Boosting employee productivity and job satisfaction depends on equitable and competitive compensation. Smart businesses pursue innovative solutions to handle the challenges of compensation management, such as errors caused by manual calculations and budget constraints.
Companies can better plan, manage, and organize employee pay effectively when using compensation management software, which streamlines employee data and budget planning so they can build competitive compensation packages. This dedicated planning system enhances transparency, accuracy, and efficiency in salary planning so companies can reward employees accordingly and prevent employee turnover.
The best compensation management software covers the complete compensation lifecycle from salary planning to execution. It can also provide insights into compensation trends and ensure compliance with policies. These systems leverage automation to calculate salaries, bonuses, and other forms of compensation. Some align with other human resources systems for reliable and consistent data, which is essential for efficient compensation administration.
Discover five of the best compensation management software in 2024.
#1 Aequim
Overview
Aeqium provides a comprehensive set of tools that integrate with every compensation data source to help employers collaborate and make data-driven decisions that ultimately result in higher employee management and retention. It presents a user-friendly interface where users can analyze, plan, and communicate compensation all in one place.
Companies can customize the software to fit their specific needs, from their data sources and review chains to calculations and budget distribution methods. It directly integrates with existing HRIS, ATS, Performance Management Systems, and Equity Management Systems.
Aeqium is top-rated for ease of use. It only takes a few hours to set up. It gives teams the flexibility they need to build budgets in any direction and manage access controls and approval chains. Its customer support also has received the highest rating of any software in the compensation management space.
Admins can update and adjust settings independently at any time. This flexibility gives them the ability to make changes on their own without having to wait for customer support, all while having the option to send any work they need help with directly to their dedicated customer success manager.
Aeqium can handle unlimited admins, managers, and employees without sacrificing their security and privacy, evidenced by its AICPA SOC 2 Type 2 certification. It is the most collaborative compensation management platform where users can launch a shared review experience with their managers, who perform compensation reviews for employees via guided workflows.
Features
Guided Workflows
Aeqium employs a data-forward and collaborative approach to compensation planning. Guided workflows allow teams to collaborate with managers so they can review each employee in depth and make consistent, data-backed compensation decisions, like giving rewards that match the employees' contributions.
Compensation Cycle Management
Aeqium's Compensation Cycle Management feature offers complete flexibility to design compensation reviews that are fast, accurate, and tailored to your organization's needs. With collaborative workflows, teams can integrate data, review salaries, bonuses, and equity in real-time, ensuring a smooth process from start to finish. The platform also automates total reward statement delivery, giving employees a clear view of their compensation package - all while simplifying your workflow for maximum efficiency.
Compensation Bands
Teams can create, analyze, and maintain competitive compensation bands in Aeqium. The cloud-based platform can help them ensure their pay practices are evolving with the market to prevent employee turnover and boost talent acquisition by leveraging live offer data and compensation benchmarks to inform their salary ranges.
Compensation Insights
Aeqium can also provide the insights companies need to improve their compensation packages. It can generate custom compensation reports that allow teams to analyze total current salaries and merit increases or review compensation issues that need to be resolved. Admins can filter the data by location, band, department, and manager. The platform also speeds up decision-making by letting users visualize employee pay details in seconds and track the compensation history of every employee.
Employee Total Rewards Portal
The employee portal gives every employee complete insight into their salary, equity, bonus, etc. It centralizes all current and historical compensation details in one place. Admins can customize access levels to control which users can access sensitive information. The portal keeps employees informed about where they are and what they can do to attain a higher position.
Interactive Offer Letters
Ready to streamline your compensation management? Get started for free with Aeqium's fully customized sandbox environment. Admins, managers, and leadership can explore every aspect of their process, even the most complex needs, mapped out and tailored specifically for their organization. See how Aequim can transform your compensation cycle—risk-free!
Unlike other compensation management solutions, Aeqium provides full access to a sandbox environment that can be easily configured.
#2 Lattice
Overview
Lattice provides a centralized platform for seamless salary benchmarking, total rewards, and performance-driven compensation. It also provides actionable people insights that empower HR leaders to make more informed decisions. It has award-winning customer support, is recognized in Stevie Awards and G2 service awards, and has a 98% satisfaction rate from onboarded customers.
Unlike other compensation management solutions, Lattice provides a dedicated onboarding manager in charge of designing a custom configuration that meets the needs of the organization and culture. It also seamlessly integrates with existing payroll, HRIS, SSO, and other performance tools. Customers also get access to online resources and training via Lattice University and Help Center.
Lattice also supports multiple languages and maintains compliance with all applicable data protection laws. It provides all the context and information managers need for salary planning to attract, retain, and motivate top talent.
Features
Compensation Cycle Management
Companies can configure, collaborate, and manage the entire compensation cycle in Lattice, such as setting increased targets or providing raise guidance. The platform features clear budget tracking, collaboration tools, and secure sharing to help users handle compensation cycles.
Teams can set merit and promotion raise guidelines that managers can reference during the cycle, including additional raise factors and proration rules, which can help the latter make fair recommendations. Lattice lets users input and approve adjustments in one place, which fosters transparency and minimizes error. Once the cycle is closed, compensation statements can be shared with managers and other employees, which explains adjustments and role-based compensation bands.
Benchmarking
Lattice gives access to industry-leading benchmark data to ensure employees receive competitive pay for their roles, locations, and industries. The platform can also convert compensation in different currencies, which reduces internal pay disparities that lead to employee turnover. Having access to accurate, real-time information helps companies adapt to a fast-changing market and make decisions that support employees.
#3 Payscale
Overview
Payscale provides trusted data, accelerates comp processes to improve operational speed, and gives insights specific to compensation that improve decision-making. It boasts powerful configuration capabilities and leverages automation to reduce unfulfilling admin work.
Payscale is also an award-winning platform in the compensation management space, recognized for its leadership, ease of use, and fast implementation. With its customizable workflows, teams can directly interact with managers on pay increases to employee performance. This collaboration leads to stronger pay communications between employees and managers, resulting in stronger trust.
The software further streamlines the processes by automatically sending notifications, enabling chat, recording change history, and managing permissions. It offers various solutions that address common challenges in the compensation management cycle.
Features
Pay Equity
Payscale can track insights on pay equity trends so users can identify key areas of risk, monitor controlled and uncontrolled pay gaps, and even assess the impact of pay raises on pay equality as part of compensation planning. Companies can maintain and improve employee retention by ensuring fair pay through continuous monitoring.
Pay Structures
Pay structures increase consistency in pay decisions. Users can build, edit, and maintain grade-based or job-based ranges from a single location. Payscale helps establish pay priorities within the budget by setting salary structures.
Reporting and Analytics
Companies can understand how compensation impacts their bottom line and talent strategy through reporting and analytics. Payscale can generate reports from all data, including employees, jobs, payments, etc. It can also provide custom-built visualization and tabular reporting through its Tableau integration.
#4 CaptivateIQ
Overview
Captivate IQ simplifies commission management with automated and reliable data management, increased visibility, and an easy-to-use interface. It is built by comp admins, for comp admins. It empowers revenue teams to connect their data, build and optimize their territory and quota plans, and align with teams, all from a single source.
Features
AI Co-pilot
CaptivateIQ leverages the power of generative AI to streamline tedious tasks. Teams can ask the AI co-pilot questions about how much ARR they need to close to achieve their savings goal or get intelligence insights to understand how their plans and reps are performing. It can also forecast pay so users are even more motivated to exceed their targets and earn a bigger commission.
Ultimate Commissions Flexibility
CaptivateIQ provides a space where users can design, test, and adapt any compensation plan. This no-code platform supports complexities like adjustments and clawbacks. It presents a familiar spreadsheet interface that allows for more accurate commissions.
Real-time Calculations
CaptivateIQ leverages a proprietary ELT and calculation engine that can process millions of computations in real-time. Managers and their teams can have the most up-to-date commission calculations for quick audit, analysis, and transparency.
#5 CompUp
Overview
CompUp is a full-stack compensation platform that can handle all compensation needs with a set of features that help companies function effortlessly and efficiently. It is powered by a community of rewards professionals who enrich salary benchmarks with real-time data, ensuring data accuracy.
CompUp also provides accessible APIs for quick integration, which allows users to customize workflows tailored to their unique needs. It is an award-winning platform in the compensation management space of G2, recognized for its ease of use, fast implementation, and easiest admin. Teams can run multiple appraisal simulations and executive appraisals, end to end, with ease.
CompUp assigns a product manager and rewards specialist that customizes the software per customer's requirements, making the transition from spreadsheets to the platform seamless. It features an intuitive and easy-to-use interface that requires little to no training to navigate.
Features
Budget Simulation
CompUp contains a budget simulation tool that allows users to forecast and strategize with precision. Teams can make simulations to derive multiple cases of their reward's philosophy and analyze them for proper allocation of budget.
Compensation Benchmarks
Companies can analyze fluctuations across different functions, families, and levels through real-time benchmarking data. CompUp currently holds the fastest-growing benchmarking database in India, with over 2 million data points.
Rewards Statement
CompUp can generate visually appealing reward letters that can help motivate employees and improve retention. Users can view every aspect of their compensation package at a glance, including equity details, compensation change, and benefits, which help them understand their total earning potential. It has native support for all geographical locations, compensation structures, and currencies, which makes the solution suitable for global companies.
Candidate Engagement
CompUp can help companies make offers candidates cannot refuse, such as implementing a sequence of touch points to ensure the candidates are engaged. The platform also features an intelligent offer assistant that communicates the benefits and true value of an offer while resolving queries. These tools improve the candidate experience.
Attrition Analysis
Companies can identify trends and gain insights to improve retention strategies, preventing talent loss. CompUp can help them analyze employee attrition by showing the signs of disengagement in employees.
Conclusion
Professionals who receive fair and competitive pay packages are more likely to stay at their companies and maintain a high-performance level and morale. Choose from our list of the best compensation management software to design a robust compensation strategy to attract and retain top-notch talent.
