Employees in the modern workplace have come to expect a compensation package that includes base wages and benefits, such as health insurance, paid time off, lifestyle perks, and development opportunities. Additionally, depending on the role and business, there are additional aspects of compensation, such as performance pay and equity. Delivering on this can be more complex than it sounds. Each organization must bring together an effective, competitive grouping of monetary compensation, support services and rewards to align with their individual talent acquisition and retention goals, corporate governance and cash flow, while also helping employees to enroll and take part in the benefits they have already earned. This forms the basis of your organization's employee compensation management strategy.
The most effective way to ensure all of your employees get the most out of their compensation package is to make use of cloud-based compensation management software. Today, we are taking a deep dive into the best ways to optimize benefits enrollment, employee experience, and compensation management through cloud-based software.
Why Cloud-Based Compensation Management Matters
The cloud has unlocked the ability for businesses to operate without location limitations, which means that HR and the employees it supports, can work from anywhere and provide benefits to employees across the country. It also enables more robust real-time reporting and insights on enrollment and usage habits to make sure that both employees and organizations alike are getting the most out of what's being offered.
Developing a Compensation Strategy
Compensation management maintains an equitable relationship between an organization's performance and employee compensation. This ensures that employees receive fair wages based on their contributions to the company's success while the organization receives optimum productivity from its workforce.
A compensation strategy is your organization's approach to aligning employee compensation with organizational goals, corporate governance and cash flow. The most effective cloud-based software ties employees to a singular record for easily managing and reporting on base pay, bonuses, equity, work hours, attendance, tenure, insurance coverage, and performance, even going as far as to tie-in benefits such as fitness programs, professional development opportunities, and award-based recognition.
Making Use of All Aspects of Your Compensation Package
Cloud-based compensation management software makes it possible to provide real-time data and access to employees and managers alike, no matter where the office or employees are located.
Getting your employees to enroll in their earned benefits can be a challenge - made much more approachable when each person can log into the same cloud-based platform. Guided enrollment, checkpoints, notifications and alerts are all useful tools when it comes to enrollment.
The Right Access to Health Insurance
Health insurance, including dental, vision, and prescription, and emergency services has become more customizable. Accessing all an employee's compensatory health insurance information through a cloud a cloud-based compensation management platform can make getting care easier for everyone.
Earning and Managing Paid Time Off
PTO is often accrued based on the number of hours and days an employee has worked. A cloud-based HCM solution that combines payroll, time and attendance and compensation, can ensure that employees properly accrue and can collect their paid time off, which can enhance employee satisfaction and reduce the risk of burnout.
Distributing Bonuses and Commissions
Monetary bonuses can also be managed through the right cloud-based software. You can track the success of individual employees and ensure they receive their bonuses or commissions based on performance.
Travel Budget or Reimbursement
Employees who travel often face more complex compensation challenges. They both must be reimbursed for expenses and may have trouble accessing benefits that more stationary employees enjoy. A cloud-based solution makes expense compensation more easily available and can simplify tracking as well.
Equity, Stock Options and Vesting
Are your employees earning stock options and waiting for them to vest? Stocks are another common form of compensation, especially for senior executives, that the right software can simplify tracking for both employers and employees alike.
Explore Cloud-Based Compensation Management with Inflection HR
If you want to improve your compensation management strategy and access the flexibility that comes from cloud-based software, contact the team at Inflection HR. Since 2002, we've been helping employers Arizona and across the US grow their business and unlock their employee's potential with human capital management solutions and white glove payroll services.