Earlier this month, I participated in our Compensation Management customer summit in Toronto, the first stop in our 2017 Wisdom Roadshow series. I particularly enjoy these regional events with dozens (as opposed to hundreds) of participants, enabling more interactive dialogue.
After some brief introductions in Toronto, the Customer Summit kicked off with a discussion around compensation analytics, facilitated by Danielle Bushen from Kintonic Consulting Solutions. She came prepared with practical, real-world examples of how analytics can help inform your compensation strategies and she did a good job making the case for letting data be the primary driver of those discussions. It was interesting for us to hear about how the HR and Compensation functions are continuing to expand their use of analytics to drive business strategy, policy and process. The discussion concluded with several customers sharing some of their own insights and experiences in deploying compensation-related analytics within their organizations.
This was all a good segue into a product strategy discussion for PeopleFluent Compensation. PeopleFluent looks at reporting and analytics as one of a few central pillars for innovation and continuous enhancement in the product. The feedback from the group placed a lot of emphasis on the variety of reporting needs by the different stakeholders involved in an enterprise compensation planning process.
- For Managers, the key is really around ease of access and a limited amount of highly contextual content. The best approach is one where the compensation department can design informative analytics to aide in validating things like the quality and equity of compensation decisions and enabling managers to view those analyses for their direct reports, their entire span of control or whatever cross-section (functional, regional, etc.) that might aide in improving the compensation decision process.
- This varies somewhat from the needs of HR Consultants and Business Partners who are often much more interested in accessing raw data which they can utilize for performing their own ad-hoc analyses using familiar tools like spreadsheets. Successfully meeting the needs of these users often means allowing them to pick and choose whatever data fields and employee populations that they want and deliver it in a highly portable manner. Since compensation planning is often such a time-sensitive and iterative activity, it’s expected that these individuals will be revisiting the system regularly in order to get the most updated data there is.
- When it comes to Compensation Administrators, there is a vital need to have a real-time macro view of what’s “going on” with the compensation planning process from the moment it begins all the way through to the end where decisions are finalized, communications distributed and paychecks cut. Accomplishing this efficiently and at scale really requires the ability to view and analyze things in a highly visual manner with an ability to identify potential issues, drill into the relevant details and take action to course correct wherever necessary.
These are just a few key examples and other constituents certainly come to mind like executives, finance, legal & compliance, employees and others. The fact is frequently cited that compensation is the biggest expense within most companies. The greater the visibility, the access and the comprehension that can be brought to bear across the varied process stakeholders, the more effective that spend is apt to be.