Discover our new leadership video series, "Leading People" | Episode #01 available now!

All Articles
Comp Management3 min to readNovember 3, 2021

4 Ways Technology Can Ease Your Compensation Lifecycle

Written by Vismay GadaReviewed by Fabio Ronga

Managing compensation in large organizations, especially in heavily regulated ones like financial institutions, is a complex undertaking with many processes typically handled through expensive workarounds, manual procedures, or compromises. 

As companies plan for next year's compensation cycles, it's worth looking at how technology can fully automate the  rewards lifecycle, taking the pain out of traditional practices.

Organizations that have invested in a digital compensation transformation have witnessed benefits throughout the compensation lifecycle, including improved operational efficiency, better support of regulatory compliance, an increase in attracting and retaining talent, enabled execution of business strategy, and lower costs.

The digital transformation is already happening. Many of the world’s leading institutions have mastered their compensation lifecycles through compensation management software.

Easing Step 1: Centralized, streamlined planning and accruals

To plan for the coming cycle you first need to figure out, who will get paid what? It sounds simple, but when you need to match existing employees to benchmark data, estimate new hires on anticipated positions, and take contractual elements into account, the complexity quickly escalates.

Compensation technology is invaluable at this point. A dedicated compensation solution can enable staff cost and headcount planning on a centralized compensation database, ensuring that all parties are seeing the same data, so that HR, Finance, local, and group managers are in sync.

In a central automated platform, you run the compensation plan calculations within the model to see the payouts that will occur based on your planning assumptions. Determining how much to accrue for your bonus and merit pools is usually an iterative process. A compensation platform makes this straightforward; change a few assumptions and rerun the model with ease. An additional approval workflow process provides a full audit history of the plan versions and related approvals.

Easing Step 2: Self-service portal for recommendation rounds

Empowering managers to link pay to performance is a vital step at this operational part of the compensation lifecycle. Compensation technology, through a manager self-service portal, allows managers to enter recommendations, submit and approve, view performance and compensation history, and get instant access to employee compensation sheets. 

Organizations that have enabled self-service have seen a 65% drop in HR support. Old delivery methods, like emails containing spreadsheet attachments, get removed from the process, replaced by an approval workflow, fully tracked and recorded in an audit trail.  

Easing Step 3: Real time reporting and payroll

A dedicated compensation platform holds all compensation and performance data in one central repository, making it easy to run all of the reports needed to understand compensation spend, analyze pay fairness, assess compensation effectiveness, and provide the data required by all stakeholders. 

Rather than waiting until the end of the year, reports can be run in real time as data is updated. Similar to the other stages of the lifecycle, this happens with full audit-ability.   

Easing Step 4: Automated communication

Compensation software marks the end of manual processes based on email, spreadsheets, and paper printouts. Compensation sheets, manager summary sheets, total rewards statements, and equity letters can be fully automated. 

Once generated, they can be automatically distributed in a variety of formats, or with a link for users to view them online. If your process requires sharing paper printouts, using an automated system, you can download printable PDFs and batch print them. 

Accelerating your business

With an automated compensation platform, even the most complex compensation cycle can be mastered. Modern technology streamlines the entire compensation lifecycle, accelerating it by up to six times compared to traditional ways. The 1000s of hours saved in employee effort does not go unnoticed, with a workforce that is more engaged and aligned.  

Could new compensation technology accelerate your business? Download our free guide, 8 Signs Your Compensation System is Holding Back Your Business, to find out.

New call-to-action

More insights from the beqom blog

Explore other recent blog posts to stay updated on key trends and strategies in HR. Our blog provides expert insights to help you drive success in your organization.

Three people in an office setting talking in front of a computer.

Mastering Data Challenges in Pay Equity Analysis

6 min to read

Effective pay equity analysis hinges on mastering complex data challenges that many companies struggle to overcome—here's how technology can bridge the gap.


Read more
Man in an office setting smiling with arms crossed.

Drive Excellence with Incentive Compensation Management Software

6 min to read

Discover how incentive compensation management software can streamline incentive programs, boost performance, and support scalable compensation strategies for business growth.


Read more
Graphic with two hands holding a piece of paper and a magnifying glass.

Navigating Pay Transparency: A Complete Handbook

8 min to read

This go-to guide covers the what, why, and how of pay transparency, and it offers best practices and some insight on the EU directive. Throughout, we provide links to other pay transparency resources so you can take a deeper dive.


Read more
Hand drawn Tin can telephone.

Our newsletter

Sign up for the beqom newsletter to access exclusive resources on topics like Pay Equity, Compensation Management and Sales and Employee Performance. Our regular updates ensure you’re always informed on the latest trends in HR and compensation.

Some of our latest resources

Broaden your understanding with our curated selection of recent articles. Explore best practices, gain insights from industry thought leaders, and stay up-to-date with the latest trends to help drive success in your field.

Graphic with Checklist Booklet

Preparing for the EU Pay Transparency Directive: A Checklist for your Organization

When it comes to getting the EU Pay Transparency Directive, it’s important to be proactive and prepare in advance. Our checklist helps you identify the broad goals and specific actions you need to get your organization ready.


Read more
A hand drawn graphic showing 2 birds on a line.

Get to know the beqom product line

For over a decade, we’ve partnered with some of the world’s leading organizations to tackle their unique compensation and performance challenges. We understand that every business has distinct needs, not a generic approach.

Connect with a beqom expert to arrange a personalized demo that addresses your goals directly.

Request a demo today

The beqom products

Unlock the full potential of your comp.

beqom has been purpose-built to handle the breadth and depth of global total compensation management, with a proven track record of success for leading companies across all industries.

Compensation Management Software graphic
Pay Management iconPay Management

Total compensation without compromise.

Pay Transparency iconPay Transparency

Clear reward, clear purpose. For every employee.

pay-equity iconPayEquity by beqom

Put fairness first: close pay gaps for good.

pay-intelligence iconPay Intelligence

Always pay the optimal amount.