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Article | Beyond Data

Solve your data collection pains with next-generation technology

Future of Compensation Surveys – Part 2

By Sambhav Rakyan | January 11, 2019

To compete in today’s market, it is crucial for HR functions to have fast and easy access to compensation data.
Compensation Strategy & Design|Total Rewards

A major pain point for compensation managers nowadays is not having the right technology to support ging pay challenges and evolving talent requirements. To effectively compete in today’s tight labour market, it is crucial for HR functions to have fast and easy access to compensation data.

The data collection process of today is still very manual and highly reliant on complex, formula-heavy spreadsheets. Collecting salary data from organisations will remain a pivotal part of the compensation survey cycle, primarily because pay data and trends will continue to change. The data used for benchmarking will certainly impact its effectiveness. And in an era when AI and blockchain technologies exist, there are possibilities for next-generation tools to automate the data collection process.

Beyond cutting out the administrative and manual tasks involved, automated solutions improve the quality, integrity, and security of pay data. There are also more opportunities for compensation managers to interact with and analyse the data. Quick and easy access to market salary trends and insights can bring HR towards even stronger and faster strategic talent decisions.

Next-generation technology will solve today's data collection pains for compensation professionals.

Future of Compensation Surveys – Part 2 - Now and Future

TODAY: Survey data is uploaded to a data collection portal

  • Online submission in a secure environment with data encryption.
  • Submission and validation processes have manual phases, and can take 20-24 hours to complete.
  • Interfaces for benchmarking and market analysis are separate from the data collection portal.
  • Surveys are one-size-fits-all done at a point in time.

FUTURE: AI-powered secure system that is connected to client’s HRIS

  • System automates the data submission process depending on the user’s past participations. AI-enabled system remembers a repeat participant’s previous job queries and adapts to changes in pay programmes.
  • Seamless connection with customer’s HRIS – removes the need to manually upload compensation data and shortens the data validation process.
  • Automatic retrieval of HRIS data ensures that the information being retrieved is the most updated and accurate version.
  • System can provide user with the option to compare current HRIS data against their last job matching activity and year-on-year analysis.
  • System can suggest job matches depending on title or other similar roles and functions.
  • Data query is highly automated, enabling the user to complete the entire benchmarking process in significantly less time or even in real-time.
  • User has the option to upload data from other vetted survey providers, making it easier to compare multiple datasets on one interface and see their competitive positioning relative to the market.
  • Additional 24x7 chat box provides a faster product support experience – as opposed to email or phone – in case users need assistance with data validation, job matching and other features or tasks in the portal.

Digital technologies are advancing to a point where big data can be democratised efficiently. Further simplification of the data collection and sharing processes will support improved collaboration, facilitate transparent communication, and expedite decision-making. This future scenario should encourage organisations today to find a balance between pay transparency and data security.

For pay programmes to be truly fair and competitive, it is not enough to simply have data. Compensation benchmarking is only effective if the survey data is comprised of appropriately vetted sources from peer organisations and industries. In this era of heightened security around data privacy, organisations must exercise vigilance. This includes ensuring that their compensation survey provider clearly identifies their data sources and the types of information they are collecting and sharing from organisations.

In part three of this series, we will further explore what compensation professionals stand to gain in the long-term from leveraging next-generation technology for compensation output.

View Part 1: Upgrade your benchmarking methodology to future-proof talent strategies
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