What is "Compensation Management" in Workday HCM?

Compensation Management in Workday HCM refers specifically to the processes and methodologies employed to oversee employee pay structures, including salaries, bonuses, and salary increases. This function is crucial for ensuring equity and fairness in compensation practices, facilitating performance-based pay adjustments, and aligning compensation with the organization's budget and strategy.

The management of compensation includes evaluating market data to ensure competitive pay rates, administering merit increases, and managing bonus distributions based on performance metrics. This comprehensive handling helps organizations attract and retain talent while promoting a culture of performance and accountability.

By focusing on pay rates and incentivization mechanisms, Compensation Management significantly impacts employee satisfaction and retention, making it a central component of any robust Human Capital Management strategy.