This is an automation which is part of the compensation process in order to help organizations with the optimization, management and acquisition of the workforce.

Employee compensation is believed to be one of the largest operating expenses in every organization and it affects overall organization’s success. Enterprise compensation management is beginning to gain popularity now that organizations treat their employees as valuable asset and not just factors of production.

What are components of Enterprise Compensation Management?

Enterprise Compensation Management, consists of two components:

1. Budgeting: involves personnel cost

2. Compensation: Which includes compensation schemes, fixed and variable pay components (short term and long term incentives)