THE DASHBOARD INTELLIGENCE SERIES

The Strategic Guide To Compensation Review & Planning:

Getting Compensation Right For HR

https://hrboss.com

WHAT

According to a survey conducted by SHRM, for most organisations including the Fortune 500, compensation averages nearly 70% of operating expenses. When so much is spent on compensation, it’s only natural for organisations to devote more time and manpower in making sure their compensation strategy is right: 1) that you are not over-compensating people and 2) you are not short-changing your best employees.

‘Compensation Review’ sounds like a simple concept but if you ask any line manager or anyone from HR, they won’t hesitate to tell you that the usual compensation review process is a hectic and time-consuming one. Why? Simply because the tools employed are often inadequate, making the review process far too complex and taking up much more time than it needs to.

No one wants to deal with an overly –complicated compensation review process…there must be an easier way so that we can quickly get back to work that is business-critical. If your organisation is spending more than 1 week on the compensation review process, its high-time you say goodbye to your archaic review methods and look into simplifying the process. In the next sections, we’ll explore the common hurdles when it comes to compensation management and how you can overcome them.

Compensation Review:

A review of payment and other expenses for services rendered to employees.

When it comes to organisational spend, employee compensation takes the biggest share of the pie.

Definition

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WHY

What’s more, one out of every four say that critical data is stored in 4 or more IT systems which makes compensation review an exhaustive, manual and time-consuming process with a massive administrative overhead.

Ask yourself these 5 simple questions:

1. How many employees do you need to plan salaries for?

As the total number of employees increases overtime, so does the time and effort needed to complete the salary review or planning process.

2. How many managers will be using the reports and which groups of staff are they responsible for?

The more managers you have to report salary information to, more separate files will be created. What happens if certain managers work in multiple regions – are you able provide the accurate information for these people?

1/3 of organisations lack a centralised system that can accurately define and track total compensation1

3. How much time is the compensation review process taking your organisation?

Is your employees spending too much time on generating reports and not focusing on other work that could bring more value?

4. Are you confident that you are keeping sensitive data such as an employee’s salary secure?

Who has permissions to this data? When reports are created and passed on from an employee to the next via email, how safe is it?

5. Do you have a visible, consistent and transparent review process to help the organisation make fair compensation decisions?

No matter which of the questions speak to you most, if you are looking to become more strategic about the compensation review process, your organisation must be able to overcome these hurdles. The compensation review process isn’t about poring over confusing spreadsheets or removing a manager’s focus away from his tasks.

1According to a survey conducted by Ventana Research

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HOW

EmployeeBoss’s plug-and-play Compensation Review Dashboard takes all the pain and disruption out of your compensation review process by providing you with the tools you need to strategically manage compensation at a global level.

With real-time information, you can be confident that you are making salary recommendations using the most up-to-date employee information. The dashboard also ensures an equitable process for compensating employees by encouraging consistency across all organisational salary reviews.

Make life easier and more productive for yourself, your HR and your managers.

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Get an at-a glance view of compensation distribution across Locations, Department, Job Level, Job Family or Job Role.

The filter widget on the right allows you to slice and dice your data in any way you wish so that you get real insights on your

organisation’s compensation make-up. If you wish to compare between selected locations (e.g. Vietnam & United States), toggle

the legend to hide or make the locations visible in just one easy click.

EmployeeBoss instantly recalibrates the dashboard to create your preferred view. Quickly and easily determine which

locations are paid least and where the fattest pay checks are given out.

Compensation distribution by Location.

5The Strategic Guide To Compensation Review & Planning: Getting Compensation RightThe Dashboard Intelligence Series

Compensation distribution by Department.

Select the Department tab to view the compensation distribution of your organisation by departments. Use the legend to customise your view.

Simply hover over the chart to get the most up-to-date compensation information. Instantly see which departments are contributing to the high overhead costs.

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Compensation distribution by Job Level.

The Job Levels tab gives you an overview of the compensation distribution by job levels.Decide what you wish to see by hiding selected job levels by clicking on the specific job level in the legend. Get quick numbers on the total number of employees within each compensation range, average annual

compensation and total compensation.

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Compensation distribution by Job Family.

Click on the Job Family tab to generate the distribution dashboard by Job Family. In this view, all the Job Family categories are visible. Simply click on any of the categories in the legend if you

wish to only compare between selected categories. Tell EmployeeBoss what you wish to see and EmployeeBoss automatically refreshes the visualisation

instantly to suit your needs.

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Compensation distribution by Job Role.

The last tab shows you compensation distribution by Job Role. By hiding all other job roles in the legend except roles associated with Accounting or any other combinations

you wish, you can get an overview of the compensation distribution in the entire function. Hover over any coloured bar on the chart to get more details on compensation related to the specific

category.

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Compensation distribution by Location and Job Role.

Click on the Comparison tab to visualise the entire compensation matrix in your organisation by Location and Job Roles on an easy-to-review dashboard.

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Here, we’ve selected an additional filter on Job Role > Network Engineer. This brings up the view of all Network Engineers in the

entire organisation by location. Now, you can select 2 points on the chart to make quick comparisons between Network engineers

in 2 locations (e.g Hong Kong and United States). You can do the same for any 2 points of interest on your dashboard.

Select any two points to make a comparison

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Choose if you wish to compare between quarters or years. The comparison box at the bottom gives you an overview of

compensation changes over your specified time period.

How many new employees have been hired?

How much did the average annual compensation grow by?

Is it worth the resources to hire someone as a Network Engineer in US or Hong Kong in the next quarter?

You’ll have the % difference for average annual compensation, number of employees and total annual compensation right at your

fingertips. Has compensation increased, decreased or remained the same…and by how much exactly?

Change in annual compensation

Change in number of employees

Change in annual compensation

12The Strategic Guide To Compensation Review & Planning: Getting Compensation RightThe Dashboard Intelligence Series

Data fields Field Type Source Systems

*Employee ID Text HRIS

*Employee Start Date Date HRIS

*Employee End Date Date HRIS

*Location Code Text HRIS

*Location Name Text HRIS

*Department Code Text HRIS

*Department Name Text HRIS

*Job Level Order Number HRIS

*Job Level Code Text HRIS

*Job Level Name Text HRIS

*Job Family Code Text HRIS

*Job Family Name Text HRIS

*Employee ID Text HRIS

*Pay Date Date Payroll/Finance/ERP

*Currency Code Text Payroll/Finance/ERP

*Total Earnings Number Payroll/Finance/ERP

*Converting From Currency Code

Text Payroll/Finance/ERP

This is aligned to your agreed conversion rate used in your organisation, wherever it lives.*Converting To

Currency CodeText Payroll/Finance/ERP

*Conversion Rate Number Payroll/Finance/ERP

Ready to see these dashboards in action?

How many data fields? 19 How many mandatory data fields? 19How many systems? 4

What is required:

Data marked with * are required data.

EmployeeBoss comes with pre-built Compensation Review dashboards ready to use from day 1…so all you need to do is import all the required data.

Here’s what you need to do:

Want more dashboards?Compensation Review is just one of the pre-built dashboards available, to explore all the other dashboards EmployeeBoss gives you, visit HRBoss.com

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With EmployeeBoss, you can make compensation reviews and planning a fast, easy and painless process.

Used and loved by leading organizations around the world.

Don’t just take our word for it.

®

Best Big Data SolutionStevie Awards 2015

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International Tech company of The Year

IBAs2014GLOBAL

Best Innovation 2015Best HR Service Providers

Greater China

“The workforce planning capabilities inside EmployeeBoss help us keep

ahead of the competition. It’s a secret weapon that sets us apart

from the competition.”

Christina H. Yasui, Head of Global HR, Adways Inc.

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Features of EmployeeBoss include: Dynamic Org Charts | Geo-spatial Maps | Reports & Dashboards | Workforce Planning | Recruitment & Vacancy Management

To learn more about the full spectrum of business problems EmployeeBoss help organizations around the world solve, email info@hrboss.com to schedule a live demo.

EmployeeBoss is the first big data analytics solution dedicated to solving problems related to the workforce. Taking business leaders from mess to success in just 5 easy steps: Import, Associate, Visualise, Plan and Execute, EmployeeBoss delivers workforce insights to help business leaders make informed workforce decisions without any hassles or high-cost.

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