When a firm fails to plan for basic compensation, it risks losing talent and frightening away potential hires—up to 52 percent of candidates believe competitive compensation is the most appealing aspect of a job offer. When firms rely on historical compensation management tools, designing effective compensation plans can be difficult.
Organizations looking to upgrade to modern, tailored software that will improve procedures and achieve pay equity have a plethora of options. But which compensation management software is the best on the market today?
This article will give HR professionals in charge of employee performance and human capital management (HCM) an idea of the key characteristics to look for when determining which HR software is right for them.
Criteria for Comparing Compensation Management Software
What factors should I consider when choosing the best compensation management software? My rating criteria are summarised below:
Are the various types of compensation easily accessible and well-organized? Do customers believe they have a comprehensive or granular understanding of their compensation programmes?
Is the compensation tool simple to use for HR professionals of various skill levels?
Is the company’s tech support and training adequate?
Integrations: Is it possible to connect the compensation management platform to other CRM, ERM, and HRIS systems? Do they provide any other connectors to help you optimise your workflows?
Value for money: Is the price of the compensation management tools reasonable in relation to the feature set? Is the pricing flexible if you require more users, functions, or storage space?
Key Benefits of Compensation Management Software
The finest compensation management software should help an HR staff with talent acquisition, forecasting, capturing key data, onboarding, and possibly even time monitoring.
In this essay, I look at the following features when evaluating various compensation management software:
Developing insights: Human resource managers and other corporate executives should base their compensation strategy on sound data supplied by the human resources information system (HRIS).
Automation: Is it possible to automate some (or all) of the rewards management, pay programmes, and long-term incentives in a real-time central database, thereby lowering the time necessary to administer compensation processes?
Self-service: When compensation management software includes self-service capabilities, employee compensation queries can be instantly answered, reducing administrative burden.
Total compensation management: A good compensation management software should give HR management with a holistic solution that includes budgeting and management of business perks, benefits, and incentives for top performers.
An Overview of the Top 10 Compensation Management Software
Here’s my compensation management software comparison, complete with a brief overview of each software and screenshots highlighting key features.
1. Decusoft Compose – Best for flexible compensation management
Decusoft Compose is compensation, incentive, and overall rewards management software.
The solution not only simplifies the management of complicated variable compensation schemes such as merit, equity, long/short term incentives, carried interest, and deferrals, but it also improves data analytics. DEI, pay equity, and people analytics are all easy to track, report on, compare, and visualise. Compose is simple to use, customizable to your specific requirements, and SOC-2 compliant. On request, Decusoft Compose provides customised pricing.
2. Xactly – Best for quota-based work
Sales teams exist in a variety of shapes and sizes, as do their compensation and benefits packages. Xactly is a compensation management software that is designed to continuously monitor sales teams in order for HR managers to implement compensation methods that inspire them. The software also has all of the expected capabilities, such as easy interaction with existing applications, team collaboration, and the collecting of compensation data, which will assist businesses in allocating resources.
3. Balanced Comp – Best for the finance industry
Balanced Comp provides compensation management software that includes best-in-industry advice, web-based salary administration, and financial-specific performance management software. The tool is intended to help businesses structure compensation in order to promote pay equity, inclusion, and workforce diversity.
4. Payfactors – Best for market benchmarking strategies
Some of the key benefits of using Payfactors include job description customization, total rewards statements, and a user community of over 25,000 compensation and HR professionals who share information.
This tool is most beneficial for companies who want to compare their pay to the market average.
It also gives a company with survey tools that collect and arrange data needed to determine how employees feel about their company’s compensation approach.
Some of the key benefits of using Payfactors include job description customization, total rewards statements, and a user community of over 25,000 compensation and HR professionals who share information. This tool is most beneficial for companies who want to compare their pay to the market average. It also gives a company with survey tools that collect and arrange data needed to determine how employees feel about their company’s compensation approach.
6. Workday – Best for data integrations
Spiff has designed a system that gives a customised dashboard that refreshes as soon as a rep closes a transaction or reaches a milestone to ensure that each sales professional is paid properly and on time. This gives members of the sales team a visual representation of their compensation and how it was determined. Furthermore, because sales commissions and bonuses change, Spiff software is built to be adaptable.
7. Spiff – Best for sales teams
Even while organisations are gradually transitioning away from legacy systems, the change is not always straightforward because individuals tend to fall back into old habits. An examination of CompTrak reveals that the program’s designers recognise that the transfer from older systems is not always smooth. With this in mind, they developed a simple cloud-based solution for obtaining compensation data and providing important reports for decision making.
8. CompTrak – Best for transitioning from legacy systems
Broker-dealers and registered investment advisers, as a distinct group, frequently find themselves in a situation where regulations are constantly changing, and keeping up is difficult. This is a problem that Maestro’s designers were aware of when they designed the software. As a result, this solution removes manual tracking and adds a versatile device for dealing with the changing nature of rep compensation packages.
9. Maestro – Best for broker-dealer and registered investment adviser communities
An examination of the COMPview compensation management software reveals that the programme excels in calculating and allocating equity rewards and merit bonuses. The tool is most useful for HR teams dealing with complex compensation schemes. It enables them to more easily allocate decision-making in relation to potential and performance. Furthermore, the software enables all individuals involved in making choices about an employee’s compensation to access all of the information they require in an one location.
10. COMPview – Best for recognizing and compensating top performers
If a company is unable to provide incentives to people that thrive, it is possible that the company will become a revolving door of talent. A software solution that supports a corporation in rewarding employees for surpassing performance and productivity standards can help to mitigate such an issue. Varicent ICM’s solution is as follows. Furthermore, the software reduces the possibility of underpaying or overpaying personnel.
Need Help Choosing the Best Compensation Management Software?
People Managing People has partnered with software comparison platform Crozdesk.com to help you select the right tool for your needs. Crozdesk’s Compensation Management Software consultants may generate a customised shortlist of software solutions with unbiased recommendations to assist you in identifying the solutions that best meet the demands of your organisation. Through our collaboration, you will get free access to their bespoke software selection assistance, which will save you time and effort in your study.
It simply takes a minute to input your requirements, and they will contact you promptly at no cost or obligation. From their staff of software advisers, you will obtain bespoke software shortlists identifying the best-fitting options based on your demands (via phone or email).
They can even connect you with your preferred vendors as well as community-negotiated savings. To begin, please fill out the form below: