Compose by Decusoft Helps Companies Automate & Manage Their Compensation in a Centralized and Secure Repository – by Decusoft
Compose is a specialized compensation management software that benefits customers with improved data integrity and a significant decrease in the time and resources required to manage, implement and plan their compensation processes.
Compensation plans tend to be very complicated, forcing companies to come up with a way to handle their own unique complex plans. Usually spreadsheets are the solution as they offer the path of least resistance. Spreadsheets however, while flexible, often have many issues including security, transparency, accuracy, and scalability. A Human Capital Management (HCM) solution like Workday, Oracle, SAP, etc., that includes a compensation module can be implemented. Unfortunately, most of these compensation modules have difficulty handling complex variable pay plans, forcing companies to continue using spreadsheets to effectively manage their compensation process outside of the HCM. According to Deloitte, compensation accounts for 70% of an organization’s total labor costs, yet too often it is not viewed as an opportunity to improve efficiencies through technology.
Let’s take a look at a real-life case study of an investment bank that faced similar challenges. They realized their home-grown system was no longer meeting their needs and ultimately decided to implement a secure, web-based HCM solution with a best-of-breed point solution to handle their unique and challenging compensation requirements.
The global investment bank was managing their complex compensation policies with a home-grown system in conjunction with spreadsheets. They were running into a myriad of issues: rolling up data, consolidating views, errors, disparate data, time delays, currency discrepancies, user lock outs, etc. However, they were committed to their very robust plan’s unique requirements that included top-down budgets, pools with restrictions, and flexible managerial controls.
They chose Workday as their HCM solution, and early in the implementation realized that Workday’s compensation module would not be able to provide them the functionality they needed to support their unique needs and specialized plans. In addition, they knew from past experience they would need a solution that provided a tremendous amount of flexibility, strong reporting capability, modeling, and a personalized high touch service and support.
There were two important factors considered in this scenario. First, a quality compensation automation tool needed to be able to work in concert with Workday to augment and leverage this investment. Secondly, the compensation software needed to address their requirements, be extremely flexible and highly configurable. The goal was to be able to handle everything their home-grown system did, but with the added layers of security, accountability, transparency, and confidence that came with managing compensation from a secure web-based, centralized repository.
The firm chose to implement Compose by Decusoft. Compose has a proven, seamless integration with Workday. Nearly 80% of Decusoft’s existing customers use Compose in conjunction with Workday. This offered them the confidence of managing the entire compensation process from a consolidated data repository that could handle the complex programs they had in place and provide a high degree of flexibility.
In conjunction with their compensation and HRIS teams, Decusoft confirmed the main issues and the key deliverables that were needed. The firm required a centralized data source and planning tool that integrated well with Workday data and their payroll system while providing confidence and accuracy in an easy to use solution. A key shortcoming of their home-grown system was the lack of a dynamic and accurate audit trail that provided a layer of protection for the firm as well as the individual managers. With Compose they received secure web-based access for users and managers that not only solved the audit trail issue but also added speed, accountability, and transparency to the process. Lastly, they needed a robust system of calculations to manage all the different currencies and budget configurations.
By choosing to work with a proven compensation specialist and retiring their home-grown system, the client was able to achieve a configured solution for their unique needs layered on top of a robust and secure platform. As a result, they were able to get exactly what was needed for their complex plan requirements and then some, including:
- Customizable and flexible compensation Total Reward Statements with an employee self-service portal
- Ad-hoc reporting capabilities that were able to feed the financial department the exact information they needed including modeling and scenario (what-if) planning
- A platform to smoothly transition into their new Workday environment with bi-directional feeds between their compensation, Workday and payroll systems
- A centralized repository allowing them to create customizable workflows and multiple levels of entry with options for approvals and complete audit trail
- Greater agility and immediate access to accurate information
In the end, the customer was very happy with their new environment. They were able to find a best of breed specialized compensation solution via Compose that complimented their HCM (Workday) implementation without sacrificing any of the unique needs/requirements of their compensation plans. They were able to sunset their home-grown system and existing spreadsheets and use Compose as a single compensation repository and planning system. The firm got everything they originally had with the home-grown system while adding security, accountability, and many new features. They realized a significant decrease in the amount of time and resources required to manage, implement, and plan compensation processes for both their mid-year and year end compensation cycles. Lastly, they could complete robust financial modeling related to compensation with advanced integrated reporting and issue Total Rewards statements that clearly enhanced employee communications which helps them retain top talent.
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