Early 80s and 90s,
organization used paper-based on planning of compensation to their employees. This
is because web based compensation still not existed and HR Department faced
difficulty to record and review the compensation for each of employees. But
nowadays, it is easier because HR Department just click items that related with
the compensation by using web-based compensation. Organization must ensure that
their web-based compensation is effective because it is essential for control
labor costs, increase employee productivity and improvement quality of
services.
According Kavangah et al. (1990), compensation systems
includes base pay, merit pay, short-term and long-term incentives, perquisites,
recognition awards and attraction or retention awards. So, HR Department must
coordinate and organize all of this compensation systems based on positions of
each employee. This is because different positions of the employees have
different types of compensation. Other than that, organizations more give recognition
that focuses on non-monetary rewards to their employees such as recognition of
“best employee of the month” or have a lunch with top management.
By using web-based
compensation, HR Department easier to collect, record, control, evaluate,
utilize and distribute compensation data and information. Besides that,
employees also can review the compensation data to know their payment or salary
in every month via Internet. This is because amount of salary that employees
received are different each month based on their over-time hour payment,
profits of sales, performances, productivity or bonuses.
So, HR Department is
responsible to make sure that salary of employees is match with those
criteria. They also can cut their time to
sit in front of computers during entering all the compensation data of each
employee because information can be updated using real-time data.
In addition, web-based
compensation contains a lot of information regarding compensation planning and
implementation such as plan configuration, modeling and budgeting, plans review
and approval, and data related to payment of employees. Other than that,
web-based compensation has current information about compensation policies,
program description, and new compensation forms and also employees can get
further explanation by requesting the question via online Internet to the HR
Department.
Web-based compensation
incorporated with other department in the organization, if the data and
information related to HR Department. For an example, HR Department can detect
the information of employee attendance or performance appraisal to make sure is
equivalent changes with their compensation. Furthermore, managers can online
via Internet to review the compensation reports of each employee and also view
the compensation plans and budgeting to make comparison between budgeting with
actual spending.
(419 words)
BIBLIOGRAPHY
Liang, X. (2001). Transforming
Compensation Management Practices through Web-Based Enterprise Technologies.
Michael J.
Kavangah, M. T. (1990). Human Resources Information Systems.