The HRToolbench Compensation module provides HR professionals an easy way to intelligently set and adjust salary levels that attract, retain and motivate desired levels of talent, while assuring that overall salary expenditures remain affordable to the organization. It includes a variety of embedded tools and techniques that guide HR professionals through different aspects of the salary administration process, including gathering and analyzing salary survey data, updating internal salary grade structures and assigning jobs to salary grades in a defensible manner.
Pre-Designed Salary Grade Structure:
The Compensation module is pre-loaded with a 35-grade salary structure reflecting market competitive ranges. Ranges are adjusted for each organization based on local pay practices and jobs can be assigned to salary grades using various methods. As a service to clients, ranges are updated each year based on national salary market growth.
External and Internal Job Valuing:
HR professionals can record external competitive pay practice data for individual jobs directly into the Compensation module. These data are automatically aged to maintain currency based on a prescribed percentage aging factor. Multiple market data for a single job can also be individually weighted to calculate a composite external market target rate for a job, which is then correlated to the closest salary range midpoint for automatic salary grade assignment. HR professionals can choose the best approach to value any job - external or internal. Jobs experiencing intense market pressure can be externally market priced and assigned to a salary grade that reflects competitive pressures.
Merit Increase Planning:
The Compensation module also provides a merit increase budget planning tool that enables HR professionals to assess the overall competitiveness of the organization’s salaries and then to estimate the cost of possible merit increase guideline scenarios. Rollup cost analyses help to ensure organization-wide compliance with approved budgets and increase guidelines.
