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 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.
“Our organization is stronger, more agile, and more competitive as a result of our partnership with Paylocity."
“I can explore average salary by gender, disability, generation, and more. The visibility is amazing."
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.
August 21, 2023
January 21, 2022
March 1, 2023
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.