There are more choices than ever for organizations to enable their Compensation function. The purpose of this post is to help organize and categorize the domain to help People leaders more effectively consider their technology choices.
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Compensation Technology ("CompTech") Can Drive Functional Efficiency
Technology is a means to an end - it helps us be more productive in our existing work, or take on tasks not possible without the assistance of innovative technology. Within the CompTech domain, we see five (5) critical "jobs" of the compensation function where tech can make an impact:
Critical Compensation Functional Processes
Monitor: View and track market compensation levels and practices
Align: Manage your job and compensation structure to achieve desired market positioning
Deliver: Facilitate ongoing or periodic compensation decision or award processes
Analyze: Understand pay outcomes to understand impact on broader business objectives
Engage: Communicate rewards decisions and opportunity to employees
Within each of these process areas, we observe some distinct categories of CompTech which create an organizing principle for CompTech providers:
We find this categorization lens useful to then sort providers and understand the features that matter to make an impact.
The graphic below presents a snapshot of the players in these categories. Note that the graphic does not include compensation-related modules of HRIS/HCM providers, and excludes market data providers that are focused in narrow industries.
Understanding What Drives Value
In each category, there are different capabilities and features that drive value. The CompTech Market Insight Survey gathers user feedback on their technology usage and needs. Participation is currently closed, but register to be notified when results are released.
