Compensation Productivity Tools
Week 3: Compensation & Benefits 2
Introduction
Now being several weeks since our tele-communication company Compensation
Manager (CM) asked me to provide recommendations on automated compensation
tools. Being as large as our company it’s imperative we start working smarter and
efficient. Especially since the wave of technology in HRIS adaptation. Our current
HRIS software is well used and acceptable among our peers and employees, however
with the initial adaption and software upgrades of Peoplesoft the program is lagging
Compensation reports. The compensation department and analysts within are still
having to spend a lot of time in compensation management of maintaining, comparing
and tracking compensation data. Yearly the compensation administration has sought to
condense avenues of their data from salary surveys, comparing benchmarking jobs and
expanding salary ranges. The CM has now asked me the Human Resources Manager
to provide market research recommendation on HRIS compensation outsourcing
companies that can assist with the automation of our company needs. As I awaited in
the conference room, I began looking over the market research proposal and RFI/RFP
received from two of the top compensation companies. The two companies I selected
were Corporate Compensation Partners LLC. and Harvest HCM. Both companies were
noted on the SHRM vendor directory and are top rated and have positive reviews from
their clients. The conference room door opens and the Chris Greone our Compensation
Manager walks in as we exchange greeting, I conveyed to Greone the appreciation
towards being asked to gather the information and make recommendation as it had
been a long time since I made a recommendation of HRIS software or outsourcing.
Within the context of this paper I will share the strategic roles of the automated
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Week 3: Compensation & Benefits 3
compensation tools, the integration of such tools into our HRIS, along with both
companies’ compensation products and services with my recommendations.
Compensation Philosophy
As a multi-million global tele-communication company with 15000 employees in
various roles and responsibilities our company compensation philosophy is essential
has been our benchmark towards attracting, motivating and retaining talented
employees who drive our company’s success. Our company compensation
administration supports the mission and values. We believe our compensation program
is a management tool that align with industry standards, supports, reinforces our
number resource, our employees. It is our intention to use a competitive system to
determine the current market value of a position based on the skills, knowledge and
behavior. We have strived to provide the base salary that meets the market (50th
percentile) when employees are fully proficient. In addition to the base salary we utilize
incentive or variable pay to meet the strategic goals of the company to include executive
compensation, promotional increases, bonuses and merit increases. The overall
compensation system is objective and non-discriminatory.
Compensation Tools/Automation
Our compensation team has been instrumental in implementing the compensation
philosophy into action through various utilization tools. Such utilization compensations
tools included the following:
salary surveys
salary ranges
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Week 3: Compensation & Benefits 4
salary forecasting and budgeting
Theses tools have been utilized by our Compensation team down through the years
however with the rapid growth of US operations we are exploring automation of these
tools towards efficiencies’ in US operations and integration into our HRIS. The
compensation utilizations of these tools have been the integral puzzle piece of our
company success to attracting highly qualified candidates while retaining and motivating
top performing employees. For example, the salary surveys provide market data on
wages based similar positions within the industry. The salary data is constantly
changing due to the growing supply and demands in the job markets. Our company
analysts have been utilizing the comprehensive salary information from the Bureau of
Labor Statistics (BLS).
The salary survey data also helps with defining our company salary ranges. The salary
range is the range of pay the company is willing to pay to employees for performing job
function (Heathfield, S., 2019). The ranges are set up through a minimum, mid and
maximum ranges of pay amounts and determined by market pay rates/studies doing
similar industries in the same region of the country (Heathfield, S., 2019). Salary
forecast is also an essential puzzle piece in the compensation administration utilization
tools that is currently being used by our team. Forecasting and budgeting is contingent
on our company business performance, labor cost and workforce movement and
operations. Through the various US locations our team reviews salary increases within
market adjustment, cost-of-living and performance-based increases. The ability to
forecast and budget promotional increases along with incentive pay for top performer
has become an evolving and strategic role within our compensation team utilization
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Week 3: Compensation & Benefits 5
tools. Currently our compensation team have been utilizing market research data from
various reliable sources and maintaining data in company SharePoint drive. The data
has been piling up throughout the years and maintained through the compensation
team. With the current and projected company growth within the next two to three years
it has been determine in order to maximize company compensation administration
towards automation of these utilization tools. Our company strategic compensation goal
is the effective utilization of compensation tools in the following areas:
Competitive positioning
Defensible decisions
Legal compliance
Dependable data
Investment Protection
These five areas will assist our compensation team in avoiding costly mistakes and
taking advantage of compensation resources and tools (Toman, R., 2019).
As I shared with the CM one of the primary areas needed for this operational project
would be the integration of our company HRIS. As a critical factor in the company
operations the compensation tools must be compatible. Secondly the automation of the
tools would have to eliminate company risk of data begin skewed, human error and any
future risk of litigation towards disparities and wage discrimination. The good news I
shared with CM was that I found multiple outsourcing compensation consulting
companies that could provide the compensation tools as a service and/or design a
software program connected to our HRIS as a data source. From my initial RFI I
received multiple companies’ proposals, however, will share the top two proposals. The
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Week 3: Compensation & Benefits 6
two compensation companies are similar alike however have a variety of enhancing
compensation tools and services. The top two companies for proposal are Corporate
Compensation Partners LLC. and Harvest HCM. Within the next area of this paper we
will review these two compensations companies and their tools as discussed with the
CM.
Recommendations
Corporate Compensation Partners LLC (CCP) is a compensation management
consulting company that partners with companies in compensation advisement and
services. The company was founded in 2004 by current company President Rodney
Cottrell in Pittsburg, PA. The company specializes in compensation analysis, diagnosis,
and design. There services also include:
Executive Compensation
Bonus Plans, Incentive Plans, and Sales Plans
Job Evaluation
Company Policies, Practices, and Salary Structures
Director Compensation
Non-Profit Compensation
Compensation Salary Surveys through our survey division EHResearch Data
Services
CCP is highly recommend through client reviews and can ensure seamless of operation
of salary data integration.
Harvest HCM
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Week 3: Compensation & Benefits 7
Harvest HCM is a full-service HR solution consulting company providing and supporting
HR processes. Customized software and compensation advisement can be tailor made
for HRIS integration. There services also include:
Merit, Bonus, Stock, Equity and Other Types of Variable Pay Programs
Real-Time Data and Reporting
Approval Workflows
Automated Communication
Custom Dashboards and Reports
Integrates With Any HRIS, ERP, Financial or HCM Suite
Simplify Management Complexity and Save Time
The integration of the Harvest HCM is a cloud-based technology compatible with
integration with HRIS.
Conclusion
With the above recommendations I highly suggested to the CM to review the detail
RFPs’ as other pivotal information is included along with the company credentials and
affiliations. Since at this point no reduction of force or position elimination within the
compensation team is being considered both compensation companies’ services
enhanced compensation tools would be compatible for HRIS integration.
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Week 3: Compensation & Benefits 8
References
Heathfield, S. (2019, June 25). How does a Salary Range Work. Retrieved from
https://www.thebalancecareers.com/how-does-a-salary-range-work-1918256
(n.d.). Retrieved from http://www.corporatecomp.com/company.php
(n.d.). Retrieved from https://www.harvesthcm.com/compensation-management/
Torman, R. (2019, September 16). Five Reasons You Need a Salary Survey. Retrieved
from https://www.pearlmeyer.com/knowledge-share/article/five-reasons-you-
need-a-salary-survey
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