Bonuses and variable remuneration are attractive incentives for employees. They are also a significant factor in recruitment processes. However, in medium-sized and large companies, managing them can be a tedious task. Not all jobs are eligible for this type of remuneration, and companies with multiple subsidiaries around the world have to manage multiple currencies and calculation rules specific to each country concerned. Data collection is therefore key to ensuring fair and reliable remuneration. However, this is where the problem lies.
In this article, we take stock of the challenges involved in collecting these variable payroll elements, the tools available to make it more reliable, and the benefits to be gained from it.
HR data collection: essential KPIs for variable remuneration management
Every company has its own criteria for awarding bonuses and variable remuneration to its employees. These variable salary components are calculated on the basis of objectives and results, and sometimes take into account seniority, hierarchical status, etc. Calculating them is therefore a tedious task that requires reliable and secure data collection. In order to allocate these bonuses, HR managers must use personal data (identity, job title, hierarchical status, salary, geographical location, etc.) and cross-reference it with collective indicators defined by the company (objectives, % of remuneration according to department or job title, calculation of bonuses based on seniority and company agreements, individual or team commissions, etc.).
This data is often collected using Excel. This involves spreadsheets with several thousand rows and hundreds of columns, which must be filled in by HR managers at each site/department. These files must then be validated at various hierarchical levels in order to check and approve remuneration. This raises several issues:
- Heterogeneous cell formats
- Manual filling (copy and paste)
- File sharing by email
- Cell security using macros
- Manual data control
- Email reminders to managers and administrators
- Software versioning issues
Consequences: the risk of error increases, checks take time, files are scattered throughout the company, and managers must manually follow up with respondents or validators. In addition, data reliability and security suffer, given the number of back-and-forth exchanges between all those involved in the process.
Making remuneration data collection more reliable without disrupting HR teams’ routines
Compensation management is a sensitive subject, as it involves handling employees’ personal data. Ensuring the reliability of collection processes is therefore a priority for HR departments. However, these processes are tedious and have sometimes been subject to development, so implementing new tools that disrupt the entire organisation can be daunting. Fortunately, there are alternatives available to HR managers. Gathering Tools is one such solution. Using the same interface as Excel files, Gathering Tools offers users an easy-to-use solution, which encourages its adoption by managers.
The Gathering Tools tool allows you to structure data collection campaigns. At each variable remuneration calculation period (which varies from company to company, but is often monthly), the administrator sends local managers a collection file connected to the company’s information system. Some cells in the file are automatically filled in: the manager must check them and fill in the missing KPIs for their employees. The other cells are locked. Furthermore, if the data format entered in a cell is incorrect or the information appears inconsistent, the file cannot be sent back to the administrator, forcing the respondent to check their entry. The tool also automatically sends reminders in the event of non-response.
Finally, validation workflows can be configured directly in the tool, facilitating exchanges and traceability and ensuring that the process is not blocked. Information flows are thus better structured (definition of roles, consistency checks, etc.) and each file is tailored to the respondent with the right collective indicators (adapted to the business line or department). Access to these files is protected, as users must log in to a secure platform with a username and password, ensuring data confidentiality.
Variable remuneration and bonus management: reliable, fast and traceable processes
By structuring the data collection processes used to calculate variable remuneration, human resources departments gain a comprehensive overview of all indicators. The information reported is more reliable thanks to a structured and streamlined workflow and consolidation that can be achieved in just a few clicks. This makes it easier to analyse employee performance and calculate fair remuneration.
With Gathering Tools, HR managers save time and the data collected is more reliable. No more copying and pasting, manual data checks, random file modifications… Information is synchronised with the IS, ensuring security, while data is consolidated in a database and shared directly from the application.
Thanks to its Excel-like look and feel, users quickly get to grips with Gathering Tools, without the need for change management, allowing the tool to be deployed rapidly. What’s more, this solution can be used for other HR processes (workforce management) or other business areas (budget collection), thereby pooling digital tools within the company.
