WEB BASED COMPENSATION AND PLANNING

Compensation plan defines as the plan of how to compensate employees for their work effort. It is the one of the most common concepts in the professional world. Compensation plans design a number of payment schemes which is included wages associated with the amount of hours spent at work, wages gained from productivity while working, health benefits, bonuses, and any plan.

Today’s technology will enhance organization productivity and efficiency through online compensation. So, they can use online as web based to gather, store, manipulate, analyse, utilize, and distribute compensation data and information for salary planning, bonus allocation,  pay for performance, and equity awards easily. Actually, the software and database reside on a central server rather than being installed on the desktop system. The companies have discovered that web based software is relatively easy to implement technology that fixes the broken parts of compensation management process, without disrupting managers by introducing needless change. In addition, it allows line managers to participate in compensation planning process that encourages an empowerment and retention. The increment process can be easier acceptability of new compensation and benefit plans by employees.

Besides that, the system gives opportunity to employer and employee to access your business information from anywhere in the world at any time. It can be facilitates to save times and reduce cost and improve the interactivity with your employees. When use that system, HR management can get the information faster, more accurate and user-friendly. This is because, in that system has been keep the data about employer and employees. It also helps the organization to maintain competitive pay rates, customized to labor market and manage merit increases and compensation budgets. For example, in web based compensation they already have budget control, compensation plan modelling, compensation assessment, data import or export and data management that can see with all of them in the organization.

             The advantages is when some of the employees and managers who view this technology as the work of HR and will encourage them of real time feedback to managers and a collaborative framework to allow both manager and HR to make it decisions. The employees also can receive a message in web based system to view their variable pay performance targets. From this, the effectiveness will improve either by in terms of the accuracy of information or by using the technology to simplify the process.

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References:

1.                  Stiffler, M. A. (2001). Incentive Compensation and the Web. Compensation & Benefits.

2.                  Perlmutter, A.L. (2002). Taking motivation and recognition online. Compensation & Benefit Review, 34 (2), 70-74