Now that the world is gradually swinging back into normalcy, employers worldwide face a significant operating expense: workers’ compensation. It’s a constant tussle between getting it right or making the wrong choices. Each of these management decisions come with their own implications. Which is where compensation management software can be beneficial to a business.
If executed the right way, it comes with several benefits for your business and employees. However, when done poorly, your business may have to deal with irreconcilable and expensive mishaps. Considering 4 million Americans left their jobs in April 2021 the decisions you make could have large repercussions.
It is highly recommended at this point to get compensation management software to handle your compensation structure and strategy, as it could, in several ways, make your business more competitive in the marketplace.
According to expert studies, there are more jobs vacancies than unemployed persons, which can only mean one thing. Prospective employees are now picky about where they want to work. With the aid of effective compensation management software, you can adequately utilize your budget to recruit top talents, promote productivity, and achieve business objectives simultaneously.
On the plus side, this software can also help your business remain compliant with regulations and promote your brand image.
This article will look at what compensation management software is and some options that exist.
Compensation Management Software Deconstructed and its Benefits
Compensation management software is one of the unique tools in modern-day human capital management. It is an effective tool you can utilize in calculating and budgeting workers’ salaries and providing essential details about wage changes as a result of a specific role.
This software is typically accessed and operated by employers and HR managers of a company or business. It is uniquely developed to give you an overview of employee information which you can effectively use to make new salary offers, raise concerns, or provide bonuses.
Business owners and HR teams can benefit from effective compensation management software in the following ways:
Make a Recommendation to Raise Worker Salaries
Competition is stiff amongst businesses to retain their top talents these days. Why? Because these workers are in high demand.
According to a report, 17% of workers have noted that money was why they left their previous jobs. Your human resource is an essential aspect of your business, as it determines your productivity in the long run. If your top-performing workers identify salary inequalities, they may decide to leave for another firm offering better packages.
With the right compensation management software, you can review company data to implement priorities such as salary band changes. It can also identify some of your most productive workers and offer merit-based bonuses.
Identify Pay Inequalities
It’s no longer surprising that even now, pay inequalities and gaps persist. According to Payscale, women only earn 98 cents for every dollar earned by men for the same job. When you compare the figure over a period of years, one can painstakingly conclude that the pay gap is wide.
Data from Pew Research suggests that the average Latino man earns only 69% of what a Caucasian man earns. The data also points out that black men earn 73% of what white men makes every month.
Businesses that recruit workers across race, gender, religious beliefs, and even sexuality lines may be dealing with these internal issues without even knowing it. An effective way to analyze pay inequalities is by using compensation management software. This software can also share some insights into your employee payroll structure so that you can promptly implement fair payment.
Make Competitive Offers
According to research, 57% of potential workers say that compensation is one of the significant factors when searching for new opportunities. With the right compensation management software, you can understand each salary band and which employee places in which categories. With such information at your fingertips, you can make compelling offers to close top talents rather than losing them to a rival business.
Promote Pay Transparency
You may not be aware, but your workers are probably discussing topics bordering on their salaries, bonuses, and pay structure. When these issues are brought up in meetings, your HR managers may not respond appropriately.
With the right compensation management software, your HR team can understand and implement total worker compensation in the best way possible.
With several compensation management software available today, which one effectively takes care of your HR needs?
Practice Corporate Social Responsibility
As we have previously written having a corporate social responsibility (CSR) plan in place can help your business recruit and retain the best employees for your business. Many employees may take lower wages or different forms of compensation to work for a company they believe in as they have proven to have a larger mission than just simply profits.
Goodworld is an innovative software that you can use in implementing positive change by including your employee base in your impact or outreach to the community. You are able to bring them into the decision making and allow them to voice their opinion. It has several unique features and tools for HR, CRM, and other marketing campaigns. The easy-to-navigate user interface and experience are also top-notch.
Patronized by leading brands like Lyft, Global Citizen, American Cancer Society, and MasterCard, Goodworld is highly recommended for businesses looking to improve worker compensation and HR needs. You can get a demo of its unique features here.
Reach out to Expense To Profit to see how we can help your business reduce expenses while boosting profits.
Published by Marc Freedman
Marc currently serves as our Chief Cost Evaluator, expertly advising our client management team on how to help you successfully achieve your business and financial growth goals. A respected mentor to all he consults with, he is an avid collaborator and contributor to the spend consultant community, guiding thought leaders to formulate, design, and install the best operational solutions available to their clients.