Compensation Management Software

Compensation Management Software Overview

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.

Top Rated Compensation Management Products

TrustRadius Top Rated for 2022

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.

Compensation Management Products

(1-25 of 49) Sorted by Most Reviews

The list of products below is based purely on reviews (sorted from most to least). There is no paid placement and analyst opinions do not influence their rankings. Here is our Promise to Buyers to ensure information on our site is reliable, useful, and worthy of your trust.

ADP Workforce Now
Customer Verified
Top Rated
TRUE

ADP Workforce Now is a cloud-based HR platform for mid-sized businesses. It features customizable modules of various HR services that businesses can tailor to their specific needs, as well as regulatory monitoring and alerts to help businesses remain compliant.

Key Features

  • Direct deposit files (908)
    87%
    8.7
  • View and generate pay and benefit information (905)
    86%
    8.6
  • Pay calculation (917)
    86%
    8.6
UKG Pro
Customer Verified
Top Rated
TRUE

UKG delivers cloud-based HCM solutions including UKG Pro that help businesses simplify payroll computations, accelerate talent acquisition, manage time and attendance, and support proactive, strategic talent management on a global level.

Key Features

  • Update personal information (713)
    90%
    9.0
  • View and generate pay and benefit information (709)
    89%
    8.9
  • Employment history (699)
    84%
    8.4
Ceridian Dayforce
Customer Verified
Top Rated
TRUE

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.

Key Features

  • Update personal information (487)
    83%
    8.3
  • Pre-built reports (484)
    68%
    6.8
  • Report builder (485)
    67%
    6.7
Paycom
Customer Verified

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.

Key Features

  • Update personal information (241)
    88%
    8.8
  • View and generate pay and benefit information (241)
    85%
    8.5
  • Pay calculation (232)
    78%
    7.8
CaptivateIQ
Customer Verified
Top Rated

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.

Key Features

  • Sales compensation plan creation (169)
    89%
    8.9
  • Sales compensation process automation (192)
    89%
    8.9
  • Sales compensation dashboards & forecasting (166)
    83%
    8.3
Spiff
Customer Verified
Top Rated

Spiff headquartered in Sandy offers their sales commission engine and automation platform, providing a personalized performance dashboard for individual contributors, commission plan building tools, approval workflow for commission plans, and integrations with payment (e.g. Stripe,…

Key Features

  • Sales compensation process automation (107)
    87%
    8.7
  • Sales compensation dashboards & forecasting (109)
    86%
    8.6
  • Sales compensation plan creation (91)
    83%
    8.3
Workday Human Capital Management

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.

Key Features

  • Update personal information (76)
    88%
    8.8
  • Employment history (74)
    85%
    8.5
  • Job profiles and administration (76)
    82%
    8.2
SAP SuccessFactors
Customer Verified
Top Rated

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.

Key Features

  • Individual goal setting (42)
    85%
    8.5
  • Review status tracking (42)
    83%
    8.3
  • Performance plans (42)
    79%
    7.9
Paylocity

Paylocity provides 24/7 access to your online payroll and human resource data management. Paylocity offers highly customizable payroll functionality, as well as HR, benefits administration, and time and talent management programs.

Key Features

  • Direct deposit files (47)
    82%
    8.2
  • View and generate pay and benefit information (47)
    78%
    7.8
  • Pay calculation (50)
    74%
    7.4
PeopleFluent

PeopleFluent includes modules for recruiting, performance management, compensation, learning, succession, and vendor management, as well as workforce planning and diversity. These modules can be purchased separately or bundled, and integrate with other HR systems.

Key Features

  • Manager tracking tools (11)
    89%
    8.9
  • Individual goal setting (9)
    88%
    8.8
  • Line-of sight-visibility (9)
    71%
    7.1
PayScale Insight Lab

PayScale Insight Lab is a sales intelligence software solution offered by PayScale, Inc.

SumTotal Talent Development

The SumTotal Core Platform (formerly elixHR) is a human resource information system (HRIS) integrable with the SumTotal Talent Expansion Suite of software: SumTotal (LMS), and the SumTotal Work workforce management and payroll system. All SumTotal software is now offered and supported…

CompAnalyst

CompAnalyst is a compensation management software product from Salary.com. It includes survey data management, a job description builder, access to the Salary.com worldwide database (HR-reported salary data), and a dashboard to analyze internal pay practices vs. the market.

Iconixx Sales

Iconixx Sales is a cloud based sales compensation software application (SaaS) that enhances sales commission management with flexibility and scalability in an easy-to-use, all-in-one solution.

Xactly Objectives

Xactly Objectives is an employee compensation management designed to support creation, automation, and evaluation of MBO plans, from Xactly in San Jose.

beqom Total Compensation

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…

Mercer WIN | ePrism

Mercer consulting group in New York offers Mercer WIN | ePrism, a compensation management platform which supports resource optimization and compensation planning with deep analytics, easy data navigation with smooth workflow.

Talentsoft, from Cegid

Talentsoft, now from Cegid (acquired July 2021) is a talent management suite consisting of Core HR capabilities (Talentsoft Hub), applicant tracking and recruiting (Hello Talent), corporate LMS, employee performance review and compensation management and planning, and requisite analytics.…

PayScale MarketPay

PayScale MarketPay is a compensation survey data aggregator that supports merit and structure modeling, report writer, and pricing wizard.

Compport

Compport is a SaaS solution to manage compensation plans, namely candidate offers, annual/adhoc salary review, bonus/incentive, sales incentive plans (customized to clients need), long term incentive plans, Rewards and recognition schemes and salary structuring. It is a modular…

Compright

Compright provides compensation planning. Payroll is the largest expense for most organizations, yet many still use complex and error prone spreadsheets to plan and allocate salary, bonus, and stock. Compright aims to displace the spreadsheets and enable users to adopt a modern, cloud-…

Incentivate

No-code sales commission and incentive management solution suite with built-in IC intelligence and business workflow to automate commissions of in-house sales force & other channelsIntegrates with in-house CRMs such as SFDC etc.Interface, standard plan components, data structures,…

Diligent GRC Platform

Diligent's GRC Platform, or the Modern Governance solution, formerly from Steele Compliance Solutions (acquired March 2021) helps drive better decision-making, increase transparency and integrate all GRC data into one enterprise-wide source of truth. The solution aims to empower…

Ledgy

Ledgy is an equity management solution boasting compliance in all countries with security, privacy, and scalability. Users can show the latest information to all stakeholders, including employees and investors, about their investments, streamline due diligence and handle every vesting…

PrimePay

PrimePay is an HR management software that provides employers with tools to use from recruiting to onboarding to offboarding. PrimePay offers support for applicant tracking, payroll, benefits administration, and time tracking to streamline several HR processes.

Learn More About Compensation Management Software

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

  • Executive compensation

  • 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.


Start a compensation management solution comparison here

Pricing Information

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.


Related Categories

Frequently Asked Questions

What is strategic compensation management?

Strategic compensation management entails the organization’s total plan for employee compensation, including traditional wages and salaries, as well as other benefits, incentives, and rewards. Compensation management software assists with many of the more advanced functions in strategic compensation management.

What does compensation management software do?

Compensation management software centralizes an organization’s compensation data and provides tools to plan, budget, approve, and report on compensation decisions.

What are the different types of compensation?

The primary types of compensation are hourly, salaries, commission, and bonuses, although there is a range of subtypes and variations for specific circumstances.

Who uses compensation management systems?

Compensation management software is most heavily used by managers and HR administrators, especially at organizations with more complicated compensation structures like bonuses or performance-based rewards.