Without the proper guidance, it’s easy to get compensation management wrong. And when this happens, the damaging results to your company and its employees don’t take long to set in. Here are some of the most common errors when it comes to compensation.
Error #1) Not utilizing a compensation management software.
If your company is considering foregoing this strategy-enhancing software, you could be susceptible to misaligned goals between employees and the employer. You may also find disengaged management due to the inaccessibility of the alternative—traditional forms and paperwork. And without the foresight of a true management system, the potential of your existing employee base could go underutilized.
Error #2) Not offering the right mix of compensation and benefits.
Today’s employee wants to be fairly compensated via salary of course, but that’s not all. Non-traditional benefits such as wellness opportunities, flexible work arrangements, and other trending topics can make or break a talented employee’s decision to work for you. And without desirable perks, you could see decreased productivity as staff members begin to perceive that they’re being undervalued. One thing is sure—you won’t be competitive with top organizations, which will lead to turnover and missed hiring opportunities.
Error #3) Not sharing what you have to offer.
Even with the right offerings in place, transparency needs to be present. Today’s workforce expects that what is available to them is communicated directly. So if you offer a wellness incentive but don’t regularly remind them, they’ll assume it’s not applicable to them. This is true of recruitment as well. If you’ve got a great internal culture, tout it in a way that will attract the individuals your company needs.
Fortunately, implementing a software to manage even the littlest aspects of compensation and benefits will help your initial investment more than pay for itself with dedicated, motivated, engaged employees. Contact us today to learn more about SAP SuccessFactors Compensation Management.
