Web Based Compensation & Planning

Compensation is the most important aspect in the organization. Employer should manage employees pay carefully because is related to employees monthly income. Thas what they working for. Usually, in managing compensation, manager facing a lot of difficulties such as the money might be insufficient or employee received wrong amount of pay. All these administrative of compensation takes a lot of cost. Thus, compensation system help employer plan and manage employees pay automatically without problem.

Some of the basic compensation includes basic and merit pay, short-term and long-term incentives, prequisites, recognition awards or retention or attrection awards. As we can see, all of them are important and surely must be coordinated perfectly.

Implication

Compensation system help manager in planning employee annual compensation. For example, data that manager get from the employees’ performance and wages can provide a standard report like “Annual Compensation Report”. It shows that, how much money spent by the company on the employee which include the basic pay, bonuses, allowence and other incentive pay. Jonathan Lister (2012) stated that a stratey plaan for employee compensation and benefit determine how much an organization want to pay their employee and what type of employees that organization want to attract. Having more employee with high qualification will lead to high productivity in the organization

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Advantages and Disadvantages

Web based compensation have its own advantages. Manager can perform salary-planning function much easier rather than traditional paper based compensation and planning. Some company provide information related to compensation and planning. Thus, employee can self-service in find out what the rage of pay for any job provided. Despite that, diasadcantge for this system is in managing data of compensation. For example, in calculate employees pay and making any changes, employer might confuse and jump into bad decision. Thus, the system must be provide with the use of frozen or static database to ensure everyone is using the same data and information.

As conclusion, not all changes data in compensation can be made by the employee. Despite that, a strategy plan for compensation play a large role in attracting competent employees. In dealing with compensation information, the system must attched with the full of high security and safety. For example, in changing the amount of pay because of employee have been promoted, only senior manager or responsible party can make the changes in order to have a accurate and match between pay and position.

References:

Michael J. Kavanagh, Mohan Thite and Richard D. Johnson (2011) Human Resource

Information Systems: Basics, Applications, and Future Directions. SAGE Publications.