Compensation management software is a tool that develops competitive employee compensation packages using streamlined employee data and budget planning. It provides automated compensation analysis and insights you need so you can pay your employees fairly and accurately.
Ensure Fair, Competitive Pay
Employees rely on you when it comes to their financial well-being and an employee's compensation can be a deciding factor when accepting a job offer. Offering competitive pay keeps you one step ahead of other employers and helps reduce turnover to keep top talent. Paylocity’s compensation management solution helps simplify compensation decisions, ensure budget alignment, and drive equity across employees so you can pay your employees fairly and showcase your investment in them — while staying within budget.
Compensation Management That Helps Find and Retain Top Talent
Automate Processes
Implement automated compensation plans to move from a paper-driven process to a streamlined, electronic one.
Make Data-Driven Decisions
Use dashboards to see performance and compensation history at custom permission levels like Administrator, Supervisor, and more. Leadership has an executive view across their reporting structure to see a breakdown of team budgets and payment allocations.
Manage Your Budget
Configure population and eligibility requirements, proration rules, and automated approval process for plans. Distribute increases accordingly by drilling down into performance, pay history, and more.
Show Employees Your Investment in Them
Easily create and distribute a view of total compensation — including salary, benefits, gym memberships, etc. — to provide employees a view into their pay and additional benefits.
Drive Engagement and Efficiency
Create a “Compensation Q&A” Ask an Expert group in Community so supervisors can ensure they have all the information they need to make informed compensation decisions and have an easy way to access your subject matter experts.
Navigating the Buying Process for HR and Payroll Solutions
All HR technology is not created equal. Our guide helps you find the right solution that will keep your organization competitive and your workforce thriving.
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Frequently Asked Questions
The five main objectives of compensation management are as follows:
- Attract, engage, and retain talent
- Motivate employees
- Boost employee morale
- Maintain compliance with compensation laws
- Reflect the current labor market
By offering competitive compensation packages, organizations can boost engagement and productivity within their workforces.
Compensation management is important because it defines how organizations pay employees, and it encourages workers to be high performers. Employees who feel recognized and fairly compensated are more likely to be motivated, loyal, and productive — so compensation management is also a key part of a talent management strategy.
You should look for the following in a compensation management software:
- Budget Management: Ensure alignment with organizational budget and goals and allocate budget appropriately.
- Automation: Streamline management processes for implementing automated compensation plans
- Analytics: Use customized dashboards to see performance and compensation history
- Total Rewards: Show the full value of employee compensation and benefits.