Compensation Management Software

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.

Form Introduction

Ready to Request a Demo?

* Required Fields
Your email and phone number
Exclamation Error Icon
Exclamation Error Icon
Your name
Exclamation Error Icon
Exclamation Error Icon
Your Company
Exclamation Error Icon
Exclamation Error Icon
Your company info and job title
Exclamation Error Icon
Email consent and disclaimer information
By submitting this form, you agree to the processing of your personal information as described in our Privacy Policy.
Hidden fields
Screenshot of Compensation Software on Desktop

Compensation Management That Helps Find and Retain Top Talent


Screenshot of Compensation Management Software on Desktop and Mobile

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. Market pay data in employees’ records gives quick visibility into outliers you may want to consider adjusting to align with the market.

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.

Frequently Asked Questions

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.

The five main objectives of compensation management are as follows:

  1. Attract, engage, and retain talent
  2. Motivate employees
  3. Boost employee morale
  4. Maintain compliance with compensation laws
  5. 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.