Fair compensation is one of the biggest strategic advantages an organization can have in retaining and attracting top talent. However, using spreadsheets and manual processes can result in compliance issues, budget problems, and low employee retention.
Compensation management software offer specialized tools, such as compensation reviews, audit trails, and plan builders, to help solve these problems.
In this guide, we’ll explain each of these software capabilities, features, and pricing to help you understand them better and choose the right one.
Software | Pricing | Features | Rating |
Workday | Custom pricing (no free plan, no free trial) | Compensation review, Pay equity dashboards, Total rewards statements | - |
Deel | $15/employee/month (no free plan, no free trial) | Compensation review cycles, Pay transparency, Compensation band management | 4.8 |
Paycom | $25-$36/employee/month (no free plan, no free trial) | Budget analysis, Merit matrix, Audit trails | 4.6 |
Compport | Custom pricing (no free plan, free trial available) | Personalized plans, Rewards plans, Compensation reporting | - |
CaptivateIQ | Custom pricing (no free plan, free trial available) | Plan Builder, Commission calculations, Payout scenarios | - |
HiBob | $5–$10/employee/month (no free plan, no free trial) | Salary reviews, Bonus and equity allocation, Comp worksheets | 5.0 |
SimplyMerit | Custom pricing (no free plan, free trial available) | Bonus allocations, Equity grants, Annual base salary adjustments | - |
1. Workday
Workday HCM is an all-in-one human resources (HR) platform that offers reliable solutions for compensation management. It empowers businesses to ensure pay equity and create compensation packages that help them attract the best talent. These packages are configurable, allowing administrators to control packages, plans, eligibility rules, and grades.
Moreover, the platform’s built-in AI tool, Workday Illuminate, sets and delivers rewards faster and in a more efficient manner.
Key Features
- Compensation review
- Total compensation basis
- Compensation analysis tools
- Pay equity dashboards
- Executive compensation
- Total rewards statements
Pros And Cons
Pricing
The vendor offers custom pricing based on an organization’s requirements.
2. Deel
Deel allows organizations to manage their global compensation programs with end-to-end solutions. Managers can set up automated processes that guide users based on performance scores, helping teams save time. Users can also create and track structured review and approval cycles.
Additionally, businesses can connect it with Deel Payroll to ensure all employees are fairly and timely compensated.
Key Features
- Salary analysis
- Compensation review cycles
- Pay transparency enablement
- Compensation band management
- Total rewards portals for workers
- Merit cycles
Pros And Cons
Pricing
Deel Compensation is priced at $15/employee/month.
Disclaimer: The pricing is subject to change.
3. Paycom
Paycom differentiates itself from competitors by allowing businesses to preview compensation adjustments and see what impact each plan will have. This helps decision makers select the safest and most beneficial way forward.
The software equips employers with tools to reward their employees based on merit. In addition to that, users can use its analytics tools to make data-backed decisions that help drive results.
Key Features
- Budget analysis
- Merit matrix
- Salary changes history
- Audit trails
- Green and red circle reporting
- Compliance assurance
Pros And Cons
Pricing
The vendor offers customized plans based on an organization’s needs. Customers can expect to pay anywhere from $25-$36/employee/month.
Disclaimer: The pricing has been sourced from third-party sources and is subject to change.
4. Compport
Compport lets organizations create budgets instantly and generate detailed increment grids for locations, grades, and teams. This helps administrators speed up the process and save valuable time while ensuring accuracy.
Users can use question-based customizations to create complex compensation rules, minimizing the chances of errors. Moreover,
Key Features
- Personalized plans
- Powerful rule engine
- Rewards plans
- Compensation reporting
- Bias alerts
- 200+ data-rich reports
Pros And Cons
Pricing
The vendor offers personalized pricing based on specific business needs.
5. CaptivateIQ
CaptivateIQ is a specialized software that lets compensation officers manage commissions for sales and other commission-based employees. Employers can use its no-code data management tools to structure information and make it ready for processing commissions.
Additionally, the platform’s real-time modelling engine speeds up plan building, while ensuring there are no mistakes in calculating commissions for individual salesmen.
Key Features
- Plan Builder
- Commission calculations
- Gamification tools
- Plan calculations
- Payout scenarios
- What if calculator
Pros And Cons
Pricing
The vendor offers custom pricing based on the features and capabilities a business needs. Contact us for a custom CaptivateIQ plan.
Disclaimer: The pricing is subject to change.
6. HiBob
HiBob lets organizations effectively manage compensation planning for their global workforce. The platform offers tools to help navigate local compliance, create and adjust compensation bands, and manage multiple pay periods.
Furthermore, administrators can allocate bonuses, equity plans, and base pay through local salary benchmarks, localized currency views, and multiple currency management.
Key Features
- Salary reviews
- Bonus and equity allocation
- Employment timeline
- Annual compensation review
- Role and permissions
- Comp worksheets
Pros And Cons
Pricing
The vendor offers custom pricing based on business needs. It can vary anywhere from $5-$10/employee/month.
Disclaimer: The pricing has been sourced from third-party sources and is subject to change.
7. SimplyMerit
SimplyMerit is an easy-to-use compensation management platform designed for experts wanting to simplify annual compensation cycles. The system helps administrators manage, collaborate, and make changes in real-time. SimplyMerit also automatically manages multi-currency budgeting, ensuring businesses can create plans for their global workforce.
Moreover, users can use it to generate and distribute compensation statements and total rewards statements.
Key Features
- Equity grants
- Data analysis
- Bonus allocations
- Annual base salary adjustments
Pros And Cons
Pricing
The vendor offers custom plans based on an organization's needs.
There are numerous reasons why businesses need compensation management software. However, we are sharing the top three reasons below:
To Ensure Pay Equity And Compliance
Pay disparities, especially in the US, can result in lawsuits and hefty penalties. Businesses need software to ensure all the pay decisions are in line with local regulations and laws.
To Improve Budget Visibility And Control
Organizations with hundreds of employees have to be extremely careful when making any changes in compensation. A small change can lead to a massive loss by year's end. That’s why businesses need software that can help them gauge the impact of the changes they are making.
To Retain And Motivate Talent
Finally, they need it to make sure they are paying a market-competitive salary to their employees, helping them retain top talent. At the same time, it saves them from overpaying employees and increasing overall expenses.
Flexibility In Rules And Customization
Make sure the software you are considering lets you customize the platform to fit different needs and is tailored to different regions and local regulations.
Scalability For Global Teams
No one wants to keep switching tools and experiment with new ones, especially if these solutions are to be implemented on a large scale. Make sure the software can scale as your business grows and support future expansion.
Integration With Existing HR And Payroll Systems
Look for a solution that integrates seamlessly with your existing infrastructure and systems. Doing so will help you transfer data from one platform to another without any manual effort.
We have explained some of the most reliable and popular compensation management software available in the market. All of them have unique features and capabilities that can help businesses significantly improve daily operations.
We recommend you go through more resources and understand each solution better before making a final decision.