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A New Tool to Calculate the ROI of Digital Compensation Management

There are many ways an automated compensation management system can make the lives of a Compensation and Benefits team easier and deliver value to the organization. But how can that value be quantified? How can you prove to management that such a system is worth the investment?

Making the intangible tangible

That was the challenge undertaken by a team of Executive MBA participants from one of the world’s top technology schools, École Polytechnique Fédérale de Lausanne (EPFL). “We wanted a way to measure the actual financial benefits of efficient compensation management and a happier and more engaged customer workforce,” according to EMBA participant Yuliya Blaser, a Key Account Manager at Innovaud. “It may be hard to measure the peace of mind resulting from compliant comp processes,” added fellow EMBA participant Anne Ong-Vidal, Product Manager at UBS Wealth Management, “but you can in fact estimate the financial benefits of optimized compensation processes, IT cost savings, elimination of payment errors, higher retention rates, and lower compliance costs and risks.”

“Our solution gives companies a tool for making sure their employees are happy,” said Fabio Ronga, beqom CEO, in an interview with Innovaud, “which improves productivity and has tangible benefits – but how can we quantify that? The EMBA participants found a way, based on hard numbers rather than abstract concepts.”

Calculating the ROI of compensation management

One output of the project was a Return on Investment (ROI) calculator, a spreadsheet-based tool that enables a company to calculate the financial benefit of implementing compensation management software. A company simply inputs its own data for costs like software licenses, HR and IT resources, employee engagement drivers, turnover, and compliance, and then can see how much improving compensation efficiency and effectiveness can drive down those costs.

The ROI calculator allows companies to gauge whether they will receive benefits similar to those reported by beqom customers, which have included a 6x faster salary review process, 1000s of hours saved in employee effort, 98% reduction of IT costs, 65% decrease in the need for HR support, and overpayments reduced to zero.


The EPFL EMBA program is the longest-running European EMBA focused on technology and innovation management. EPFL teamed up with innovation agency Innovaud to identify project opportunities with a fast-growing business at the forefront of disruptive technology. Innovaud recommended beqom, which it had already designated as a high growth “Scale Up” company. The research team included Yuliya Blaser, a Key Account Manager at Innovaud, Fritz Fohouo, Strategic Advisor at DXC Technology, and Anne Ong-Vidal, Product Manager at UBS Wealth Management.

For more information or to use the ROI calculator to see the potential benefits of automated compensation management for your company, contact beqom’s compensation experts.

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