How to Choose Your Compensation Analysis Software

Many organizations strive to find the best compensation analysis software. They help organizations to determine and manage employee salaries effectively. With so many options, however, it can be tough to find the right one for you.

In this article, we will walk through what you need to look for in compensation analysis software. We will also cover the ten steps that you should take when selecting the best compensation analysis software. If successful, you will have the right tools to streamline one of the most important areas of compensation management.

What Are You Looking for in Compensation Analysis Software?

You need to define your compensation analysis needs to find out what you are looking for in compensation analysis software.

Are you looking to analyze employee salaries and benefits? Do you want to conduct market pricing for new roles? How about gaining insights into pay equity and diversity?

Once you define these goals, you should consider what your must-haves will be. For example, some organizations may consider benchmarking roles as a priority. If this is the case, they will need a tool that provides a large and up-to-date salary database.

For other organizations, the priority may be to analyze internal pay equity. This means that they will seek compensation analysis software that has built-in statistical analysis and reporting functions.

Putting in the effort now will pay off through a workforce that is more engaged and productive.

Conducting a Comprehensive Review of Compensation Analysis Software

A comprehensive review of compensation analysis software is key to finding the right solution for your organization. In your review, you should evaluate compensation software and compare factors such as:

• Ease of Use

How easy is it for both you and your team to navigate? If the compensation analysis software has a steep learning curve, it may frustrate users.

• Cost

Costs can vary, especially if some compensation analysis software requires an initial purchase price and ongoing subscription fees. Make sure that you stay within the limits of your budget.

• Access to Data

The data compensation analysis software provides can include pre-built data sets and salary benchmarks. Others may require you to upload your own data. It is important to consider what you want access to and how much data you currently have available.

• Reporting and Analytics

Take time to assess which tools are available for customizing and producing reports. You need to make sure that the compensation analysis software can provide the data visualization that you require.

• Ease of Implementation

When selecting compensation analysis software, be aware of how easy it’ll be to implement. For example, some may require training or customer support. When assessing this, take into account any other additional costs that may occur.

• Scalability

Assess how well the compensation analysis software can grow with your organization. If it doesn’t meet your needs as your organization expands, it may be worth considering an alternative.

• Integration with Other Systems

Determine what other systems the compensation analysis software integrates with. For example, you may be able to integrate it with things like your payroll and performance management solutions. These integrations can save you time if effective.

Making Your Final Choice

You need to evaluate each compensation analysis software in-depth once you narrow down your options. This means that you need to weigh the pros and cons of each.

In terms of functionality, you need to find out which core functions are most important to you. They could include compensation planning where you set pay scales, budgets, and guidelines. You could also want a tool that allows you to handle pay across borders and currencies in a global sense.

Depending on what you decide, you need to see how these tools will perform these essential tasks. It is also critical to see if there are any limitations that could hinder your work. This can occur when a tool is too complicated, which reduces the efficiency and productivity gains that you desire.

Weighing these factors, as well as the price, helps you to determine which compensation analysis software is best for you. The right solution can make a significant difference in your organization. From enabling you to make data-driven decisions to empowering your employees, you can build a system that supports effective pay strategies.

Salary.com’s All-In-One Solution

CompAnalyst® is Salary.com’s all-in-one solution that helps you get pay right. Our compensation analysis software provides you with the tools to address the entire compensation process. From market pricing to pay equity analytics, CompAnalyst gives you the freedom to customize and analyze your compensation pay practices.

As well as this, CompAnalyst Executive gives you instant access to compensation data for more than 50,000 named executives across public companies in the US. It’s easy to use and it can help you win the war for talent.

If you wish to find out more, you can schedule a demo to get started with CompAnalyst today.