This largely depends on the size of your organization. For larger firms, salary evaluations are typically led by the human resources department, while in smaller companies, managers may take on the responsibility of salary reviews and appraisals for their teams. In either case, it’s important that the salary evaluation process is informed by the latest market data and trends.
Using pay management software to automate parts of the salary evaluation process is certainly possible, and many companies are already doing it. The main advantage of automation in this context is significantly reducing the time and effort required for manual calculations and assessments. Automation can also help streamline benchmarking, incorporate real-time data, and potentially improve accuracy by reducing human error.
That said, there are some drawbacks to consider. Setting up automation tools can be expensive, and relying too much on technology might mean losing the human touch, which is essential in retention and morale. Lack of human involvement can also lead to employees’ unique circumstances or individual contributions being overlooked. Finding the right balance between technology and human oversight is crucial for getting the most out of automated salary reviews.
