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Paycom offers user-friendly HR and employee-driven payroll technology to enhance the employee life cycle, in a single software. Paycom drives efficiencies, increases data integrity and gives employees power over their HR informat...Read more about Paycom

4.3 (796 reviews)

243 recommendations

Paychex Flex

Paychex Flex is a human capital management solution that's designed using web-based modular technology and a dedicated service center to help meet the HR needs of employers of any size and industry. With a single login, users can ...Read more about Paychex Flex

4.1 (1436 reviews)

228 recommendations


Factorial is a cloud-based human resources (HR) solution that caters to small businesses across various industry verticals. Key features include a time-off manager, an organisational chart generator, a document manager and more. ...Read more about Factorial

4.5 (244 reviews)

126 recommendations


Paycor empowers leaders to build winning teams. Paycor’s human capital management (HCM) platform modernizes every aspect of people management, from recruiting, onboarding and payroll to career development and retention, but what r...Read more about Paycor

4.4 (2662 reviews)

53 recommendations

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isolved is the most-trusted HCM technology leader, providing the best combination of software and services to meet the needs of today’s People Heroes – HR, payroll, and benefits professionals. From talent acquisition to workforce ...Read more about isolved

3.9 (448 reviews)

53 recommendations

Dayforce HCM

Dayforce, provided by Ceridian, is a solution for payroll, benefits, workforce management, human resources, talent management, document management, and analytics. As a single application, Dayforce provides organizations with acces...Read more about Dayforce HCM

4.3 (792 reviews)

32 recommendations

TriNet Zenefits

Zenefits is an all-encompassing HR SaaS platform designed specifically for small to midsize businesses. The Zenefits People Platform includes a robust offering spanning HR, Benefits, Payroll, Well-being and Performance apps that c...Read more about TriNet Zenefits

4.2 (812 reviews)

14 recommendations

Performance Pro

Performance Pro by HR Performance Solutions is a cloud-based performance appraisal solution for HR professionals. Performance Pro is customizable and allows users to align the solution with company’s strategic goals. The system ca...Read more about Performance Pro

4.5 (184 reviews)

9 recommendations


Workzoom is the all-in-one HR, Workforce, Payroll, and Talent solution that consolidates and automates your people management. Bring your whole team together with a centralized hub for accessing personal information, company updat...Read more about Workzoom

4.6 (15 reviews)

7 recommendations


Evolia makes it easier to hire, schedule and track time worked by frontline in medium and large-sized businesses. Gone are the days of working in silos and having to play the telephone game finding last-minute replacements. With...Read more about Evolia

4.3 (48 reviews)

6 recommendations

Papaya Global

Papaya Global is a SaaS fintech company providing global payroll technology and the only one with an embedded payments platform designed for the workforce needs of global enterprises. Papaya's comprehensive technology, known as ...Read more about Papaya Global

4.5 (28 reviews)

3 recommendations


Xoxoday Empuls is a cloud-based collaboration solution designed to help organizations of all sizes manage processes related to workforce motivation, employee empowerment and engagement. Empuls facilitates collaboration amongst emp...Read more about Empuls

4.5 (68 reviews)

2 recommendations


With an industry-leading, purpose built platform for compensation lifecycle management, HRSoft brings the power and business impact of digital transformation to the least automated process in HR. HRSoft's COMPview brings all dis...Read more about COMPview

4.7 (20 reviews)

2 recommendations


Compport is a one-stop integrated SaaS solution to manage all your compensation plans namely candidate offers, annual/adhoc salary reviews, bonus/incentive, sales incentive plans (customized to clients' needs), long-term incentive...Read more about Compport

4.8 (16 reviews)

2 recommendations

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 about BullseyeEngagement Employee Development Solutions

4.6 (43 reviews)

1 recommendations


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 about CompensationXL

4.8 (30 reviews)

1 recommendations


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 about TalentComp

4.7 (27 reviews)

1 recommendations


Simplifying Compensation – Merit, Bonus, and Equity Valuing your employees comes in many forms, including caring about their time, respecting their talent, and rewarding their effort with merit, bonus, and equity incentives. Le...Read more about SimplyMerit

4.7 (19 reviews)

1 recommendations

PeopleGuru HCM

At PeopleGuru™, our HCM solutions are designed with one goal: to make your life easier. Transform your workplace into an award-winning workplace with PeopleGuru™. Unleash your full potential with PeopleGuru™ HCM, a best-in-clas...Read more about PeopleGuru HCM

4.4 (9 reviews)

1 recommendations


Barley is a compensation management software that's fast, transparent, and unified. Barley helps companies make better pay decisions, every day by combining pay bands, compensation reviews, pay equity, and candidate benchmarking i...Read more about Barley

5.0 (1 reviews)

1 recommendations

Buyers Guide

Last Updated: March 16, 2023

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.