The Best 6 Compensation Management Solutions for 2024
Read our in-depth reviews on what we consider to be the best compensation planning and management solutions available in 2024.
- Pave – Pave is an end-to-end platform for fair compensation decisions, providing real-time data, benchmarking, centralized band management, and customizable merit cycles.
- Carta – Carta’s Total Compensation ensures responsible decisions, preventing overspending, providing granular market insights, and offering integrated, free employee roster leveling.
- Lattice – Lattice makes compensation management easy with an intuitive, streamlined module that integrates with the rest of its people management software platform.
- Payfactors by Payscale – Payfactors is a comprehensive compensation platform leveraging peer networks, HR market analysis, and employee-reported data for equitable and transparent pay practices.
- Leapsome – Leapsome’s compensation management product enhances hiring and retention by promoting fair and transparent compensation and promotion processes.
- Bob (HiBob) – Bob (formerly HiBob) is a robust HRIS with an easily configurable global compensation management offering.
Keep reading for our in-depth reviews of the top 6 compensation management solutions and see our full list of the top 12 compensation management software tools in 2024.
Still learning about what compensation management is, why it matters, and how to select the right tool? Learn more here.
In-depth Overviews: The Top 6 Compensation Management Solutions for 2024
Choosing a compensation management tool poses challenges as it requires alignment with company objectives, accommodation of diverse employee needs, adherence to compliance standards, and staying abreast of evolving compensation practices in a dynamic business environment. The tool must effectively address these complexities to ensure successful implementation and value for your organization.
We wrote this guide to offer a structured resource for provider identification. This guide streamlines the vetting process, empowering companies to make well-informed decisions in selecting a compensation management software solution.
Read on for our in-depth reviews on our shortlist of the best seven best compensation management solutions on the market in 2024 for your consideration. Plus, we’ve included a list of five additional compensation management tools to help you choose the best option for your organization.
1. Pave
Overview
Pave is an end-to-end platform offering real-time data and compensation workflows for fair decisions. It provides benchmarking, centralized band management, and customizable merit cycles, enhancing transparency for employees and candidates.
Why We Picked It
Pave is a comprehensive platform providing real-time data and compensation workflows for fair and defensible decisions. It offers compensation benchmarking using the largest private company dataset, enabling companies to stay market-competitive.
Pave centralizes and secures the creation, visualization, and sharing of compensation bands, ensuring team alignment. Companies can conduct end-to-end merit cycles with customizable guidelines for salary increases, bonuses, and equity refreshers. Pave enhances transparency by providing employees and candidates unparalleled visibility into their total compensation, covering salary, bonuses, benefits, equity, and more.
Key Services
Companies benefit from Pave’s compensation benchmarking, utilizing real-time salary and equity benchmarks from the largest private company dataset. This empowers them to stay ahead of the market and make informed compensation decisions. Pave provides companies with real-time data and compensation workflows, ensuring access to up-to-date information for fair and defensible compensation decisions. Pave also enables companies to build, edit, visualize, and share compensation bands in a secure and centralized manner, promoting team alignment and efficient management of compensation structures.
Additionally, Pave offers integrations across the HR and comp tool tech stack, including performance management systems, HRIS providers, cap table tools, and many ATS solutions.
User Reviews
Pave has largely positive reviews, with 4.7 stars and 27 reviews on G2 as of February 2024. In particular, reviewers enjoy Pave’s user-friendliness, ease in creating salary bands, and customization options.
Noteworthy Customers
Pave’s website features customer case studies from respected companies like Credit Karma, Cockroach Labs, and Allbirds.
Pricing
Pave does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage, but does offer access to its benchmarking features for free.
2. Carta
Overview
Carta’s Total Compensation product ensures responsible compensation decisions, proactively preventing overspending on salary or equity. With access to extensive private market data, it offers granular insights and integrated, free employee roster leveling for accuracy and fairness.
Why We Picked It
Carta’s Total Compensation product stands out by proactively preventing overspending on salary or equity. Users can build sustainable compensation strategies with real-time insights to identify and address pay discrepancies and retention issues, ensuring responsible financial practices.
With access to the industry’s largest set of private market data, Carta provides users with granular market-driven compensation data. This allows for precise planning and forecasting of talent costs across different locations and job specialties, giving companies a competitive edge in attracting and retaining top talent.
Carta’s compensation specialists collaborate with companies to implement and level employee rosters for free. This unique offering ensures accurate and fair pay leveling, contributing to equitable compensation practices and employee satisfaction.
Key Services
Carta’s Total Compensation product offers companies the ability to make strategic solutions for responsible compensation decisions, budget adherence, and transparent communication of package value. With the industry’s largest set of private market data, users can access global compensation bands for relevant roles. The platform supports a sustainable and scalable compensation strategy by highlighting risks for overspending on salary or equity and addressing pay discrepancies. Integrated with cap tables and employee options, it provides granular market-driven data, cost-effective recruiting insights, and precise talent cost planning tools across US locations.
Plus, Carta’s compensation specialists offer free employee roster leveling, and the Total Compensation Employee Scorecard delivers a detailed view of individual compensation compared to market standards. Additionally, the compensation projection tool lets employees explore different financial scenarios, fostering transparency and informed decision-making.
User Reviews
Carta has generally positive reviews, with 4.4 stars and 191 reviews on G2 as of February 2024. In particular, users have left positive feedback on Carta’s ability to integrate with other HR tools and user-friendly interface.
Noteworthy Customers
Carta features customer case studies from respected companies like Gauntlet, PandaDoc, and Wattpad.
Pricing
Carta does not share its pricing on their website for their Total Compensation product and likely requires a sales conversation in order to forecast a custom quote based on desired product usage. However, the product is an add-on and not available without subscribing to other Carta products.
3. Lattice
Overview
Lattice’s compensation management product integrates fair reviews, aligns compensation with performance, and centralizes HR functions, promoting fairness, employee satisfaction, and informed decision-making. It offers free benchmarking data, facilitating smart, budget-conscious decisions and enhancing employee motivation and satisfaction.
Why We Picked It
Lattice’s compensation management product links compensation to performance, allowing companies to conduct streamlined and fair reviews while motivating employees with a performance-driven reward structure.
Lattice’s compensation management software provides HR teams with a centralized platform, enabling seamless salary benchmarking, total rewards planning, and performance-based compensation. This centralized approach fosters fairness, boosts employee satisfaction, and simplifies the overall compensation management process.
Key Services
Lattice’s compensation management product streamlines fair reviews, connecting compensation to performance to motivate employees. Their software empowers HR with a centralized platform for seamless salary benchmarking, total rewards planning, and performance-driven compensation, fostering fairness and employee satisfaction.
Offering free benchmarking data alongside performance insights, Lattice facilitates informed compensation decisions. The platform eases organization-wide merit cycles with clear budget tracking, secure sharing, providing comprehensive context for smart and fair decisions, enabling companies to stay competitive on a budget while boosting employee motivation and overall satisfaction.
User Reviews
Lattice has largely positive reviews, with 4.7 stars and 3,790 reviews on G2 as of February 2024. In particular, users have left positive feedback on Lattice’s intuitive interface, depth of features, and seamless integration with other tools to help facilitate streamlined processes.
Noteworthy Customers
Lattice features customer case studies from respected companies like Instapage, Twill, and Thrive Digital.
Pricing
Lattice’s compensation management product starts at $6/person/month on top of their base product subscription costs.
4. Payfactors by Payscale
Overview
Payfactors is a comprehensive compensation management platform sourcing pay trend data from peer networks, HR market analysis, and employee-reported compensation, enabling organizations of all sizes to create more equitable and transparent pay practices.
Why We Picked It
Payfactors combines peer reported, HR market analysis, and employee reported compensation data to create a dynamic and accurate view of pay trends so users can easily see where pay trends are headed.
Payfactors supports pay equity analysis, aiding in identifying and addressing pay gaps. The platform facilitates efficient compensation planning, enhancing confidence and governance in pay decisions. Moreover, Payfactors provides personalized total rewards statements to improve employee communication and engagement, helping them comprehend their comprehensive compensation package.
Key Services
Payfactors enables users to make swift and informed competitive pay decisions. With the platform, you can tailor your approach using market pricing, build custom competitive sets, experiment with diverse pay scenarios for attracting and retaining top talent, and manage grade-based ranges and job-based ranges all from within one platform.
Payfactors also offers the ability to complete “what-if” scenarios to understand impacts of potential changes to pay structure, access to third-party survey data, and a rich reporting environment. Plus, Payfactors touts a rich partner marketplace to extend the value a company can get out of implementing the platform.
User Reviews
Payfactors has favorable reviews, with 4.3 stars and 415 reviews on G2 as of February 2024. In particular, reviewers enjoy Payfactors’ support as a business partner, depth of integrations with the rest of the HR tech tool stack, and customization of the tool for specific business needs.
Noteworthy Customers
Payfactors features customer case studies from respected companies like The Total Economic Impact and Integer Holdings.
Pricing
Payfactors does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage.
5. Leapsome
Overview
Leapsome is a people enablement platform with a compensation management product built to enable companies to improve their hiring and retention through fair and transparent compensation and promotion data and processes.
Why We Picked It
Leapsome’s emphasis on reducing manual work sets it apart, offering reusable templates and automated workflows that not only save time but also build trust with employees, streamlining the scaling process for companies.
Leapsome’s native integrations with other modules, such as Review, Goals, & Learning, distinguish it by providing a holistic people enablement platform. These integrations enrich promotion data, offering users a comprehensive understanding and seamless collaboration across various aspects of employee development.
Key Services
Leapsome streamlines scalable growth by minimizing manual efforts through reusable templates and automated workflows. This not only saves time but also establishes trust with employees, utilizing core performance data to identify promotion-ready talent. Prioritizing fairness, Leapsome enhances employee retention and engagement with flexible compensation and promotion workflows for a consistent experience.
When integrated with modules like Review, Goals, & Learning, Leapsome enriches promotion data for a comprehensive understanding. The platform offers analytics and dashboards, enabling effortless tracking of employee career advancement and involving all stakeholders in informed decision-making. Leapsome empowers collaborative decision-making by allowing users to design personalized workflows and monitor progress through comprehensive compensation and promotion analytics, fostering transparency and data-driven practices.
User Reviews
Leapsome has generally positive reviews, with 4.4 stars and 278 reviews on G2 as of February 2024. In particular, reviewers enjoy Oyster’s user-friendly interface and client-first approach, and have noted positive feedback about Oyster’s dashboards and their experience using Oyster for hiring and onboarding international employees.
Noteworthy Customers
Leapsome features customer case studies from respected companies like Workato and Spryker.
Pricing
Leapsome does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage, but other online sources have quoted an $8/user/month cost. It is unclear whether this is list price or a discounted price a customer received.
6. Bob (HiBob)
Overview
Bob (formerly HiBob) is a robust HRIS with global compensation management enabling companies to take a data-driven approach to their compensation planning.
Why We Picked It
Bob stands out by simplifying the allocation of base pay, bonus, and equity plans across international teams through multiple currency management, localized currency views, and local salary benchmarks.
The platform offers scalability with compensation bands, enabling efficient handling of compensation events or workforce planning during company scaling, providing essential data for smarter hiring, talent retention, and DE&I initiatives.
Bob’s compensation worksheets provide a unique advantage by offering a sleek and simple UI for managers to review and distribute bonuses, access personalized guidelines, and collaborate in real-time with stakeholders, fostering informed decision-making and instant visibility through live insights and alerts.
Key Services
Bob simplifies company-wide compensation management, ensuring consistency, transparency, and compliance. Its scalable platform, equipped with compensation bands, supports workforce planning, driving smarter hiring, talent retention, and DE&I initiatives. With features like multiple currency management, localized views, and salary benchmarks, Bob facilitates international compensation allocation.
The platform empowers users to plan salary reviews, set recommendations, and track progress collaboratively. Bob’s compensation worksheets offer a sleek interface for reviewing and distributing bonuses, providing data to identify high performers, address pay parity, and make informed compensation decisions. With live insights and alerts, Bob enables real-time visibility and drives pay parity across teams.
User Reviews
Bob has largely positive reviews, with 4.5 stars and 793 reviews on G2 as of February 2024. In particular, reviewers enjoy Bob’s user-friendly interface, ability to streamline compensation management processes, robust reporting features, and the strong support they have received during implementation.
Noteworthy Customers
Deel features customer case studies from respected companies like Fiverr, Save the Children, and Kustomer.
Pricing
Bob does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage.
6 More Great Compensation Management Solutions for 2024
Here are six more compensation management tools on the market in 2024 for your consideration.
8. Workday HCM
Overview
Workday HCM is an all-encompassing cloud-based solution for workforce needs, with functionality for compensation management, workforce planning, and talent management, ensuring adaptability for evolving human capital strategies.
User Reviews
Workday HCM has somewhat positive reviews, with 4.0 stars and 1,295 reviews on G2 as of February 2024.
Pricing
Workday does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage.
9. SAP SuccessFactors
Overview
SAP SuccessFactors empowers organizations to create strategic compensation programs aligned with employee needs, business objectives, and budget constraints through intuitive compensation management software for effective attraction and retention of top performers.
User Reviews
Workday HCM has somewhat positive reviews, with 3.9 stars and 656 reviews on G2 as of February 2024.
Pricing
SAP SuccessFactors does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage.
10. UKG Pro
Overview
UKG Pro’s compensation management combines intuitive navigation, relevant data, and a people-centric approach for thoughtful compensation plans and reward allocation.
User Reviews
UKG Pro has generally positive reviews, with 4.2 stars and 1,470 reviews on G2 as of February 2024.
Pricing
UKG Pro does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage. Third-party sites have cited pricing ranging from between $26 to $37/employee/month.
11. Paycom
Overview
Paycom offers budgeting software for fair and accurate compensation planning focused on improving employee retention and engagement.
User Reviews
Paycom has generally positive reviews, with 4.2 stars and 1,141 reviews on G2 as of February 2024.
Pricing
Paycom does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage.
12. Anaplan
Overview
Anaplan is cloud-based business software, emphasizing robust compensation management capabilities within its modeling and planning features.
User Reviews
Anaplan has largely positive reviews, with 4.6 stars and 242 reviews on G2 as of February 2024.
Pricing
Anaplan does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage.
12. Beqom
Overview
Beqom is a total compensation platform streamlining processes, with analytics dashboards for informed decision-making and visibility into rewards, workforce patterns.
User Reviews
Beqom has generally positive reviews, with 4.2 stars and 18 reviews on G2 as of February 2024.
Pricing
Beqom does not share its pricing on their website and likely requires a sales conversation in order to forecast a custom quote based on desired product usage.
What is compensation management?
Compensation management involves designing and administering fair employee payment packages, including everything from job analysis and market research to salary and incentive structures, to benefits administration, and more.
Companies often leverage software providers for compensation management to streamline complex processes and ensure compliance. Compensation management software ensures accuracy in salary calculations, facilitates real-time market data analysis, and automates benefits administration.
Additionally, it can help enhance transparency, allowing employees to access and understand their compensation details, while helping organizations stay compliant with evolving labor laws and regulations.
Why You Should Use Compensation Management Software in 2024
Efficiency & Accuracy
Compensation management software streamlines and automates complex processes, reducing the likelihood of errors in salary calculations, benefits administration, and compliance. This efficiency not only saves time but also ensures precise and consistent application of compensation policies, fostering trust among employees.
Real-Time Market Data Analysis
In the ever-changing job market, staying competitive in terms of compensation is crucial. Compensation management software provides real-time access to market data, enabling companies to make informed decisions about salary structures and benefits. This helps organizations attract and retain top talent by offering competitive and up-to-date compensation packages.
Compliance Management
With evolving labor laws and regulations, ensuring compliance is a constant challenge. Compensation management software automates the tracking of legal requirements, tax regulations, and industry standards. This reduces the risk of non-compliance and potential legal issues, safeguarding the company’s reputation and financial stability.
Employee Transparency & Engagement
Modern employees value transparency in compensation. Compensation management software allows employees to access their compensation details easily, fostering transparency. This transparency, coupled with clear communication about compensation policies, enhances employee satisfaction, engagement, and trust in the organization.
Strategic HR Resource Allocation
By automating routine compensation tasks through software, companies can free up time and energy for their human resources professionals to focus on strategic aspects of compensation management. This includes designing innovative incentive programs, conducting in-depth analyses of compensation structures, and aligning compensation strategies with organizational goals. This strategic focus ensures that the company optimally allocates resources to remain competitive and agile in the dynamic business environment of 2024.
Benefits of Leveraging an compensation management for Startups
Compensation management software is a valuable asset for startups, streamlining administrative processes and allowing HR professionals, who often handle the full scope of HR responsibilities in these settings, to focus on essential core business activities. These platforms efficiently manage payroll, benefits, and compliance tasks, ensuring accuracy and freeing up time for HR teams to enhance overall productivity and foster innovation within the startup environment.
Significantly, the impact of compensation management software extends to future scalability. As HR professionals are typically juggling various responsibilities in startups, the automation of routine compensation tasks becomes instrumental in optimizing their time. This liberation allows them to strategically allocate their efforts toward broader initiatives crucial for scaling the company. With the burden of repetitive tasks lifted, HR teams can actively design and implement innovative incentive programs, align compensation strategies with overarching organizational goals, and adapt swiftly to the dynamic needs of a growing workforce. Consequently, by integrating compensation management software into their operations, startups not only streamline current HR functions but also fortify their foundation for sustained and successful scaling in the future.
Key Services to Look for in Compensation Management Solutions
When evaluating compensation management software providers, a company should consider several key services and features to ensure that the chosen solution aligns with its specific needs and goals.
Comprehensive Compensation Planning
Look for a system that supports the entire compensation planning process, from job analysis and market pricing to budgeting and allocation of rewards. It should accommodate various compensation components such as base salary, bonuses, and benefits.
Access to Real-Time Job Market Data
The software should provide access to up-to-date market data to help the company make informed decisions about competitive compensation packages. This feature is crucial for attracting and retaining top talent.
Regulatory Compliance Monitoring
Tools to monitor and ensure compliance with local and international labor laws, tax regulations, and industry standards. This feature is critical for avoiding legal issues and maintaining the company’s reputation.
Integrations with Other HR Tools
Compatibility with other HR systems, such as human resource management systems (HRMS), payroll software, and performance management tools. Integration ensures data consistency and eliminates the need for manual data entry.
Analytics & Reporting
Robust analytics and reporting capabilities that provide insights into compensation trends, budget utilization, and the overall effectiveness of compensation strategies. This empowers decision-makers to make data-driven adjustments.
Employee Self-Service Portals
Portals that allow employees to access and review their compensation details, including performance metrics, bonuses, and benefits. This enhances transparency and empowers employees to understand and manage their own compensation information.
Flexibility in Configuration
A flexible system that allows customization to match the company’s unique compensation structures and policies. This ensures adaptability to changing business needs and evolving industry standards.
