Written by Salary.com Staff
July 24, 2020
Having the right compensation data and management solution is essential for organizations that want to make confident decisions and get pay right. The challenge is figuring out which solution is the best fit for your organization.
In a recent study, Lighthouse Research & Advisory asked employers to rank important aspects of evaluating compensation data and management solutions as “critically important,” “somewhat important,” and “not at all important.” Knowing that specific features drive system choice for different types of buyers, we believe understanding those drivers is critical to making informed decisions.
In the report The Compensation Technology Buyer’s Guide and Provider Landscape Report, Lighthouse Research & Advisory explored system choice along three different segments:
When talking with compensation professionals, one of the most common reasons for adopting a new system was getting more volume and accuracy in market pay data. This is often acquired through salary surveys and the data is then used to market-price internal jobs. Here are the top 5 factors by segment:
Current users’ top five factors ranked as follows:
Users who were looking to change systems had these top concerns:
First-time buyers’ concerns, meanwhile, are:
One of the points that is worth examining is cost. Cost was number six on the list of priorities for current users, but it’s usually ranked higher in other types of talent and HR technology selection. Interestingly, cost turns out to be the number one reason people cite when considering switching systems, and it’s also the number one barrier identified by those who don’t currently have a compensation system in place.
In addition to examining evaluation differences, the report also digs into distinguishing features of high-performing companies. When it comes to system evaluation, high-performing companies not only look at technology selection as a team effort, but they build more diverse teams than the average firm. Having this broad mix of individuals, perspectives, and values on the team helps to ensure that the system and its impact on the business is not relegated solely to the compensation team. Hiring managers, executive leaders, and other stakeholders need the insights compensation teams create, and high performers make sure those stakeholders are involved in the decision-making process for technology selection.
When your team is ready, get started with the research-backed insights you need to evaluate compensation solutions with confidence. Download the Compensation Technology Buyer’s Guide and Provider Landscape Report today.
Download our white paper to further understand how organizations across the country are using market data, internal analytics, and strategic communication to establish an equitable pay structure.