10 Best employee compensation management software in 2022
By Tim Reitsma
The employee compensation philosophy of a specific organization will directly impact employee satisfaction rates.
When a company fails in basic compensation planning, it risks losing talent and scaring away potential hires—up to 52% of candidates say that competitive compensation is the most attractive element of a job offer. Designing effective compensation plans can be a challenge when organizations still rely on legacy compensation management solutions.
Organizations wanting to upgrade to modern, personalized software that will streamline processes and bring about pay equity are spoiled for choice. But what is the best compensation management software in the market today?
This article will provide HR professionals responsible for employee performance and human capital management (HCM) with an idea of the main features to look out for when deciding which HR software will be best for their needs.
THE BEST COMPENSATION MANAGEMENT SOFTWARE LIST
Here’s a shortlist of the best compensation management systems:
1. Decusoft Compose – Best for flexible compensation management
2. Xactly – Best for quota-based work
3. Balanced Comp – Best for the finance industry
4. Payfactors – Best for market benchmarking strategies
5. Workday – Best for data integrations
6. Spiff – Best for sales teams
7. CompTrak – Best for transitioning from legacy systems
8. Maestro – Best for broker-dealer and registered investment adviser communities
9. COMPview – Best for recognizing and compensating top performers
10. Varicent ICM – Best for incentive compensation management
COMPENSATION MANAGEMENT SOFTWARE COMPARISON CRITERIA
What do I look for when I select the best compensation management software? Here’s a summary of my evaluation criteria:
1. User Interface (UI): Are the different types of compensation easy to access and well laid out? Do users feel like they can grasp a holistic or drilled-down view of their compensation programs?
2. Usability: Is the compensation tool easy to learn for HR professionals of all skill levels? Does the company offer good tech support and training?
3. Integrations: Can the compensation management platform connect with other CRM, ERM, and HRIS systems? Do they offer any additional integrations to streamline your workflows?
4. Value for $: Is the price of the compensation management tools appropriate for the feature set? Is the pricing scalable if you need additional users, functions, or storage space?
COMPENSATION MANAGEMENT SOFTWARE KEY FEATURES The best compensation management software should provide an HR team with talent acquisition, forecasting, capturing the right metrics, onboarding, and maybe even time tracking. Here are some features I look at when we evaluate the various compensation management software in this article:
1. Generating insights: HR managers and other company executives should design their company’s compensation strategy based on solid information generated by the human resources information system (HRIS).
2. Automation: Can you automate some (or all) rewards management, pay programs, and long-term incentives in a real-time central database, reducing the time required to administer compensation processes.
3. Self-service: When compensation management software provides self-service functionality, employee queries related to their compensation can be addressed automatically, lessening the administrative burden.
4. Total compensation management: Good compensation management software should provide HR management with a comprehensive solution including budgeting and management of company perks, benefits, and incentives for top performers.
For a detailed overview of the above compensation management software, see the report by
People Managing People here.
