“A recent Gallup poll survey revealed that only 2 in 10 employees say their performance is managed in a way that motivates them to do outstanding work and 21% employees strongly agree their pay and incentives motivate them to achieve their goals”.
We quite agree to that but here is the catch – it’s a myth that compensation is only required for sales folks. I would like to demystify that myth for you because compensation management solution covers all the individuals involved in making your business a huge success like – HR, Operations, IT & even include outsourced business partners Collection Agencies, Verification Agencies, Marketing Agencies, etc.
Smart banks know that they need a solid, secure and transparent compensation management solution to make their workplace a happier one and to motivate their external stakeholders. Appropriately compensated stake-holders feel that the value they provide to the company is recognized and its benefits are shared.
Everyone desires to reduce their TAT in compensation disbursement, after all, DSA’s, collection agents, verification agencies, etc. are the most important pillars of a bank. Their satisfaction matters and it can be smartly achieved by designing your compensation structure in a way that’s accurate, quick and transparent.
Table of Content
- What do Millennials Need? Compensation or Better Salary?
- Can a Company Do Great Without a Compensation Management Solution?
- Factors to Consider to opt for the best Compensation Management Solution
- Go for an On-Cloud Technology Solution
- Determine Softwares Configurability with Existing Systems
- Assess Comprehensive Capabilities of a Compensation Management Solution
- Check if the Solution has Class-apart Communication Features
- Solution Should have Best in class Data Security to Manage Risk
- Ensure that the Compensation Solution is Accurate and Reliable
- Adopt a Comprehensive Solution Rather than just a Compensation Management Solution
- Choose the Next-Gen Solution with Artificial Intelligence and Machine Learning Capabilities
What do Millennials Need? Compensation or Better Salary?
In today’s scenario these are the benefits millennials wish for:
- Millennials (stakeholders) feel more empowered when they receive more benefits over a pay rise.
- More than 50% of US employees look for better perks and benefits before accepting any job
- Good compensation boosts the confidence of the stakeholders and motivates them to work harder and get rewarded.
- Sixty percent of employees rated compensation/pay “very important,” and 36 percent rated it “important,” making it the top contributor to overall employee job satisfaction
All in all, I believe compensation, when used as an incentive for excellently performing stakeholders, adds value not only in terms of money but also in terms of happiness in companies.
Can a Company Do Great Without a Compensation Management Solution?
Compensation calculation is a long and tedious manual process. To manage such large volumes of data and to accurately calculate compensation for all the stakeholders is a horrendous task. Hence the best way to go about doing it is by adopting automation. It can curb error and drastically reduce the risk associated with it.
So it’s best to go with a compensation management solution rather than calculating compensation manually.
Key Features to look for in a Disruptive Compensation Management Solution
With goals becoming so aggressive, competition becoming so fierce it’s important for you to choose the right compensation management solution. The market is flooded with options, so many of them to choose from but how do you zero down on that “one perfect” compensation solution? What are the key attributes and features you need to keep in mind before deciding on the solution to incorporate?
I know these thoughts are hovering on your mind, so I have compiled a list of top 8 things you should look for before purchasing a compensation management solution. Let’s dive in and understand them.
Go for an On-Cloud Technology Solution
The technology you invest in should be accessible 24/7 from any device and from anywhere around the world. On-Cloud compensation management solution is beneficial in the following ways:
- It is scalable – as your company grows, your compensation calculation portfolios will also increase. Having an on cloud solution gives you this elastic advantage with ease.
- Measured Costs – pay as you use is always very comfortable to opt for, instead of purchasing the entire architecture and incorporating it for your compensation plans this one proves to be more cost-effective.
- On-demand self-service – A web-based self-service portal acts as a vital interface to access cloud-based accounts and to make changes to it as required without any human interaction from the service provider.
Determine Software Configurability with Existing Systems
Any solution you choose should be compatible with your base infrastructure. It is not advisable to jump out of the box and adapt to a solution that is a complete miss-match to your existing systems, it simply will be highly unproductive in that case.
The best solution is the one that is agile and fits in just right without requiring you to make any changes in your business systems. Agility matters!
Assess Comprehensive Capabilities of a Compensation Management Solution
A very important question you need to ask – Does the tool support all the elements in your rewards program? Like merit and bonus pay, incentives, stock grants, benefits, perks, and commissions.
A good compensation should be able to incorporate all of the above and give you a holistic output like glazing compensation adjustments like Payout Hold-back, Claw-back of commission from prior months, Advance Payout, Deviations, Manual Adjustments, etc.
Check if the Solution has Class-apart Communication Features
Compensation solution should be able to showcase dashboards to managers reflecting their team’s performance and other matrix using best data visualization tools.
It should also be able to share the performance matrix with employees and other stakeholders ensuring transparency. This boosts confidence and helps the stakeholders know the direction they are heading in.
Solution Should have Best in class Data Security to Manage Risk
No compromises here, after all, your data is highly confidential and sensitive and it needs to be secured from all forces. The software you select should fall in line with the data security and accessibility guidelines. The software should be reliable, secure and should have incorporated stringent security features to ensure that data is not breached.
Ensure that the Compensation Solution is Accurate and Reliable
Accuracy is the key to having a successful compensation plan. After all the primary reason for you to switch to a secure compensation management solution is to eliminate errors and manage risk efficiently.
“According to Forbes – Various studies report that nearly 9 out of 10 spreadsheets (88%) contain errors. A majority of these errors were from human error (and could have been avoided). This article lists famous examples of spreadsheet blunders and how companies can avoid spreadsheet error in the future”.
Errors in compensation can ignite distrust in stakeholders and trigger a downfall. It proposes a great threat to your business. Therefore ensure you take trials and check its accuracy.
Choose the Next-Gen Solution with Artificial Intelligence and Machine Learning Capabilities
Only 35% of banks have adopted digital transformation – Capgemini Report. There are so many opportunities in this area to explore and the first movers will always benefit. So, if you are looking for a futuristic compensation management solution then choose the one with AI capabilities and be ahead in the race with competitors.
Big data analysis is done best with deep learning capabilities. Deep learning works to understand nitty-gritty like the behavior of an employee or a salesperson. It considers several out of the box factors before computing incentive compensation.
Are you ready to integrate a disruptive compensation management solution that meets all of the above criteria and more? Then you are ready for iNCENTIVO – A disruptive incentive compensation management solution exclusively designed for the BFSI domain.
Achieve a pathbreaking reduction in pay-out cycles by 87% with iNCENTIVO.