What is compensation management software?
Compensation management software helps businesses and organizations plan, provide and administer adequate employee compensation packages, including salary, retirement and investment planning, merit bonuses and other benefits. This software helps managers plan hiring offers for new employees, adjust compensation for existing employees and administer policy changes. By using a comprehensive dashboard, users can see the overall view of the organization’s needs and drill down for details based on incorporated historical and real-time data. This level of insight helps managers and executives make more informed decisions that are in the best interest of ensuring equitable and optimized compensation.
What to look for when choosing compensation software?
When you’re looking for the best compensation software for your organization, there are a few features to keep in mind:
1. Centralized data storage
Keeping all data in one place saves time and improves overall efficiency. Users can dip from the same well, which reduces inconsistency and builds trust in the data.
2. Monitor and administer compensation policies
It’s easier to inform and educate all employees at once about compensation policies, which is why many, if not most, compensation software tools are cloud-based.
3. Comprehensive salary budgets
By using an overview, managers and executives can understand the costs of each human resource and plan their budgets accordingly.
4. Simple exporting and importing of data
Easily getting vital data from another system ensures seamlessness. Sharing necessary data and analysis securely creates visibility and aids in transparency.
5. Compensation calculations
Manually calculating package costs is tedious and can lead to errors. Automated compensation calculation is quick and leaves managers time to do more important tasks, such as improving employee satisfaction and boosting morale.
Compensation management software
- People Ticker
- PTO Exchange
- Simply Merit
Price: BalancedComp pricing starts at $20 per user per year, making it one of the least expensive boutique compensation management tools for U.S. banks and credit unions.
- Streamline mundane processes, such as pay grades and performance reviews
- Provide data analysis and filterable reports for detailed drill-down
- Evaluate compensable factors for all positions
- Automatically sync and update employee information within a single repository
As a compensation tool for over 250 financial institutions, BalancedComp is an intuitive, robust system that’s like an extension of the management team. When combined with other modules, it helps speed up the performance review cycle and lets institutions stay ahead of industry-specific compensation trends with ease.
Price: Pricing starts at $4 per user per month.
- Measure employee engagement
- Identify opportunities and setting goals
- Create leadership dashboards with operational and employee data
- Provide single sign-on and secure data transfers
- Automatically sync employee data with another system
BullseyeEngagement is a great tool for periodically checking in with employees and managing all aspects of their performance. HR staff can automate many of the more tedious processes and systems, which leaves time for finding better ways to improve employee engagement and retention.
Price: Pricing starts at $299 per month for up to 15 users—for up to 30 users, it’s $499 a month. Organizations that need more than 30 users can request a quote for specific pricing. There are savings for annual billing.
- Create complex and varied commission structures
- Multistage commission payments
- Provide real-time commission assessments
- Set up conditional commission payments
Commissionly provides sales commission compensation management across various sectors, including medical and IT sales. It has dedicated integrations with popular CRM, payment, e-commerce and accounting software tools, which helps to speed up the implementation and onboarding process. It works with Zapier, making it even more expansive. For companies that really need to dissect their compensation structures, Commissionly is a viable tool to consider.
Price: Organizations with 100 or fewer employees pay $1.50 per employee per month each for the Surveys, Analytics and Sales Incentive Plans (SIP) modules. For the Compport Fit module, the monthly cost is $2. Prices go down for companies with more employees, and there’s a discount for annual billing.
- Automate merit and promotion processes and salary reviews
- Design and simulate bonus schemes before launch
- Plan and implement stock- and cash-based long-term incentives
- Manage pay equity across your company
- Provide real-time and multidimensional compensation analytics and reporting
Compport is easy to use and has a host of complementary products, including sales incentive management (SIM) and talent analytics. It can configure org-level requirements and works with a few third-party integration partners, including Jira and PeopleStrong.
Price: CURO offers a few compensation management tools. The professional services fees of its compensation management module are based on the scope and number of employees using the software. The pay equity module is based on the company size, and the Gender Pay Gap module is for companies who are looking to comply with those regulations. All modules, except GPG, require a quote for pricing. For GPG, there’s a free Basic plan for small companies. The Advanced plan is £1,500 per year, and the Premium plan for larger enterprises with multiple sites is £5,000 per year.
- Robust data analytics, reporting and dashboards
- The ability to manage long- and short-term incentives as well as multiple fixed-pay scenarios
- Can set user permissions with custom-rules access controls
- Budget segmentation
- Automated salary and merit review processes
CURO offers compensation planning that can be tailored to your organization’s needs, instead of the other way around. By using modules that specifically address gender pay gap compliance, companies have the means to achieve better regulatory governance and audit preparation. The software supports multiple currencies and has easy-to-configure connectors, so you can share data with your desired Human Resources Information System (HRIS) tool.
Price: Companies can test a free demo. Pricing starts at $20 per user per year, making it a cost-friendly tool for small businesses.
- Automated workflow processes
- Customizable dashboards with more charts
- Enhanced executive compensation with multiyear stock distribution
- Easily add documents to annual performance and 360-degree review processes
- Employee self-service portals
- Ad hoc reporting
FocalReview is not only a useful standalone product, it can also expand the capabilities of any Human Capital Management (HCM) tool. Because of its ability to handle various aspects of the compensation planning and management process, HR managers don’t have to dread annual reviews as much.
Price: Heartpace has a 20-day free trial, and pricing starts at 5€ per user per month, with a minimum of 50 users for its core products, such as one-on-one and 360-degree evaluation. API access and single sign-on, SSO are add-ons cost extra.
- Stores and provides access to centralized historical data
- Enterprise-level security for better access
- Integrates with popular platforms, such as G Suite and Azure SSO
- REST API for custom connections and syncing with third-party platforms
One of the reasons Heartpace was rated one of 2021’s best objectives and key results (OKR) software is that it’s easy to use and creates a safe, structured environment for monitoring employee satisfaction and progress. This software helps HR managers be more proactive when dealing with employee retention.
Price: For the level of analysis users can access, LaborIQ offers flat-rate pricing that starts at $497 per month.
- Dynamic dashboard to track critical KPIs and manage searches
- Salary benchmarking across markets and roles for more compensation accuracy
- Customizable market-driven salary recommendations
- Finds top-performing markets for business expansion
By receiving monthly labor data from LaborIQ, companies get the most updated information so they can better plan their compensation packages. To make it even more useful, HR managers can refine job responsibilities comparisons to ensure they are comparing identical roles. With that kind of insight, managers can customize compensation packages to be more competitive.
Price: Pricing varies based on users and starts at $20 per user per month.
- Visualization to monitor performance
- Secure, centralized data for accurate analysis
- Skills assessments for identifying required position competencies
- Automated bonus calculations
- Customized reward strategies for agility and transparency
- Monitoring and managing employee training and progress
Available in 40 countries and nine languages, Mereo is an all-in-one platform that helps companies save time in calculating their reward systems. It’s a comprehensive solution that’s ideal for midsized and large organizations aligned with high-end methodologies, such as SMART and DMAIC.
Price: Companies can buy job search packages that help them gather data across 80 countries. Pricing starts at $50 per five searches. They can also opt for a monthly subscription that starts at $15 per job per month.
- Real-time global compensation data
- Custom job library built for your organization’s specific skill needs
- Ability to right-price salary compensation based on historical data
PeopleTicker helps companies gather outside data to align their compensation packages with specific talent needs. The level of granularity PeopleTicker provides lets companies improve budget allocation, which ultimately saves them money.
Price: PTO Exchange has three pricing models. There’s per-employee-per-month (PEPM), service fee based on the number of transactions, and a hybrid of those two models. While the company isn’t specific on pricing, customers report costs of about $3 per employee, with bulk savings for higher volumes.
- Dashboard for better benefits
- Administration and deduction management
- Self-service employee portal for goal setting, tracking and time management
- Leave management approval process tracking
For organizations in a highly competitive job market, PTO Exchange is a major differentiator because it’s unusual. Providing employees with both lucrative and altruistic ways to capitalize on and even donate their unused paid time off empowers them. They feel like they matter, and that goes a long way toward retention, making PTO Exchange a tool worth considering.
Price: SimplyMerit offers a scheduled demo, and you can request a free trial with sign-up. Pricing starts with an annual fee of $6,500 and varies with the number of employees.
- Simple, intuitive interface
- Guidelines and compensation management recommendations
- Robust workflow engine for better monitoring and collaboration
- Process visibility throughout the cycle for better communication and transparency
- Updates tracked for maximum ability to audit.
With SimplyMerit insights, managers get analysis to help them identify threats and opportunities they wouldn’t have noticed otherwise. Biases, disparities and trends are picked up and made visible so the staff can handle them quickly.
Price: TalentComp starts at $5 per employee per month with a minimum monthly cost of $500. It’s billed annually and supports multiple currencies.
- Centralized employee data repository
- Self-service tool for empowering employees and providing quick answers
- Automated management of PTO
- Streamlined compensation review for easy routing, approval and distribution
- Real-time performance management planning and monitoring
As a comprehensive, multilingual HR compensation solution tool, TalentComp provides a module that manages unlimited variable compensation programs. FlexComp, as it’s called, lets managers tie organization goals to employee productivity with the help of KPI tracking and analysis.
Price: Uzio is a cloud-based SaaS solution that has a free trial upon request in addition to a demo. After that, pricing starts at $4 per user per month.
- Ability to sync payroll with HR and benefits for more accuracy and better compliance
- Automate workers compensation life cycle
Build benefit plans and track enrollments on one platform
- Better collaboration, which improves productivity and removes silos
Uzio offers a comprehensive product suite that empowers employees and delivers the transparency needed for regulation governance and compliance. It’s really user-friendly, and what makes it a useful tool is its integration with COBRA and Execupay payroll.
Price: With the help of a pricing calculator, Workzoom gives companies the option to choose their monthly payment plan based on their needs. For organizations with a minimum of 100 employees, pricing starts at $450 per month, which includes training and implementation. For any additional modules, such as developing talent, optimizing your workforce or recruiting specifics, the price varies. You can request a demo first.
- Powerful dashboards and on-demand reports
- Automated processes and workflows for accuracy, efficiency and compliance
- Self-service portal so employees can maintain their own information
- Dashboards for real-time updates
Founded in 2000, Workzoom is a Canadian cloud-based software solution that supports employees from hire to retire in English, Spanish and French. Even though the pricing calculator has a minimum of 100 employees, the company works with smaller organizations. The concept of paying only for what you need makes it very flexible and appealing, especially for businesses that are in the growth stage or have a limited budget.
Compensation management software FAQs
Why is compensation management important?
Every industry has its own way of assessing compensation. For sales-based businesses, it’s usually a straightforward process, where higher sales yield higher bonuses. For manufacturing organizations, however, a majority of the company’s revenue goes toward machinery, so the compensation conversation is more complex, requiring more nuance. Compensation software incorporates the different types of direct and indirect payment options that help companies find a proper path between ensuring employees are happy and the company isn’t losing money through overpayment.
What kind of companies need compensation software?
Compensation software tools aren’t limited to specific sectors or industries. Companies or organizations that want to attract, motivate and retain their employees need this kind of help. Sure, some packages are built for a minimum number of employees, but at the end of the day, any organization that wants to improve productivity needs to be creative when it comes to offering salary and benefits packages.
What are some benefits of compensation management software?
Here are just a few of the benefits of using a compensation management tool:
Reduced human error: Working with multiple data sources and programs increases inaccuracy. That kind of risk is too high and requires a more automated compensation system.
Streamlined compensation planning: When you have a more streamlined compensation planning cycle, having your data in one place saves time and leaves HR staff able to tackle bigger priorities.
Enhanced security: With ransomware and cyber-theft rising, it’s smart to leave nothing to chance. A good compensation management tool has access controls and other security features to protect employee data.
Improved retention: For companies that experience high turnover, a good compensation solution provides valuable insight into strategies for retaining top talent.