5 Hidden Cost of Inaccurate Compensation

3 Ways to Simplify Compensation Calculations and Budgets

simplifying compensation calculations

The compensation process and cycle has remained relatively untouched for quite some time, but organizations continue to push the envelope with regard to specialized and complex calculations to try to squeeze every cent from their annual and incentive budgets.  Compensation professionals would like nothing more than to have a tool that provides easy to use calculation configurations and budget capabilities.

When you realize the compensation tool must have the ability to reach each level of the organization, from Executives to administrators to managers, you realize your solution must have specialized security, organizational vantage points along with a user interface designed for everyone.

So why not make things simple for your organization and your compensation staff?  Streamline your compensation capabilities with these three simple steps and begin to provide the right data to everyone along the compensation process.

1. Budget Visibility at Any Level

In most cases, HR and compensation administrators have been the keepers of the keys when it comes to the overall compensation budget, with the ability to see or manipulate it in any way. Usually viewing is based on security rights by department, location, etc., but now managers more than ever want the ability to see their budgets in order to better manage their department. For example, managers need access to the budget in order to decide upon awarding increases, to know when they can use their funds, and to see how their decisions are impacting their overall budget and the overall compensation budgets for their location or division. The right compensation solution will grant managers the access they need to complete these tasks, but should also offer the robust security features to protect the company’s sensitive employee data.

PeopleFluent® provides a well-rounded approach to the compensation process and allows managers to view, based on their security profile, the right amount of information and data to give them the right amount of visibility into their increases and budgets. The Worksheet Navigator, with built-in budget views, as well as Worksheet Smartgrids that provide managers with real-time updates for merit, incentive and reward budgets, help take the guess work out of reward calculations and percentages for their employees. Now managers can make side-by-side comparisons with the employee’s performance ratings and their compensation increases to make insightful decisions and retain great talent.

2. Simplify the Process

Simplification has multiple meanings, including: reducing complexity, reducing fundamental parts, or making something easier to understand. You also want to provide the right amount of detail to communicate the overall rewards to your managers and employees. Simplifying the process provides HR, compensation administrators, and managers with the various parts and pieces that make up total compensation so they can make informed decisions while being able to communicate on a level the employee understands.

PeopleFluent provides a comprehensive set of tools that allow managers to understand the calculations from compensation setup and configuration all the way through to the compensation statement that is configured the way you need to communicate properly. Managers can visualize each section and the parts of the compensation statement that make up total compensation from salary, stocks, bonuses, incentive pay, to off-cycle rewards that were provided during the year.

3. Consolidated Pay for Performance Reporting

As more companies recognize the value of a pay for performance strategy to motivate employees, HR departments struggle with their ability to simplify the process and break down the silos that have been created out of the traditional separation between HR, payroll and finance. To achieve the greatest benefit from a pay for performance approach, companies must ensure that they can easily integrate complementary processes and programs, including performance management and compensation management, to gain a clear picture of an employee’s current performance and future potential.

The capabilities enabled through PeopleFluent’s applications allow companies to engage and motivate employees to improve their personal performance while ensuring that organizational goals and budgets are maintained. Rather than spending a lot of time and effort to keep track of compensation cycles, performance review processes, and pay for performance plans, an experienced technology provider can ensure that managers and HR professionals can quickly and easily access the data they need to take immediate action when it comes to rewarding top performers.

Simplify Compensation and Retain Top Talent

Everyone wants things to be simple when it comes to the compensation process.  Why not make the calculation and budget side of compensation just as simple.  From Executives to Administrators to Managers everyone will see the same information and you will be able to make the right decisions when it comes to rewarding and compensating the right employees at the right time. 

Simplifying the compensation process while providing the right amount of data to make decisions is a balancing act that organizations strive for each year during their compensation review cycles. PeopleFluent Compensation can help. Leading industry analysts including Gartner, Ventana, and IDC agree PeopleFluent provides a complete and comprehensive compensation application. Our technology allows your organization to engage, empower, and deliver to managers and compensation professionals the ability to simplify the overall process and communicate with confidence to managers and employees while retaining top talent.

Ready to see how PeopleFluent can empower you to simplify your compensation process without sacrificing capabilities or functionality? Join us tomorrow, May 12, for a demo of our award-winning compensation solution. Register here.

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