You can put in all the work you want developing a great company culture, but if you don’t get compensation strategy right, you’ll be fighting a losing battle to motivate and retain your employees, and you’ll miss out on attracting top talent.
It’s never been more important: with the rise of remote work, intangible benefits like in-office culture or work location offer less of a pull factor. Meanwhile, the stats show employees are working harder than ever and it’s only natural they’ll expect to be rewarded. The tools you still have at your disposal, like merit increases and bonuses, have a big role to play keeping your workforce productive and engaged.
Sixty-nine percent of organizations say that compensation trends are important or very important to the success of their business in the short term, according to research by Deloitte. The problem is, only 9% feel fully prepared to tackle the changing nature of compensation expectations and strategies.
How can HR leaders address these trends and become more strategic?
The challenge for HR leaders is getting out of the weeds of error-prone spreadsheets, repetitive data entry and time-consuming training sessions with managers. Paycor’s Compensation Planning software reduces admin work and allows you to automate compensation events within one system, giving HR leaders the time they need to focus on the big picture.
Here are three key ways software can improve your compensation strategy:
- Improve Productivity
HR leaders are responsible for designing compensation strategies that motivate employees and encourage job satisfaction, but it’s up to managers to recognize and reward employees. It’s crucial that managers are given the right tools to carry out your strategy successfully. Paycor Compensation Planning facilitates this and gives managers the guidance they need throughout the process.
- Make easier decisions with integrated performance review ratings
- View the department-level and employee-level data you need for productive training
- Create “what if” scenarios to easily see how a pay increase will impact pay distribution across a team—before you commit to the decisions
- Review compa-ratios for each employees
- Drive Efficiencies
Planning an entire compensation strategy—with base pay increases, informal bonus, incentives, recognition, bulk adjustments and more—is complicated and time-consuming. If you’re doing it manually, with multiple systems and messy data entry, mistakes are almost guaranteed. Paycor Compensation Planning gives HR leaders the tools to manage the process simply and efficiently.
- Budget and set targets within rules-based system
- Automatically push all changes to payroll
- Generate employee notification letters
- Set effective dates for future pay changes
- Ethics and Fairness
Pay equity is one of the hottest topics in HR—and for a reason. If compensation practices are found to be unfair, organizations can be subject to penalties, fines and lawsuits. Avoiding this—by ensuring that pay practices are fair and compliant—is a key responsibility of any HR leader.
The good news is, Paycor Compensation Planning pairs with Paycor Analytics, giving admins and managers the ability to not only analyze workforce compensation trends but track pay equity according to various attributes, including:
- Compensation by Gender
- Compensation by Ethnicity
- Compensation by Generation
How Paycor Helps Your Compensation Strategy
Paycor Compensation Planning gives HR leaders the tools they need to create a strong compensation strategy that reduces turnover and aids recruitment. Automate compensation events in one system and take the complexity out of planning. To learn more, talk to a member of our sales team.