Compensation management software assists firms in budgeting, planning, and administering employee compensation, such as bonuses and merit-based pay. Though larger firms often employ them, the best ones can also be used by smaller businesses seeking a more robust reward-based system to promote hiring and employee retention.
We examined the most popular suppliers and focused on the important aspects for business owners to help them select the best compensation management software.
What is Compensation Management Software?
Compensation management software assists firms in the planning and administration of employee compensation packages. Compensation management systems manage pay via an administrative dashboard, create merit matrices, and report on business compensation data. The compensation management software is used by organizations to view and alter compensation policies, organize employee bonuses, and recommend pay adjustments. HR departments are the most likely to employ compensation management systems, allowing managers to establish streamlined compensation schemes for their teams. Organizations can use compensation management software to ensure equitable employee compensation and optimize salary expenditures. Compensation management software can be used as a standalone solution or as part of a comprehensive HR management suite.
A product must meet the following criteria to be considered for inclusion in the Compensation Management category:
- Create a consolidated dashboard for displaying compensation data.
- Allow users to establish internal compensation policies and implement various bonus structures.
- Assist users in creating detailed pay budgets
- Allow for simple compensation data exporting and importing for reporting purposes.
Best Compensation Management Software In 2023
#1. Payfactors
Payfactors provides a comprehensive set of cloud-based compensation management products powered by innovative technologies. They help you organize, centralize, and automate the compensation process, from job descriptions to data visualizations.
The software best suits anyone in charge of compensation in their company who requires human resources-approved compensation information.
Clientele:
Jane, TD Bank, United Airlines, First Citizens Bank, and PetSmart are the companies represented.
Features:
- Organizational Diagramming
- Reporting/Analytics
- Compensation Plan Simulation
- Statements of Compensation
- Chat assistance
- Online and in-person training
Pricing:
Please contact the vendor.
#2. Salary.com
Salary.com remains a technological pioneer in providing employee compensation data, employee compensation software, and services. They can assist organizations in managing their compensation expenditures by utilizing analytical tools and real-time data.
CompAnalyst also effortlessly interfaces with payroll and HR budget systems, syncing internal data such as job titles, employee performance, salary, and more.
Clientele:
BMW, Boston Medical, GE, The Hallmark, Henry Ford, Kawasaki, and Nordstrom are the companies represented.
Features:
- Analytics and Reporting
- Compensation survey catalog
- Intelligent job matching
- Forecasting labor costs
- Modeling on merit
Pricing:
Contact the vendor.
#3. Paycom
Paycom is a unified software platform that combines HR and payroll technology for more efficient employee life-cycle management.
One of its distinguishing qualities is that it has everything you need to properly manage your complete firm, from hiring to retirement, in one spot.
Clientele:
Burger King, FCC Services, Grissom’s, IHop restaurant, and the Oklahoma Blood Institute.
Features:
- Management of Users, Roles, and Access
- Payroll Processing
- Dashboards and Reporting
- Reliability and performance
- Calculating Taxes
- Manager of Benefits
Pricing:
Contact the vendor.
#4. MarketPay Payscale
MarketPay provides businesses with an intuitive, user-friendly solution with the information they need to make informed decisions about pay structure.
Clientele:
Nestle, Baylor University, Mariani Packing Company, Amyris, and Bankers Healthcare Group are the companies represented.
Features:
- Data Aggregation using an Automated Platform
- Report Writer with Significant Experience (60+ Standard Reports)
- Survey Participation Templates that are pre-configured
- Search Elasticity
- Year-to-Year Comparisons
- Pricing Wizard Suggestions Survey Matches
Pricing:
Contact the vendor.
#5. Pro UKG
UKG ProTM is a sophisticated global human capital management (HCM) solution that international corporations choose. You may provide an all-in-one HR solution to your worldwide workforce by utilizing resilient and mindful HR technology.
UKG Pro provides human capital management features to help you achieve your goals in workforce management, talent management, service delivery, and surveys.
Clientele:
Tesla, Marriott, Yamaha, Aramark, Feeding America, and Vancity are the companies represented.
Features:
- Time, attendance, and paid time off
- Structures of Salary
- Dashboards and Reporting
- Structured Reward
- History of Compensation
- Integration of Performance Management
- Management of Compensation DataTry Vantage Perks today!
Pricing:
Contact the vendor.
#6. Workday
Workday Human Capital Management (HCM) is designed as a unified system with a suitable data source, a unified security approach, and a unified user experience.
The software provides enterprises with a cloud-based solution that adapts to changing business needs both now and in the future.
Clientele:
Dell, GE, Humana, Comcast, Wegmans, Levi Strauss, and Carmax are the companies represented.
Features:
- Management of Compensation Data
- Time Tracking by Project/Task
- Integration of Performance Management
- History of Compensation
- Time, attendance, and paid time off
Pricing:
Contact the vendor.
#7. Compport
Compport is a centralized SaaS solution for managing all of your compensation schemes. It also offers annual/ad hoc salary reviews, sales incentive plans (customized to match the customer’s objectives), long-term incentive plans, and awards systems.
It is a one-of-a-kind, 100% modular solution that allows customers to create single or many compensation plans. You can examine the impact and budget with total flexibility and comparability and present it to the line management.
Clientele:
Dr. Reddy’s, PWC, Inmobi, Tata Motors Finance, Livspace, and Subex are the companies represented.
Features:
- Salary management
- Budgeting and forecasting
- Communication of Rewards
- Compensation Administration
- Management of Pay Equity
- Reward and Appreciation
Pricing:
Contact the vendor.
#8. SimplyMerit
Through integrated HR Compensation Management, leaders and managers can optimize their merit budgets and annual bonus pools with SimplyMerit.
SimplyMerit is a real-time, cloud-based platform. As a result, your managers and leaders know what is going on and how it is progressing.
Clientele:
People First, Trusaic, ADP, Auxin Group, and HR Soft, to name a few.
Features:
- Workflow and interaction with upper management
- Governance and auditability
- Dashboards and analytics
- Bonus funds
- Grants of equity
- Budgets for meritocracy
Pricing:
Contact the vendor.
#9. Dayforce Ceridian
Dayforce is a global human capital management software platform that enhances the employee experience. Integrating data from throughout the whole employee life cycle, it enables better decision-making across the entire employee life-cycle.
Businesses can effortlessly manage HR, payroll, benefits, workforce management, and personnel throughout the enterprise using Dayforce.
Clientele:
Crescent Bank, The Hillman Group, Milwaukee County, Prince Resorts Hawaii, Nipro Pharma Packaging
Features:
- Payroll computation in real time
- Practical knowledge
- Workforce management
- Salary and benefits
Pricing:
Please contact the vendor.
#10. CompXL
CompXL is a highly adjustable compensation planning software that supports MERIT, BONUS, Long Term Awards, and Total Rewards Statements in a single, user-friendly package.
This is is a platform that combines the ease of use of Excel formula support with the efficiency of a SaaS solution.
Clientele:
The companies represented are Ralph Lauren, Acco Brands, DocuSign, Carter’s, Acadian, Cabot, and Harbor Freight.
Features:
- Integration of Performance Management
- Automation of Workflow
- Management of Compensation Data
- History of Compensation
- APIs for integration
- Control of Users, Roles, and Access
Pricing:
Contact the vendor.
#11. PeopleSoft by Oracle
Oracle PeopleSoft apps help firms meet their most complicated requirements.
Organizations may boost staff productivity, improve performance, and minimize the total cost of ownership by leveraging their integrated business and industry solutions.
Oracle’s enterprise cloud platform is the only one that supports PeopleSoft, its related databases, and an ecosystem of apps.
Clientele:
Hays Recruiting Experts, University of Colorado, UNSW Sydney, Sandia National Laboratories
Features:
- Document Generation as an Output
- Tools for Importing and Exporting Data
- Forecasting and budgeting
- Inventory Costing and Pricing
- Management of Compensation Data
- Document Generation as an Output
Pricing:
Please contact the vendor.
#12. Beqom
The Beqom cloud compensation system addresses all areas of compensation and performance. The beqom platform may be used by business managers to motivate, align, and lead staff.
Clientele:
CNHi, Microsoft, and Vodafone
Features:
- Management of performance and compensation
- Bonus deferral and long-term rewards
- Pay equity and openness
- Personal compensation planning
- Budgeting, planning, and forecasting
- Pay equity and openness
Pricing:
Contact the vendor.
#13. CompTrak
CompTrak provides cloud-based compensation management software. They offer one platform for planning, administering, and communicating your overall compensation strategy, which includes merit and base pay, bonuses, equity, and deferred bonuses.
It enables businesses to develop, customize, and administer complicated compensation schemes. They ensure that it aligns with strategic goals and eliminates the need for manual labor, spreadsheets, and legacy systems.
Clientele:
RBC Capital Markets, Sephora, Raymond James, Metlife, Cracker Barrel, and Cracker Barrel.
Features:
- Comprehensive budgeting software.
- Management of performance.
- Multiple forms of incentive and bonus schemes are allocated, calculated, and processed.
- Management of LTI (long-term incentives)
- Compensation strategies should be reviewed, analyzed, and simulated.
- Experience with Total Rewards
Pricing:
Contact the vendor.
#14. Complogix
CompLogix (previously Harvest HCM) has provided simple, easy-to-use, robust solutions like CompLogix Compensation to help clients manage their compensation programs for the past 20 years.
It delivers compensation-based software solutions to businesses of all sizes and industries.
Clientele:
Revlon, SurveyMonkey, Tableau, Duracell, Smartsheet, and AppDirect are a few examples.
Features:
- Custom dashboards and reports are available.
- There are several payment plans, each with its budget.
- Custom reports that can be used to verify pay equity are supported.
- Allows managers to make pay decisions based on evidence.
- Advanced pay plan eligibility rules.
Pricing:
Contact the vendor.
#15. SAP SuccessFactors
SAP SuccessFactors Employee Central Payroll software can help decrease risks, simplify payment management, and automate payroll changes by automating and accelerating payroll processes.
You can handle essential HR functions, talent management, and analytics with an integrated payroll management system. It also saves money by standardizing procedures on a single platform and offering localization in over 45 countries.
Clientele:
Woolsworth Group, Cintas, NPC
Features:
- Cloud payroll operations that are consistent.
- Payroll processing standardization
- Precise payroll monitoring
- Consistent processes across HR, payroll, and time and benefits management.
Pricing:
Contact the vendor.
How To Select The Best Compensation Management Software
When selecting the correct compensation management software, you must discover a program that is capable of matching your compensation management process requirements. It is also essential that the product’s price falls within your price range. When assessing the many goods available on the market, keep the following crucial elements in mind:
#1. Self-service capabilities
Employees can use a self-service option to enroll or participate in company-wide merit bonus schemes, track their compensation benefits, update their contact information, and manage life events from a single centralized dashboard. This feature improves the efficiency and value of the compensation management software.
#2. Compliance management functionality
Ensuring compliance with all applicable rules, corporate policies, and industry standards can be difficult without the right tools. In this context, a compensation management system that provides compliance help can significantly impact. It can assist in addressing inconsistencies and ensuring that your organization remains compliant with all rules and regulations within the organization, the region, and the industry in which you operate.
#3. Help with integration
Numerous software systems can integrate with existing core HR management solutions. If you’re seeking to invest in standalone compensation management software, make sure it enables third-party integration since this allows you to store all of your HR management tools on one platform.
#4. Capabilities for reporting and analytics
Most best-of-breed software packages, including compensation management solutions, now include analytics and reporting as standard capabilities. Nowadays, you should not choose a software solution that does not have reporting and analytics features since this allows you to acquire valuable, analytical insights that can be easily shared with other relevant team members and departments.
#5. Planning and management of incentives
Choose compensation management software that allows for more user-friendly short- and long-term incentive planning. Your staff should be able to manage which incentive plans to offer to whom quickly. Examples of such benefits include merit bonuses and other incentives such as life and health insurance, pensions, paid time off (PTO), and even non-financial compensation programs.
Compensation Management Software Benefits
#1. Precision and efficiency
Compensation management software enables your HR team to be more accurate and efficient in handling employee compensations, calculating total rewards and merit bonuses, and developing more significant long-term incentives. Instead of wasting time hopping between various spreadsheets, HR will have a unified platform to manage all employee data with the compensation management system.
#2. Employee efficiency
You should expect a significant rise in staff productivity through long-term incentive planning and adequate compensation plan implementation. This is an obvious choice. You are giving them the motivation to become great employees for the firm. Merit incentives and other non-monetary compensation can also help boost employee satisfaction and retention.
#3. Increased budget awareness
Aside from helping to ease your initial long-term incentive planning process, several software solutions in this category can automatically track merit bonus distributions while keeping the information in a consolidated system for quick access. It is simpler to prepare reports, do bonus and equity calculations, and conduct data analysis to acquire valuable insights into your budget.
Why Should You Use Compensation Management Software?
Compensation management software assists businesses in developing, defining, and managing their compensation strategy. It is used by companies to view and alter compensation plans, organize employee bonuses, and recommend wage adjustments. Compensation management solutions assist human resource management in creating streamlined compensation strategies for their teams while optimizing salary budgets.
Compensation management software makes designing competitive staff rates and compensation easier and more controllable. The software assists HR and payroll departments transition from a cumbersome, paper-based management technique to a streamlined, electronic one. Another major business problem that the software overcomes, according to users, is the amount of time required with manual, traditional methods of managing compensation.
Who Benefits from Compensation Management Software?
Compensation management software is ideal for small and medium-sized firms and HR departments wishing to streamline, manage, or expand compensation management operations. Compensation management is used by all businesses, large and small, to manage their pay plan. Companies of all sizes must ensure that their compensation is managed effectively and fairly. Employee compensation may become more challenging to manage when organizations increase in size, hire new personnel, and promote internally. This application offers compensation options for wages that may be changed, expand with employee growth, and remain equitable throughout the firm and industry.
Compensation management software automates the management of numerous types of compensation, including base pay, commissions, overtime pay, bonuses, profit sharing, merit pay, and stock options.
What Are the Current Trends in Compensation?
- Flexible Paid Time Off
A rapidly expanding trend in employee remuneration and benefits is flexibility in paid time off. Employers provide a predetermined amount of paid vacation days throughout the year rather than classifying time off. These paid vacation days are available to employees at their discretion.
What Makes a Good Compensation System?
When your company strives to achieve both short-term and long-term objectives, a good compensation management strategy covers the full philosophy of what your company values. When a plan for managing compensation has a philosophy, strategy, pay standards, policies, and procedures, it is considered to be complete.
What Is the Simplest Compensation Plan?
The simplest form of payment is a straight wage. Salespeople are compensated in full for their services by receiving predetermined sums at regular intervals (often every week or month, but occasionally every two weeks).
What Is an Ideal Compensation Package?
What fundamental elements make up a solid compensation package? A decent and stable wage is one of the fundamental elements of all compensation packages. It may also contain a promise of yearly pay raises based on success on the job, cost of living, and length of service with the organization in question.
What Is a Decent Annual Compensation?
In the majority of the world, a salary of $60,000 a year is sufficient to provide you with a respectable standard of living. That will suffice to meet your needs, satisfy your desires, and allow you to live comfortably in the United States. The size of your family and the area where you live will determine how this works, though.
Why Use Compensation Management Software?
Companies may develop, establish, and manage their compensation strategy with the aid of compensation management software. Employers view and modify compensation rules, organize employee bonuses, and suggest wage modifications using compensation management software. Human resource management may create streamlined pay strategies for their teams using compensation management systems, which optimizes wage budgets.
Planning competitive staff pay and compensation is made simpler and more controllable by compensation management software. The program enables HR and payroll departments to transition from a cumbersome, paper-based management approach to an efficient, electronic one. Another significant business issue that the software addresses, according to users, is the enormous amount of time required for administering compensation using manual, conventional techniques.
Conclusion
Compensation management software assists firms in structuring how they pay individuals with various skills. Ensuring that no one is underpaid or overpaid is critical for fostering a fair atmosphere in which people feel valued for their contributions. This could assist the organization in attracting and retaining talent.
Compensation management solutions can help lower employee compensation costs because HR employees can spend their time on high-value tasks while the software handles the mundane.
Tools that assure equity and fairness lower the risks of noncompliance with labor regulations while also assisting in establishing positive relationships with labor unions and employee representative groups. Furthermore, when employees believe they are adequately compensated and the organization can justify its compensation structure, they are more likely to be motivated to do their best at work, enhancing productivity and profits.
Compensation Management Software FAQs
What is compensation management system?
A compensation management system is a technology solution that controls an employer’s pay, bonuses, and perks.
What are the 3 compensation components?
Compensation is the sum of salaries, wages, and benefits that employees receive in exchange for performing a specific job.
What are examples of compensation systems?
Paid time off, health insurance, life insurance, disability insurance, stock option schemes, and employee services such as financial counseling are all examples.
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