You need to be maximizing your returns on the talent you engage, making sure that the right people in your company are rewarded for the right reasons, and that those rewards are going to keep the best talent with you while also motivating them to work hard. You need a compensation management system, including the right software, as part of an overall HR platform that will allow you to do this in a consistent and predictable way. Here are three reasons why:
Employees Are Happier with A Compensation Management System
Nothing aggravates employees like unpredictability and inconsistency. This is especially true at the beginning of employment, when studies show new hires who have a great experience are 10 times more likely to stick with the company. Statistics show that companies that offer their employees 11 or more benefits are highly likely to keep those employees for the long haul, while at the same time unhappy workers are currently costing the business economy across North America as much as $350 billion in lost productivity every year.
A Compensation Management System Optimizes Your Return on Human Investment
The right kind of compensation management solution utilizing the right kind of HR software will optimize salary, bonus, benefits, stock options, recognition incentives, as well as your budget, to get you the maximum profit per employee or per work hour. Companies with newly upgraded HR systems even typically see a cost savings of 22% for each of their employees. Of course, to go along with that you need a human resources team that knows what they’re doing, knows how to use workforce analytics, and are sensitive to the needs of your employees and not just the budget.
A Compensation Management System Reduces the Risk of Errors
Nothing will send employees packing faster than mistakes in compensation, feeling overlooked, or the impression that compensation is erratic. HR solutions can help you make consistently informed decisions that link pay to performance in an equitable and competitive way. A compensation management system does away with the risk of spreadsheet errors and allows you to implement built in budgetary controls that will keep you within the right parameters. At the same time, the software is also actively protecting your sensitive information and making it possible for you to automatically compensate your top performers while also sending alerts to managers.
There are many things that motivate an employee, but at the end of the day, most people are working for the paycheck as well as for tangible benefits. The right compensation management systems let you keep your talent and motivate them to give you their best, consistently.