10 signs your pay review process is holding HR back
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Look, we get it.
The HR to-do list is a mile long, and just when you think you've got it all under control, BAM! Pay review season comes along to completely swamp your workload.
Suddenly, you're drowning in spreadsheets, chasing down managers for input, and trying to make sense of data that's scattered across more files than you can count.
So, how do you know if these pains are just part of process or signs of an outdated approach? We've put together a list of 10 warning signs that your current setup is holding you back.
You're drowning in spreadsheets
A pay review is at its strongest when its able to drive key strategic goals of an organisation. Goals like employee retention, equal pay, and company culture.
Unfortunately, this just isn’t possible when your pay review process is flooded by countless spreadsheets, undocumented formulas, and a heavy reliance on manual data entry.
Not only is this approach time-consuming and error-prone, but it also limits your ability to generate real-time insights and make data-driven decisions.
As your organisation grows, the complexity of managing hundreds of spreadsheets can lead to data fragmentation and increased opportunities for errors, ultimately undermining the integrity of not only your pay review process but your entire organisation.
Version control is a nightmare
Hundreds of managers. Thousands of employees. Countless spreadsheets. All these can mean only one thing: version overload.
When multiple stakeholders are involved in the pay review process, version control can quickly become a nightmare. Emailing spreadsheets back and forth, keeping track of changes, and ensuring everyone is working with the most up-to-date information can be a full-time job in itself.
This inefficient approach not only drains valuable time and resources but also increases the risk of errors and inconsistencies.
Data security keeps you up at night
Spreadsheets offer little in the way of data security, leaving sensitive compensation information vulnerable to breaches, leaks, and unauthorised access.
If the thought of your pay review data falling into the wrong hands keeps you up at night, it's time to consider a more secure solution.
Upgrading to a purpose-built pay review software can provide peace of mind with robust security features, access controls, and data encryption.
“It takes 20 years to build a reputation and few minutes of cyber-incident to ruin it.”
― Stephane Nappo
You lack a clear audit trail
When you’re dealing with such sensitive data, knowing who has done what is key.
But without a clear audit trail, it can be difficult to track who made what changes and when. This lack of transparency can lead to confusion, errors, and even compliance issues.
An upgraded pay review process should provide a detailed audit trail, ensuring accountability and facilitating smoother audits. This is particularly important in today's regulatory landscape, where organisations must be able to demonstrate compliance with ever-evolving compensation regulations.
Collaboration is a challenge
Effective pay reviews require collaboration between HR, finance, and line managers.
However, when your process relies on spreadsheets and email, collaboration can be a challenge. An upgraded solution should facilitate seamless collaboration, allowing stakeholders to work together in real-time.
This not only streamlines the process but also ensures that everyone has access to the most up-to-date information and insights.
Our PAYreview software can help you find an easier path through your pay review
You're missing out on analytics
Spreadsheets may help you crunch the numbers, but they offer limited analytics capabilities.
If you're struggling to generate insights that can inform your compensation strategy and drive business outcomes, it's time to upgrade to a solution that offers robust analytics and reporting.
With advanced analytics, you can identify trends, benchmark your compensation practices, and make data-driven decisions that support your organisation's strategic goals.
Compliance is a constant concern
Keeping up with ever-evolving compensation regulations can be a daunting task, particularly when your pay review process is manual and error-prone.
An upgraded solution should help you stay compliant by automating key tasks, flagging potential issues, and providing the documentation you need to demonstrate compliance.
This not only reduces the risk of non-compliance but also frees up your HR team to focus on more strategic initiatives.
Employee communication is lacking
Your pay review process doesn't end when the numbers are finalised.
Communicating compensation decisions to employees is a critical step that can impact engagement, retention, and motivation. If your current process makes it difficult to provide timely, personalised, and transparent communication to employees, it's time for an upgrade.
A modern pay review solution should enable you to craft targeted, meaningful communications that help employees understand their compensation and feel valued by the organisation.
Poor compensation communication leads to incorrect assumptions by employees
You're not making the most of your compensation budget
Without robust analytics and modelling capabilities, it can be challenging to optimise your compensation budget and ensure that you're allocating resources effectively.
An upgraded pay review solution should help you make the most of your budget by providing insights into cost implications, allowing you to model different scenarios, and aligning compensation with business objectives.
This not only helps you control costs but also ensures that your compensation strategy is driving the desired business outcomes.
Your process is holding HR back
If your pay review process is manual, time-consuming, and error-prone, it's likely holding your HR team back from focusing on more strategic initiatives.
In fact, many organisations find that their senior HR professionals get dragged into the day-to-day management of the pay review process, draining them of the ability to use their experience to guide strategic decisions.
Moreover, relying on complex spreadsheets that only a handful of individuals fully understand creates a critical weak point in your organisation. If those key personnel leave or become unavailable, it can throw your entire pay review process into disarray.
Upgrading to a more efficient, automated solution, can free up HR resources to focus on high-impact activities that drive business value. By implementing a more intuitive, user-friendly solution, you can democratise access to critical information and ensure that your pay review process is resilient and sustainable.
But what about the cost?
One common objection to upgrading your pay review process is the perceived cost, especially when compared to sticking with already-budgeted Microsoft Office tools. However, it's essential to consider the potential return on investment (ROI) of a purpose-built pay review solution.
How much could PAYreview save you?
Consider this example: as of November 2022, the average salary in the UK was around £30,000. For an organisation with 500 employees, this translates to a total salary cost of approximately £15,000,000. If this hypothetical organisation's budget for a pay review was 5%, they would have a pot of £750,000 to work with.
By using a dedicated software like PAYreview to spend this budget more effectively, even a 5% improvement in outcome would equate to £37,500 in added value. When you consider that the average cost of using a solution like PayReview for a review of this size is around £10,000, the potential ROI is a staggering 300%!
This substantial return on investment is achieved before even factoring in the numerous other benefits of upgrading, such as increased efficiency, improved data security, enhanced collaboration, and better employee communication.
The Power of Partnership
When you choose to upgrade your pay review process with a solution like PAYreview, you're not just investing in software – you're gaining a valuable partnership.
Our team becomes an extension of yours, providing comprehensive support that includes process consultation, software setup, and day-to-day management of the review.
This partnership-led approach ensures that you get the most out of your investment, with tailored guidance and support every step of the way. By leveraging our expertise and experience, you can transform your pay review process, drive better outcomes, and ultimately achieve your strategic objectives.