With so many compensation management systems available, choosing the perfect one can be a daunting task. Since employees count on their employers to keep records and files secure, purchasing a top-of-the-line program is ideal. But how do you know what's the best piece of software out there? And how do you stay on top of any changes to the software, since we all know that technology is ever-changing?

Don't think that locating the answers about HR compensation software can come to you without doing a little legwork. Log on to the Internet, and consider the following when investigating compensation and benefits software news and trends:

1. Follow along to blogs that discuss compensation management software.

2. Subscribe to publications featuring benefits management software.

3. Seek out associations or organizations and network with others who use HR benefits software.

Action Steps
The best contacts and resources to help you get it done

Read along to blogs that talk about compensation software

Since the Internet is one of the quickest ways to pass along information, utilize this medium by bookmarking blog sites. Check out blogs maintained by industry leaders or those who have a foothold in the human resource industry.

I recommend: Look at the Compensation Force blog that discusses news, information and tips about employee compensation programs. Search through the topic list on the left-hand side or even check out some of the blogs listed in the blogroll. HR News & Views blog features articles about changes in compensation software, programs or businesses featured in the news.

Subscribe to publications or e-newsletters that discuss compensation planning software

Human resource publications are an ideal source of information involving compensation and benefits programs. Familiarize yourself with software changes by subscribing to these publications, whether they are sent to you via e-mail or in the postal mail.

I recommend: Business & Legal Reports sends out a daily e-newsletter called the HR Daily Advisor. In the newsletter is a tip that BLR claims can be read in less than five minutes, as well as articles pertinent to the HR industry. Obtain a free subscription to Employee Benefit Adviser that provides up-to-date benefits information to consultants, brokers and advisers.

Become a member of an organization that discusses HR compensation software

Human resource associations can provide an inside track to news updates, oftentimes before news sources receive the information. Join these organizations and get involved with committees or planning events and meetings; these can be excellent ways to network with others who work with compensation and benefits planning software.

I recommend: Penjerdel Employee Benefits and Compensation Association allows you to network with other locals in the industry through programs and events. Check out previous quarterly newsletters to check out any news you might have missed. Think about joining the International Foundation of Employee Benefit Plans, which is a nonprofit organization geared toward compensation specialists.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Check out forums discussing compensation and benefit programs. These can be a wealth of information, as employees, employers and vendors can post about any recent news or updates to HR software.

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

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

A good compensation and benefits system:

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

Action Steps
The best contacts and resources to help you get it done

Get HR compensation software that is customizable and integrates other HR applications

Compensation and benefits software should be customizable and easy to use.

I recommend: Use Halogen eCompensation to automate the entire work flow process, which also provides checks and balances to reduce errors. HROffice from ELFOR SOFT integrates with all Microsoft applications. StepStone benefits management software includes market compensation analysis.

Get flexible compensation management software

Compensation management software needs to be able to handle complex calculations accurately. A flexible program allows you to establish groups at different compensation or benefit levels. With a more complex system, you want to be able to map and locate the information used to derive the calculations.

I recommend: Keep track of information with a good mapping system. Varicent.com provides a multi-pay setup that allows you to carry out changes across multiple groups. PROPHIX has features that include the ability to create multiple rule sets for different plans.

Use compensation planning software to develop, budget and control your plan

Planning for promotions, bonuses or merit increases helps you know what your company can afford and when. Employees expect to get raises and earn rewards for productivity and performance.

I recommend: Use Salary.com’s Web-based compensation plan software. Salary.com provides multiple compensation and benefit tools and you may request a demo to review the compensation software.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Request a free trial or demo to evaluate compensation and benefits software. Many companies offer this service, but don't advertise it.
• •  Find an all-in-one software program that combines planning with management.

With many different choices when it comes to compensation and benefits software, how do you choose? Educating yourself on the available programs is a good place to start. One of the factors going into your decision should include training and ongoing support after the sale, too.

When it comes to compensation and benefits software education and training, many software providers offer implementation training and support. Other, independent companies can also provide training. But as a human resources manager, you most likely will have to take it upon yourself to learn all you can by reading articles and reviews of software packages, as well as finding those individual opportunities for further knowledge on compensation and benefits issues.

Consider the following information:

1. Not only will you want to confirm compensation management systems training for a new system but also ongoing support for problems that arise. What is the typical wait-time for support questions and how are they handled?

2. If you're signing on for training with an independent company, look for compensation and benefit programs education that can be customized to fit your needs.

3. Get concentrated benefits management software training in a short amount of time for a smooth, efficient transition.

Action Steps
The best contacts and resources to help you get it done

Read more about benefits software options and consider reviews

The more you know about your options, the better prepared you can be to make an informed decision. Narrow your search down to the top three to five choices. Then you can more efficiently research system capabilities, costs and other factors.

I recommend: Read a SAGE Publications guide to compensation and benefits software by clicking on "full-text article" on the right-hand side. You'll need to register. Check out the 401(k) design checklist from the 401(k) Center for Employers so that you can match your program with an appropriate software package.

Learn more about compensation management software by downloading a free trial

Are you one of those people who learn better the hands-on way? Consider downloading a free trial of software that you are considering. That way you can experience it yourself and find out how appropriate it is for your staff and operation. You'll also get an idea of how different the system is and how much training your staff may need to get up to speed.

I recommend: Download a free trial of SuccessFactors' performance review software or Apex Business Software.

Receive company support and training on compensation software

Once you purchase software, training usually comes as a package deal. Make sure you feel comfortable with the training that will be provided and the method used so you can get the most benefit.

I recommend: Check out the standard and advanced curriculum offered by Varicent Software through two- and three-day (or longer) workshops. Or consider Halogen Software's implementation training as well as additional support after your system is up and running.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Troubleshoot how the benefits software applications you use will interact with each other when choosing any new software and setting up proper training.

Determining the right compensation for employees in your company is essential. When employees believe they are receiving salaries and benefits commensurate with their experience and productivity, they are more motivated and more likely to stay with their current employer. That is why companies are making the investment to find software that takes the labor out of the complex processes of managing each employee's compensation. If you're not sure whether your HR department can benefit from using compensation and benefits software, consider the following concepts and terms that explain these programs in more detail.

Action Steps
The best contacts and resources to help you get it done

Employee benefits management

Employee benefits management refers to the methods your company uses to administer compensation.

I recommend: Find out more about this key feature of benefits and compensation software at Elfor Soft. You'll learn about the standard features of employee benefits management programs and how these programs meet your organization's needs.

Market compensation

Companies with their eye on market compensation are weighing data from outside market studies based on what other organizations are paying employees.

I recommend: If your company uses market compensation analysis, you may want to consider software like the company Step Stone provides. Find out how the market compensation features in these programs help you import external salary information from a variety of providers and how to blend that data to analyze market trends helping you determine the right compensation for your employees.

Incentive compensation management

The term incentive compensation management refers to a company's efforts to motivate employees to perform their best by offering higher salaries and extended benefits plans.

I recommend: Varicent SPM explains how incentive compensation management benefits work. Find out how businesses can create salary models for management and support staff.

Performance reviews

Performance reviews refer to the annual surveys that managers prepare to measure the productivity and value of their staff.

I recommend: Go to Compackage to learn how benefits software can allow you to use performance reviews to decide whether your management is effectively advancing company enterprise goals. You'll learn why performance reviews are considered a useful communications tool when it comes to educating employees about company compensation policies.

Risk analysis

Risk analysis refers to a company's method of determining whether it is complying with regulations or whether its operations are driving company worth.

I recommend: Compensation Master USA puts risk analysis functions of benefits software into perspective. Find out how software can design business plans for your company and then assess how those plans are impacting your long-term growth, particularly in regards to employee compensation.