During a recent discussion with a prospective customer, the Human Resources Director stated that her company has doubled the number of employees during the past three years. The company was growing so quickly that the CEO asked the Human Resources Director to find a system that would better manage their compensation process.The Human Resources Director attended a DBCompensation software demonstration and she really liked the features and ease of use, but stated that she did not know if the company was ready to make an immediate decision.
Since the DBCompensation software costs as little as $400 per month for a small company, and the prospective company’s monthly investment would be $800 per month based on the company’s size, I posed two questions that she could share with her CEO.
“What if you overpay only one of your hundreds of employees by $1,000 per month?”
“What if you only rely on market pay comparisons to establish your pay rates and you underpay one employee by $1,000 per month, and that employee ends up leaving your company to join another company that pays a more competitive wage?”
She pondered the questions for a moment. I then followed-up with two important thoughts about investing in DBCompensation.
“By not overpaying just that one employee, DBCompensation more than pays for itself.”
“If just one important employee leaves because of pay, the time and expense required to attract, hire and train a new employee is much higher than the modest expense of DBCompensation.”
Getting your pay right is a critical Human Resources responsibility with far-reaching implications for every organization. After thinking about the immediate return on investment, the Human Resources Director stated that she was ready to visit with her CEO and make a case for adopting the DBCompensation software system in a timely manner.