The competition for top talent in today's labor market is intense. As rewards professionals, you understand the need to stay at the forefront of competitive pay practices that range beyond cash compensation.
According to a Forbes study, there are 65% more job ads that emphasize work-life balance and a 54% increase in entry-level job ads that focus on company culture and values.
Keeping this transformation in mind, Compensation professionals are now focusing on tech-enabled compensation structures that are designed to simplify complex compensation structures.
Let’s start by understanding what compensation management means in the current scenario.
What is compensation management?
Compensation management is the process of curating both cash and non-cash compensation, short-term and long-term incentives in one plan that focuses on improving employee retention and satisfaction.
Compensation planning now involves more and more data-driven decisions.
The requirements of an efficient compensation planning structure include:
- Data-driven workflow automation for salary benchmarking, budgeting and running increment cycles.
- Detecting pay gaps within the organization existing due to different biases.
- Analyzing various compensation surveys for optimized compensation benchmarking.
- Studying the market patterns and employee behavior to design compensation plans accordingly.
Why is efficient compensation management important for your org?
The need for tech-enabled compensation management came up since the traditional methods of comp planning are unable to adapt to the dynamic needs of the modern workforce.
There are multiple reasons for that:
- An efficient human capital management system has the biggest impact on the company's bottom line. It helps you find the most optimized budget that is market-competitive and maximizes employee satisfaction.
- Effective compensation practices help your organization evolve at the various levels of compensation maturity.
- It reduces the errors that are a part of the manual processes involved during the designing of compensation packages.
The are many compensation management software that will make your life easier as a comp professional, give you precise results, and keep you updated with the compensation trends.
What is Better Comp?
BetterComp has all the facilities to help you get your market pricing right. It has several features that allow the platform to streamline the process of creating salary bands:
- Smarter data visualization and comparative views.
- Translating relevant compensation data into insights for better implementation.
- Automating manual analysis of compensation data.
- Focuses on providing top-notch data security given the sensitivity of compensation data.
Pros and Cons of using Better Comp
From the initial setup process to the key elements of the platform, let's see what are the pros and cons of using BetterComp:
Pros of using BetterComp
- It helps you update a match across all pay markets to give you better visibility on the market pricing working around all compensation surveys.
- BetterComp has a global job matching feature which eliminates the need to price one job over and over again.
- It helps you curate your job data within pre-designed templates so that you can participate in your targeted compensation surveys with ease.
- BetterComp has a section for a pay gap analysis that assists in detecting pay discrepancies across various roles and functions.
Cons of using BetterComp
- BetterComp works on resolving the issue of market pricing only, hence cannot be considered a stand-alone compensation module.
- The job matching feature requires you to upload the data on Excel sheets. User reviews mention that having the functionality on the tool itself would be better for them.
- The access controls can be more precise to ensure better data security.
Top 5 Better Comp Alternatives To Choose from in 2024
BetterComp is majorly a market pricing tool. However, given that the requirements for compensation management extend to budgeting, running merit cycles, pay equity management, benefits planning, and more, the alternative options for BetterComp will be packed with some or more of the above-mentioned features.
CompUp
CompUp is Integrated with a wide range of functionalities that range from salary benchmarking to communicating total rewards.
This platform acts as a stand-alone solution for all your compensation requirements. Some of the key elements of the platform are:
- The compensation benchmarking platform is sustained by a community of rewards professionals who have joined the network to enrich the salary benchmarks with real-time data.
- The ability to share your compensation data and receive insights from the benchmarking exercise has no commercials attached to it. This ensures greater participation = larger set of data points to compare = greater data accuracy.
- CompUp provides a user-friendly interface so that rewards professionals do not need tech expertise to be able to navigate the platform with ease.
- Given that DEIB has gained major focus in recent times, the platform provides detailed insights into this segment to analyze and strategize on how to improve your DEIB practices.
- CompUp has a very strong appraisal workflow in place to ensure the highest data security while you're running your merit and increment cycles.
- Pay band creation is packed with interactive elements so that you can design employee compensation based on job roles, job levels, salary percentiles, and more.
Pave
Pave is an end-to-end compensation management platform that provides comprehensive compensation solutions for your entire team.
Key features of Pave:
- In their compensation benchmarking feature, they give a side-by-side comparison of job levels across various market pay data.
- The platform helps you run different logics during your budget planning to find the best budgeting plan according to your appraisal requirements while ensuring employee satisfaction.
- It helps you communicate total rewards with a comprehensive statement displaying your compensation offerings.
Cons of using Pave:
- User satisfaction ratings have revealed that the compensation benchmarking feature does not have enough data in niche roles which makes salary comparisons a bit ineffective.
- The industry coverage for when it comes to compensation data is limited.
Pequity
Pequity is majorly dedicated to helping companies create pay bands, along with providing fractional compensation management services.
Key features of Pequity:
- Pequity helps you create your compensation philosophy so that your compensation requirements are aligned with your organizational goals.
- They provide fractional management for ad-hoc compensation requirements like creating a total rewards strategy, pay equity management, bonus management, and more.
Cons of using Pequity:
- While Pequity does have a consultation for fractional compensation requirements, it lacks a central dashboard that can track all your compensation practices in one place.
- It's a sales-focused module, so a lot of relevant functionalities have not been deployed in the dashboard.
Payscale
Payscale is integrated with different models that come together to form an effective compensation planning structure.
Key features of Payscale:
- Payscale's MarketPay feature is built to help large enterprises manage their compensation data by comparing multiple surveys and giving significant insights into compensation trends.
- Payscale's compensation planning is streamlined to include managers in the process, with strict access controls to ensure visibility only in segments where it's needed.
Cons of using Payscale:
- According to some users, the platform does not have an intuitive interface.
- Payscale deals with large-scale compensation data of global organizations. In such a scenario, they need to have clearly defined filters that are missing right now.
HRsoft
HRSoft as a compensation management software has the features to sustain you throughout your compensation lifecycle with their comprehensive model.
Key features of HRSoft:
- One of the celebrated features of HRSoft is optimizing budget allocation while running merit and increment cycles. It assists you in running multiple simulations to find the budget that aligns with your company goals and resonates with the employees as well.
- They also have a separate section that helps you customize rewards for your top performers so that they feel valued and motivated.
Cons of using HRSoft:
- They do not provide integrations with HRIS and thus uploading the job details and other information becomes a manual and time-consuming task.
Why CompUp?
As a compensation management tool, CompUp has certain features that make it stand out among the 94+ global solutions out there:
- CompUp has the largest set of compensation data points. With pay data usually being too inconsistent, the abundance of data points ensures that you can evade any data anomalies to get precise benchmarks.
- Access to CompUp's compensation benchmarks is free of cost to build a strong network of rewards professionals.
- At CompUp, data gets updated in real-time which makes your salary bands highly relevant to the market standards.
- Communication of total rewards is done to help employees track their financial growth in the organization for the long run.
Conclusion
Choosing compensation management software that fulfills all your use cases becomes critical to staying ahead in the talent game.
CompUp is one such solution that adapts to all your dynamic compensation requirements and makes your workforce compensation management sustainable in the long run.
Try the platform here to understand how it can integrate seamlessly into your existing comp processes for optimized compensation planning.
