Segments of Talent Management > Compensation Management
Compensation Management
The use of talent management software helps organizations make more use of their employee data, be more equitable, and provide a more proactive employee development and planning function. Specialized talent management solutions assist in:
- Succession Planning – Include identifying candidates for new positions, identifying pools of candidates for leadership, management, or other critical positions. No matter what size an organization is, the pain and expense of having to fill a gap left by a critical employee can be staggering. And unless promoting the employees within, the organization is faced with the high cost of external recruiting, including hiring, training, and support costs, as well as indirect costs such as the productivity losses incurred while waiting to fill that position.
By systematically reviewing all performance management data, organizations can analyze what employees they see in future leadership roles and ensure enough development opportunities are created.
- Compensation and Benefits - Complete the employee performance management loop by linking performance reviews to employee compensation. Pay-for-performance is the fair and unbiased way to reward and retain the talent in the organization. And the only way to guarantee the integrity of the compensation plan is to link it to the employee performance management system, which provides the tools one need to manage, monitor, and measure employee performance at every step in the process.
Being able to clearly identify top performers in the organization allows singling out those individuals who are performing at a high level and reward them appropriately. Rewarding top performers is the better way to retain the critical talent in any organization.
- Skills Gap Analysis -- Identifying business-critical skills in the organization, locating potential gaps (today or in the future) in these areas, and putting in place plans to fill or avoid these gaps. Rather than taking a reactive approach, and filling your organization’s existing workforce gaps, address the issue today by developing your talent before those gaps occur.
