Compensation Management Software
These products won a Top Rated award for having excellent customer satisfaction ratings. The list is based purely on reviews; there is no paid placement, and analyst opinions do not influence the rankings. Read more about the Top Rated criteria.
Compensation Management Software TrustMap
TrustMaps are two-dimensional charts that compare products based on trScore and research frequency by prospective buyers. Products must have 10 or more ratings to appear on this TrustMap.
What is Compensation Management Software?
Compensation management software allows organization leaders to plan and execute a compensation strategy. Beyond automating budget and pay tracking, compensation management software integrates real-world data to provide fair salaries, reward success, and manage flight risk. Compensation software supports the administration of variable pay programs like bonuses, merit, stock, and equity.
In addition to administration workflow and approvals, many compensation management applications provide what-if modeling and analytics. They also centralize approval workflows for compensation decisions. These tools are particularly relevant at larger organizations with multiple levels of management and an HR department that must sign off on certain compensation decisions.
Compensation management software is related to ICM (Sales Incentive Compensation Management). ICM software is designed to manage the vicissitudes of sales cycles to produce reasonable quotas and commission. Compensation management software is more general in scope. Also, some vendors of compensation management software focus on providing intelligence to guide data-driven compensation decision-making.
Compensation management software poses a range of benefits for organizations and administrators. These tools improve efficiency by automating compensation calculations and data transfers to payroll systems. Compensation management software also centralizes compensation data, enabling better security and data accessibility simultaneously. Data centralization also improves budgetary visibility and decision-making around compensation allocation.
Compensation management software can also integrate with, or be a part of, performance management systems, talent management software, or HCM suites. Standalone compensation management software should integrate with other leading HR systems. These integrations ensure that data can flow from system to system without requiring manual effort. These integrations are crucial to scalability.
Features of Compensation Management Software
Compensation management software provides the following set of capabilities:
Salary & commission tracking
Budgeting, forecasting, and approval workflow
Performance metrics, long-term planning, benefits deferral
Import of updated real-world salary and comp data
Market pricing analytics, compensation research
Job description authoring guidance (e.g. competence, salary)
Salary review and policy/guideline compliance control
Competence and job matching
Flight risk analysis
Custom dashboards and report analytics
Compensation Management Comparison
When comparing compensation management software, consider these factors:
Use Case: Does the organization mostly handle standard compensation structures like raises and promotions? Or does it utilize more complex mechanisms like performance-based pay? The use case will determine what integrations and native capabilities are most important and should be most robust within a compensation management tool.
Reporting: HR and Finance leaders alike need visibility into compensation management data. Flexible, presentation-ready reporting can be massively impactful for administrators and improve their own day-to-day visibility.
Standalone vs. Suite Solution: Consider whether the organization needs a standalone compensation management solution for handling compensation processes and data at scale. Many organizations at smaller scales or with less complicated compensation needs may find built-in capabilities in HCM suites that can fit their use case.
Most compensation management software plans are available from compensation specialists, or HR research and consulting firms. These compensation management services may combine a software platform with market intelligence or compensation research services. Vendors may provide software on subscription, for perpetual licensing, or for a single payment with (renewable) intelligence. Also, HR software vendors provide plans are add-ons to Core HR / HRMS suites. These are generally cloud-based and available on a subscription basis.
Ultimate Software delivers cloud-based HCM solutions that help businesses simplify payroll computations, accelerate talent acquisition, manage time and attendance, and support proactive, strategic talent management on a global level.
Ceridian Dayforce HCM is a cloud-based platform encompassing HR, payroll, benefits, and talent and workforce management. It provides companies with a scalable framework and real-time data, such as continual pay calculations, to enable efficient decision-making.
Paycom is a core HR management software solution. It includes features such as talent acquisition and management, time tracking, and payroll management. It offers some automation capacities, particularly regarding payroll.
Workday Human Capital Management is built as a cloud-based system with global consistency in user experience. Workday HCM is part of a broader system with other Workday products.
SAP SuccessFactors is a suite of HR/HCM products covering these capability areas: core HR and payroll, recruiting and onboarding, learning and development, performance and compensation management, workforce analytics and planning, and employee experience management.
CaptivateIQ in San Francisco offers their flagship sales commission management product designed to enable companies to manage and tailor mission critical sales incentive compensation programs for their workforce.
Achievers is a platform for managing employee rewards and recognition programs. It includes features for tracking employee performance against company or project goals, as well as tracking social recognition of employees for their achievements, and tracking available budget for employee…
beqom is a Total Compensation Solution for HR & Sales to lead, align and motivate their employees and partners. The beqom Total Compensation platform is used globally across all industry sectors by over 100 large companies such as Microsoft and Pepsico. It addresses all Performance…
CompLogix Compensation (formerly Harvest HCM) helps organizations automate any pay/compensation program (merit, bonus, stock, equity, STIP/LTIP, promotion, etc) through a web-based software solution. The compensation administration application gives managers an online system to…
Core provides commission management solutions that automate the calculation and reporting of complex sales commissions and incentive pay. It includes a rules engine combined with setup and audit tools. Reports, analytics, and dashboards allow sales staff full visibility into pay…