Enterprise compensation management allows organizations to manage end-to-end process for carrying out the compensation review and streamline the process of bonus and incentives based on eligibility guidelines. Both Enterprise compensation management and Personnel cost planning are used for compensation management. Here I have created a document which highlights the main differences between both.
Enterprise Compensation Management
- Enterprise compensation management deals with the frequent business requirement of organizations to analyze, review and enhance the compensation structure across the organization.
- Enterprise compensation management involves strategic decisions about developing overall budget for compensation restructuring and defining employee’s eligibility guidelines for hikes, long-term incentives and bonus.
- Enterprise compensation management takes into consideration employee data based on the date of joining, age, job-level etc. for defining eligibility guidelines.
- The eligibility guidelines developed based on the data collected helps in filtering employees who will participate in the compensation review process.
- Provides easy and interactive visual interface for planning and maintaining bonus and incentives based on organization budget and guidelines.
- Only the final results of the compensation review are posted to Payroll.
Personnel Cost Planning
- Personnel cost planning takes into consideration the traditional cost incurred on the employees of the organization such as wages, salaries, bonus and contribution of employer towards employee benefits.
- Personnel cost planning has been used in organizations as part of deriving compensation budget and simulate the cost of various compensation programs such long-term incentives, salary hikes and bonus.
- Personnel cost planning collects data based on the historical cost incurred on each employee. Historical cost data collected from each employee is used to simulate and analyze various future planning scenarios.
- The main objective behind the simulation of personnel cost planning is to assess the impact on overall payroll and accounting of the organization.