E-Compensation

E-Compensation
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Introduction
Over the years, internet has been integrated into most of the functions of human basic life. Most of the functions in business have adopted the web based platforms to maximize the benefits reaped from the interoperability of the internet connectivity and productivity. The human resources departments in most of the companies have adopted the use of internet platforms to take advantage of the connectivity (Shrm.org, 2011). One of the major functions that is carried out by the human resources department relates to compensation of the staffs at any given firm. Most of the firms have taken advantage of e-compensation platforms while others retain the older pc based systems (Oracle.com, 2014).
Web-Based Compensation Tool versus a Client-Server Based or Stand-Alone Pc-Based System
There are a number of advantages that can be derived from the web based compensation platforms. One of the aspects that make most of the human resources departments to opt for the web based is the fact that these systems have the ability to make correction on an automated basis. This means that the human resources managers are assured that the information on the database is correct as simple errors are easily corrected, from the automated mechanisms built into the systems. This makes the system quite easy to manage even with many employees and massive data to work with (Rosenau, Lal & Lako, 2012). Given that these webs based systems have out update functions, the managers are not tied down by manual installations and updating tasks which sometimes can be hectic. Web-based systems use online servers to store the information on the databases. This means that they take minimal space on the personal computers and can also be accessed from anywhere as far as there is an internet connection. This not only makes convenient but also efficient and increase the level of productivity for the human resources department and the staffs due to the easy access.
Although there are quite a number of advantages that make the Web-based compensation tools effective and productive for the human resources department and the firm in general, there are some crucial disadvantages associated with the use of the same. One of the disadvantages is associated wit the fact that these systems ten to have poor experiences of the users. This means that some of the staffs do not get to reap the full benefits due to user difficulties and therefore poor user experience. At the same time due to the dependence on the internet connectivity, any form of disconnection means that the human resources and the staff cannot access the database. It is also important to note that, due to the fact that the systems are based on the internet, they are prone to hacking and loss of sensitive personal and company data that could have catastrophic impacts to the firm and staffs (Successfactors.com, 2014).
Given the interoperability of the web based systems, in my opinion it is much more effective and efficient that the pc based compensation system. The web based system is much better given the fact that, it uses the online servers. These serves have the ability to accommodate massive data storage capacities, without imposing limits to the firms. At the same time they also offer the ability to manage the databases from virtually anywhere in the world, due to the element unrestricted access (Oracle.com, 2014). The aspect of access also extends to the staff as they can also access their data and interact with system from the comfort of their homes or even on vacation across the globe. These are benefits that a stand alone system cannot offer, due to its limited capabilities (Successfactors.com, 2014).
E-Compensation tools in the job-evaluation 
Job evaluation is used in virtually all firms by the human resources department and the staffs. E-compensation systems are also crucial and can be used in the even that the human resources or the staffs want to evaluate a certain job. For the human resources department, e-compensation systems are fundamental not just for the purposes of paying merits and offering rewards among others aspects of employee compensation (Rosenau, Lal & Lako, 2012). Ideally, for the human resources department, e-compensation systems play a major role in determining the worth of various jobs in their firm. This means that with the many positions in a firm, using the e-compensation the human resources department is able to rank and offer competitive packages depending on the value of the position. This also helps the human resources department to establish the right level of benefits that can be offered for any give position, in reference to other positions and offers in other similar firms. For the staffs, the e-compensation system is also very crucial. When employees compare the benefits of a given firm to theirs, they are able to weight out with much ease the possibility of seeking employment else where. At the same time the staffs are able to compare the benefits and remuneration packages of other positions that they may be seeing within the firm. For either party, these comparisons are done with reference to the responsibilities of a given job. If there are any additional responsibilities, using the e-compensation systems the human resources department can reevaluate the upscale of the benefits and pay. Additionally, the staffs can also asses their jobs with reference to the additional responsibility as pertains to the position (Rosenau, Lal & Lako, 2012). Where the positions are temporary, the human resources and the staffs are able to gauge the compensation elements, with reference to the time and the responsibilities associated. As firms grow, new positions are established; the human resources can use the e-compensation system to determine the rank and the benefits associated depending on the responsibilities (Rosenau, Lal & Lako, 2012).
Centralized and Decentralized Approach to Managing Merit Pay Programs
Most companies embrace the idea of having a merit pay system as a way of rewarding their best performing staffs and retaining them. Some organizations use a centralized system while others apply a decentralized system, relative to the benefits and the limitations of either. With a centralized system, the firms are able to compare the performance of the various departments at a glance. This benefit is tied to the fact that the human resources can access the entire system. It is also easier for the human resources make changes to the merit pay system given the fact that, the access to the system is not restricted to one department (Shrm.org, 2011). The efficiency of managing the merit payment data is quite high due to the same element of having access to the entire database. However, there are also some demerits that are associated with centralized systems when compared to the decentralized ones. With the centralized system some of the employees may not be recog...