Managing employee salaries and bonuses takes a huge amount of time — and that’s before HR teams even start to think about ensuring pay equity. And trying to achieve all of the above manually leaves less time for HR teams to work on tasks that require a human touch.
That's why compensation management tools are becoming an essential part of efficient HR management. Using compensation software brings all kinds of benefits, including fewer errors, better compliance, and time saved by automating complex compensation processes.
But knowing which solution is the right one for your company can feel overwhelming. That’s why we’ve outlined five of the top choices, including key features, pricing, and usability.
What is Compensation Software?
Compensation software helps streamline HR processes including salary management, bonuses, pay equity, incentives, and compensation planning.
The type of functionality required varies depending on the size and type of your organisation, but some key features to look out for include:
- Salary planning
- Advanced analytics
- Market data integration
- Pay equity management
- Performance-based compensation
- Integration with HR and payroll systems
Top Benefits of Using Compensation Software
Some benefits of using HR compensation solutions include:
- Automating complex compensation processes: It takes a huge amount of time to manually complete tasks like bonus calculations and salary adjustments — plus there’s always the possibility of human error. Compensation software saves time by automating these calculations, it also ensures accuracy.
- Improved pay equity and compliance: Compensation software makes easier to comply with regional laws and regulations, by helping identify and resolve any pay inequities.
- Data-driven compensation decisions: By providing access to real-time data and analytics, compensation platforms help HR professionals make informed decisions.
Top Compensation Software for HR Management in 2024
Ready to discover the best compensation software? Here’s everything you need to know.
1. Figures
As Europe’s leading compensation management platform, Figures helps organisations make accurate, fair compensation decisions. This centralised platform integrates salary bands, budgets, and compensation planning, making it quick and easy to find the information you need. Access to Figure’s extensive and up-to-date benchmarking data also means it’s easier to attract and retain top talent by offering competitive salaries.
Key features: Salary benchmarking, salary bands, pay equity and compensation reviews.
Suitable for: Mid to large organisations.
Pricing: Tiered based on company size.
2. Workday Compensation
Part of the Workday HR platform, the Workday Compensation module offers a range of features, all within an easy-to-use, customisable dashboard. It allows HR teams to easily keep track of a wide range of data, including base salaries, commission, and long-term incentive management.
Key features: Comprehensive compensation management, integration with HR and finance systems, and customisable compensation plans.
Suitable for: Large organisations.
Pricing: Custom pricing.
3. SAP SuccessFactors Compensation
SAP SuccessFactors Compensation helps medium to large organisations work towards pay transparency by giving them access to analytics and real-time reporting. This comprehensive solution allows for integrated performance reviews, making it easier to track merit-based raises and ensure consistency across all departments.
Key features: Automated salary planning, bonus allocation, and pay-for-performance management.
Suitable for: Medium to large organisations.
Pricing: Subscription-based.
4. CompXL
CompXL is designed for managing employee salaries, bonuses, and incentive programs. The platform allows for detailed analysis of salaries based on location, gender, and role, making it easier to move towards pay equity. The interface is highly customisable and includes a range of collaborative features designed to help HR teams work together to make data-backed decisions.
Key features: Budget management, salary and bonus administration, and customisable reporting.
Suitable for: Mid-sized organisations.
Pricing: Based on the number of users.
5. ADP Workforce Now® Compensation Management
ADP Workforce Now® Compensation Management makes it easier for HR teams to make compensation decisions while also staying within their budget. It offers recommended salary ranges based on analytics and compensation trends, plus includes built-in compliance features that help organisations ensure they’re following local compensation laws.
Key features: Salary planning, pay equity analysis, and integration with payroll and HR systems.
Suitable for: Small to large organisations.
Pricing: Custom pricing with free demo available.
How to Choose the Right Compensation Software for Your Organization
Here’s your step-by-step guide for how to evaluate the different compensation software options — and choose the right one for your organisation.
Step 1: Assess Your Organisation's Needs
To find the right software, you first need to identify your specific needs. Consider your organization’s size and whether your compensation structures are straightforward or complex. It’s also worth thinking about if you need international payroll, salary benchmarking, or performance-based bonuses.
Step 2: Compare Features
Make sure any software on your shortlist offers all the features you’re looking for. Some popular options include automation, analytics, compliance tools, and integration with your existing HR tech stack.
Step 3: Evaluate Usability and Support
Even if a platform offers all the features you’re looking for, you probably won’t use them if it’s impossible to figure out where things are, or if you have to wait to hear back from support. Take note of which vendors take the time to explain their platform’s features, and respond quickly to any queries. Ask if there’s a free demo available, so you can try the platform for yourself. Check how much support is provided during implementation, as this can help you get everything up and running much more quickly.
Step 4: Consider Pricing and Scalability
If you have a specific budget allocated for compensation software, you’ll need to find a provider that fits within this. It’s also important to consider scalability — so make sure your chosen software can cater to larger organisations, too.
Streamlining Compensation Management with the Right Software
Gone are the days of manually calculating employee pay. Now, forward-thinking HR professionals are using software to efficiently manage compensation decisions, while also tapping into the power of real-time data and advanced compensation analytics.
Knowing how to research and choose the software that best fits your organisation’s needs is the first step towards streamlining your compensation management. And once the right software is in place, you’ll see improved employee satisfaction as a result.
Ready to try Europe’s leading compensation management platform? Request your free demo and see what Figures can do for you.
