The critical nature of rewards, and the importance of managing them effectively and efficiently, is not lost on most total rewards practitioners. Yet many companies still struggle to manage compensation, with long and difficult compensation cycles, disjointed data, limits on functionality, and a lack of flexibility. This is a lost opportunity.
The answer is not just technology, but the right technology. To manage what is arguably the largest and most important business driver in many companies requires fit-for-purpose technology that does not require compromise or workarounds. The right technology allows you to do more to make the company successful.
The case for compensation technology
If you are managing compensation with spreadsheets or the limited functionality of HR suites, your compensation system may be holding back your business.
If you really were able to manage compensation your way, with all the functionality you want and without system limitations, what might be possible? The answer to that may give you the rationale for implementing dedicated compensation technology.
Bottom line benefits
Technology can greatly reduce the inefficiency in HR processes like compensation administration, freeing up staff time and reducing their stress during compensation cycles. Without the right technology, a lot of time can be spent chasing data, reconciling numbers from disparate sources, correcting errors, dealing with disputes, and pulling reports. Making changes to compensation plans can be difficult and costly. Auditing and compliance reporting likewise can consume a lot of time and resources. Technology can increase efficiency, eliminate many errors, and reduce costs.
Top line benefits
Technology can enable you to implement more effective total rewards strategies, tailored such that compensation plans can be adapted to the needs of different labor markets, different demographics, and even different individuals. With manual or limited tools, this challenge is too complex. But with dedicated compensation management technology, it is possible to individualize compensation strategy at scale to get the most from your people and generate improved business results.
Hiring and retention benefits
With dedicated rewards management technology, you can ensure that you are paying your people fairly and competitively, as benchmarked internally and to the market. The ability to tailor rewards to meet the needs of specific employee populations and employees not only helps performance, but it also helps to attract and retain talent. Our 2021 research on employee expectations shows that pay is important but that job seekers often will accept below-market compensation in exchange for lifestyle benefits that make their lives work.
Culture and brand benefits
That ability to tailor rewards packages to the needs of the employee leads to increased motivation and loyalty. It helps to establish a company culture that values employees and shows it. In today’s world of transparency and social media, culture quickly becomes the employer brand. With sites like Glassdoor, Indeed, and Comparably, employee views of the company are in the public domain and can affect your ability to attract talent.
Audit and compliance benefits
A dedicated total rewards platform can provide visibility into all rewards processes, from planning to approvals to payments, providing the accountability, transparency, and reporting necessary to support audit and compliance, while ensuring good governance. Machine learning and predictive analytics help you identify anomalies in pay that might be due to bias, giving you the chance to act quickly and reduce your legal risk. Dedicated compensation technology can provide this.
Questions to ask
Your compensation strategy today needs to be flexible, mobile, and diverse. Can your reward system keep up? Here are some questions to consider:
Can your compensation system anticipate change so you can adapt your rewards strategy to changing business priorities? Is it then easy to make the needed changes?
Does your compensation system support equal pay? Can it identify and predict pay equity gaps across your workforce, reducing risk and attrition by solving problems before they even begin?
Is your compensation system centralized yet flexible so you can standardize global compensation while allowing local adaptation? Does it support individualized compensation planning?
Does your compensation system provide transparency, security, and compliance? Does it support audits and global regulatory requirements?
Finding the right technology
beqom was designed to provide total rewards management that allows you to manage compensation your way, without compromise. Contact beqom today to speak with one of our compensation experts about how you can begin to manage compensation your way.
Using an HCM suite for compensation? Wondering if it is right for you? Try our free assessment, Evaluating Your HCM Platform for Compensation.