An organization’s culture and its rewards practice are intricately linked. Much like a jigsaw puzzle, there are a lot of elements that need to fit together: communication, trust, individual objectives, and a common goal. Without the alignment of these pieces, the results can be unpredictable.
Rewarding employees is about more than allocating budget. The foundation lies in aligning employees with your company culture and motivating them to perform highly. Determining the right strategy is another critical component.
The changing needs of the modern workforce underline the fact that there is no one size fits all strategy. Only once you start to understand these changing needs, along with your employees’ goals and interests, can you begin to tailor a total rewards package for each individual that will bring out their best.
The need for technology
Employee compensation is a business activity with continually moving parts. Trying to manage these moving parts manually wastes a great deal of time inside the HR function. To serve both the needs of the employees and the needs of the company for these compensation activities, technology becomes compulsory.
Compensation software allows HR and managers to get an all-in-one view of an employee’s total rewards. By analyzing the current rewards package for an employee in the context of his or her total rewards history and relevant industry benchmarks, managers can make informed decisions about how best to motivate that individual. Empowering managers to plan an optimum compensation strategy for each member of their team offers another advantage: a steep drop in support needed from HR managers, freeing up their time to spend on strategic goals.
Strategic reward through informed pay decisions
When, where, and how to adjust compensation is a strategic decision. Should you adjust all job roles equally to align with cost of living increases? How should you adjust these values to reward top-performing employees? Will you need special adjustments to improve retention rates of specialized job roles? How will you align variable pay incentives to strategic goals?
Without dedicated technology, aligning goals to compensation is incredibly challenging. The use of compensation management technology can shape the employee experience while advancing the organization's mission. By analyzing the current rewards package for an employee in the context of the employee’s rewards history and relevant industry benchmarks, managers can make informed decisions about how best to motivate that individual. Although it helps companies retain and motivate their top performers, this level of control simply does not exist in most HRIS solutions.
Increase efficiency of reward management
Yearly pay planning with a manual process is time-intensive. It involves heavy use of spreadsheets, emailing files for review, and constantly chasing fair market value. Almost as soon as it’s created, this information becomes out of date. Just as technology has increased the efficiency of processes in many other business functions, the use of compensation management technology can free HR from many of the manual tasks it performs today. Compensation personnel, freed from non-value-added tasks can then spend time on strategic compensation management for improved cultural and goal alignment.
Get top results from your people by bringing a holistic total rewards perspective to each employee with beqom’s Individual Compensation Planner.