Compensation programs are not cookie cutter. While there are a lot of similarities among complex programs – there are as many variations as there are firms.
This is particularly true as it applies to the financial services industry. These institutions carry the added complexities of executive compensation, equity, short/long-term incentives, component based bonus, carried interest, deferred compensation, custodianship……you get the picture.
Combining these sophisticated plans with the turbulent nature of 2020, makes processing this cycle and planning for future ones more daunting than usual. Using Excel to process this information, no matter how robust your spreadsheet set-up, is going to fall short.
Purpose-built software for automating compensation management has been on the rise for some time, but more than ever before, we are seeing the added value of these systems applied across the organization. As CFOs, IT and other groups in the firm pay more attention to HR & compensation, it is important to understand the added value of having a system that is configurable, reliable, agile, secure and transparent.
If you assume that a firm is currently using Excel for their complex compensation process, then switching to an automated compensation software provides a laundry list of benefits:
According to Ventana Research, 83% of users leveraging Excel for compensation found calculation errors.
Passing information in files (even protected ones) is a high risk exchange of PII
Automation software provides centralized version control in a secure environment
Immediate updates to reflect changes throughout the organization
Audit trail and change controls
“What-if” scenario modeling to analyze alternative outcomes
Clear, concise and error-free reporting helps attract and retain top talent
With a purpose-built software, you get access to professionals that know comp to help you.