Today, the way companies track and analyze data is different than it was even just a few years ago. Organizations are moving away from analyzing data in isolation and instead using analytics technologies to optimize how they analyze this data. If you are looking for a list of best compensation analytics technologies to help your business uncover hidden insights about your employees and their pay, read on for more information.
What Is Compensation Analytics?
Compensation analysis is the process of collecting data on employee performance and compensation across your company. Compensation technology allows you to see how various factors (e.g. job title, experience level, location) affect compensation across your company. There are a couple of different ways to look at compensation data. One is compensation benchmarking, where companies track their data against that of other organizations. Another way is internal equity, which is comparing employees’ pay to their colleagues’. Compensation analysis is helpful in a variety of ways. For example, it can help with recruitment by helping you determine what salary to offer a candidate based on their qualifications and experience. It can also help with retention by giving you insight into what factors are causing employees to leave. Further, it can help inform your company’s equity and compensation policies.
Why Should You Use Compensation Analytics Technologies?
- Data consistency: You can identify any inconsistencies in the way data is collected across your company. Once you correct these inconsistencies, you can make sure that your data is consistent and reliable. This makes it easier to track your employees and provides a standardized way to calculate their salaries. It also makes it easier for managers to understand the data because it’s standardized across the board.
- Track employee engagement: Compensation data also gives you information about your employees’ engagement levels. For example, you can track how often employees receive raises. You can also use this data to identify any areas for improvement.
- Identify high-potential employees: If a company is paying a candidate a salary that is way above the average pay for their job title, it could be a sign that the company is trying to hire that person away from their current job. It could also be a sign that the company is eager to hire that person and is trying to increase their salary offer. This can be useful information if you’re trying to attract top talent to your company.
Five Best Compensation Analytics Software Tools
- Company Health: Company Health is an AI-driven software solution designed to help you understand your company’s health, including your employees’ engagement, retention, and compensation.
- HiveHR: HiveHR is a cloud-based solution that brings HR and business leaders together to drive business results. It features automated workflows and a single view of all employee data, which makes it easier to track and manage your employees.
- Zenefits: Zenefits is a cloud-based software that aims to streamline HR and make it easier for managers to manage their teams. It also aims to give employees more control over their benefits.
- Paylocity: Paylocity is an online payroll solution. It also serves as an HR and payroll administration tool.
- Visible HR: Visible HR is an online software that aims to help you attract, engage, and retain your employees. It gives you a single view of all your employee data, including their salaries, hiring data, and workflows.
Hiring The Right People Is Your First Step
Before you can dive into analyzing your employee data, you need to hire the right people. It all starts with the hiring process. Ideally, you should have a hiring process in place before you even begin posting any job openings. If you do not, hiring the right people can be difficult when you are trying to collect data without a system in place. If possible, try to find a company that specializes in compensation analytics and has experience in hiring and retaining employees. This way, you can implement your hiring process with an understanding of how each part of it is affecting your employees’ pay. When you are interviewing candidates, take the time to understand their salary expectations. Check their references, and ask them what their expected salary is. This will help you understand where the person is in their career and what they expect for their next job.
Track All Company-Wide Data In Real Time
Try to track all company-wide data in real time rather than at the end of the month. This way, you can make sure you are paying employees on time, but it also allows you to track your data more easily. For example, you can track when employees are clocking in and out for their shifts and when they are taking vacation days. This real-time data collection will also make it easier to track your employees’ hours. You can use a program like PunchOut to track each employee’s hours and their pay rate. This will allow you to see how much time each employee has worked. You can also use this information to help you figure out which employees should receive a raise.
Build A Culture Of Transparency And Employee Engagement
When employees understand why they are being paid a certain amount, they feel more engaged with their work. They also want to work harder because they know their efforts are being recognized. If your company already has a culture of transparency, you are already on your way to building employee engagement. If not, you can start by being open about your HR and compensation policies and making sure your employees understand why you have them. You can also hold regular open-forum discussions about your policies and answer any questions employees may have. This way, your employees feel as though they have a say in their pay and have a better understanding of how their pay is calculated.
Compensation analysis is a valuable way of understanding what’s happening in your company and how to correct any issues with the pay at your company. However, it is important to make sure you are using the right analytics software to make the most of it. When choosing the best compensation analysis software, look for a solution that will help you track your data in real time, as well as one that will help you build a culture of transparency in your company and engage your employees.