Some people may be wondering why would they want to extract the power of AI (artificial intelligence) from their HRMS system for compensation management? And the short answer quite simply is, to make better decisions that are unbiased by utilizing and integrating the right data points when setting up your HRMS platform.
When HR analytics became a thing, most of us thought of it in terms of keeping all the people data in one place to track necessary compliance items. If you are lucky enough to have the full throttle model of HRMS, those platforms include employee self-service, collaboration space, event calendars, time and attendance, benefits, payroll, learning management, talent/performance management, compensation, budgets, expense reporting, recruiting, onboarding, surveys, workers compensation, and OSHA. Within these modules lay the ability to produce people analytics and talent analytics which can be gathered from the data points specified for the analytics needed to make unbiased decisions.
Most companies who invest in such a robust system do so usually because they want the full picture of their workforce and the dollars associated to it. But what most companies overlook when setting up the system is tying the data received to the strategic goals of the company along with the initiatives the company wants to achieve during their calendar year. It is the company strategic goals and initiatives that are then linked to each department and every employee by specific data points. Those data points can include:
1. Engagement analysis
2. 360 reviews
3. Current salary
4. Historical salary
5. Position history
6. Learning initiatives
7. Project status
8. Current real time market rates
9. Key skills for the position
10. Skills no longer needed in the position
11. Skills needed now
12. Skills needed for the future
Utilizing these data points or any other data points needed can provide a company with an accurate compensation recommendation for the employee that is unbiased by other outside influences. Can those recommendations be overridden? Why yes, yes, they can. Yet with most companies wanting to be transparent, most managers will go with the recommendation produced. At the same time the employee also has the ability to see what the current market value is for their position along with the minimum, mid-point, and maximum pay for their position and where their salary fits into the model. Thus, giving both the company and the employee real-time true ownership of how their role played a part in the company either achieving or missing the strategic goals outlined. www.hrcircleconsulting.com