WEB-BASED COMPENSATION AND PLANNING

In this new era, we are confront with the changes in the technology, environment and economic that are arise the companies to make same change in their management of compensation. For big company, it has a challenge in paying for performance in the current economic environment. HR department has an opportunity to ensure the proper management of compensation costs with a comprehensive and manageable compensation planning solution. Through the online compensation that used a web-enabled approach can manage of compensation problems and the organization can gather, store, manipulate, analyze, utilize and distribute compensation data and information. The systems give benefits to the administration to manage the organization’s benefits plans through online integration with other human resource information and payroll processing.

            For such compensation system includes base pay, merit pay, short-term and long-term intensives, prerequisite, recognition awards and attraction or retention awards. They are must follow their steps. Base pay has two steps which is job evaluation and market benchmarking. Job evaluation realizes an internal hierarchy of value. In the most formal form of job evaluation is a set of factors is developed that reflects characteristics that add value to work in the specific organization. Each factor is influenced by importance and scales are developed. Each job that will be in the base pay systems is judge on the set of scales and a point score is calculated. Jobs are arranged by total points, and this forms the basis for a salary structure.

            The advantages of using a web-based compensation tools included the automated approach that replaces tedious manual processes to make any compensation program easy to manage and virtually error free. The system does not require installation and updating which saves a lot of administration work and can be access from anywhere through online. The information in Web-based compensation tools is stored remotely and requires little disk space. It also becomes more important that Web-based compensation tools are cross-platform and work on different Operating System.

Web-based compensation tools have some serious disadvantages. The most crucial problem with them right now is their poor user experience. It is because of the performance problems and browser limitations. But, nowadays, computer-processing power is getting faster exponentially, and if we combine it with the browser performance improvements, we can be sure that this problem will be solved. Other than that is the web-based compensation tools is that the remote server could be compromised leaking private information. The Internet connection also can limited the used of web-based compensation tools.

CONCLUSION

            In conclusion, to be successful in developing this system, the employee must have appropriate skill and the management department must take into consider several factors. The program must be align with the organization’s goal and can give some benefits the company. This action can take as a solution to solve the problem in the management department.