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10 Best Compensation Management Software in 2023

The Best Compensation Management Software List

Here’s a shortlist of the best compensation management systems I’ll cover in this article, with detailed summaries below:

  1. Deel

    Best compensation management software for global salary benchmarking and international hiring

  2. Decusoft Compose

    Best compensation management software for pay equity analysis tools

  3. Xactly

    Best compensation management software for offering incentives that drive performance

  4. Assemble

    Best compensation management software for transparent total compensation

  5. ChartHop

    Best compensation management software for automating eligibility rules

  6. CaptivateIQ

    Best compensation management software for customer-facing teams

  7. PaveAI

    Best compensation management software for managing compensation bands at scale

  8. Spiff

    Best compensation management software for commission-based sales teams

  9. Varicent ICM

    Best compensation management software for automating incentive programs for enterprise organizations

  10. MarketPay by Payscale

    Best compensation management software for tracking global compensation volatility

Your compensation data shouldn't be siloed in an Excel spreadsheet or reviewed on an ad hoc basis. Instead, it should be integrated into your HR tech stack, and standardized to ensure pay equity for all your employees. Compensation management software can help you upgrade and modernize your compensation process. It also incorporates data from global salary surveys to help you stay competitive in the war for top talent.

Sounds like an obvious necessity, right? I absolutely agree! But finding the best compensation management software for your organization isn't always easy. That's why I've done some digging for you.

This article covers the best compensation management software on the market today. I've summarized the main features of each system that made my list, and explained why I included them. Read on to fast-track your research and find the best compensation management solution for you.

If you have general questions about how compensation management software works, take a look at my People Also Ask section below. Or, feel free to jump right to my detailed summaries if you're ready to dive straight in.

How I Selected the Best Compensation Management Software

Wondering how I selected the best compensation management software for this top 10 list? I'm happy to explain my detailed approach.

First, I evaluated and compared a wide range of compensation management platforms with positive user ratings. Next, I examined each system in greater detail using the selection criteria below.

Selection Criteria

Here's a short summary of the main evaluation and selection criteria I used to determine the best compensation management software systems for this list:

Usability:

Compensation planning, in general, can be complex, especially with a wide range of employee positions and skill sets. That's why it's important that the system you choose scores high in usability and creates a positive user experience (UX) for all your internal stakeholders who will access it.

To assess a system's usability, I examine its user interface (UI) to understand how its menu and key features are organized. I want to get an understanding of how easy-to-use their system is, or whether you need to drill down endlessly to access the details you need.

Competitive Features:

With the war for top talent never going away, you need a compensation system that offers features to help you stay competitive. The crux of this is the database upon which the compensation software rests. You want to invest in a system that includes salary benchmarking data. This data, sourced globally by trusted salary survey providers, will help you ensure your existing and future staff are compensated fairly, at current market rates.

Other modern features that fall into this category are: pay equity tools, DEI (diversity, equity, and inclusion) monitoring systems, and compensation bands that allow you to update employee salaries at scale.

Incentive Programs:

Depending on your industry, incentive programs may be a big part of your employee compensation plan. This is especially true for businesses focused on sales or customer service. If this applies to your industry, you'll definitely want a software system that can automate the incentive process for you.

Sales or incentive compensation programs include tools to automatically track employee productivity as they strive to meet their goals or key performance indicators (KPIs). Often incentive programs include engaging gamification features too, to further motivate your employees to perform.

Software Integrations:

It's important to ensure that the compensation management system you choose integrates with your existing HR software solutions. The most important integrations to confirm are whether it will link to whichever HR management and/or payroll system you're using. This will save you a lot of time, as salary adjustments made in one system will automatically populate over to the other.

If your compensation program includes sales-based incentives, you'll also want to ensure it links up with popular sales management and CRM systems too.

I've noted key software integrations for each system in this list. However, as you're doing your research, make sure you take the extra time to confirm the integrations you need are available.

Value for Price:

It's logical for the price of a compensation management tool to vary based on the depth of its features. While I always try my best to consider how appropriately a software system is priced, it was a little bit of a challenge for this software set.

Most of the software systems in this list only offer pricing upon request. However, you can still get a sense of the depth of their plans by visiting their websites for more details.

People Managing People is reader-supported. We may earn a commission when you click through links on our site — learn more about how we aim to stay transparent.

Overviews of the 10 Best Compensation Management Software 

Here’s a brief description of each compensation management software that made my shortlist. I've also included their noteworthy features, software integrations, and screenshots to show you their user interface too.

1

Deel

Best compensation management 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.

Why I picked Deel: 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 Standout Features & Integrations:

Features include international market salary insights, employer of record (EOR) or global payroll services, payroll & tax management, a dedicated customer service manager, access to international legal and tax experts, compliant employee contract templates, compliance monitoring tools, expense management, time tracking, analytics & reporting, and 24/7 in-app support. Deel is also SOC2-compliant and ISO 27001-certified, which means it meets international standards for data security.

Integrations are available with a handful of popular accounting and HR management systems that allow you to import and export HR data easily. Key integrations include Ashby, BambooHR, Bob, Greenhouse, NetSuite, QuickBooks, 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 offers flat rate pricing per worker, as well as a free demo.

Free demo available

From $49/user/month

2

Decusoft Compose

Best compensation management software for pay equity analysis tools

Decusoft Compose is a comprehensive compensation, incentive, and total rewards management software. Their cloud-based software is easy-to-use and purposefully designed to mimic a spreadsheet-based experience many users are familiar with, yet with more advanced functionality.

Why I picked Decusoft Compose: Their solution not only simplifies the management of complex variable pay programs including merit-based bonuses, equity, long/short term incentives, carried interest, and deferrals but also provides enhanced analytics of your data. Diversity, equity & inclusion (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 Standout Features & Integrations:

Features include compensation planning, budgeting & forecasting tools, a wealth of compensation planning models (bonus + equity, bonus only, bonus with deferral, equity award, exceptional impact, financial demo incentive, sales bonus, merit + bonus + equity, merit only, etc.), data dashboards, salary benchmarks, DEI & pay equity analysis tools, and employee performance & merit calibration tools.

Integrations are available with a handful of human resource information systems (HRIS) or other HR management systems including ADP, Oracle HCM, SAP, UKG, and Workday.

Decusoft Compose offers customized pricing upon request and a free demo.

Free demo available

Pricing upon request

3

Xactly

Best compensation management software for offering incentives that drive performance

Sales teams come in different forms and sizes, and so do their compensation plans and benefits. Xactly Incent is an incentive compensation management software designed to continuously monitor sales teams so that HR professionals can develop compensation strategies that motivate them to achieve top performance.

Why I picked Xactly Incent: Their compensation planning platform comes with 17 years of proprietary data that links pay with sales performance. This data, which was collected across many different industries, has been aggregated and anonymized. I included Xactly Incent in this list because you can leverage this data to help you build competitive incentive-focused compensation plans to boost your sales quotas and retain your top sellers.

Xactly Incent Standout Features & Integrations:

Features include compensation data, compensation & payout planning tools, commission tracking, sales forecasting tools, advanced benchmarking data, reusable plan components, pay curves, visualizations, workflow automations, analytics, real-time reporting, and a mobile app.

Integrations are available with Salesforce, Microsoft Dynamics, and NetSuite, and other CRM, ERP, and HCM software solutions.

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

Free demo available

Pricing upon request

4

Assemble

Best compensation management software for transparent total compensation

Assemble is a compensation planning platform with a focus on transparency and equality. Their software can help you prepare compensate packages for your employees in a way that drives performance and builds trust within your organization. 

Why I picked Assemble: Their compensation planning software is focused on helping organizations develop transparent compensation plans that are fair, equitable, competitive, consistent, and explainable.

This modern, proactive approach to developing a compensation plan within these parameters helps to ensure that traditionally underrepresented and underpaid demographics are paid equally when compared to their peers. To simplify this process, Assemble also automatically analyzes pay equity across your workforce data for you, and includes a special module focused on DEI (diversity, equity and inclusion). 

Assemble also includes a unique illustrative offers feature that helps organizations communicate the full value of an employee offer, which may include additional forms of compensation above their base salary, such as merit-based bonuses, equity plans, or tenure-based increases.

To ensure a positive user experience, their illustrative offers are sent directly from Assemble, drawing candidates into a digital portal that’s been customized with your own company branding. This positive portrayal of their total compensation package can make a big impact on candidates’ employee experience, before they even accept their offer.

Assemble Standout Features & Integrations

Features include salary benchmark data, salary ladders and compensation bands, easy-to-digest visualizations, illustrative employee offers, pay transparency and compliance tools, historical record keeping & audit logs, workflow automation, tools to manage job architecture and job descriptions, multiple currencies, DEI tracking, and a white-labeled employee portal. 

Integrations are available with 60+ HR software solutions, including Alexis HR, Applicant Stack, Ashby, Breathe, Breezy, CATS, Cornerstone, Factorial, HR Cloud, JazzHR, Jobvite, Lano, Lever, Recruitee, Teamtailor, UKG Pro, Workable and others. 

Assemble offers customized pricing upon request, as well as a free demo.

Free demo available

Pricing upon request

5

ChartHop

Best compensation management software for automating eligibility rules

ChartHop is a people analytics platform for managing all your employee data, including compensation, headcount planning & demographics, DEI (diversity, equity & inclusion), performance, and employee engagement data.

Why I picked ChartHop: Their compensation review process ensures all compensation decisions are standardized and linked to performance reviews. This process can be customized for any type of workforce and includes clear guidance for managers, as well as salary benchmarks, and an intelligent eligibility rules engine that ensures no employees are missed.

By connecting ChartHop to your HRIS, performance management, and equity management systems, you can use centralized data to formulate and define eligibility rules that are fair to all employees. For example, you can use criteria such as employee start date, latest pay raise date, or performance review scores to determine if an employee is eligible for a pay increase.

In addition, the software automatically flags compensation or promotion recommendations that don’t meet standards so you can request additional clarification to prevent fraud or eliminate manager bias. ChartHop also helps you plan, define, and recalibrate the compensation budget as needed, ensuring that you have the funds to support your company’s compensation scheme.

ChartHop Standout Features & Integrations:

Features include automated compensation review cycles, benchmarked salary data, customizable workflows, a flexible eligibility rules engine, visualization tools that demonstrate the impact of compensation changes on budget pools, performance management data, collaboration tools, and advanced workforce analysis tools (e.g., by job type, department, location, tenure, performance, DEI, etc.).

Integrations are available with BambooHR, Gusto, Humaans, Jobvite, Justworks, Kallidus, Lever, Greenhouse, Namely, Paylocity, SAP SuccessFactors, Sequoia, Workday, Zenefits, and others.

ChartHop's Compensation Reviews module is available as an add-on (add $4/employee/month) to their Standard service package. They also offer a free demo upon request.

Free demo + freemium version available

From $8/user/month

6

CaptivateIQ

Best compensation management software for customer-facing teams

CaptivateIQ is a compensation management software to manage and track sales commissions. You can use it to customize multiple agreements simultaneously, making it ideal for devising compensation plans for newly hired employees.

Why I picked CaptivateIQ: Customer-facing teams are critical to any company because they represent the entire organization, and customers often base their assessment of a company on their experience with customer-facing teams. This makes it critical to ensure that customer-facing teams receive compensation packages proportionate to their role, and CaptivateIQ can help you in this regard.

You can use CaptivateIQ to set up plans and quotas visible to everyone, ensuring they know how the company measures their performance to motivate them. The software gives you real-time visibility into your sales team's earnings or commissions, ensuring that they stay on track toward achieving goals. It has built-in formulas and tips to help you design attractive and accurate commission plans to help motivate your employees.

CaptivateIQ Standout Features & Integrations:

Features include numerous pre-defined templates for compensation plans and programs, automatic calculations, compensation plan logic settings, team hierarchies & reporting structures, transparent team-wide targets & quotas, accelerator & clawback tools, plan cloning to save time, digital documents with electronic signature tracking, and a familiar Excel-like user interface.

Integrations are available with ADP Workforce Now, Amazon Redshift, BigQuery, Hubspot, Microsoft Dynamics CRM, MySQL, NetSuite, Oracle, PostgreSQL, Sage Intacct, Salesforce, Snowflake, Stripe, Xero and others.

CaptivateIQ offers customized pricing and a free demo upon request.

Free demo available

Pricing upon request

7

PaveAI

Best compensation management software for managing compensation bands at scale

Pave is an end-to-end compensation management platform with individual modules for benchmarking, compensation bands, compensation planning, total rewards, and visual offer letters. 

Why I picked Pave: Their comprehensive platform addresses all aspects of the compensation process, helping organizations attract talent, make competitive offers, leverage best practices, and stay proactive by ensuring pay-related decisions are fair, equitable and unbiased. Their salary benchmark database updates in real-time, ensuring you are always viewing up-to-date information so you can compete effectively for top talent. 

Large workforces will also get a lot of value from their compensation bands feature, which ensures every employee is accounted for within a role-specific band. By making an edit to a compensation band, you can streamline your salary adjustment process since one edit carries over to every other record that uses the same band, saving a lot of time normally spent manually adjusting rates. 

You can also configure access to specific bands at a granular level, ensuring that leaders and managers can only access the bands that are relevant to their department, instead of accessing salary information for the company as a whole. 

Pave Standout Features & Integrations

Features include compensation bands and benchmarks, compensation cycles, merit-based management tools, guidelines for salary and equity increases, cashflow and equity budgeting tools, approval workflows & auditable change logs, visual offer letters, and unlimited user seats. 

Integrations are available with 25+ popular HR management systems, including ADP, Carta, Gusto, Hibob, Humaans, Humi, Justworks, Namely, Paylocity, Personio, Rippling, Sapling, Sequoia, TriNet, Workday, Zenefits, and others. 

Pave offers pricing details upon request, as well as a free demo.

Freemium plan + free demo available

Pricing upon request

8

Spiff

Best compensation management software for commission-based sales teams

Spiff is a commission management platform with a focus on designing compensation management programs that motivate and scale. It can be used by businesses of any size, from small teams all the way up to enterprise organizations.

Why I picked Spiff: To ensure that each sales representative is paid fairly and on time, Spiff's system includes a personalized dashboard that updates as soon as a sales 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 often in sales, Spiff's software is designed to be flexible.

Spiff Standout Features & Integrations:

Features include configurable workflows, real-time data updates, visual data dashboards, an easy-to-access version history for previous compensation and commission plans, employee retention tools, compliance monitoring, and tools to simplify complex pay scale structures.

Integrations are available with many CRM, ERP, HCM and payroll platforms, including Amazon Redshift, Domo, Enerflo, Google BigQuery, Oracle, Pipedrive, Sage, Salesforce, Slack, Stripe, Snowflake, Tableau, Tripleseat, and others.

Spiff offers customized pricing upon request, as well as a free demo.

Free demo available

Pricing upon request

9

Varicent ICM

Best compensation management software for automating incentive programs for enterprise organizations

Varicent is an incentive compensation management (ICM) software solution purpose-built for mid-sized to enterprise-level organizations. Their software facilitates friction-free incentive compensation workflows that are transparent, adaptable, and actionable.

Why I picked Varicent: Designed specifically for enterprise organizations, Varicent's incentive compensation technology can process large volumes of data quickly, at scale, with built-in tools to audit and verify the data. Their automated workflows take the guesswork out of which employees are due to receive an incentive or bonus, with full transparency to motivate your sales-focused employees to achieve all their goals.

Varicent helps companies ensure employees are awarded for exceeding performance and productivity expectations, while eliminating the potential for mistakes related to underpaying or overpaying employees.

Varicent Standout Features & Integrations:

Features include compensation workflows & automations, real-time performance and goal tracking, data-based insights, gap analysis tools, data management & verification tools, automatic calculations, and reporting & analytics.

Integrations are available with 20+ software solutions, including AgentSync, Amazon Aurora, Amazon S3, Google Ads, Google Analytics, Microsoft Dynamics, Microsoft Power BI, MySQL, Salesforce, Shopify, Snowflake, Symon, Tableau, and others.

Varicent ICM offers customized pricing upon request and offers a free demo.

Free demo available

Pricing upon request

10

MarketPay by Payscale

Best compensation management software for tracking global compensation volatility

Payscale’s MarketPay is an advanced compensation management module within Payscale’s suite of products that offers global organizations a competitive advantage when it comes to managing salary volatility. 

Why I picked MarketPay: You can use their software to access decentralized global compensation data to help you make smarter pay decisions and ensure your job offers for global talent remain competitive in the marketplace. You can also use their software to track changes in compensation volatility — both globally and within specific geographic markets — due to inflation, mass resignations, and other factors. This ensures your existing employees are receiving compensation at fair market rates too, to improve your employee retention.

Their system aggregates pay-related data through partnerships with 12+ leading survey publishers covering over 1,100 employers and 4,000 jobs to keep their finger on the pulse of compensation changes at the global level. MarketPay also easily links up to other services Payscale offers that cover pay equity, job descriptions, and advanced compensation planning.  

MarketPay Standout Features & Integrations

Features include compensation modeling (for pay structures, merit bonuses and regressions), an interactive data dashboard, automated salary surveys, a survey library, data benchmarking, employee-reported data. Add-on features are also available for job description management, pay equity, and additional global insights. 

Integrations are available with a handful of software solutions, including ADP Workforce Now, BambooHR, Desktop.com, Greenhouse, Shift, Tableau, and UKG Pro. 

MarketPay offers pricing details upon request, as well as a free demo.

Free demo available

Pricing upon request

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 10 Best Compensation Management Software Comparison Chart

This comparison chart summarizes basic details about each of my top compensation management software selections. You can view pricing details and the availability of free trials or demos side-by-side to help you find the best software for your budget.

Tool Free Option Price
1
Deel

Best compensation management software for global salary benchmarking and international hiring

Free demo available

From $49/user/month Visit Website
2
Decusoft Compose

Best compensation management software for pay equity analysis tools

Free demo available

Pricing upon request Visit Website
3
Xactly

Best compensation management software for offering incentives that drive performance

Free demo available

Pricing upon request Visit Website
4
Assemble

Best compensation management software for transparent total compensation

Free demo available

Pricing upon request Visit Website
5
ChartHop

Best compensation management software for automating eligibility rules

Free demo + freemium version available

From $8/user/month Visit Website
6
CaptivateIQ

Best compensation management software for customer-facing teams

Free demo available

Pricing upon request Visit Website
7
PaveAI

Best compensation management software for managing compensation bands at scale

Freemium plan + free demo available

Pricing upon request Visit Website
8
Spiff

Best compensation management software for commission-based sales teams

Free demo available

Pricing upon request Visit Website
9
Varicent ICM

Best compensation management software for automating incentive programs for enterprise organizations

Free demo available

Pricing upon request Visit Website
10
MarketPay by Payscale

Best compensation management software for tracking global compensation volatility

Free demo available

Pricing upon request Visit Website

Other Options

Here are a few other options that didn’t make the best compensation management software list:

  1. Xoxoday Plum

    Best compensation management software for sending bonus payouts internationally

  2. Xoxoday Compass

    Best compensation management software for gamified sales incentive programs

  3. PayScale Insight Lab

    Best compensation management software for designing pay structures and managing merit increases

  4. Ceridian Dayforce

    Best compensation management software for integrating talent and workforce management, payroll, and benefits

  5. Workday

    Best compensation management software for data integrations

  6. SAP SuccessFactors

    Best compensation management software for employee feedback

  7. CompLogix

    Best for compensation management software for simplicity and flexibility in tracking, monitoring, and reporting

  8. TalentComp

    Best compensation management software for process automation

  9. Balanced Comp

    Best compensation management software for the finance industry

  10. Simply Merit

    Best compensation management software for merit, bonus, and equity allocation

People Also Ask

Still trying to wrap your head around compensation management software and how it works? Here are some answers to frequently asked questions that should clear things up for you further:

Additional Resources

Looking for some other ways to attract and retain high-quality talent? Here's a collection of our best resources to help you develop top-notch compensation and engagement practices within your organization:

Before you go, I also recommend signing up for our weekly People Managing People newsletter. That way, you'll receive the latest insights from top thinkers in the HR space straight into your inbox.

By Kim Behnke

Kim Behnke is an HR Tool Expert & Writer for People Managing People. She draws on her 9 years of human resources experience and her keen eye for systematic processes to support her analyses of the top HR tools on the market. She is passionate about maximizing efficiencies and streamlining workflows to ensure internal systems run smoothly. Kim's HR experience includes recruitment, onboarding, performance management, training and development, policy development and enforcement, and HR analytics. She also has degrees in psychology, writing, publishing, and technical communication. When away from her desk, she can usually be found outside tending to her ever-expanding garden.