5 Hidden Cost of Inaccurate Compensation

A Compensation Management Success Story

Charles Spofford
Sep 05, 2017

comp_success_story

Are you seeking more transparency in your overall Compensation management process? Are you experiencing trouble with solution adoption globally? If yes, stay and read about the journey of one of our enterprise-class customers to implement a reliable, configurable and automated Compensation management solution globally.

First, some background: This PeopleFluent customer is a marketing and consulting company that provides business, marketing, and technology services to clients. With 13,000 employees around the world, they wrestled with the inability of their existing technology to serve the needs of increasingly global compensation cycles.

 

Overhaul Merit and Bonus Cycles

The company’s compensation process consisted of a merit cycle in the summer and a bonus cycle in the spring. All 13,000 employees participated in the compensation cycle at the same time. Prior to implementing PeopleFluent Compensation, the organization was primarily utilizing spreadsheets and found the manual process increasingly painful as the company grew globally. The company had installed a central compensation management product a couple years before, but found that it lacked the configurability that their processes required.

To compound the problem, the existing contract was being retired and the vendor informed them that it would be sun-setting their product. Our customer evaluated other options immediately in order to support both the looming merit and bonus cycles.

Sourcing Compensation Management Solutions Fitted for Enterprises

During their technology evaluation process, the organization identified three critical success factors in sourcing a new compensation solution partner:

  1. The solution had to be highly intuitive to ensure understanding, adoption and efficient training globally.
  2. The ability to model its organizational complexity in the solution. Our customer’s professional services approach to their organizational structure added additional complexity to the system configuration. This was critical in order to support the dynamic nature of a highly-matrixed organization where certain people had multiple managers at the same time for different purposes (i.e. approving compensation versus communicating compensation).
  3. Lastly, they wanted a responsive partner that understood their company and its workforce. They wanted to feel comfortable working with this partner through this initial process and beyond.

Data Integration in Compensation Management Software

We moved ahead together quickly to support the pending merit cycle. The teams set their sights immediately on data integration and data management. Because the business was so dynamic with people supporting multiple projects and moving across various business units, modeling the compensation system as close to reality was essential. This gave our new customer the confidence that budgets were rolled out correctly as well as the right people seeing the right information. PeopleFluent Compensation also provided robust reporting features that allowed them to see the output before virtually running anything.

Seamless integration between systems was another important element. For starters, the teams did a reverse integration back to the base HRMS so the data was always in sync. Any gap was quickly highlighted and corrected. Also during this time, daily reports were run to ensure data accuracy. The internal IT team also played an active role in the implementation, especially with the integration of several existing backend systems, including a custom-built time tracking application.

The joint teams held multiple collaborative training sessions and their test data was used to provide a real-time feel to their exercises. Employees commented that it was the smoothest experience and helped them get what they needed at the right time. In the end, our customer was able to train their management and employees quicker than expected. To help steer the successful project to completion, the executive sponsor created a cross-functional team to ensure all stakeholders’ need were met.

PeopleFluent Compensation helped improve the company’s overall workforce planning process by giving them the configurability to design the hierarchy and approval structure that matches their business. They had to model new complex plan designs for their senior management and PeopleFluent was able to help configure the plan improvements in short order.

Compensation Decisions: Giving the Power Back to Managers

PeopleFluent Compensation helped push specific compensation decisions down to the right level of the organization. Managers now have the ability to speak credibly about the process because they were intimately involved. They can explain the decision and defend it, if needed.

“I think the real measure of success is the adoption level and the level that we feel like it’s helping our managers make smarter compensation decisions.”

- Global Compensation and Benefits Lead

Some of the results achieved in this phase of the compensation journey include:

  • Highly reliable: 100% uptime record in a year and a half
  • Configurability of the system is a true differentiator
  • Excel spreadsheet usage reduced by 80-90%
  • Compensation detailed reports, payroll reports all generated through PeopleFluent now
  • Compensation solution now available 365 days a year vs. 2 days a year before
  • Business partners find it highly intuitive and valuable, and have fully adopted the system
  • Increased visibility and transparency across all global systems
  • Achieved buy-in and support from internal IT group
“If there is one theme across all stakeholders, it was transparency. Now we have more visibility and transparency into what’s actually happening globally in one place, which is a terrific improvement.”

- Director of Integrated People

Interested in reading (and watching!) more examples of how PeopleFluent has helped customers solve their HR and business challenges? Check out our Customer Success stories

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