New research finds automated and integrated compensation systems are fueling employee satisfaction and driving bottom line savings
Aberdeen Group Research sponsored by Cezanne Software shows connection between strategic compensation management and improved business performance
London, UK – 20th May, 2008 – Cezanne Software, the leading European-headquartered provider of integrated solutions for compensation, talent and employee management, announces the release of Aberdeen Group’s “Total Compensation Management – Taming Costs and Rewarding Employees”.
The benchmark report, which was sponsored by Cezanne Software, surveyed more than 470 organisations worldwide — representing companies of all sizes and industries — highlights how best-in-class organisations are using Compensation Management strategies and processes to drive improved business performance and workforce retention.
The report found that 87% of organisations that achieved Aberdeen’s Best-in-Class status have partially or fully integrated their total compensation data collection with other workforce management applications. In doing so, 90% have increased their revenue per employee, 83% have decreased labour costs as a percentage of sales, 73% have improved employee job satisfaction, and 64% have increased employee retention.
The study also found that Best-in-Class organisations with respect to total compensation management are more likely to:
• Integrate total compensation with employee performance management applications
• Survey the local market to ensure that compensation plans are competitive
• Determine who the top performing employees are, to ensure that the plan rewards them based on their contributions
• Clearly communicate with employees what goals they are being measured against, and how their compensation amounts are determined
From a total compensation perspective, “Best-in-Class organisations are more aggressive at recognizing, acknowledging, and rewarding individual performance,” says David Weldon, a research analyst with Aberdeen and the author of the report. “That aids in the strategy of being perceived as an employer of choice. And it makes current employees feel more appreciated, and more likely to stick around.”
The greatest gains from total compensation programs are achieved by companies that are aggressive at automating and integrating the data collection process, and especially by linking a total compensation management application to benefits management systems.
While companies in North America are more aggressive at adopting total compensation strategies (77% of North American companies survey have implement elements of total compensation, versus 43% of European companies surveyed), European companies are more aggressive at integrating total compensation with other applications such as employee performance management (66% of European companies surveyed, versus 55% of North American companies); workforce analytics (49% of European companies, versus 34% of North American companies); and competency and assessment tools (56% of European companies, versus 43% of North American companies).
Sue Lingard, Marketing Director of Cezanne Software comments: “Aberdeen’s research shows that the greatest gains are where organisations automate the process of collecting compensation data and integrate compensation management with other workforce management applications. This reflects our experience, were we find that companies are increasingly looking for compensation software solutions that not only streamline the compensation planning and management process across all of their employees, but also offer integrated functionality for performance and talent management as well as core HR administration. As a vendor offering integrated, web-based, international HCM solutions, Cezanne Software is ideally positioned to respond to this need.”
A complimentary copy of this report can be downloaded from http://www.aberdeen.com/link/sponsor.asp?spid=30411175&cid=4...
Cezanne will be exhibiting at the HR Software Show, 18 – 19 June, Olympia Conference Centre, London, Stand No. H230
About Cezanne Software
Headquartered in Europe and with operations worldwide, Cezanne Software is a leading supplier of software systems for human capital management and compensation planning with partners and customers across Europe, the Americas and Asia Pacific.
The company’s integrated suite of web-based HCM software applications include systems for succession & career planning, performance management, survey, salary analysis, pay review, budgeting, and employee management, including recruitment and training. The products reflect many years’ experience of working with clients, independent consultants and academics at the forefront of best practice in talent and compensation management
Cezanne Software’s focus is to provide flexible, people-centered solutions that improve the day-to-day execution of business strategies, help drive critical employee performance and reward processes and enable companies to achieve and sustain a competitive talent advantage.
About Aberdeen Group, a Harte-Hanks Company
Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to AberdeenTM for insights that drive decisions.
As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information – Opportunity – Insight – Engagement – Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com
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