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10 Best Employee Compensation Management Software In 2022

The Best Compensation Management Software List

Here’s a shortlist of the best compensation management systems:

  1. Deel

    Best compensation software for global salary benchmarking and international hiring

  2. Xoxoday Compass

    Best compensation software for managing sales incentives

  3. Xoxoday

    Best for sending bonus payouts and creative incentives & rewards

  4. Decusoft Compose

    Best for flexible compensation management

  5. Xactly

    Best for quota-based work

  6. Balanced Comp

    Best for the finance industry

  7. Payfactors

    Best for market benchmarking strategies

  8. Workday

    Best for data integrations

  9. Spiff

    Best for sales teams

  10. CompTrak

    Best for transitioning from legacy systems

The employee compensation philosophy of a specific organization will directly impact employee satisfaction rates

When a company fails in basic compensation planning, it risks losing talent and scaring away potential hires—up to 52% of candidates say that competitive compensation is the most attractive element of a job offer. Designing effective compensation plans can be a challenge when organizations still rely on legacy compensation management solutions. 

Organizations wanting to upgrade to modern, personalized software that will streamline processes and bring about pay equity are spoiled for choice. But what is the best compensation management software in the market today?

This article will provide HR professionals responsible for employee performance and human capital management (HCM) with an idea of the main features to look out for when deciding which HR software will be best for their needs.

Related Read: 6 Tips For Effective Employee Compensation Discussions

Compensation Management Software Comparison Criteria

What do I look for when I select the best compensation management software? Here’s a summary of my evaluation criteria: 

  1. User Interface (UI): Are the different types of compensation easy to access and well laid out? Do users feel like they can grasp a holistic or drilled-down view of their compensation programs?
  2. Usability: Is the compensation tool easy to learn for HR professionals of all skill levels? Does the company offer good tech support and training?
  3. Integrations: Can the compensation management platform connect with other CRM, ERM, and HRIS systems? Do they offer any additional integrations to streamline your workflows?
  4. Value for $: Is the price of the compensation management tools appropriate for the feature set? Is the pricing scalable if you need additional users, functions, or storage space?

Compensation Management Software Key Features

The best compensation management software should provide an HR team with talent acquisition, forecasting, capturing the right metrics, onboarding, and maybe even time tracking. Here are some features I look at when we evaluate the various compensation management software in this article:

  1. Generating insights: HR managers and other company executives should design their company’s compensation strategy based on solid information generated by the human resources information system (HRIS).
  2. Automation: Can you automate some (or all) rewards management, pay programs, and long-term incentives in a real-time central database, reducing the time required to administer compensation processes.
  3. Self-service: When compensation management software provides self-service functionality, employee queries related to their compensation can be addressed automatically, lessening the administrative burden.
  4. Total compensation management: Good compensation management software should provide HR management with a comprehensive solution including budgeting and management of company perks, benefits, and incentives for top performers.

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An Overview Of The 10 Best Compensation Management Software 

Here’s my compensation management software comparison, with a brief description of each software and screenshots that highlight some of the features.

1

Deel

Best compensation software for global salary benchmarking and international hiring

Deel is a comprehensive payroll service with a robust self-service function for HR professionals. It’s designed for global teams, letting you manage and keep track of employees and contractors around the world.

Their service is easy to use and offers a wide range of features. The platform gives you a comprehensive overview of benefits, perks, and salary expenses. You can make use of their internal research tools to benchmark salary ranges in various countries, taking into account mandatory contributions like pension and healthcare.

Deel has several integrations that allow you to import and export HR data between popular accounting and reporting software solutions such as NetSuite and Xero. They also have an Open API solution that allows developers to build their own interfaces on top of the Deel platform too.

Deel is SOC2-compliant and ISO 27001-certified, which means it meets international standards for data security.

Deel offers flat rate pricing per worker, as well as a free demo.

Free demo available

Flat pricing upon request

2

Xoxoday Compass

Best compensation software for managing sales incentives

Managing sales incentive programs can be difficult and create a lot of manual work for an organization. Even worse, some companies fail to pay commissions on time, as they should. This leads to frustration, complaints, and lost opportunities. Xoxoday Compass is a sales incentive compensation management software solution that helps businesses manage and reward their sales efforts. With Compass, you can design and launch gamified sales incentive programs for your sales force, offer real-time visibility into performance, track commission information and incentive plan details, and process incentive payments.

Xoxoday Compass is designed to complement any enterprise resource planning (ERP) system or accounting platform, while providing your business with flexibility and accuracy in managing its sales incentive programs. It also integrates easily with many CRM systems and Google Sheets.

Xoxoday Compass costs from $29.99/user/month and offers a free demo. They also have a progressive pricing structure that decreases your average price per user as you add more users to your account.

Free demo available

From $29.99/user/month

3

Xoxoday

Best for sending bonus payouts and creative incentives & rewards

Xoxoday Plum is a flexible rewards & incentives and payout platform that allows you to offer unique additional compensation opportunities to your workforce. Their scalable platform simplifies payments for any sort of occasion, such as merit-based bonuses or incentives, staff appreciation gifts, milestone rewards, or annual bonus payments.

You can use Xoxoday Plum to make payments globally with ease, sending direct deposits straight into beneficiaries’ local bank accounts in any international currency. They’re also capable of handling high-volume transactions, including up to 10,000 bulk payouts within minutes.

Beyond just sending payments, you can also surprise and delight your employees with customized digital, including prepaid credit cards, gift cards,, or other special experiences. In total, their global rewards catalog includes 21,000+ gift options from 3,500+ brands, spread across 20+ categories.

Pricing for Xoxoday Plum starts at $299 per month. They also offer a freemium account with limited features, as well as a free trial or a free demo.

Free trial + free demo

From $299/month

4

Decusoft Compose

Best for flexible compensation management

Decusoft Compose is a comprehensive compensation, incentive, and total rewards management software. The solution not only simplifies the management of complex variable pay programs including merit, equity, long/short term incentives, carried interest, and deferrals but also provides enhanced analytics of your data. DEI, pay equity and people analytics are all simple to measure, report, compare, and visualize. Compose is easy to use, tailored to your unique needs, and SOC-2 compliant.

Decusoft Compose offers customized pricing upon request.

Customized pricing upon request along with a free demo

5

Xactly

Best for quota-based work

Sales teams come in different forms and sizes, and so do their compensation plans and benefits. Xactly is a compensation management software designed to continuously monitor sales teams so that HR professionals can run compensation strategies that motivate them. The software also comes with all the key features you would expect: seamless integration with existing applications, collaboration between teams, and the collection of compensation data, which will help companies allocate resources.

Xactly offers customized pricing upon request along with a free demo.

Customized pricing upon request along with a free demo

6

Balanced Comp

Best for the finance industry

Balanced Comp delivers compensation management software that provides best-in-industry consulting, web-based salary administration, and performance management software specialized for the financial industry. The tool is designed to assist companies in structuring compensation to encourage pay equity, inclusion, and workforce diversity.

Balanced Comp provides customized pricing upon request. You can connect with their team via the chatbot on the company’s website.

Customized pricing upon request

7

Payfactors

Best for market benchmarking strategies

Some of the main advantages of using Payfactors include job description customization, total rewards statements, and more than 25,000 compensation and HR professionals to share knowledge within the user community. This tool is primarily useful for organizations that want to benchmark their salaries with the market average. It also provides a company with survey tools that collect and organize the data required to get an idea of how employees feel regarding their company’s compensation strategy.

Payfactors offers customized pricing upon request and comes with a free demo.

Customized pricing upon request and comes with a free demo

8

Workday

Best for data integrations

Some of the main advantages of using Payfactors include job description customization, total rewards statements, and more than 25,000 compensation and HR professionals to share knowledge within the user community. This tool is primarily useful for organizations that want to benchmark their salaries with the market average. It also provides a company with survey tools that collect and organize the data required to get an idea of how employees feel regarding their company’s compensation strategy.

Payfactors offers customized pricing upon request and comes with a free demo.

30 days free trial

From $100-$200/user/year on a 3-year contract

9

Spiff

Best for sales teams

To ensure that each sales representative is paid fairly and on time, Spiff has created a system that provides a personalized dashboard that updates as soon as a rep closes a deal or attains a milestone. This provides members of the sales team with a visualization of their compensation and the way it was calculated. In addition, because commissions and bonuses change in sales, Spiff software is designed to be flexible.

Spiff offers customized pricing upon request.

Customized pricing upon request

10

CompTrak

Best for transitioning from legacy systems

Even though organizations are progressively moving away from legacy systems, the transition is not always easy because people tend to revert to familiar ways. An analysis of CompTrak shows that the designers of this program understand that the transition from legacy systems is not always easy. With that in mind, they have created an easy-to-use cloud-based system that makes accessing compensation data smooth and simple and provides valuable reports for decision making.

CompTrak offers customized pricing upon request and offers a free demo.

Customized pricing upon request and offers a free demo

Need Expert Help Selecting The Right Compensation Management Software?

People Managing People has joined forces with the software comparison platform Crozdesk.com to assist you in finding the best tool for your needs. Crozdesk’s Compensation Management Software advisors can create a personalized shortlist of software solutions with unbiased recommendations to help you identify the solutions that best suit your business’s needs. Through our partnership you get free access to their bespoke software selection advice, removing both time and hassle from the research process.

It only takes a minute to submit your requirements and they will give you a quick call at no cost or commitment. Based on your needs you’ll receive customized software shortlists listing the best-fitting solutions from their team of software advisors (via phone or email). They can even connect you with your selected vendor choices along with community negotiated discounts. To get started, please complete the form below:

The Best Compensation Management Software Summary

Tool Free Option Price
1
Deel

Best compensation software for global salary benchmarking and international hiring

Free demo available

Flat pricing upon request Visit Website
2
Xoxoday Compass

Best compensation software for managing sales incentives

Free demo available

From $29.99/user/month Visit Website
3
Xoxoday

Best for sending bonus payouts and creative incentives & rewards

Freemium version

Free trial + free demo

From $299/month Visit Website
4
Decusoft Compose

Best for flexible compensation management

Not available

Customized pricing upon request along with a free demo Visit Website
5
Xactly

Best for quota-based work

Not available

Customized pricing upon request along with a free demo Visit Website
6
Balanced Comp

Best for the finance industry

Not available

Customized pricing upon request Visit Website
7
Payfactors

Best for market benchmarking strategies

Not available

Customized pricing upon request and comes with a free demo Visit Website
8
Workday

Best for data integrations

30 days free trial

From $100-$200/user/year on a 3-year contract Visit Website
9
Spiff

Best for sales teams

Not available

Customized pricing upon request Visit Website
10
CompTrak

Best for transitioning from legacy systems

Not available

Customized pricing upon request and offers a free demo Visit Website

Other Compensation Management Software Options

Here are a few more that didn’t make the top list.

  1. Maestro

    Best for broker-dealer and registered investment adviser communities

  2. COMPview

    Best for recognizing and compensating top performers

  3. Varicent ICM

    Best for incentive compensation management

  4. CaptivateIQ

    Best for customer-facing teams

  5. ChartHop

    Best for smart eligibility rules

  6. Salary.com

    Best for compensation negotiations

  7. PayScale

    Best for designing pay structures, monitoring pay equity, and managing merit increases

  8. SAP SuccessFactors HXM Suite

    Best for employee feedback

  9. Ascentis HRIS Software

    Best for managing and tracking employee records

  10. Comp XL

    Best for combining streamlined compensation processes and flexibility

  11. Simply Merit

    Best for merit, bonus, and equity allocation

  12. Certent Equity Compensation Management

    Best for streamlining equity administration and reporting

  13. TalentSoft

    Best for managing talent and training needs

  14. CURO Compensation

    Best for making compensation decisions easier and fair

  15. CompLogix

    Best for simplicity and flexibility in tracking, monitoring, and reporting

  16. TalentComp by CWS Software

    Best for compensation process automation

  17. Equity Management Software

    Best for equity compensation management

  18. Global Shares

    Best for stock plan compensation administration

  19. CompAccelerator by Dartican

    Best for compensation management customer support

  20. Compease by HR Performance Solutions

    Best for determining market-based compensation

  21. HubbubHR

    Best for gathering salary survey data and designing competitive compensation strategies

  22. DayForce

    Best for integrating HR processes, talent and workforce management, payroll, and benefits

What Is Compensation Management Software?

Compensation management software is a program and operating information that enables a computer user to plan, design, and implement compensation packages for employees. 

Even though compensation management software differs based on the industry where it is used, some basic features and functionalities are expected from a good compensation management tool. For instance, for a software package to qualify as a tool for managing compensation, it needs to provide an organization with a central place where compensation planning, policies, strategies, data, and reports are accessible to all those authorized to view them. The software should also streamline processes through automation and reduce the need for HR employees to do repetitive low-value tasks while also integrating with other software.  

How Does Compensation Management Software Help Employers?

Compensation management software helps organizations to structure the way they pay employees with different skills. Ensuring that no one is underpaid or overpaid is vital for creating an environment of fairness where individuals feel that their efforts are recognized. This could help the organization attract and retain talent. 

Compensation management tools can also reduce the costs of managing employee compensation as HR employees are able to spend their time doing high-value tasks while the software takes care of repetitive jobs. 

Tools that ensure equity and fairness reduce the risks associated with non-compliance with labor laws while helping establish a favorable relationship with labor unions and employee representative groups. In addition, when employees feel that they are fairly compensated and the company can provide a rationale for its compensation structure, employees are likely to feel motivated to do their best at work, increasing productivity and profits.

Related Read: What Is Time Tracking And Why Is Time Tracking Important?

What Do You Think About Compensation And Benefits Management Software?

Has your team used any of the tools we featured in this article? If so, how did they improve your compensation planning, implementation, and overall strategy? Please use the comments section to share your views.

Looking for some other way to attract and retain high-quality talent? Try these other rewards and compensation management tools:

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By Tim Reitsma

Tim is the co-founder and General Manager of People Managing People, an online publication focused on building a better world of work. He is experienced with people & culture, leadership, business strategy and operations with a focus on building great teams who are excited about their craft and their organization. With over 15 years of leadership experience, Tim has always been guided by his core values: faith, family, curiosity, and fun. He is a coach, mentor, speaker, advisor, and an active volunteer in his community. Tim loves spending time outdoors with his wife and two kids as well as mountain biking in the north shore mountains.

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