Technology and the Internet has made many business functions easier, faster, and expanded the reach of many processes. e-Compensation is one of those processes that has benefited from technology; it has made knowing what similar job salaries and compensation easier to access and for management to determine what it should take to retain vital talent within an organization. This paper will discuss the advantages and disadvantages of web-based compensation tools, how it supports the job evaluation process, the advantages and disadvantages to centralized approach to merit pay programs, discuss integrated analytic features needed for compensation planning and decision support in e-Compensation systems, assess barriers that prevent organizations from realizing the potential of Web-based internal equity tools and propose approaches to overcome those barriers, recommend strategies that HR managers can use to evaluate the quality of market data that they receive from outside sources.
Advantages and Disadvantages of a Web-based Compensation Tool
Web-based compensation tools provide an organization the best choice of information for compensating their employees. There are many reasons that e-Compensation is better than client-server based or stand-alone PC-based system which includes the accessibility of web-based system can occur anyplace where Internet connectivity exists, it is available around the clock and every day, it streamlines processes, and provide access to sophisticated databases and decision-support tools (Gueutal & Stone, 2005). The federal government uses web-based services to support it benefits packages, which allows the employee to make insurance decisions each open season without having to go through their HR depart...
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...time not provide them information that would allow them to game the system to receive higher compensation than they deserve. The tool’s desire is to fairly compensate the employee for reaching the organizations objectives and making the company successful.
Works Cited
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Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2014). Fundamentals of human resource management (5th ed.). New York, NY: McGraw-Hill Education.
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Reed, S. M., & Bogardus, A. M. (2012). PHR/SPHR: Professional in human resources certification study guide (4th ed.). Indianapolis, IN: Wiley Publishing, Inc. ISBN-13: 9781118289174
Kavanagh, M. J., Thite, M., Johnson, D. J., (2012). Human Resource Information Systems, Thousand Oaks, CA; SAGE Publications, Inc.
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