Whether you’re using spreadsheets, homegrown tools, or even the compensation module in an HR software suite, limitations in your compensation management system can be holding back your business. We have put together a free, useful guide to help you look for the warning signs at your company.
Here are a few to get you started.
1. You’re spending too much time managing spreadsheets
If your HR or Sales compensation teams are burning the midnight oil during compensation cycles, there is a good chance that it’s because they need to spend so much time not only managing spreadsheets, but doing manual tasks, chasing data, creating total rewards statements, troubleshooting, and responding to employee inquiries about their pay.
2. Pulling reports takes hours or days
Many stakeholders need compensation data and analysis to make informed decisions, from managers reviewing their staff, to HR analysts studying churn, to financial analysts allowing for accruals. And employees need access to total compensation statements. If you can’t provide these instantly via self-service, your organization is at a disadvantage.
3. Manual processes are creating errors
It’s well known that using Excel or Access databases introduces a heightened risk of data entry and calculation errors. Gartner estimates that 10% of all spreadsheets contain errors, not to mention version control issues and the lack of a single source of truth or an audit trail.
4. You can’t change the system fast enough to keep up with the business
Excel-based or homegrown systems are difficult and costly to change, often requiring IT support, hampering the ability of the business to pivot when needed by rolling out new incentive plans. Even HR software suites tend to be limited to a one-size-fits-all approach for compensation, while the business needs flexibility in its rewards strategy.
And there’s more...
Disjointed data, multiple systems and side processes, inability to handle complexity… these are some of the other limitations that may be constraining your business. These limitations result in a compensation strategy that is determined by system constraints rather than by the needs of the business.
The result? You are not getting top performance, your processes are inefficient, your HR team is bogged down in manual tasks, and your financial and compliance risks are increased. The good news is that dedicated compensation management software can put you in control of your rewards processes and deliver value to all stakeholders.
To learn more, including how to overcome the limitations and empower your business with automated compensation management, download our free eGuide, 8 Signs Your Compensation System is Holding Your Business Back.