The paradigm shift
Previously, trends in human resources (HR) system solutions adopted a "best-of-breed" approach.
Two major events created a shift in approach:
- The cloud was born
- Data analytics became a powerful business tool
The result led to a new focus on unfiled data.
What is advanced compensation?
Advanced compensation or compensation cycle is the review event in Workday, launched for a specific length of time for the purpose of recommending, reviewing and awarding compensation changes, bonus payments and stock grants.
Advanced compensation is essentially a year-end process. Shortly after the cycle, clients should take time to reflect on what went well in the cycle and evaluate what should be handled differently in the next cycle.
Big-bang deployment approach for advanced compensation
"Big-bang" is when all populations go live at the same time.
- Ensuring the customer considers and implements a global design for its compensation plans and processes
- Ability to have unfiled change management and training approach
- Gaining economies of scale from one larger implementation versus multiple smaller implementations
- Ensure clear requirements are defined for all compensation plans and matrices
- Set expectations that all groups must fit into the overall compensation cycle process
- For those in decentralized organizations, ensure at least one subject matter expert (SME) from each group is engaged in implementation
- Have decision-makers who can authorize change present
- Plan for one or more SMEs from each group to participate in testing to ensure all requirements have been met
Compensation is critical for HR and can be quite complex. A shift to the cloud can prove to be a true benefit to companies, compensation professionals and employees alike.