What is E-compensation?
Compensation is the total reward received by an employee in
exchange for services performed for an organization. It can
include both direct pay (salary and wages) and indirect pay
The e-Compensation systems are those software packages
which are bought or developed by companies and are
accessible through the company’s intranet or over the internet
which all the employees would be able to reach it through
browsers from anywhere (in case of internet).
A formal compensation administration program is the basic
management tool for ensuring that employees are satisfied,
that both internal and external equity are maintained, and
that control is maintained over compensation costs. Such a
program will help attract top talent, retain core employees,
and encourage longevity while efficiently using financial
Establishing an effective compensation administration
program requires job analysis, job evaluation, and job pricing.
Once established, it is important to maintain and update the
following aspects of the program: salary banding, employee
classification, salary increases, performance appraisals, and
How it was started?
During 1980s and early 1990s spreadsheets had been used to
manage compensation information of the employees (for each
manager one spreadsheet including its subordinates data)
which had been static (changes in data as bottleneck), and
time-consuming -months of efforts (Wright, 2003).
In 1990s client-server applications replaced. These
applications were customizely and expensively developed
based on company’s requirement and were needed to be
installed on each manager’s computer separately which all
these made it difficult to adopt with varying conditions of the
Late 1990s was an outset for a developmental migration to the
browsers instead of client-server applications by introducing
intranets which provided a centrally distributed application
with an ability to be updated readily without any dependency
on the manager’s computer (Wright, 2003).
In 2000 Barber and Bretz found the pay is an important factor
in both job choice and turnover decisions by employees and
from that time salary has been used as a lever to attract, retain
and motivate employees.
Types of E-compensation
Morale and job satisfaction are affected by compensation.
Bonuses, Profit Sharing, Merit Pay
Emolument & PF details
Generate Pay Slips
Annual Returns (TDS Forms)
Employee Training Identifier
Training & Induction Programs
Need for E-compensation
To maintain uniform, error free, accurate compensation
To retrieve past records within seconds
To protect the data
To manage the pay package for international work force
To calculate easily
To link other system like performance appraisal, training,
To match with budget, financial budget
Oracle's PeopleSoft Enterprise E-Compensation with Manager
Desktop is the solution for administering compensation
programs for employees, either individually or by groups,
through compensation planning, administration, and reporting
Managers are also able to provide total compensation
reporting to their employees, a valuable retention tool for the
The E-Compensation Manager Desktop business processes
integrate with these PeopleSoft applications:
PeopleSoft Stock Administration.
PeopleSoft Global Payroll.
PeopleSoft Payroll for North America.
PeopleSoft Payroll Interface.
In PeopleSoft HCM, E-Compensation integrates with E-
Performance to drive funding based on performance
achievements. This integration also enforces proposal
Stock awards are given through the Variable Compensation
business process. Because of this integration, stock awards are
included with all other variable monetary and non-monetary
awards for total variable compensation reporting and history.
Enhancements to the Load Pay sheets process enables you
to Add multiple source codes for ‘Other’ Source Type
Source will be displayed in Online Pay sheet and Paycheck pages
Procedure of E-compensation
Discussion of the objectives of the executive benefit program
Planning the preliminary design
Exploring funding and security alternatives
Developing a final plan
Analyzing and selecting funding vehicles
Developing implementation plans and executive plan
Storing all the plans and the data into system
Software for E-compensation
PeopleSoft HCM 9.2:
PeopleSoft Compensation is a Global solution for
administering competitive compensation programs around the
PeopleSoft Compensation can utilize a configurable matrix
when calculating salary increases.
PeopleSoft Compensation gives managers the tools to make
quick but informed decisions on how to distribute the funding
budgets for their group.
Mercer WIN | ePRISM is a comprehensive compensation
management, modeling and planning tool that enables you to
align your organization’s compensation plans with current and
future objectives. By combining compensation-specific tools
with powerful analytics, Mercer WIN | ePRISM gives you the
power to evaluate data, develop strategies and execute
compensation programs with confidence.
Halogen E-Compensation greatly simplifies and automates the
entire compensation adjustment process. It provides all levels
of management with secure, simple to use tools for
distributing merit-based compensation including base salary,
variable pay, bonus pay, and stock options.
Complete compensation plans on time
Establish confidence in company-wide pay rates and
Avoid legal hassles
Benefits of using E-compensation
Compensation Alerts notify managers when a Compensation
Cycle is available for their group. When complete, changes are
submitted and routed for approval
Automated Salary proration and eligibility rules further
eliminate manual intervention
View total compensation-related information for direct reports
from a central location, including salary, cash components, and
non cash items
Request or grant base salary increases for employees, which
are automatically routed for approval, either during targeted
review periods or on an ad-hoc basis
Request or grant a base salary increase for a group of
employees, which you can optionally track against an
approved salary-increase budget
Easily set up workflow to automate approval routing
Use PeopleSoft's global functionality to ensure that all text,
date formatting, and data elements are appropriate for
Conduct business in any of 14 languages, or use Unicode
support to translate PeopleSoft Enterprise eCompensation
into 200 additional languages