Compensation and Benefits Software Key Terms

Learn key terms describing the bottom line value of compensation and benefits software

By Michele Vrouvas

Determining the right compensation for employees in your company is essential. When employees believe they are receiving salaries and benefits commensurate with their experience and productivity, they are more motivated and more likely to stay with their current employer. That is why companies are making the investment to find software that takes the labor out of the complex processes of managing each employee's compensation. If you're not sure whether your HR department can benefit from using compensation and benefits software, consider the following concepts and terms that explain these programs in more detail.

Employee benefits management

Employee benefits management refers to the methods your company uses to administer compensation.
Try: Find out more about this key feature of benefits and compensation software at Elfor Soft. You'll learn about the standard features of employee benefits management programs and how these programs meet your organization's needs.

Market compensation

Companies with their eye on market compensation are weighing data from outside market studies based on what other organizations are paying employees.
Try: If your company uses market compensation analysis, you may want to consider software like the company Step Stone provides. Find out how the market compensation features in these programs help you import external salary information from a variety of providers and how to blend that data to analyze market trends helping you determine the right compensation for your employees.

Incentive compensation management

The term incentive compensation management refers to a company's efforts to motivate employees to perform their best by offering higher salaries and extended benefits plans.
Try: Varicent SPM explains how incentive compensation management benefits work. Find out how businesses can create salary models for management and support staff.

Performance reviews

Performance reviews refer to the annual surveys that managers prepare to measure the productivity and value of their staff.
Try: Go to Compackage to learn how benefits software can allow you to use performance reviews to decide whether your management is effectively advancing company enterprise goals. You'll learn why performance reviews are considered a useful communications tool when it comes to educating employees about company compensation policies.

Risk analysis

Risk analysis refers to a company's method of determining whether it is complying with regulations or whether its operations are driving company worth.
Try: Compensation Master USA puts risk analysis functions of benefits software into perspective. Find out how software can design business plans for your company and then assess how those plans are impacting your long-term growth, particularly in regards to employee compensation.