Web Based Compensation and Planning

             In this post I will explain about web based compensation and planning base on my reading and understanding. According to McGaughey (2011) web based compensation and planning is an online compensation system or approach used to arrange the compensation tools that enable the company to collect, store, manipulate, analyze, utilize, and distribute the compensation data or information. When company using the web based compensation system, all information regarding to the compensation will be more systematic and clear. As we know one of the biggest challenges any business owner faces is finding the best way to compensate employees. A value-based compensation model should be a consideration for most businesses. This model rewards employees based solely on results. The amount of hours worked does not matter. Employees are paid only for tangible, measured value added to the company regardless of how difficult the job may be or the time spent on the project. 

            The basic compensation system includes base pay, merit pay, short-term and long term incentives, perquisites, recognition award and so on. There are many process associated with each of these, all of which must be coordinated. There are several components in online compensation system include two types of compensation which are fixed and variable, or stock usage. The fixed compensation includes bonuses, pay wage, merit pay and equity adjustments. Meanwhile, variable compensation includes individual or group incentives plan, profit sharing plan or productivity gain sharing programs. Next, there are several components in online benefits subsystem include defined contributions plans, defined benefits, flexible benefits and benefits statement. Thus, I think all of the components should be clarify by the system based on personalization data. More detailed information on plan provisions and stock usage report is available on the system, so that HR function on compensation and benefits become easier and effective.

            In addition, if we want to attract productive employees, we need to offer a competitive compensation and benefit package. Compensation planning software helps we put together an attractive plan to win the best employees. Once we have a plan in place, we need to periodically review the plan to make sure you remain competitive.

Compensation and benefits software helps us manage our compensation plan. Using software reduces the cost of outsourcing the job, saves time by allowing you to work off templates and organizes your information.

1. A good compensation and benefits system: 
2.  Is user friendly.
3. Provides benefits statements that are easy to read and understandable.
4. Stores information used for calculations.
5. Supports multiple compensation and benefit programs.

            There are lots of advantages using web-based system. Some of the advantage is that the data is more manageable because it can be manage and access by many end user workstations at a time. Another advantage is that the system can secure the data. High Security can be implementing to the data of the employees to protect their personal data. If in the olden days the data is unprotected and exploit to high risk of stolen of employees files or loss of employees file. Another important advantage of the web-based application is that the system can dramatically reduce the company cost for support and maintenance.

REFERENCE

McGaughey, R. E. (2011). In Enterprise Information Systems: Concepts,     Methodologies, Tools and Application (pp. 619-621). New York: IGI Global.

http://www.business.com/guides/compensation-and-benefits-software-4066

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