HR software has come a long way in the last few decades. Instead of HR professionals constantly being buried in paperwork, they now have a variety of choices to help them easily and efficiently manage critical tasks. In recent years, these choices have become even more intuitive with online applications, cloud-based tools, and mobile-friendly applications.
With automated payroll and the ability to store thousands of files and records online, HR professionals have been able to more easily manage recruiting, track performance, streamline benefits administration, and perform complex data analysis. What makes this news even better is that this new set of tools isn’t coming from the regular sources. Newer and more innovative companies have joined the ranks and are matching demand for these new tools.
How Small Innovative Companies Are Changing the HR Management Tool Market
Some may not realize that HR software and tools is a $14-billion-dollar market. While some of the innovation taking place in HR management has been the result of mergers and acquisitions from big players like ADP, it is the smaller companies that have been making waves. It’s these more innovative companies that are making a difference when it comes to looking at teams, feedback, performance management, and analytical tools.
This trend has become so important that CB Insights reported that an estimated $3 billion in venture capital has been used to fund such companies. Some of the tools created as a result include those that focus on: team productivity, data-driven engagement, smart learning, wellness and fitness, social recognition and rewards, and much more.
Even though all of this innovation has revolutionized the lives of HR professionals and their departments, there’s still one component that isn’t being addressed properly.
The outdated Component in the HR Software & Tools Market
The new HR software and tools created are helping the U.S. to recognize the significance of talent in an information-based economy. But what if those tools still aren’t providing a complete picture of the workforce?
In spite of the vast increase in knowledge offered by these new tools, one key component is still not fully represented. Employee compensation is a significant factor when identifying talent as well as retaining it. Yet it isn’t a big component with most of the tools being made available.
Understanding how to configure employee compensation is essential to retaining top talent. Losing an employee can cost a company one to two times an employee’s salary, so it’s crucial to get it right up front. The problem is that most software doesn’t offer this functionality or it’s too confusing or complicated for HR professionals to utilize fully.
So when employee compensation isn’t correct, companies are faced with a big risk that can have a ripple effect throughout the business. An employee leaving, depending on their role and longevity, can significantly impact other workers and in some cases, your customers. If they’ve developed loyalty from either group, it can be potentially damaging to your business if they decide to leave.
While an employee may not leave solely based on their compensation, it’s still a critical factor that needs to be recognized and properly handled.
How Compensation Cloud Differs from Other HR Tools on the Market
To provide HR managers with a more comprehensive way to manage all of their responsibilities, they need a tool that offers an easy and robust compensation management component. And that’s where Compensation Cloud differs from other tools available on the market.
Compensation Cloud is a great example of how a smaller company can take the reins and close the gap in HR technology. This HR tool is flexible and offers multiple options for HR managers to manage, track, and analyze compensation for their employees.
Some of these options include:
– A planning page so managers can allocate salary, bonuses, stock options or other forms of compensation by simply clicking on an employee.
– Flexibility to set rules according to a company’s specific guidelines to ensure every employee is paid accurately and according to their responsibilities.
– Building compliance and guidelines into compensation planning, regardless of industry, state, federal or country regulations, to help avoid time- consuming audits, which can often lead to costly fines and penalties
– Decision-making tools and analytics to stay within the company budget and create customized reports to analyze existing employee and pre- hire data
Compensation Cloud is leading the reinvention of employee compensation management. This innovative DIY tool offers a modern design that users will find easy to learn with its drag and drop functionality. HR managers can have a complete view of their responsibilities and more easily manage tasks without having to deal with a huge learning curve.
Instead of paying extra money or experiencing delays to have HR software that fits specific needs or guidelines, users can easily define their own variables and rules using template builders and a rule engine, which is a unique algorithm not found anywhere else. HR managers can build their own software for even the most complex compensation plans and adjust rules and guidelines as both their company and talent grows.
To find out more about Compensation Cloud or investing opportunities, please contact a member of our team here.