TM - November 2007 - (Page 38)

recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning rewards across their organizations increases, whether those differences are local, regional, national or functionally derived. The Blinding Spectrum of Technology Options risks in terms of data privacy and security. Although more robust than Excel, Access requires a great deal of manual manipulation and inhibits users from accessing the most current data. Before other options were available, some organizations developed in-house applications to manage their unique compensation pay plans. These solutions often are expensive to build and maintain. Organizations can craft a solution tailored to their specialized plans and needs, but they must be prepared to dedicate valuable time and resources to get a solution up and running, which can take attention away from work that could affect business results. Further, should system developers leave the organization, they take their knowledge with them, leaving the company in a quagmire as it scrambles to maintain and upgrade the organic system. Best-of-breed applications, however, are designed to offer a truly comprehensive approach to compensation management. These systems are developed using intellectual property from multiple sources, best practices amassed from internal subject-matter experts and the latest technology advancements, resulting in lower cost of ownership. Organizations today have a spectrum of technology options to manage their compensation plans. For many compensation professionals, Microsoft Excel is still the main technology for focal compensationplanning activities. Today’s HR executive, however, has choices that range from the Excel standard to homegrown applications, best-of-breed applications and modules within an enterprise resource planning (ERP) system. Each approach has pros and cons, and the organization’s needs should dictate which option it pursues rather than the solution driving the organization’s business processes. Many organizations rely on Excel because the technology is pervasive, conveniently located on almost every desktop and fairly inexpensive. Employees don’t have to learn a new process or programming language, and most important, Excel does not require any IT support. The program is not without shortcomings, though. Users can store and analyze financial data, but Excel was not specifically designed for compensation management. Additionally, in Excel, mistakes in calculations or sorting easily can be made. This compromises data integrity, and by the time errors are uncovered, locating the source of the problem and fixing it can be painstaking. Best-of-breed applications, however, are designed to offer a truly comprehensive approach to compensation management. Inherently more flexible, best-of-breed applications can be configured to meet business workflow requirements and ensure the HR department’s technology needs are a priority. They also provide a streamlined approach and global visibility into compensation allocation. But because a best-of-breed solution can require systems integration to tie together business processes, it is important that the solution being considered have a solid technology infrastructure. A best-ofbreed vendor should have a proven record and portfolio of clients to demonstrate the solution can scale to meet organizational requirements. Organizations with traditional ERP systems can take advantage of suites of products integrated in a single solution such as talent management, benefits management, payroll and compensation-planning In a large organization, spreadsheets often are sent back and forth via e-mail in an ineffective attempt to collaborate and share information. It also can expose the organization to data-privacy and security-compliance issues. Further, Excel does not provide visibility into the compensation-planning process, which can extend the planning cycle. Microsoft Access is another tool organizations use to manage compensation, but like Excel, it wasn’t designed for multiple users, and it offers similar November 2007 38 talent management magazine www.TalentMgt.com http://www.TalentMgt.com

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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