Why Compensation Management Matters
Finding good employees is tough; keeping them can seem almost impossible in an increasingly competitive job marker, particularly in industries with skills shortages. While salary isn?t everything, a good salary and benefits package can make a significant difference to the satisfaction of employees. Having a good compensation management solution in place can make it easier to plan and manage such packages, which can be bespoke for different employees.
A recent study by Burson Marsteller found that close to 80% of employers highlighted employee benefits as a critical element in attracting talent. A separate study found that more than 83% listed their top benefit objective as being retaining their human capital assets, with more than half planning to leverage benefits as part of an employee retention strategy within five years. Employees share similar beliefs with three-quarters of those surveyed saying they are more likely to stay with a company that offers a good benefit program. In fact, more than 35% of those categorized as millennials have refused a work offer because of benefit dissatisfaction; 27% of those in other age categories have done the same.
Job satisfaction increases by as much as four times among those who are satisfied with the benefits on offer. Offering benefits, though, is not enough to ensure continued loyalty. As much as 76% of Millennials say that customized benefits offerings are vital for increased loyalty; the figure is 67% among baby boomers. In such a complex compensation and benefits context, good compensation management solutions can make all the difference.
In human resources, compensation management is the process or policy that offers monetary value to an employee in return for the work they do, and can include bonuses and benefit packages in addition to salary payments. Compensation management plays a vital role in finding, keeping and motivating employees to do their best work and thus add value to the organization.
Compensation management is the act of providing monetary value to an employee for the work they do by means of a company process or policy. Some types of compensation include salary, bonuses, and benefit packages. Companies use compensation management in order to find, keep, and motivate employees to do quality work. A compensation management system is an HR software platform that helps compensation and benefits managers to perform the needed tasks within the compensation management function. With the right compensation management solution in place, you can help ensure that your employees remain happy and motivated to bring their best work to you company.