Did you know employees refer to benefits as the third-largest factor for job satisfaction and performance? If an organization wants to retain top talent, it must compensate the candidates fairly.
But that’s easier said than done.
Considering the multitude of factors influencing compensation rates, it can be extremely challenging to know if the company is compensating the employees fairly.
That’s where technology, like compensation management systems, helps an organization make fair decisions when it comes to compensating its employees. Let’s understand what the compensation platform is all about and how it can help bridge the pay gap.
» What Is A Compensation Software?
Compensation management software can be defined as a tool that assists the HR team in making wise, calculated decisions about both recruiting and compensation planning. The main purpose of compensation software solutions is to give hiring managers, executives, and talent staff the total budget available for employee salaries and industry rates for the same.
» Choosing The Right Compensation Management Software: Things to Know
Before choosing the compensation platform for your organization, it’s important to look at the following factors:
- Price: The compensation management system should be selected according to your budget. Of course, the system’s price depends on the number of features available. However, prioritize the features you need and the amount it will take you to access them.
- Capabilities: Do the compensation management tools support all your required features, including rewards, incentives, stock grants, insurance, benefits, etc.?
- Flexibility: Can the compensation platform adapt well to company needs?
- System compatibility and integration: Can it easily integrate with your organization’s software, such as HRIS and other HR tools?
- Risk Mitigation: Will the system save your organization from errors, mistakes, inaccuracies, delays, and security breaches?
- Return on Investment: How much return on investment can your organization expect from the tool?
» Top 10 Compensation Management Software In 2023
COMPview is a global leader in compensation management thanks to its top-notch security and ability to make even complex things simple. One of the most valuable benefits of COMPview is its customization. The software supports complex configurations based on the company’s requirements. Moreover, there is also a feature to establish workflow and approval hierarchies, making the HR department’s life easier. COMPview integrates with technology sources like Payroll or financial software.
› Features of COMPview
- Reward Structuring: It helps companies structure and monitor rewards based on available budgets and industry rates.
- Integration: Integrates with any HRIS, payroll, or financial software that’s used in your company. This allows for a seamless flow of data between the systems without adding the burden of hiring developers or buying new software.
- Compensation Plan Modeling: COMPview allows HR representatives to plan and structure payment packages to hire and retain employees.
› Benefits of COMPview
- It is highly configurable: HR managers are often overwhelmed by the endless tasks to be managed, from planning guidelines, analyzing business results, and setting salary caps to accommodating rules and budgets. That’s where COMPview anticipates and manages all these variables according to the company’s needs.
- A dedicated manager: COMPview provides a dedicated manager who is the single point of contact for all the design, configuration, and implementation needs. The manager is available to you anytime you need assistance with the software.
› COMPview Pricing
COMPview provides a free trial. Please visit their official website to get a custom quote based on your requirement.
bob was founded in 2015 with a mission to simplify complex human resource and onboarding processes. With a user-friendly, intuitive interface, bob is designed to accommodate the needs of the modern world where hybrid workspaces are more common.
Companies can effortlessly connect and interact with employees from around the world, creating unity through culture. Its core culture consists of shoutouts, polls, and surveys. The software helps companies manage everything from employee onboarding and offboarding to reward management, making the whole process seamless for both employees and HR. A few of the integrations that bob offers to adapt to changing paces and rapid growth include Google Calendar and Slack.
› bob Features:
- Salary Reviews: bob makes salary reviews a piece of cake. With a set of recommendations and guidelines, managers can review salaries while simultaneously tracking progress and keeping higher executives on the same page.
- Smart Analytics: Make sound decisions through smart analytics. The software gives detailed analytics about each team member’s compensation history, guidelines, eligibility rules, etc., to ease the decision-planning processes.
- Integrations: bob easily integrates with Microsoft Azure, Google Apps, Jira, Outlook, Slack, Merge, and so many other platforms.
› Benefits of bob
- bob helps streamline core HR processes by automating onboarding, setting up task lists, automated approval cycles, etc.
- Highly Scalable: Another perk of the bob compensation system is its scalability. With its flexible capabilities, such as workflows, and time management, it scales easily from 50 employee companies to 2500 employee companies.
- Enhance employee experience: Employees are assets to any business, and it is vital to help them have a pleasant working experience. As a result of bob’s features, companies can maintain transparency with employees while also tracking their journey so new workers learn more about their colleagues quickly.
› bob Pricing:
bob offers a free trial. For a custom quote, please contact the team on the official website.
#3) Workday HCM
Workday Human Capital Management is a cloud-based compensation software solution with one motto – Everything at the same place. It is built as a single system with only a single data source, a single security model, and a singular user experience. It’s one of the leading software solutions to meet changing business needs. The user-friendly interface makes it easy to use, whether it is on a computer or mobile device. Global leaders who trust workdays include Dell, General Electric, Comcast, Humana, etc.
› Workday HCM Features
- Compliance Management. Workday protects from risk areas by ensuring that compliance standards are met through tracking and reporting.
- Time tracking, attendance, and PTO: It helps HR track time, attention and paid time off leaves, sick time, schedules, and worker-related information.
› Workday HCM Benefits
- Engagement tool: Workday includes several features that help companies listen to employee feedback and improve to deliver the experiences they wish for. Overall, a helpful tool to keep everyone happy.
- Highly Automated. Workday delivers an intelligent automation system to automate the entire attract-to-pay process by eliminating menial tasks and helping HR teams drive their productivity to the peak.
- Flexible. The system is flexible enough to accommodate the needs of companies. The compensation and benefits tools enable you to design plans that help you set the right rewards for the right employees.
Pricing is tailored based on your company’s requirements. For a custom quote, please visit their official website.
beqom is cloud-based HR compensation management software best suitable for large organizations. beqom’s compensation software tool is flexible and adaptable and integrates natively with industry-leading HR solutions such as Workday, SAP SuccessFactors, Oracle HCM, etc. Lowe’s, the Adecco Group, BNP Paribas, and PepsiCo use beqom to power their compensation management.
› beqom Features
- Long-term incentives and deferral management.
- Performance and Salary Management
- Equal Pay and Transparency
- Planning, Budgeting, Forecasting
› Benefits of beqom
- A total package: beqom is a complete package of powerful features such as Performance management, predictive analytics, bonus and incentive management, etc. This helps companies save both time and money.
- Advanced Forecasting: beqom has AI-powered predictive analysis to help companies’ bridge pay gaps between employee demographics.
- Built in performance management. This exciting feature allows companies to align the compensation of an employee with their performance.
› beqom Pricing
beqom provides a free trial. For custom pricing quotes, please visit their official website.
Payscale is one of the world’s most popular compensation analysis softwareserving millions of customers worldwide. But, not many know about its compensation management software. Coupled with MarketPay, an enterprise-grade solution that provides comprehensive data analysis tools, Payscale becomes a potent compensation management tool for organizations of all kinds. Prominent clients include Nestle, Hilton, Sage, Centauri, and others.
› Payscale Features
- Largest Data repository of salary data globally: Make confident decisions with the world’s largest salary data repository at your fingertips.
- Integrations: Payscale integrates with Tableau, Bamboo HR, ADP Workforce, Greenhouse, and UKG Pro.
- Workflow automation: The Insight lab from Payscale helps streamline the flow of work processes with the help of triggers and alerts. It also notifies and directs as to what action must be taken by the user during the compensation process.
› Payscale Benefits
- Payscale has joined hands with more than 300 survey partners where organizations can access over 10,000 compensation-related surveys from hundreds of third-party publishers.
- World’s Largest Compensation Community: Payscale’s community of more than 10,000 customers represents over 30% of the U.S. workforce. Organizations of all sizes rely on Payscale to help establish, maintain and improve their compensation programs.
- Build a robust compensation strategy: Leverage smart software that allows your organization to pay fair wages competitively without losing focus.
› Payscale Pricing
- Payscale is Freemium software.
- For paid versions, pricing is tailored based on your company’s requirements.
Founded in 2013, Zenefits is an exceptionally powerful compensation tool designed for startups and small businesses. It enables HR executives to manage administration, FSA, HSA benefits, etc. Zenefits also provides online ACA compliance and small business compliance to make compliance management effortless.
Employees and employers can also track and manage on and off-time requests accurately through its time management techniques. And best of all, Zenefits comes with iOS and Android mobile apps to allow users the flexibility to check informationand add on and off time requests on the go.
› Zenefits Features
- Performance Reviews: Companies can leverage this feature to improve employee performance through customizable review forms, scheduled review cycles, and pre-built templates for managers.
- Progress Tracking: Zenefits allows employees to manage their well-being scores. HR managers or companies can review these scores over time to identify changes in the stress level of employees or to locate problem areas.
- Automatic Upkeep – Automatically add new hires to payroll along with their benefits, deductions, and paycheck.
› Benefits of Zenefits
- Self-service portal- Zenefits provides employees with a self-service portal where they can update their benefits coverage along with personal information.
- Real-time data– Companies can leverage real-time data sets to create relevant, accurate, custom salary benchmarks that companies can use to determine how they want to pay their own employees. Wage data from thousands of anonymous employees around the US to understand market rates.
- Dedicated mobile app: Zenefits provides an iOS and Android mobile app for both employers and employees such that they can pull up insurance information, reviews, and paid leaves. Clock-in/clock-out information on the go and away from the office.
› Zenefits Pricing
Zenefits compensation software is available in two packages: Growth and Zen. A free trial is also available.
- Growth plan starts at $14 per employee per month.
- Zen plan starts at $21 per user per month.
COMPOSE is cloud-based compensation management software tailored to create amazing experiences for your employees. With its DEI analytics features, organizations can provide transparency through real-time data and insights. With easily available reports, dashboards, and visuals, COMPOSE makes it effortless to measure, compare and analyze employee data. COMPOSE integrates with popular HCM solutions such as Workday, SAP SuccessFactors, Oracle, ADP, etc.
- Planning: The Plan module streamlines the process of managing complex plans, components-based bonuses, merit, equity, deferrals, total rewards statements, long-term and short-term incentives, etc.
- Analysis: The Analyze module provides real-time analytics and insights to make it easy to compare, measure and analyze employee data.
- Audit Management: COMPOSE extends beyond standard reports. It brings data to life with visuals and actionable metrics.
- The Communicate module facilitates the development of tailored rewards statements. It helps talent staff, HR managers, and managers maintain transparency in communication regarding pay practices and attract the right talents.
- Mitigate security risk: COMPOSE is designed to eliminate any data breaches and exposure of sensitive information to unauthorized parties through role-based administration engines.
- Save Time: COMPOSE eliminates wasted time that would otherwise be spent gathering, distributing, and reconciling data in spreadsheets. Supervisors and managers can simply automate this process and put their time to more productive use.
Free Trial is available. The software has custom pricing tailored for your individual requirements. Please contact Decusoft COMPOSE on their official website for a custom quote.
Paycor has a full suite of HR tools, including compensation management, to handle HR administration. Instead of hiring a team to manage tasks such as onboarding, employee management, and benefits, both small businesses and startups can benefit from using Paycor. It handles the bulk of work and makes the life of HR representatives much easier.
› Paycor Features
- Recruitment tools: Paycor provides a suite of employee onboarding tools, including real-time payroll analytics, compliance support, identifying tax credit opportunities, employee onboarding tools, etc.
- Time management: The time management tools help companies keep unified records, schedule employees, and get customized alerts, along with a self-service portal for employees to update their information.
› Benefits of Paycor
- Mobile App and on-demand pay. Paycor provides mobile apps for both employees and employers to keep themselves updated. Moreover, the on-demand pay option allows workers to choose when they get paid once a task is complete.
- Paycor’s applicant tracking system makes tracking changes in real-time effortless with configurable workflows and approval routing.
- Detailed reports: Supervisors and managers can quickly generate detailed reports to gain insights into labor trends, compensations, employees paid per month, average service length, etc.
Free trial is available. The pricing for Paycor starts at $99.0 per month. Paycor has 4 different plans:
- Basic at $99.00 per month
- Essential at $149.00 per month.
- Complete at $199.00 per month.
- HCM at $199.00 per month.
Paycor also offers a custom plan based on the customer’s request. Please visit their official website for a custom quote.
Dayforce is an HCM software developed by Ceridian Group. The software’s performance management module makes it easy for organizations to reward people based on their actual contributions and not just market pay.
With Dayforce, companies can easily demonstrate factors impacting their decisions. Providing transparency in pay helps HR leaders make better decisions by addressing pay issues at the same time. Other decisions.
It supports leaders at all levels with the compensation and HR data required in their respective positions. This allows collaboration with senior leaders to increase overall accuracy and align compensation decisions with the guidelines of the organization. Prominent clients of Dayforce servers are Prince Resorts Hawaii, Nipro pharma packaging, The Hillman Group, etc.
› Features of Dayforce
- Advanced Predictive Analytics: With predictive analytics, you can mitigate risks and take immediate action to respond to challenging situations.
- Automated Alerts: By alerting HR managers if the company’s budget exceeds the limit, Dayforce checks your company’s guidelines and guides HR managers on compensation.
- Automated Payroll. Dayforce automatically updates payroll when the plan is complete. Thus eliminating the need for manual intervention.
› Benefits of Dayforce
- Platform training: Dayforce offers training to maximize the potential of the platform. Almost 70% found the training easy and useful.
- Real-time pay calculations: Generally, payroll admins are not able to access payroll calculations until after the pay period ends. However, with Dayforce HCM, admins can easily get current pay data and have enough time to conduct audits.
› Dayforce Pricing
Free Trial is available. The software has custom pricing tailored for your individual requirements. Please contact Dayforce on their official website for a custom quote.
Keka is a cloud-based full-suite compensation management system designed to help organizations across various industry verticals manage their compensation process seamlessly. Top features include pulse surveys, custom notifications, loan tracking, asset tracking, and document storage.
Keka integrates with several third-party software like Quickbooks, ZestMoney, Plum, Stashfin, etc. Its performance management suite is one of the most comprehensive in the industry and enables supervisors to easily map and define project objectives. It also allows 360-degree employee feedback.
Employees can view their balances, onboarding tasks, feedback, and approvals, if any. With clients in major industries such as automotive, media and entertainment, education, and retail, Keka serves global brands like Hyundai, Toyota, and The Godrej Group.
› Keka Features
- Expense Management: Manage per diem payment, expense policies, receipt capture, approvals, etc.
- Employee self-service portal: Employees can manage their own data and details through a self-service portal.
- Automated Alerts: Keka alerts employees and managers when there are tasks pending at the end of each stage. A summary dashboard shows an overview of what an employee is doing, where work is progressing, and the actions that need to be taken.
› Benefits of Keka
- Centralized Database: Keka stores all the data in one single place that can be accessed from anywhere.
- Encourage and align employee goals: The goal management feature facilitates employee goal setting while being in tune with the company’s objectives. It also provides real-time goal updates.
- Manage the Settlement Process with ease: Users can manage notice period details, loans, gratuity, leave, and so much more. Additionally, Keka generates a detailed statement that includes a summary of all the employee’s payables and receivables.
› Keka Pricing
Keka offers a free trial for new users.
For paid versions, the software is available across two plans, i.e., HR & Payroll and Hiring. Pricing details are as follows:
1. HR & Payroll Platform
- Foundation: Pricing begins at $96/month for 100 employees
- Strength: Starts at $137/month for 100 employees
- Growth: Starts at $192/month for 100 employees
2. Hiring platform
- Keka Hire – Pro: Starts at $20/month per recruiter
- Keka Hire – Advanced: Starts at $34/month per recruiter
We hope this list will help you make the right choice when deciding on employee compensation management software for your organization. The list is carefully chosen based on a number of factors, including features, pricing, beneficial aspects, etc.
Frequently Asked Questions
1. Why Should You Use Compensation Management Software?
Following are some benefits of compensation management software:
- It helps HR to track the budget and plan their compensation strategy accordingly.
- It provides detailed reports that are required by Government pay equity laws. It includes employee wages along with their occupational role.
- As a result, it helps determine the most competitive compensation and benefits package to attract the most qualified talent.
2. Why Should HR Leaders Care About Compensation Management Software?
Human Resource teams can use it to simplify the process of rewarding employees’ dedicated work and talent. It allows you to make informed decisions about hiring and budgeting by providing graphical and real-time reports.
It helps boost Employee Engagement by providing a track for individual employee work progress. Cloud-based software keeps Confidential Data Secure and competitors away from gaining company insight.
3. What Are The Main Components Of Compensation Management Systems?
Following are the main components that the compensation system helps with:
- Base pay (either an hourly wage or periodic salary).
- Wage and salary add-ons for a particular job. (Including overtime pay, shift differential, pay for working weekends and holidays, and other add-ons).
- Incentive pay for performance.
- Other benefits (all types of commissions).
- Time manager
- Recruiting Tools
- Payroll management etc.