Compensation management
Compensation management is a strategic activity that helps an organization improve the effectiveness of its employee reward processes. Compensation management contributes to the overall success of the organization by identifying compensation policies, practices and guidelines that help determine pay and career development opportunities for all employees. Emphasis is placed on ensuring that all positions are properly classified and that compensation for each position is competitive with comparable positions in the labor market - while recognizing the organization's need to manage payroll costs.
Best practices
Best compensation management practices are part of an overall employee performance management strategy and can include:
- Establishing pay and classification practices that enable the organization to attract and retain qualified, high quality employees
- Rewarding sustained high performance
- Ensuring compliance with any local or federal regulations
- Supporting managers in achieving organizational goals
- Training and advising supervisors on compensation and management concepts
At a strategic level compensation management involves the development of customized reward and pay for performance programs, implementing robust management processes to ensure measurability and accountability, and communicating messages about compensation effectively to all employees.
Web-based solutions simplify
Implementing a pay-for-performance system that rewards top performers and allocates pay increases across an organization can be a complex, labor intensive, and error prone activity. Web-based solutions can:
- Greatly simplify and automate the entire compensation adjustment process
- Provide all levels of management with secure, simple tools to allocate merit-based compensation including base salary, variable pay, bonus pay, and stock options
Halogen Software offers eCompensation, a leading web-based solution that helps streamline the compensation process by:
- Suggesting pay adjustments based on appraisal scores and other criteria
- Providing convenient access to key background information on every employee
- Automatically verifying all recommendations against established budgets and pay guidelines and flagging those outside corporate policy
- Automating workflow and reminders to keep the whole process moving until final approvals are in place
For more information on Halogen Software's comprehensive employee performance management solutions, contact our knowledgeable customer service consultants by emailing or calling us today.
Previous Employee Performance Industry Term: Career development
Next Employee Performance Industry Term: Development planning
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