Compensation management software has become a necessary part of the human capital management (HCM) technology stack. Today, forward-thinking HR departments acknowledge the importance of having an end-to-end, year-round approach to compensation management. This not only supports core HCM strategy, but also demonstrates the overall importance of effective compensation management to business success.
How organizations compensate workers and compose a total reward package has evolved slowly over the years—until now. The shift in the workforce, especially post-pandemic, has changed how workers view an organization’s philosophy on compensation. Planning has gone beyond an hourly wage or salary plus bonus potential, and compensation schemes can be quite complex. Workers are looking at how an organization pays people, how compensation is structured, what the total compensation plan includes, what the market is paying for similar positions, whether the organization pays fairly within its own ranks and how the organization communicates about pay.