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Modernizing Compensation Management:

Dedicated Applications Provide Information, Communication and a Competitive Edge

Why Compensation Is Critical

Human capital is a business’s most important asset. Most of the time it also is the largest operating expense, and thus can have a major impact on profitability and overall success. To keep employees engaged and productive, companies must of course compensate them appropriately – while not overpaying them and running the risk of eroding the bottom line.

Maintaining this balance is not easy, and our benchmark research finds that most organizations’ confidence in their compensation processes is shaky. More said they are only somewhat confident or not confident (54%) in those processes than are confident or very confident (46%) in them.

At the same time, the landscape itself is shifting. The nature of workforces and employment is changing rapidly, and businesses must work hard to understand and adjust to the changes. Competition to recruit and retain top talent is intensifying, and potential employees are increasingly empowered through being able to learn more than ever before about the markets they work in. The internet offers instant access to online job boards and employment and salary information. Social media and mobile devices lower the threshold for people to talk about jobs, both their own and others’.

 
 

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