5 ways organizations can save money using a compensation platform

Published on

February 17, 2023

Contributors

Team Figures

February 16, 2023

5 ways organizations can save money using a compensation platform

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A compensation platform can help businesses save money and better manage employee pay, objectives and needs.

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This article discusses ways that organizations can save money using a compensation platform, including reducing the time of managing employee compensation, and retaining talent.

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Here are the 5 ways that compensation benchmarking can save your organization money in both the short & long term

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#1 Save time while reducing user error

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Let's start off with us asking you a few questions to reflect upon:

Do you know how your team sets salary ranges?
How many spreadsheets do you use for annual reviews?
Where do you find data to create offers?
Are you sure that you're employees won't leave due to lack of a competitive salary?

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If you had to stop and think for any of those questions above, it seems like your compensation process is lacking some efficiency.

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Inefficiency = loss of time. And a loss of time = loss of money.

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Say goodbye to the days of googling, guessing and trying to keep track of a million spreadsheets.

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By using compensation management tools, organizations can reduce spend on HR employees and enable HR teams to focus on doing high-value tasks instead of repetitive jobs.

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Additionally, the software takes care of tracking businesses and maintaining an organized budget, freeing up employees’ time so they can focus on recruiting new employees or implementing new policies that support retention.

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#2 Retain and attract top talent

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Whether you are hiring or on a freeze now, there is no question about it, you need a solid compensation plan to ensure that you can both retain and attract top talent.

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How does using a compensation platform help retain talent?

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Organizations can craft their own compensation strategy and develop a compensation philosophy that resonates with their company culture. This helps to ensure that employees are rewarded in an equitable manner, leading to higher job satisfaction and better retention rates among employees.

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Having this well-defined approach will also increase employee satisfaction rate and encourage company culture while reducing costs associated with hiring new staff.

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And for saving money? We invite you to go look at the price you paid to hire your last talent and get back to us. It's not a fun number is it?

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How does using a compensation platform help attract talent?

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If you don't know how your salary ranges compare in real-time to the current market, then you're in for a difficult hiring journey.

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And for saving money? What if instead of hours and hours spent calculating and negotiating a pay, you could just display one offer and be done?

#3 Budget in advance

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‍Managing total employee compensation can be a daunting task for businesses, but using a compensation platform to manage companies' total compensation plan ensures strategic compensation and ensures that businesses save money by providing the right wages for employees.

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If you’re hiring, it can help you work out the talent your business can afford. If you’re looking to grow or shrink, it can help you determine the investment you need or the costs you can cut.

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#4 Prevent overspending

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Salary benchmarking can help your team determine where you are spending too much, and where you are spending too little. This can help you identify the changes you need to make to fix this and make your budget go even further.
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#5 Save on government sanctions

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With the incoming EU pay transparency regulations, and many countries who already have taken action, there is soon to be a financial cost to not complying with regulations regarding compensation.

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To avoid paying fines or sanctions, begin your journey to transparency by onboarding your team and implementing real-time salary market data to drive your compensation decisions. Your compensation decisions will soon no longer be a black box, and the sooner your company can get ready & communicate the better.

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Looking for more resources, tools and content?

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That's why we created Figures, you don't need to be a compensation expert, we are. With our an all-in-one compensation platform updated in real-time, expert HR and People insights, we want to make your job more efficient and power more fair decisions.