To stay afloat any business needs to grow consistently and maintain or increase profits accordingly; while also properly compensating staff members. To do this properly means being able to identify and consequently recognize those whose abilities and dedication made this situation possible.
In anything other than a very small company it becomes quite difficult to properly assess and reward individual contributions, rather than calculating this by departments or teams. There is, however, a solution that is more than workable – and that is to utilize compensation management software and planning solution.
What is compensation planning solution software?
This is an efficient and straightforward way to both assess and monitor the performance of all employees, which in turn allows an employer to offer individual recognition, benefits, bonuses and even salary based on that one person’s achievements. Let’s look in more detail at how adopting this system benefits both employers and their entire workforce.
The benefits of compensation planning solution software for employers
1. It frees up cash to be used more productively
There are several ways that savings are made when an employer uses this kind of software to manage employee salary and benefits. These all stem from the fact that data on various aspects of the business can be collated, delivered, and even automatically implemented in hardly any time, which in turn reduces things like the number of hours HR management staff need to spend on assessing and agreeing on salary increases, and drastically cuts down on clerical errors.
2, Compensation planning software helps a company hold on to their most talented performers
Those who are excellent at their job have fewer problems finding a new one than others might, regardless of whatever the unemployment level may be; and they are always going to be approached by headhunters looking to poach their skills on behalf of a competitor. Rewarding individuals with a pay rise, bonus, or perks which are tailored to recognize and reflect their personal achievements is a really good way of showing that their work and talent is respected; deepening their connections to the company and lessening the chances of them jumping ship.
People want to know that those in power have noticed them, and deemed them worthy of a suitable reward.[Promoting such a scheme may also help a company retain all valuable staff for longer, and also to attract new employees of the best possible caliber.)
3. Compensation planning solution software can boost productivity
Alongside the savings made from freeing up staff from time consuming admin tasks a company can also experience a boost from greater productivity levels. This is thought to be linked to the basic idea of employees who are happier, and believe they can trust their employer more than is average are more committed, so work harder and smarter, and are also less likely to miss days due to sickness.
4. This software generates a comprehensive picture of the company’s workforce
It’s always useful to know who the top performers in a company are, but the majority of people are worker ants, and their level of productivity needs to remain consistent to keep a business healthy. The software which automatically generates appropriate rewards based on achievement can also produce data identifying an individual’s status vis-à-vis their peers.
Here are some examples of how big hitter names manage their employee compensation schemes – which to be fair they have had in operation way back before it was fashionable.
Compensation planning – big box style
Household names like Google and Facebook are well known for their maverick approach to workplace lifestyle and the (sometimes wacky) rewards they shower on employees. So we know or hear about things like Google’s free gourmet-level meals, generous vacation times and paid leave for new mothers and fathers – including those who adopt. Then there’s the surviving spouse benefit (payment of 50% of the deceased worker’s salary or ten years!), free drinks on a Friday and various other rewards, such as being able to bring your dog to work, which are location specific.
Costco is another huge employer own for its rich employee rewards scheme, paying higher hourly rates than other retail outlets, and providing excellent health and pension benefits for all jobs, whether skilled or not. Facebook also offers free food for all three regular meals a day- which can be eaten at any one of the many food outlets on site, free laundry service and free dry cleaning, team building adventures, plus cash gifts and cut-price daycare for all new parents, without exception.
The benefits of compensation planning solution software for employees
1. A definite compensation planning scheme in operation is very attractive to potential employees
Many jobseekers check out the benefits a company offers before applying, and the concept of a definite, fair and consistent way to have their efforts and achievements in place is extremely attractive.
2. Compensation planning increases employee satisfaction
Software which assesses and allocates rewards according to a set formula tends to shift the need for an employee to compete against others, allowing themselves instead to focus on competing against their own level of achievement. It’s basic psychology that people who feel their contribution to something has been fairly recognized and rewarded will feel happier as a result, and basic economics that happier employees lead to a more productive environment.
3. Some compensation planning solution software invites employee input
There are some versions which allow employees to access parts of their personal record on the system and do things such as monitor the level of rewards they have built up, or select the benefits they would like based on their needs, lifestyle and preferences from the range offered to them.
Compensation planning solution software brings many positives on both sides, so it makes sense for companies to give it some serious consideration. After all, when isn’t there a call for some easy to access tech that improves staff performance, morale and turnover rates while also boosting income and reducing costs?