Back in 1979 when VisiCalc, the first spreadsheet, was released, data collection and analysis was changed forever. The spreadsheet was a life saving tool used by many for purposes such as calculating students grades, tracking financial budgets, and eventually, compensation management.
Now 43 years have passed and although spreadsheets have great value – time has revealed that they are not without their pitfalls. Studies have shown that 9 out of 10 spreadsheets are flawed. Why risk storing high importance data in a manner that more often than not ends in error?
Specialized software has taken the place of spreadsheets in many different areas as the development of better tools means less square pegs in round holes. Fortunately, HR professionals are among those that have better options available to them today. Compensation management software provides a solution to the many drawbacks of using Excel for compensation.
Compensation management tracked and calculated in spreadsheets is still all too common and honestly, a major issue. Continue reading to explore some of the major issues in more detail.
1. High Error & Security Risk
While many professionals may be Excel experts, highly trained in navigating their way through a spreadsheet, it is easy even for them to make a minor error that can cost their company millions. When staring at a spreadsheet for hours manually feeding in data, human error is bound to occur, be it a minor typo, copy and paste error, or neglecting to press save, even the slightest mistake can have exponential, detrimental results. Errors can range from underpaying employees to inaccurate incentive disbursements and statements, which not only means financial loss, but also loss of employee trust.
Researchers have also unveiled a major vulnerability issue that comes with the use of spreadsheets for confidential data. Employees may accidentally send emails to the wrong person, by clicking reply all for example. If an offline file or a link to a spreadsheet is put in the wrong hands, a company can be faced with a serious security breach. Once a spreadsheet is out there, the creator loses all control and it is easy enough for anyone to view confidential data or even alter any numbers. Excel spreadsheets are at risk of being tainted by hackers outside of the company using the PowerQuery tool which allows them to tap into the sheets and embed content and malware into the device of the spreadsheet owner.
When you choose to use compensation management software, for compensation management planning and data analysis, all risk of human error and security breach disappears! Risk of error goes from nearly 90% with spreadsheets all the way down to 0% with a dedicated system.
2. Time is Money
I know what you are thinking, Excel is free, how could it possibly be less cost effective? While it is true that access to manual spreadsheet templates may come without a cost, it is the countless hours your employees are spending tediously entering, checking, collecting and configuring the spreadsheets that drains your budget. According to SmartSheet, 4 out of 10 employees waste a quarter of their work week on spreadsheets. The research also shows 59% of those workers stated that by switching to an automated system they would regain at least 6 hours per week to put towards other tasks. Now think about how much you are paying those four employees, how much of their salary is going to wasted time fussing with manual spreadsheets that are likely not even turning out accurate data.
Stop wasting valuable time and money! Reclaim the time and attention of your employees by freeing them from the chains of manual spreadsheets by switching to an automated cloud-based software system that takes away all the aches and pains.
3. Visualize Data in Real Time
With manual spreadsheets the work is never done. With data demands constantly changing everyday, your employees are stuck in a tedious cycle of editing, recalculating, and adjusting data. If they are also responsible for reporting and people data analytics, they have to re-calculate and re-run this information with every iteration. With manual data entry, there is no way to keep up with real-time data!
The right automated system will give you access to DEI analytics, pay equity analytics and the people data that you need in today’s market. Having access to this information in real-time and with powerful graphics to back it up means that you can support your corporate culture and position for hiring, retention, boards and investors.
Even in the hands of the most talented employees, spreadsheets will always require a significant amount of manual effort to generate accurate and clear reports. Automated software gives you your data when you need it every time!
4. Integrations: From Stressful to Seamless
You may be using an HR platform such as ADP, Workday, SAP, Oracle or UKG to “automate” your compensation process. But so often compensation analysts are forced to take information out of the system, work on it as a spreadsheet and then plug it back into the system. This is usually because the compensation module in the HR system can’t handle some nuances of your plan, or has limitations in their configuration.
With the right compensation management software, you are able to integrate and secure that information flow and not sacrifice any additional time or take any unnecessary risks. Having a seamless data flow to specialized software that is configured to your compensation program is game changing. Your staff no longer has to keep up with different spreadsheets or repeat the process for recalculations. Instead they can create a sustainable workflow that frees up resources and ensures accuracy.
Compose Compensation Management Software
Here at Decusoft we cannot wait to free you from the aggravation and risk of manual spreadsheeting. Our comprehensive compensation management software and people data analytics will help you plan, analyze and communicate the compensation program that reflects your company and maximizes the experience of every employee.
Free yourself from the burden of Excel-based compensation management and connect with us to learn how you can ignite amazing at your organization!