Creating compensation packages should be strategic, not tedious, and repetitive paperwork can make People teams feel like they’re going through the motions. Strong HR compensation software manages these tasks so employees can focus more on attracting and satisfying talent.
This guide explores how to select, implement, and optimize a compensation management system. Plus, we take a look at five of the best platforms available.
What is compensation management software?
Compensation management software helps People teams run employee compensation programs. It streamlines payroll workflows, enhances transparency in pay and benefits, and supports fair and competitive compensation strategies.
When you free up time to focus on your compensation plan rather than dealing with the admin around it, you can concentrate on what your people really need. Plus, total compensation significantly impacts retention: 70% of workers would be willing to switch jobs for better benefits.
Core features of effective comp management software
Here are the main features to look for when shopping for compensation software:
- Automated payroll processing: Powerful compensation systems replace manual data entry and repetitive calculations. Your payroll team should be able to automate salary adjustments, bonuses, and pay cycles (especially irregular periods due to overtime and holidays).
- Effective reporting: Real-time data dashboards give People teams visibility into compensation and benefits, increase pay equity, and optimize total rewards allocation. A solid platform should also include location-specific market intelligence to ensure competitive and transparent pay.
- Compliance management: This helps teams meet expected standards without causing operational disruptions. Distributed workforces should look for built-in compliance that crosses borders, offering updated tax and labor laws and reporting features.
- Pay policy tools: Compensation management platforms must have pay bands and merit increases you can customize to your budget. Look for tools that automate approvals based on internal policies and local laws.
5 top compensation management software solutions
Here’s a look at five of the top compensation management solutions, key features, and pricing tiers.
1. Oyster
Oyster is a global employment platform that helps you design total compensation strategies in more than 180 countries without opening local offices. It streamlines compensation management, payroll, and compliance workflows on a centralized dashboard teams can view in real time.
Key features:
- International payroll management: Including invoice and expense handling with payment support in over 120 currencies
- Benefits administration: Access to precreated local and global packages
- Compliance control: Built-in compliance features, legal expertise, and expansive knowledge base
- Contractor management: Payment and contract management, plus worker misclassification protection
Pricing:
- Global payroll and contractor management: $29 per employee/month
- Employer of record (EOR) service: $699 per employee/month
- Annual plan for 3+ EOR hires: Contact for a custom quote
2. Workleap
Workleap is a compensation system with talent management features and a focus on employee engagement trends and performance.
Key features: Workleap offers customizable compensation ranges. This information, like market data from Mercer and AI insights, can inform salary decisions. It supports location-based pay and uses analytics to spot pay equity discrepancies.
Pricing: Basic plans start at $5 per user/month with a 10 user minimum. Compensation and total rewards management solution has a 100 user minimum, bringing the start-up cost to at least $500.
3. Deel
Best known for its contractor and equity management solution, Deel also supports compensation management features for employees and contractors.
Key features: Deel provides international payment and local compliance management. It uses AI to catch payroll errors and suggest corrections. This software can also act as an EOR.
Pricing: Deel’s contractor management solution starts at $49 per contractor/month. EOR service starts at $599 per employee/month.
4. Compease
Compease is a tool to help companies make data-driven recruiting and salary decisions with a focus on pay equity. It’s primarily for businesses with an existing compensation management system, as it isn’t designed to handle payroll, benefits, and compliance.
Key features: This software offers employee evaluation and salary modeling. It also helps companies develop customizable individual merit increase guidelines.
Pricing: Contact Compease for pricing.
5. HRSoft (formerly CompTrak)
HRSoft is a compensation management solution focusing on salary management, bonus administration, and total rewards.
Key features: HRSoft provides salary and rewards management with employee communication features. It includes automatic bonus and equity compensation modeling for pay-for-performance structures.
Pricing: Contact HRSoft for pricing.
How to choose the right compensation management tool
The best compensation management system depends on company needs, especially for scaling businesses and distributed teams. Here are a few considerations:
- Evaluate company size: Think about your size and People team’s workflows. Smaller companies looking to expand often focus on automation to free up time and reduce overhead. On the other hand, large businesses typically need more advanced compliance tools and integration with existing human resource information systems.
- Consider budget constraints: Avoid overpaying for capacity or features you don’t need. Shop around to find a compensation management partner that suits your requirements best.
- Weigh your options: Check multiple tools and compare features, usability, and customer support. Consider must-have functionality, prioritizing your business’s goals and team workflows. Don’t forget to read user reviews to confirm high-quality customer support. Your vendor should be there to answer questions and walk you through any issues.
Manage compensation effectively with Oyster
The right compensation management system streamlines administration and enhances strategic decision making for your specific business. It should work with your People team wherever they are, and Oyster supports companies across borders.
Oyster Total Rewards helps you attract and retain top global talent with region-specific employee compensation. Offer competitive salaries and benefits, ensure pay equity, and manage compliance from one centralized platform. Oyster helps organizations simplify pay processes and provides employees with visibility into their total rewards package.
Explore Oyster’s Total Rewards program and optimize your employee compensation strategy.
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FAQ
What are compensation tools in human resource management?
These platforms help People teams plan and distribute compensation, including salary, bonuses, and benefits. They typically automate repetitive administrative tasks and provide visibility into company-wide pay, helping businesses satisfy workers and scale without sacrificing quality.
Which compensation software is best for small businesses?
The best compensation software depends on individual needs, but good choices usually include automation and built-in compliance features. Small businesses can struggle when juggling people management, payroll, and expected standards, especially when scaling. Top compensation tools ease this workload and let teams concentrate on their workforce.
How do I create a compensation plan?
Start by defining your goals and considering if your budget allows for matching or competitive pay. Then, conduct a thorough market analysis on salary and benefits. You’ll need to examine each role to establish individual compensation packages that achieve your objectives. To easily create a pay plan that aligns with your business goals and values, try Oyster. Our expert insights and recommendations make it simple to meet employee and company needs.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
