to consolidate employee compensation across multiple plans, teams, and geographies. The aggregation of compensation data can deliver near real-time visibility, thereby, permitting timely course corrections or assurance of the links between compensation, performance management and business objectives.
Though we're likely to get plenty of flack about adding a compensation element to an engagement strategy list, the fact of the matter is that compensation brings a great deal of influence to the engagement argument. While critics will undoubtedly argue that employees will not expend extra energy because of total compensation, it has been shown that in certain contexts, financial incentives do have a big part to play. For example, manufacturing environments have been shown to operate well under the auspices of a Pay-for-Performance (P4P) model. Likewise, Sales positions function quite effectively through incentive-based commissions.
The key for compensation management when it comes to employee engagement is to recognize that the rational engagement of compensation cannot substitute for the emotional engagement of managerial respect, teamwork, belonging and the like. Further, if not used correctly, compensation can turn motivation into expectation. Be that as it may, Compensation Management software can serve as the conduit for achieving these rational engagement gains by:
- Providing the means by which pay-for-performance (P4P) is planned, measures and delivered
- Providing the structure by which incentive plans are created
- Providing the efficiency needed to effectively deliver incentives when and where needed
While it may be true that compensation isn't the driving force for engagement overall, it is also true that engagement strategies largely depend and fluctuate based on the industry and the individual. As organizations look to leverage whatever elements they can for employee engagement, compensation should not be left out of the discussion. Any by proxy, nor should Compensation Management Software.