Finding software can be overwhelming. We help HR departments choose the right compensation management software so they can track budgets and tie pay to performance.

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UZIO

UZIO is a SaaS-based online marketplace that provides cloud-based HR, payroll, and benefits management software and services. It is built for businesses of all sizes. This integrated solution offers local/regional brokers, employe... Read more

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Recent recommendations: 77 recommendations

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Dayforce HCM

Dayforce, provided by Ceridian, is a cloud-based solution for Payroll, Benefits, Workforce Management, Human Resources, Talent Management, Document Management, and Analytics. As a single application, Dayforce provides organization... Read more

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Recent recommendations: 55 recommendations

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Workzoom

Workzoom by Nortek is the all-you-need cloud-based people management platform that helps clients simplify HR, payroll, benefits, time, recruiting, performance, learning, expense management and much more. Workzoom has all the funct... Read more

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Recent recommendations: 22 recommendations

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Ascentis

Ascentis offers a cloud-based human capital management (HCM) suite designed for midsize companies of all industries. It includes HR and benefits, recruiting and onboarding, talent management, time and attendance and payroll. ... Read more

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Recent recommendations: 14 recommendations

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ChartHop

ChartHop is a cloud-based solution designed to help human resource (HR) professionals create organizational charts, build headcount plans and analyze teams' performance on a centralized platform. Administrators can create personal... Read more

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Recent recommendations: 4 recommendations

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Compass Lite

Compass Lite is a cloud-based compensation management solution designed for HR professionals, managers and executives. It helps HR employees plan compensation budgets, design and implement salary structures for different roles, re... Read more

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Recent recommendations: 3 recommendations

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Compease

Compease is a complete cloud-based salary administration solution used by businesses of all sizes across industries such as retail and manufacturing. The solution allows HR teams to facilitate the analysis, design and execution of... Read more

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Recent recommendations: 2 recommendations

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TalentComp

TalentComp is a standalone compensation management solution suitable for businesses of all sizes. It can be deployed as a cloud-based or on-premise solution. TalentComp tracks employee compensation and performance history. In... Read more

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Recent recommendations: 2 recommendations

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Engagedly

Engagedly is a cloud-based workforce management solution that offers integrated applications to manage on-boarding, employee learning, performance review and goal management. The solution focuses on communication and collaboration... Read more

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Recent recommendations: 1 recommendations

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BullseyeEngagement Employee Development Solutions

Bullseye’s Employee Development Solutions enable organizations to align individual and organizational development needs. The interface mirrors a social media platform, making it easy for employees, managers, and HR professionals t... Read more

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Recent recommendations: 1 recommendations

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CompensationXL

CompensationXL is a cloud-based human resources (HR) solution. It allows users to create workbooks, which they can access online. The solution stores business rules and the data is fed automatically to human resources information ... Read more

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Recent recommendations: 1 recommendations

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Cornerstone HR

Cornerstone OnDemand is a cloud-based performance management solution. It enables users to recruit talent, customize learning initiatives, generate compliance reports, prepare high performers for succession and more. Cornerst... Read more

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Recent recommendations: 1 recommendations

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Branch

Branch is a cloud-based employee time and productivity tracking solution designed for businesses managing multiple employee shifts. It offers the ability to track hourly work, view schedules, plan shifts, assign tasks and communic... Read more

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Xactly Incent

Xactly is a cloud-based solution, which allows businesses to manage processes related to commission expense accounting. Key features include status tracking, workflow configuration, process automation, compliance management and cu... Read more

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QCommission

QCommission is a cloud-based and on-premise sales commission solution for small to midsize businesses and larger enterprises. It helps users calculate salespeople’s compensation. QCommission allows users to calculate commissi... Read more

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Employment Hero

Employment Hero is a cloud-based human resource (HRM) management system available to businesses of all industries and sizes. The solution helps manage the entire employee lifecycle, with modules for recruiting, onboarding, payroll... Read more

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Spiff

Spiff is a cloud-based compensation management solution that enables businesses of all sizes to automate processes for calculating commissions. It comes with personalized dashboards, which let sales representatives update closed d... Read more

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Performio

Performio is a cloud-based commission and compensation management software that is specifically designed for sales team within the automotive, retail, software, telecommunications, and business service industries. Performio allows... Read more

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Oracle Cloud HCM

Built on intelligence and machine learning, Oracle HCM Cloud is a complete human resources (HR) application suite. It is a personal, adaptable tool designed to support the entire workforce lifecycle worldwide for every industry an... Read more

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bob

bob is a human resource management (HRM) solution designed to improve the employee experience and lifecycle for companies with 50+ employees with a focus on medium-sized businesses. bob is a design-led platform that combines human... Read more

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2021 Compensation Management Software Pricing Guide

Learn about the key aspects of accurate software pricing before you make your purchase decision.

Includes:

  • Pricing models & ranges

  • Unexpected costs

  • Pricing of popular systems

Buyers guide


Last Updated: April 12, 2021

Every company is different when it comes to compensation management. While budgets are usually based on company earnings, the ratio of employee salaries to overall revenue can vary significantly depending on the industry.

For example, it would make sense for a landscaping company that depends on employee labor to allocate a higher percentage of their revenue to compensation compared to a manufacturing plant that handles the majority of its production through machines.

This is why some businesses struggle to calculate compensation plans that align with business goals and allow them to attract or retain top-notch employees. Luckily, there are a variety of software solutions that can help.

In this guide, we’ll break down everything you need to know about compensation management solutions. Here's what we'll cover:

What Is Compensation Management Software?
Benefits of Compensation Management Software
Common Functionality of Compensation Management Software
Additional Considerations

What Is Compensation Management Software?

Compensation management software allows HR managers to conduct salary planning, calculate bonus payouts by factoring in achievement and performance metrics for individuals or departments. The tool is available as a separate module that can be added to a vendor’s talent management suite, along with performance and learning management programs.

Common features of compensation management software include:

  • Compensation and salary planning
  • Budgeting and reporting
  • Compliance support
  • Automated incentive program administration
  • Self-service access for all employees

Whether your work for a large company or a small startup, it’s critical to invest in the right platform to balance the business’ compensation structure. Many affordable and efficient options are available to streamline the planning process and automate necessary tasks. This allows HR professionals to make more informed decisions and recommendations.

Benefits of Compensation Management Software

Effectively managing compensation means ensuring that employees are paid the right amount on time, every time. To do so, companies must keep current, accurate and accessible records, which is often a complex task. Some companies may use Excel spreadsheets or email to track compensation history, which can be inefficient as well as insecure. Compensation management software can eliminate recordkeeping problems, and comes with a range of other benefits, such as:

Increased accuracy and efficiency. Instead of spending time tracking and calculating employee compensation in multiple spreadsheets—which often leads to errors—business owners and managers can save time, and plan for pay increases and incentives, by tracking all employee data in one place.

Ready-made worksheets guide managers through the salary planning process, and allow them to enter discretionary rewards when an employee performs well. As a result, employers can reduce the risk of overpayment, manual errors and shadow accounting.

Improved security. By storing all compensation information in one online system, companies reduce the risk of misplacing employee compensation data. And since most systems are password-protected, there is also less of a risk that sensitive information will fall into unauthorized hands.

Increased insight into your budget. In addition to streamlining the initial compensation planning process, most solutions automatically monitor payouts and store the information in the system. This data can then be used by managers and business owners to produce built-in reports, ensuring the company stays within its budget and conforms to federal regulations.

Improved transparency and employee satisfaction. A lack of transparency about the compensation planning process can lead to misunderstandings between management and employees about their pay—which may, in turn, cause diminished employee satisfaction. This may be especially true for organizations with more than one reward type, such as stock rewards, pay-for-performance or commission-based pay.

Because employees and managers can view past payments with this software, there is greater transparency in the compensation process. This can help eliminate confusion about current and past compensation, and allows for clear and open communication about compensation practices.

Higher employee productivity. Studies have shown that employees highly value having their documented performance tied see their base pay, as well as increases or decreases in incentive-based. If your company is having difficulty tying performance goals to rewards, compensation management software can streamline the process and ensure employees are aware of the monetary benefits of a job well done—resulting in a culture of high performance.

Common Functionality of Compensation Management Software

Planning automation Facilitates collaboration so that multiple business leaders can collaborate on compensation plans. For example, users can set compensation adjustment tasks and assign them to colleagues for approval.
Reporting and analytics Generates data-based reports on a variety of values (e.g., cost of living adjustments, performance metrics and promotions) so managers can track and compare these values for the company at large or for individual employees.
Budget control Sends alerts when compensation allocations exceed predetermined budgets.
Compensation assessment Allows managers to view compa-ratios, goals, guidelines and other determining factors so they can best evaluate compensation allocations.
Compensation statements Creates employee benefits statements that include all of a business’ perks and incentives. These may be customized depending on the platform.
Bonus calculations Calculates bonus payouts by factoring in achievement and performance metrics for individuals, departments or the company at large.
Job market pricing Provides roles-based market price data to determine how much employees should be paid as per the going market rate.

Additional Considerations

Some organizations claim a lack of integration with their talent management system prevents them from adopting a compensation management solution. While most compensation management programs are designed to integrate with your current human resources information system (HRIS) and payroll software systems, ask the vendor to ensure that their compensation management module is compatible with your current system.

Another thing your company may want to consider is deployment models. Traditionally, many organizations went with on-premise software, meaning the system is installed on location and maintained by the company. However, there has recently been a move toward hosting software “in the cloud” and paying for it using a subscription model (i.e., Software as a Service). This means the software is located on external servers, and updated automatically by the vendor. Each deployment model has its pros and cons. They also have different upfront and recurring costs, so your final selection should be based on your needs and budget.