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FOR IMMEDIATE RELEASE
Wayland, MA - May 5, 2008 - Softscape, the global leader in integrated people management software, today announced new research that reveals a critical need for organizations to change their workforce compensation management practices. Ventana Research’s “Total Compensation Management: Establishing the Cornerstone for Workforce Performance Management” uncovers numerous impediments in current compensation processes that are motivating organizations to consider a more integrated approach. The most common problems were a limited alignment of performance to pay and the absence of an integrated software system for all aspects of compensation planning and management.
The report evaluates the maturity of compensation management technologies, explores what organizations can do to improve their processes and systems, and examines best practices in compensation management. For an executive summary of the report, including Ventana Research’s recommendations, please visit our analyst section of www.softscape.com.
While more than two-thirds of the 300 qualified human resources, finance, and operations participants in this research said that it is important to have a total compensation management system rather than a piecemeal approach, only 40 percent said they are confident or very confident that their organization currently manages its compensation processes effectively.
Many companies have information scattered across silos of systems and information repositories, and they often use inadequate spreadsheet capabilities to manage compensation processes. This situation makes it difficult for organizations to achieve their goals in managing compensation. The top two capabilities participants sought to have are being able to assess progress toward performance goals and to develop more robust pay-for-performance strategies.
“Total compensation management has become a powerful component of workforce performance management,” said Mark Smith, chief executive officer and executive vice president of research, Ventana Research. “Used properly, organizations can streamline their compensation processes and use the information they have to ensure optimal performance and gain full value from the talent of their workforce. Used optimally, it can even provide a competitive advantage.”
Softscape Enterprise Compensation, a key suite within the integrated Softscape Apex® human capital management platform, encompasses compensation planning and incentive management capabilities to simplify planning, modeling, budgeting, and analysis of compensation policies and motivate employees and manage financial rewards within an organization. The solution offers a fully configurable environment which enables organizations to build and deploy compensation plans that suit their workforces. Softscape Enterprise Compensation enables organizations to apply consistent and fair compensation plans to all employees, which is key to driving employee engagement. When tied to performance processes through Softscape Workforce Performance, companies are able to deploy true pay-for-performance processes.
“Managing compensation is not easy, and disparate compensation planning tools that do not integrate and cannot be audited or controlled effectively complicate the situation,” said Dave Watkins, chief executive officer, Softscape. “The key to success is integrating compensation initiatives into a complete pay-for-performance model that rewards performance to drive employee engagement and business results.”
Ventana Research will expand on the key findings of this benchmark research, and will offer advise on how to improve compensation management processes in a live interactive webinar, “Total Compensation Management: The Cornerstone of Talent and Workforce Performance Management,” on Tuesday, May 6th at 10:00am Pacific time.
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