Talent management processes have been steadily advancing over the last five years, along with organizations’ ability to efficiently manage hiring, performance reviews and compensation plans to achieve expected outcomes. But many organizations’ talent management has not incorporated market data into compensation applications, leaving them unable to ensure that compensation processes and talent-management investments deliver optimal HCM value. Compensation is a critical aspect of HCM and the efficient hiring and retention of critical talent across the workforce is possible with an appropriate compensation process. Business, HR and compensation leaders have more tools and information today than ever before to empower managers to engage with employees for optimal HCM value.
In our benchmark research into total compensation management, organizations that invest in and use dedicated compensation applications report that the top three benefits are improved efficiency and reduced time spent on the process (45%), maximized value from investments (44%) and improved visibility into performance (44%). However, these benefits can only be achieved when the impediments to existing processes that exist in most organizations are overcome. Most of these impediments are related to the use of disparate systems and methods to manage compensation. This results in information scattered across files and systems (52%) and a lack of an integrated total compensation process (48%).
