- Compensation management is nothing new,

but it is when it comes to HRIS systems.

Compensation management is designed to help an organization

maximize the returns on available talent.

The ultimate goal is to reward the right people

to the greatest extent, for the most relevant reasons.

This can include the creation

of proper wage and salary levels,

managing raises and promotions,

and incorporating bonuses and other compensation incentives.

You may also want to determine

if your overall compensation levels

are staying in alignment with strategic initiatives.

Compensation modules are offered

by a limited number of HRIS programs.

While the payroll features

are there to make sure employees get paid,

the compensation features are there

to help decide and manage how much they should be paid.

And I remind you what employees want more than anything else

is a fair day's pay.

An HRIS can allow a company to define compensation packages

across all areas of an organization using just one system.

An HRIS can help tailor compensation packages

to company needs.

For example, an HRIS allows you to align employee awards

with business objectives and results;

you can define packages, plans, and programs

using data from the HRIS and the marketplace;

specify compensation components such as base pay,

bonuses, allowances, and so on, to measure total pay;

easily calculate unique merit, bonus,

and stock requirements;

access analytics and reports

when you need them to make better pay decisions;

trigger changes to compensation

based on employee updates in the system;

enhance the merit review process

with adjustable plan targets;

and tie into salary.com

or other compensation information providers.

Once again, a handful of sophisticated HRIS programs

offer pay equity analysis,

which is very important given Equal Pay Act requirements.

These features can be great time savers,

especially in larger companies.

As stated by the compensation administrator

for Fairchild Semiconductor quote,

"It took four months to complete

the entire merit and performance review cycle.

In Workday, this process has been reduced to three weeks

or a 70% overall reduction."

Compensation management is a strategic objective

for most companies.

Having compensation data at your fingertips

is a huge advantage when executing this goal.

(upbeat music)