Topic 5: Web based compensation and planning

Basically, compensation software has strong analyzing capabilities. It provides users with online reviews of various compensation reports that are pre-built in the system. Customized reports are also available to meet specific needs. Managers can view aggregated reports or drill down the reports by department, by work groups, or by individual. Users can conduct what-if scenario analyses and simulations in planning compensation budgets which improve the quality of strategic compensation decision making. (Liang, 2011)

I have learnt that there are various software in compensation and planning system. For example, PeopleSoft supports budgeting and salary planning by groups and allows multiple budgets. The systems include employee review functions to accommodate the needs of employee participation in the planning process. Roll-up budget reports and trend reports help executives to view overall compensation budgets. Managers can monitor total HR costs by headcount or by other user-defined factors.

Budget reports can review at all levels from individual’s jobs, pay grades, teams, department, to organization level. Interactive review gives users flexibility to get information that meets individuals’ needs. The system is able to perform compa-ratio penetration analysis by grade or job and to generate various legal compliance reports. (Global, 2011).Global payroll engine is a unique feature of PeopleSoft offering which enhances international payroll capabilities. It delivers predefined country specific compensation rules and offers extensive expatriate compensation management. Group build modules provide a centralized area of functionality that enables users to define a group’s membership based on any user defined criteria. This function facility the administration of team-based compensation plans.

Besides that, Oracle has provided some similar budgeting function such as supporting multiple budgets, reports rollups, and drill-downs. A unique feature of the Oracle product is the stimulate what if planning analysis. This function helps managers understand the consequences of various planning scenarios. The system can generate reports to track budget fulfillment.

In addition, My SAPHR support personnel cost planning and simulations. When planning managers can take compensation relevant data on organization objectives into account. Compensation budgets are generated based on input from line managers, accountings with integrated headcount planning capabilities. A centralized employee database is integrated with performance management, training, and staffing and recruiting and data are entered once and shared with all other relevant system.

With the web-based compensation software, an in-house job analysis is usually performed using an online questionnaire to collect information directly from employees, supervisor, HR and outside subject matter experts. After the surveys are administered, the software analyzes the data with pre-built statistical techniques and automatically generates a job description per job surveyed. Such job analysis is used as bases for job evaluation.

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References:

Global, I. (2011). Enterprise Information Systems: Concepts, Methodologies, Tools and Applications. USA: Information Science Refences.

Liang, X. (2011). Transforming Compensation Management Practices through Web-Based Enterprise Technologies. China: IGI Global.