Buyers guide: Compensation Planning Software

1 SPOTLIGHT ON COMPENSATION PLANNING SOFTWARE: BUYER'S GUIDE

October 2014.Published by E-reward.co.uk Ltd.All advice provided by e-reward.co.uk is for generalguidance only. Any readers relying on informationcontained herein do so at their own risk.

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SPOTLIGHT ON COMPENSATIONPLANNING SOFTWARE: BUYER’SGUIDE

CONTENTS

SECTION 1: WELCOME TO OUR SPONSORS . . . . . . . . . . . . . . . . . . . . 4Why has interest in compensation planning software increased markedly inrecent years?

SECTION 2: LISTING OF SUPPLIERS . . . . . . . . . . . . . . . . . . . . . . . . . . 6beqom

Curo Compensation

HWC

Mercer

SECTION 3: ROLE OF SUPPLIER . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14How would you implement your solution for a new client?

How long does a typical project take?

What are the typical implementation stages?

SECTION 4: PROS AND CONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17What are the main attractions of compensation planning software solutions?

What are the main drawbacks of compensation planning software solutions?

SECTION 5: GETTING IT RIGHT . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19When are these software solutions most appropriate?

The Do’s

The Don'ts

Advice on selecting a vendor


SECTION 1: WELCOME TO OUR SPONSORSThis directory lists the services and solutions offered by four suppliers represented at E-reward.co.uk’s seminar in Londonon 14th October 2014, Spotlight on Compensation Planning Software. We would like to express our appreciation to theseorganisations for the quality of their contributions and thank them for the time and trouble they took. Our sincere thanksalso go to beqom, Curo, HWC and Mercer for their support in developing this event.

Box 1.1: Summary of suppliers

Why has interest in compensation planning software increased markedly inrecent years?

BEQOM‘Most large enterprises are still managing very complex reward processes largely withspreadsheets or combined with in-house/ad-hoc systems. The data is not managed in onerepository and goes off-line for parts of the process making the process time-consuming andinsecure. Compensation is one of the largest spends a company has and their people are theirbiggest most important asset, therefore these processes are now being seriously considered interms of automation.

Complexity of each company’s processes made it a difficult area to automate but in the past fiveyears robust, flexible and functional tools have emerged to support compensation processeswithin organisations.’

CURO COMPENSATION‘It’s a critical and recurring process targeted at 70% of a company’s cost base (i.e. its people cost)and yet it’s managed on spreadsheets, with all the issues and concerns so well documented.Companies recognise the importance of ensuring the process is fair and transparent and they candemonstrate a strong alignment of pay and performance. There’s now a recognition that there isan alternative to spreadsheets that can massively improve the review process itself and delivervalue year-round.’


Organisation Contact Tel Email

1. beqom Trish Cosgrove 01628 648730 [email protected]

2. Curo Gerry O’Neill 07986 550 663 [email protected]

3. HWC Claire Bedwell 01392 445995 [email protected]

4. Mercer David Wreford 020 7178 5598 [email protected]

HWC‘With us living in a global market like we have never seen before, reward professionals need to bemore than just “the people with spreadsheets and numbers”. Compensation is no longer on its ownand should not be treated as such – both at a strategic and tactical level. Software helps tofacilitate this transition. People want the ownership of their data back.

In a global economy where the pressure around the war for talent is insurmountable, softwareenables reward professionals to keep pace with these ever-changing challenges. However, wemust be careful to ensure that we don’t just go from one extreme of silo behaviour to the otherextreme of reward professionals turning into transactional data entry clerks. Whilst systems mayhelp with efficiency and on the reporting and analysis of data, the question still remains whatshould be done with that data once it has been extracted. Insight and intelligence is still of theutmost importance, software alone is not the only answer.’

MERCER‘Legacy practices relating to compensation planning and management have been delegated andremain somewhat manual. This has caused inconsistencies in the way people are paid, resulting inwasted spend, employee retention risks and vocal dissatisfaction. Global organisations have beenbuilding better, stronger systems that better guide management decisions and drive greaterconsistency and better alignment to the organisation’s goals.’


SECTION 2: LISTING OF SUPPLIERS

BEQOMContact: Trish Cosgrove

Tel: 07733 328726; 01628 648730

Email: [email protected]

Web site: www.beqom.com

Company background

From its creation, beqom has been addressing the compensation management and reward needs of sales and HRorganisations with one application. For many years, beqom software has been used by sales organisations for salesperformance management (SPM) projects, covering both internal and external sales channels as well as by HRorganisations for employee performance management (EPM) projects, company-wide and very often globally.

Name of compensation planning software

beqom.

Profile of compensation planning software, including key applications,technology used and functionality

beqom’s total compensation platform provides the key processes of:

salary alignment•

bonus•

LTIP (including deferred bonus) •

incentive compensation management •

non-cash incentives.•

All functionality is provided using exactly the same engine, ensuring future-proofing should clients want to add additionalprocesses as well as guaranteeing scalability. The beqom platform offers ultimate flexibility and is able to adapt to itsclients processes. “Flexibility within a framework” also allows the set-up of a Global Framework, whilst still allowing forlocal/regional differences to be implemented.

beqom is built on Microsoft technology and is provided in the Cloud at any one of Microsoft’s Azure data centres.

Other compensation-specific solutions

None. beqom sells one solution.

Clients

Clients include: BearingPoint; BNP; Campari; Case New Holland Industrial; Fidelity International; Fujitsu; Microsoft; Paribas;Swisscom; Total; Vodafone.

Clients are managing employee populations from 500 to 100,000 employees.

Fees – typical charging structure/pricing

beqom pricing is calculated on the number of employees per process – e.g. 12,000 employees for salary alignment plus8,500 for the bonus process, or perhaps 30,000 ICM for a dealer network.


CURO COMPENSATIONContact: Gerry O’Neill

Tel: 07986 550 663


Web site: www.curocomp.com

Company background

Curo Compensation is a UK-based technology company in the compensation planning market. Curo has developed aweb-based (SaaS) application for controlling the annual salary and bonus review process within mid to large corporates.The product is global in nature and can be configured to reflect the simplest through to the most complex compensationstructures and rules.

Curo sells the product both directly and through a select number of leading talent management solution providers. Thesolution has been implemented for compensation reviews involving over 40,000 employees in 48 countries covering 35different currencies.


CuroComp.


Many organisations find the annual compensation review cycle to be exhaustive, manual, time consuming and with amassive administrative overhead. For many there is limited governance around the cycle, no audit trail and processes arepeppered with issues around version control and data integrity of spreadsheets. This often results in long hours, loss ofvisibility of progress and significant budget over-runs.

Once organisations have implemented CuroComp, their annual compensation review cycle is a much-simplified process,underpinned by fairness and transparency. HR and finance teams have both visibility and budget control, and the processis highly automated.

Organisations also have absolute confidence in calculations and the underlying data integrity. Rigorous governance isenforced in line with an organisation’s reward policies. Budget over-runs are eliminated or minimised. Levels of discretionin line managers’ compensation recommendations are controlled and consistency between line managers is ensured.


Application features

• Workflow controlled.• Fully configurable.• Multi-currency.• Powerful drag and drop reporting.• Visual dashboards.• Configurable UI and user experience.• Hard and soft rule creation.• Audit trail.• Completion monitoring and tracking.• Embedded compensation letters.

Technical features

• Entirely web-based.• Available 24/7, 365 days.• Proven, industry standard technologies: Linux, Apache,

Java, Tomcat, MySQL, multi-tiered infrastructure.• Role base access.• Separate production (Tier 3 Data Centre, ISO 27001

accredited) and DR stack.• High availability.• Future upgrades included as part of license fee.• Supports standard data interface protocols and the

export/import of data including SFTP feeds.• Single sign-on capability (SAML 2)• Data is all encrypted to a minimum of 128 bit SSL.

The solution supports business-wide needs, accommodates complex compensation rules and structures with multiplecurrencies and offers flexibility in reporting, modelling and analytics, whilst also complementing existing processes andsystems. It also reduces time spent on data collection and manipulation and removes a common issue with organisations– that of “key-man” dependency. As it is implemented through configuration, this future proofs the solution toaccommodate changes in subsequent years – for example, budget, approval hierarchy and changes to compensation rules.

Additional benefits that companies gain from using CuroComp include:

Consolidation of compensation and compensation-related data in one place – single source of the truth.•

The ability to report against this data throughout the year – for example, bonus accruals, REMCO and budget•forecasting.

Ongoing pro-ration calculations throughout the year. •

Curo’s implementation consultants are compensation experts with years of practical experience who understand “howreward works” and technical experts on the solution.


None. Curo sells one solution – CuroComp.

Clients

Clients include: BSI, BUPA, Clifford Chance, Digicel Group, Eversheds, Friends Life, Fujitsu, GAM, London Stock Exchange,Markit, Old Mutual Group, SMBC and T-Systems.


Fees are a combination of implementation and license fees:

Implementation fees are based on level of effort to configure – i.e. complexity of compensation rules, processes and•data quality – and a daily rate. Once the scope is agreed, the price can be fixed.

License fees are rate-card driven. Per employee per annum fees apply, dependent on what compensation components•are included – salary, bonus and share awards.

Finally, there are fixed fees for single sign-on and for an SFTP data feed from a core HRIS system.


HWCContact: Claire Bedwell

Tel: 01392 445995


Web site: www.hwcltd.com

Company background

HWC specialises in designing and building bespoke software solutions for companies in the areas of:

Reward and remuneration – planning, implementing and modelling of all aspects of reward.•

Performance management – setting, monitoring and tracking of performance goals and objectives, including their•link to performance-based pay.

Talent management – facilitating the attraction, retention and motivation of a company’s talent pool.•

Seamless integration of the above all in one place.•

If clients prefer, HWC assimilates any existing platforms and processes and integrates them into one seamless service. Itsbespoke compensation solutions focus on the planning, implementing and modelling of all aspects of reward, includingbase pay, bonus arrangements, equity management (long-term incentive plans and share option plans) and otherbenefits/perks.


Each bespoke software solutions is co-created with a client and is therefore unique; the name included. Following anyexisting brand guidelines, the name of the solution will therefore be decided by the client based on the aims andobjectives of the system and the target audience.


Typical functionality may include some or all of the following:

Base pay: Functionality can include salary review processes, incorporation of benchmarking data to use in•comparisons between job roles, pay modelling, pay grade structures and pay progression.

Bonus and benefits: Solutions provide both an annual bonus arrangement nomination to approval process, as well as•the facility to record other discretionary cash awards and any other employee benefits.

Equity management: Whether restricted stock or stock option awards, bespoke functionality can include a full•nomination to pay-out process, while also handling employee election choices and the associated share dealingactivity.

Employee engagement: Solutions aid clients when communicating reward to their employees – e.g. by demonstrating•how a company’s remuneration policy is linked to the success of the business through the balance of short- andlong-terms incentives via fixed and variable pay components. It also helps clients communicate how theirremuneration policy is competitive in the global talent market.

Reporting and analysis: Solutions offer a full suite of reports – whether template or custom. There is the facility to•scenario plan, carry out budget and forecasting calculations as well as regulatory reporting requirements. Reportingneeds are just as organisation specific as process requirements. Client reports created in the past have ranged fromtotal remuneration statements (as snapshots, date specific or dynamic), director reporting in line with the ever-changing governance, and award certificates to forecasting reporting and benchmarking analysis. Ultimately, thesystem is there to provide efficient, accurate and useful outputs.


Permissions: A read/write control system allows for flexible system usage from one or two users through to large and•different user groups with varying permission levels, such as allowing access for operating company representativesof subsidiaries.

HWC’s clients are an integral part of the design process and as a result, the systems it designs and builds do not conformto any generic framework: everything is there for a reason – there is no redundant functionality.

HWC chooses not to compete in the high volume market, so the technology is there to support clients, not to dictatetheir system specification.

This also means that there is flexibility with the technology used as well as security and data integrity and encryptionrequirements. Industry standard levels will be applied as a minimum, however, if enhanced system and data securityprotocols need to be followed, or a particular technology used to adhere to company guidelines, then this is all possibleand treated as part of the requirements gathering phase.


HWC’s additional talent management and performance management functionality can include some or all of thefollowing:

Jobs and competencies: HWC specialises in creating job and competency frameworks to facilitate activity such as job•analysis, job documentation, job evaluation, reconciliation of internal and external considerations and job worthhierarchies.

Performance management: Solutions encapsulate the setting, monitoring and tracking of performance goals and•objectives, including their link to performance-based pay.

Talent management: HWC’s talent management software focuses on facilitating the attraction, retention and•motivation of a company’s talent pool.

HWC liaises with clients and helps work out what their issues are and co-creates the solution together. This can involvemost of the above, none of the above or a mixture of new and old – its expertise is helping clients to work out the bestsolution to meet their needs, both now and in the future, and then implement it for them.

An example of this is a company that was happy with their existing providers in the different remuneration componentsbut was looking for a “jigsaw” piece in the middle that enabled it to link everything together under one branded umbrella.It wanted the solution to feel more company branded and part of one, cohesive offering rather than separate, siloedpackages. So there was no need to replace existing providers who were expert in their area; rather a solution was designedthat sat in the middle of them all and fed out and into these separate systems – helping to create a more consistent andengaging user experience.

Clients

Clients include:

World leader in marketing communications services – 175,000 employees in 100 countries worldwide.•

World’s leading telecommunications company – 90,000 employees in 30 countries worldwide.•

World’s third largest private oil and metals trader – 9,000 employees in 58 countries worldwide.•

For these clients HWC designed, built and administered bespoke compensation technical solutions to facilitate thefollowing:

Global All Employee Base: share scheme solution for managing over 130,000 participants; online exercising for•15,000 participants; online granting for 50,000 participants; translated into four additional languages; five differentaccess levels with bespoke functionality.

Senior Executive Talent Base: total reward solution for managing top tier talent pool (irrespective of the numbers);•tailored nomination functionality and reporting for all salary reviews, bonus allocations, benefits administration,equity award allocation; online granting/award allocation; online vesting/exercising; third-party reporting exports;


templated and customised, bespoke reporting (including report builder); director remuneration reports and othercompliance requirements; total reward statements; side-by-side comparisons, flexible permissions system.


Each solution is completely unique from the next so a typical charging structure is difficult to provide. There is usually acharge for the Detailed Requirements Stage, which may or may not be included in the overall system set up (this willdepend on how the client wants this structured). Then there is the solution build and deployment cost itself – this isusually split across the system build timeframe with final charge being on system deployment, however HWC is alsoflexible in discussing clients’ preferred payment structure options as well.

A monthly fee is charged to cover the use of the system and ongoing relationship. There are no licence fees, so having20,000 versus 2,000 users or employees in the system will not affect the ongoing charge, only the functional andtechnical requirements of the system and the level of involvement HWC have in the client’s processes, will impact on theongoing charge.

Additional development work may then be included in the amount being paid monthly, or if large-scale changes, will bequoted for and charged separately.


MERCERContact: David Wreford

Tel: 020 7178 5598


Web site: www.imercer.com/content/mercer-technology-solutions.aspx

Company background

Mercer is a global consulting leader in talent, health, retirement, and investments, helping clients around the worldadvance the health, wealth, and performance of their most vital asset – their people. Mercer has more than 20,000employees based in 42 countries.

As part of this goal, Mercer’s Talent Impact™ Technology Solutions Portfolio helps clients resolve their most critical talentissues combining the power of consulting expertise, market information, and streamlined technology.

Mercer has a number of comprehensive compensation-specific management tools with powerful analytics that enableorganisations to align their compensation plans with current and future objectives.


Mercer WIN Advanced IPE.


Simple, off-the-shelf tool that takes the capabilities of Mercer WIN | Core (delivery platform for all Mercer market data)to the next level by introducing integrated job evaluation, benchmarking and analysis capabilities:

Provides the ability to evaluate jobs and maintain an online library of evaluations for analysis and reporting. •

Incorporate your current employee and job data, along with data from other survey providers with the Mercer market•data.

Benchmark your jobs and employees to establish a comprehensive view of your workforce and your market•competitiveness.

Results can be accessed, managed and shared across your organisation to simplify decision-making and•communication.


Mercer provides a broad and comprehensive range of reward-related solutions to help its clients:

Structure and plan compensation structures and programmes – Mercer WIN ePRISM.•

Manage expat employees – AssignmentPro.•

Form a forward view on market pay movements – Global Compensation Planning Report on-line.•

Engage with employees – MercerBelong.•

Monitor and manage global benefits – MercerGold.•

Understand the relationship between demographics, programmes and business results – Mercer Analytics.•

Help managers make informed reward and talent decisions – Human Capital Connect.•


Clients

More than 1,000 organisations globally utilise IPE and Mercer’s related technologies.


The system is hosted and users configure it to their needs. Some clients seek help in this process and these fees dependon the degree of support requested.

Consulting and services are an additional cost. The prices in this table are for the license and technology. IPE methodologyconsulting services, eLearning, product training, and Mercer WIN setup services are an additional cost.


FTE count <500 501-2,000 2,001-5,000 5,001-10,000 10,001-15,000 15,001-25,000 25,000

USD $2,500 $5,000 $7,500 $10,000 $15,000 $20,000 $25,000

EUR €1,800 €3,700 €5,500 €7,300 €11,000 €14,700 €18,400

SECTION 3: ROLE OF SUPPLIER

How would you implement your solution for a new client? •

How long does a typical project take?•

What are the typical implementation stages?•


beqom

Curo

HWC

Mercer

There are three key areas to ensuring a successful beqom implementation:

• Data integrity – concise clean data from a clients core/source systems.• Functional design – scoping workshops agree platform framework.• Reporting – total compensation statements; manager/HR stacks; executive

packs.

Clients have the choice of working with beqom’s consultants or choosing one ofour specialist partners. Our team work closely with the client right through to andbeyond go-live. However, our goal is put the beqom platform into the hands ofthe business.

There are four key stages to implementation:

1. Plan and design.2. Configure.3. Training and testing.4. Go Live.

We drive the process with the client. Curo uses standard project planningprocesses and documentation and manages the end-to-end cycle. Regular weband face-to-face sessions are diarised in advance and documentation maintainedthroughout the process.

As all of our solutions are different, the exact process from initial discussion tofinal implementation will vary considerably. However, we usually adhere to thefollowing process by principle, knowing that we are flexible to changesthroughout:

1. Initial requirements discussion.2. Proof of Concept and initial bracketed costings.3. Client procurement process.4. Detailed requirements stage.5. Production of detailed requirements specification, including detailed costings

and timescales.6. System build.7. System testing and user acceptance testing.8. Deployment.9. Training.10. Ongoing support and business intimacy.

During all of the above steps, we try to ensure that the client contributes just asmuch as we do. This is all to ensure that everyone is working towards the samegoal right from the start.

Mercer works with its clients on implementing and tailoring the solution to theirneeds, as well as providing ongoing support.AD

VICE

How would you implement your solution for a new client?

How long does a typical project take?


beqom

Curo

HWC

Mercer

Due to the nature of the reward cycles of each client, beqom works alongside theclient to ensure a return on investment is delivered as soon as possible. Someimplementations have taken been rolled out in three months, others have takenlonger.

Clients should plan for three months elapsed time for implementation. Actualtime will depend on the complexity of their compensation processes andavailability and quality of their data. We have had some clients live in as little assix weeks.

As each of our solutions is bespoke, so therefore is the timescale. We wouldnormally advise a minimum of six months, even for the most “simple” solution.

A complete WIN Advanced IPE implementation typically takes four to five weeks.This timeframe excludes potential job evaluation work.AD

VICE

beqom

Curo

1. Requirement and design.2. Data integration.3. Application initialisation.4. Client processes (SA; Bonus; LTIP etc).5. Hierarchies.6. Security.7. Cloud infrastructure.8. Unit and Integration test.9. User acceptance testing (UAT).10. Project management.

ADVICE

What are the typical implementation stages?


HWC

Mercer

1. We usually start with an initial chat about what the client is looking for – thisoften involves us helping them to work out what their requirements are byalways starting with the outputs, never the inputs.

2. We then produce and discuss a “mock up” or “proof of concept” in basic formto showcase how HWC could best help them achieve their aims andobjectives. At this time, we will also be able to give very approximate costingsand timescales based on the proof of concept produced.

3. If the client likes what they see, then we may have to go down theirprocurement process. This will be completely unique to each client. However,even if there is not a set procurement process to follow, the stages we wouldrecommend on pursuing next are in principle very similar.

4. We then enter the Detailed Requirements stage. We ensure that we speak torepresentatives of each user level, all stakeholders and we also ensure that allIT and security requirements and protocols are understood in detail.

5. This enables a detailed requirements specification to be produced to ensurethat the client knows exactly what they would be receiving were we toproceed to the actual build stage. Depending on the complexity of theproject, we sometimes find that charging separately for the DetailedRequirements stage enables full costings to be more accurate for the actualsystem build itself. It also helps to split out “must haves” from “nice to haves.”

6. On entering the actual system build stage, we absolutely do not “go dark”.Collaboration in the build stage is just as important for us as in therequirements gathering phase. Iterations of the system build are shown anddiscussed with the client to ensure we are along the right lines.

7. The client is fully involved in the user acceptance testing part of the process.8. A full deployment plan is produced and agreed with the client.9. A full training plan is produced and agreed with the client. Whilst it is always

a goal of ours for system prompts, user manuals and training requirements tobe at a minimum (the system should be intuitive for the user), we also firmlybelieve in guiding our clients through the initial launch and subsequent use ofthe system.

10. We do not then disappear. We often help clients with different administrativetasks when their resource requirements need it and we are in continuouscommunication with them to check the system and its functionality is still fitfor purpose.

This depends on the technology.ADVICE

SECTION 4: PROS AND CONS

What are the main attractions?•

What are the main drawbacks?•


beqom

Curo

HWC

Mercer

✔ Transparency.✔ Consistency – all users access the same data.✔ Traceability, data remains secure.✔ Error reduction.✔ Easy to report.✔ Mobility management.✔ Role-based access to data.✔ Management of multiple hierarchies.✔ Approvals governed and tracked.✔ Workflow – automated process.✔ Auditability – date and time stamped.

✔ Real-time control of the process.✔ Confidence in the data.✔ Fairness and transparency.✔ Alignment of pay and performance.✔ Consistency between line manager recommendations for the same level of

performance.✔ Staying within budget.✔ Truncating the timelines and effort involved in the annual review.

✔ Increase efficiency.✔ Increase accuracy of data.✔ Access and widening of access to own information.✔ Reward team members can focus more on what they are paid to do, rather

than be over-qualified data entry clerks.✔ Ability to report and analyse data quickly – this is of such great importance in

the “global talent war”.

✔ Better costs and risk management.✔ More efficient and therefore cheaper process management.✔ Reduced noise from employees.✔ At the heart of this is the need to get a sharper focus on what “right pay” looks

like. This requires a clear strategy/principles and great tools to effectivelyinterrogate market data.ADVICE

What are the main attractions of compensation planning software solutions?

What are the main drawbacks or potential stumbling blocks?


beqom

Curo

HWC

Mercer

✘ Cleanliness of data (can always be overcome).✘ Key stakeholder buy-in.✘ Implementing to accommodate the annual cycles.

✘ Long sales cycle.✘ Involves companies spending money, when spreadsheets are free.

✘ Finding software that is right for a company’s specific needs. Even working outwhat is needed both now and in the future can be a challenge in itself.

✘ Demonstrating return on investment (ROI) can make it difficult to sell the ideaof a new system to a purse string holder, especially when system or not, theywill usually get the information they need. They just may not be aware of howmuch like a duck analogy it really is to produce the information they require,i.e. streamlined on the outside, but flapping like crazy underneath it all!

✘ A company’s own internal procedures can put people off from implementingcompensation software – whether this is a bureaucratic and time-consumingprocurement process or a unapproachable IT department.

✘ The choice of suppliers can sometimes look like most are saying the samethings just with slightly different words. However, once you scratch the surfaceand compare solutions against your own needs, you will find that they areactually very different.

✘ Most systems are complex to implement and manage.✘ Can create an internal industry around compensation planning and

management – this might be fine for larger, global, more centrally-governedorganisations but might actually be a distraction for others.

✘ Technology needs to align to the governance structures in larger organisations– some local participants in global compensation management resist theimplementation of global systems as they are concerned that it might diminishtheir influence rather increasing their efficiency.AD

VICE

SECTION 5: GETTING IT RIGHT

When are these software solutions most appropriate?•

The Do’s•

The Don’ts•

When are these software solutions most appropriate? How can organisationsassess whether the circumstances in their business are favourable orunfavourable for their implementation?


beqom

Curo

HWC

Mercer

If an organisation has some or all of the below:

● fairly complex processes ● volume of transactions● requires auditability● requires automated workflow● wants to minimise errors● wants to save on time and costs● wants to provide transparency to its employees/managers● help finance to accrue accurately● simulate plans to see impact on costs● change plans/schemes quickly and easily ● key man dependency.

They should consider a new tool.

If an organisation can:

● manage the processes easily● not very complex● low volume● few errors

Maybe a tool would be overkill.

These solutions are appropriate if their current comp review process:

● Is spreadsheet driven (200 to 300 columns are not untypical), insecure, datalimited, manual and inefficient.

● Involves multiple cycles with “key man dependency”.● Lacks governance.● Has a high risk of budget over-run.● Is exhaustive and time consuming, with a high administrative overhead.

● When the benefits outweigh the potential drawbacks!● Quite often the brand could be outwardly manifesting and displaying the

company’s values to its customers, but it needs to be aware that if this is notmatched inwardly across all facets of the company, then it will be found out. Acompensation solution can often help to contribute to achieving a company’smission statement more than you might think.

● If you demonstrate how it contributes to the overall business strategy, then thisis a perfect time to consider implementing compensation software.

● If you really believe your chosen supplier is truly on board with your aims andobjectives and is committed to the achievement of these in the long term, notjust in the contract negotiation stage, then this is a good position to be in andthe time is probably perfect.

They are particularly strong where organisations are looking to increase theirglobal insights and sharpen their view on competitive pay. This is fundamentallybaked into the way they benchmark and their ability to evaluate and then pricejobs, often from multiple data sources. This is the bedrock of the compensationplanning and management process.

Other functionality to build salary structures, model/plan for the pay review andengage with managers in guiding their decisions is nice-to-have.AD

VICE

Suppliers’ advice to organisations thinking about implementing compensationplanning tools


beqom

Curo

HWC

Mercer

Do

✔ Pay close attention to functionalityrequired and available from suppliers.

✔ Ensure that your team will be availableto work closely with the supplier.

✔ Have a stakeholder who will take finaldecisions and sign-off.

✔ Think about future state.

Do

✔ Take a look at the products out in themarket and see the art of the possible.

✔ Document requirements.

Do

✔ Make the decision on what is right foryour company – don’t be swayed bywhat others are doing.

✔ Pick a supplier as a collaborative partner– working with mutual trust for a long-term, intimate business relationship; nota quick-fix solution provider.

✔ Involve all parties, whether direct orindirect, as early as possible in theprocess.

Do

✔ Think about the process/outcomes first– technology is the enabler.

✔ Find the off-the-shelf before goingbespoke – it’s probably out there.

✔ Give time to implement.✔ Understand user issues and

requirement.✔ Specify exactly – and don’t over-specify

– and in advance ofdevelopment/configuration.

✔ Understand the need to/benefit ofconnecting your technology – if it’s notalready integrated.

Don’t

✘ Dwell on current state.

Don’t

✘ Believe everything you hear from thesales guys – seeing is believing.

✘ Take their word for it – get providers todemonstrate functionality.

Don’t

✘ Just do it because everyone else is.✘ Compromise on functionality.✘ Be fooled by the “yes man” supplier.✘ Let a name be your deciding factor.

Don’t

✘ Do the opposite . . . (of the Do’s).

ADVICE

Suppliers’ advice on selecting a vendor


beqom

Curo

HWC

Mercer

● A solid track record of delivering happy customers.● A roadmap for development.● A focus on compensation.● One you feel comfortable working with.

● Examine the depth of functionality of the product.● Configuration versus customisation.● Investigate the quality of their clients, and go talk to them.● Assess the degree of compensation and reward knowledge at the supplier and

whether they have people with practical experience of running comp reviews.● Do you have the ability to influence their development roadmap?● Ensure there is chemistry with their implementation and support team.

● Work out the type of relationship you want with your supplier from the outsetand bring this criteria into the decision-making process.

● Ensure that you trust the supplier.● Ensure they fully understand what you are trying to achieve – both now and in

the future.● Do they help you try to visualise not only what six months might look like from

now but also 18 months. ● Remember the Ronin principle: “if there’s doubt there is no doubt”!!

● Whilst the technology functionality is important, buyers also need theassurance that the supplier understands the compensation planning andmanagement process from their perspective.

● Complete compensation management is more than just technology – itinvolves data, structure/design, engagement/communications etc. AD

VICE

Business

Buyers guide: Compensation Planning Software