At the end of March, we spoke with Financial Services compensation and benefits teams while presenting How Financial Services Can Master the Compensation Cycle & Control their Greatest Operating Expense through WorldatWork. During the presentation, we asked participants about their immediate compensation and rewards priorities. Their answers suggested an industry looking to automate their rewards processes, improve pay equity and compliance, and better understand and control their compensation spending.
Looking to automate rewards processes
We asked attendees “What are your immediate challenges for compensation and rewards that you want to resolve?” As the number one reply, nearly 60% of respondents said they wanted increased automation and removal of manual processes, suggesting that compensation teams at many financial institutions are struggling with inefficient manual processes.
In line with automating compensation processes, 29% also sought an “improved manager and employee experience.” Not surprisingly, 80% of those who wanted an improved experience also wanted increased automation and removal of manual processes, perhaps indicating a belief that automating processes will improve the employee experience.
Seeking pay equity and better analytics
In a tie for the next most pressing challenges, cited by 47% of respondents, were having a greater handle on pay equity/fairness and creating a single source of HR and compensation data for better analytics. Of those who wanted to get a handle on pay equity, 63% also wanted more process automation, perhaps a recognition that centralized compensation management software is a prerequisite for being able to analyze and implement pay equity.
Only 18% cited faster adoption of regulatory requirements as a current challenge, but of those that did, 100% also stated a desire for handling pay equity, suggesting that compliance with fair pay regulations may be on their minds.
Controlling compensation spend
Another correlation appeared to be between control of spending and data/analytics. Of the 29% who wanted better control of compensation accruals and spend, 60% also sought better data and analytics. Clearly if you are able to see where your spending is going, you are better able to control and optimize it. It’s perhaps also worth noting that 80% of those who wanted to control comp spending also wanted to get a handle on pay equity, perhaps reflecting a desire to rationalize overall compensation models.
Compensation management software as a solution
Watch the WorldatWork webinar, How Financial Services Can Master the Compensation Cycle & Control their Greatest Operating Expense, to see how beqom’s total compensation technology works alongside your existing HRIS landscape to dramatically improve your operational efficiency, lower costs, enable execution of business strategy, and support regulatory compliance.
Download our latest eGuide, Agile HR, to get our six compensation strategy must-haves to successfully adapt and motivate through periods of change.