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Yet most organizations store compensation-related information in a variety of systems. This causes issues, the research confirms, of which the most substantial is information scattered across silos.
BEND, OR, November 09, 2017 /24-7PressRelease/ -- Ventana Research today released its latest benchmark research, Total Compensation Management. Compensation management is a critical part of human capital and talent management processes. Determining and providing the appropriate compensation for each person, whether it involves base pay, merit or variable pay and incentives or bonuses, is critical to being able to attract and retain productive members of the workforce - full- or part-time employees, contingent workers and contractors alike. However, the complexities of compensation can make more it difficult for human resources departments to keep employees productive, satisfied and motivated, let alone paid equitably. Our research finds that almost half (47%) of organizations are making compensation equity a priority to ensure they are paying their professionals fairly across gender and race.
Ventana Research undertook this benchmark research to determine the attitudes, requirements and future plans of those who use compensation management systems and to identify the best practices of organizations that perform the best with it. We set out to examine both the commonalities and the qualities specific to major industry sectors and across sizes of organizations. We considered how organizations run compensation, issues they encounter in the process, and how their use of compensation management and related technology is evolving.
Almost one-third (32%) of organizations said it is very important to manage their performance and compensation processes using a total compensation management system, while an additional 40 percent said they view it as important. However, fewer than half of organizations (46%) said they are confident they're currently managing their compensation processes effectively, with most not have fully automated these processes or other aspects of compensation.
"Four-fifths of organizations said is important or very important to have a comprehensive view of information on all aspects of compensation, including not only base, merit and bonus pay, and executive compensation, but also benefits and variable incentives," said Mark Smith, CEO and Chief Research Officer at Ventana Research. "Yet most organizations store compensation-related information in a variety of human resources management, talent management and payroll systems. This causes issues, the research confirms, of which the most substantial is information scattered across silos of files and systems."
"Managing compensation effectively and integrating its supporting processes and information requires software. However, the research finds a relatively low level of satisfaction with existing compensation management software, with only one-fifth of organizations reporting they are satisfied. Two-thirds of organizations said the inadequacy of their systems is a barrier to compensation planning. And one-quarter of organizations said they are planning to evaluate a new software provider"
Those interested in learning more about this benchmark research can download the executive summary at https://www.ventanaresearch.com/benchmark/human_capital_management/total_compensation_management/executive_summary. Ventana Research, a leading business technology research and advisory services firm, provides qualified research participants with an incentive and complementary report, which includes both key insights and best practices from the benchmark research. Those interested in learning how to apply this benchmark in their business can see a full listing of services available at www.ventanaresearch.com/services. Ventana Research advisory clients have premium access to insights and education on benchmark research.
About Ventana Research
Ventana Research is the most authoritative and respected benchmark business technology research and advisory services firm. We provide insight and expert guidance on mainstream and disruptive technologies through a unique set of research-based offerings including benchmark research and technology evaluation assessments, education workshops and our research and advisory services, Ventana On-Demand. Our unparalleled understanding of the role of technology in optimizing business processes and performance and our best practices guidance are rooted in our rigorous research-based benchmarking of people, processes, information and technology across business and IT functions in every industry. This benchmark research plus our market coverage and in-depth knowledge of hundreds of technology providers means we can deliver education and expertise to our clients to increase the value they derive from technology investments while reducing time, cost and risk.
Ventana Research provides the most comprehensive analyst and research coverage in the industry; business and IT professionals worldwide are members of our community and benefit from Ventana Research's insights, as do highly regarded media and association partners around the globe. Our views and analyses are distributed daily through blogs and social media channels including Twitter, Facebook and LinkedIn. To learn how Ventana Research advances the maturity of organizations' use of information and technology through benchmark research, education and advisory services, visit www.ventanaresearch.com.
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