TM - November 2007 - (Page 35)

Paying for Performance Helps Spur the Need for Automation To gain a competitive edge from compensation technology, organizations should: • Empower managers to make smart decisions. Managers armed with the tools and data to make well-informed decisions regarding employee compensation can respond quickly and ensure top performers are motivated to perform to the best of their ability. Offer training on how to make decisions that are in line with corporate objectives and how to implement an intuitive, easy-to-use solution so managers and employees understand the fundamentals behind pay decisions. • Focus on top performers. Compensation technology should be able to accommodate exceptions. Employees who make significant contributions to company success should be recognized for their efforts. In addition to variable pay components, think about alternative rewards such as “spot award programs” to motivate high performance when corporate guidelines do not allow for a merit increase. • Provide oversight. Compensation technology enables HR managers to provide feedback and have visibility into pay decisions. If exceptions are going to be made, the right technology can accommodate comments to ensure the decisions that drove those exceptions can be reviewed and validated. • Identify future trends. Compensation systems offer timely access to consolidated workforce data. Organizations can uncover trends and examine data for future implications at the employee and enterprise level. Trend data also can help companies paint a picture for employees to help them understand how their compensation relates to their career path. Yankee Group research analysts forecast a 19.6 percent growth in compensation management over the next several years as more organizations seek to develop a pay-for-performance culture and recognize compensation as the cornerstone of effective talent management. Industry research also shows that enabling consistent and standardized compensation processes can drive better individual and organizational performance. Further, by creating a deeper understanding of the connection between pay and performance, organizations can foster shared accountability and ensure business objectives are aligned with organizational goals. But they can’t do any of this without the right tools and technologies. More organizations also are starting to embrace compensation technology because of the strain on today’s HR departments. Over the last 10 years, the role of the HR professional has changed dramatically, becoming 35 November 2007

Table of Contents Feed for the Digital Edition of TM - November 2007

Talent Management - November 2007 Editor's Letter Contents Letters to the Editor Human Performance Leading Edge Learning Connections Viewpoint Finding Candidates with the Right Fit Turning HR Data Into Business Intelligence Compensation Technology: Drive Higher Performance, Gain Competitive Advantage The Art and Science of Influence Training the Ethical Workforce Making the Best Managers Application: Pre-Hire Testing Drives Down Employee Turnover at Advnace Auto Parts Dashboard: The Role of Learning Business Process Outsourcing Insight: Nationwide Insurance: On Employees' Side Advertiser's Index Editorial Resources Full Potential

TM - November 2007

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