Workday Compensation and Financial Well-Being: A Partner Guide

With HR teams spending as much as 57% of their time on administrative tasks, strategic initiatives often take a back seat. This is far from ideal, considering how critical compensation management is to employee satisfaction, retention, and the success of your organization overall. 

Workday Compensation helps teams by simplifying and optimizing compensation processes. Offering robust analytics, automation, and global scalability, it empowers HR teams to make data-driven decisions, ensure equity and compliance, and foster a more engaged workforce. 

Whether you're a mid-sized business or a global enterprise, Workday Compensation can transform how you manage employee rewards. 

What is Workday Compensation?  

 The Workday suite of applications simplifies and optimizes HR, finance, and payroll operations with an intuitive interface, mobile accessibility, and real-time reporting capabilities. Together, these features help organizations stay competitive. 

One key Workday application is Human Capital Management (HCM), which brings employee information, payroll, benefits, and talent management together in one place. 

Workday Compensation is part of HCM and gives you one place to manage everything pay-related — from base salaries to bonuses and stock options — with full transparency and accuracy. 

Organizations using this application have reduced end-to-end compensation planning cycles by 80%, freeing their HR teams to focus on strategic initiatives rather than administrative tasks. 

What are Workday Compensation’s key features and benefits? 

Workday Compensation empowers organizations to design and manage effective compensation programs. By automating processes, enhancing transparency, and aligning rewards with strategic goals, it helps businesses attract, retain, and motivate top talent. And when paired with an experienced partner, these capabilities can transform how your HR team operates. 

Here are the key features that make this possible: 

• Comprehensive compensation plans – Design salary packages that match your company's goals and ensure every employee is paid fairly based on their role and performance. 

• Configurable guidelines – Set clear rules for how employees earn raises, bonuses, and other rewards. 

• Real-time insights – View up-to-date dashboards that show where your compensation budget is going and which employees are due for raises or promotions. 

• Streamlined compensation reviews – Automate annual review processes so managers can quickly approve salary changes without getting bogged down in paperwork. Ninety percent of users are satisfied with how efficiently this works. 

• Employee self-service – Let employees view their own pay and benefits information online anytime. 

• Enhanced transparency – Show employees exactly how their total compensation — including salary, bonuses, and benefits — breaks down, building trust across your organization. 

• Global capability and scalability – Manage compensation across multiple countries with different currencies and regulations from one system, with 94% user satisfaction for global capabilities.  

How does Workday Compensation support strategic goals?  

Workday Compensation isn't just a tool for managing pay — it aligns workforce rewards with your business objectives. Here's how: 

• Attract top talent – Use real-time market data to ensure your compensation offers are competitive and help you stand out to candidates. 

• Retain high performers – Tailor rewards and bonuses based on individual performance and goals, and consider offering earned wage access so employees can access their pay between pay periods when needed. 

• Optimize budgets – Track spending in real-time to avoid overspending, identify inefficiencies, and ensure your compensation budget delivers maximum ROI. 

• Drive performance – Link pay directly to performance metrics, creating clear incentives that reinforce accountability and a high-performance culture.   

Why is Workday Compensation better than manual or legacy alternatives? 

Managing compensation manually with a spreadsheet or a legacy system can lead to costly mistakes. In fact, approximately 90% of spreadsheets contain errors, and the work involved in fixing them can dramatically drain HR resources. 

The Workday Compensation platform addresses these challenges with: 

• Automation – Eliminate manual data entry and calculation errors that plague spreadsheet-based processes. 

• Integration – Connect seamlessly with Workday’s HCM, Payroll, and Performance Management modules for uninterrupted data sharing, analytics, and management. 

• Compliance – Automatically stay current with changing tax laws and labor regulations, freeing your team from constant manual updates. 

• Flexibility – Adapt quickly to changing compensation strategies as your business evolves. 

• Security – Protect sensitive employee compensation data with enterprise-grade security protocols that spreadsheets can't provide. 

How to get started with Workday Compensation  

The first step is to assess your needs. Compare your current processes with feedback from HR, management, and your employees to ensure that you’re addressing their real-world problems.  

Once you’ve implemented Workday Compensation, success depends on proper training and ongoing use. Ensure your HR teams and managers understand how to automate processes, link pay to performance, and manage budgets effectively. 

Finally, use analytics regularly to track compensation program performance. This will help you respond quickly to market trends, business changes, and internal feedback. 

Enhance your compensation strategy with financial well-being solutions 

While Workday Compensation manages your compensation processes, today's employees expect more than just a paycheck. Financial well-being benefits like earned wage access have become essential for attracting and retaining top talent. 

OneSource Virtual's myFlexWallet complements your compensation strategy by giving employees flexible access to their earnings between pay periods. Other financial well-being features from OSV include a savings option, consumer-directed health accounts, and payroll bill pay. 

Ready to take your team from transactional to transformational? Contact us to learn how myFlexWallet can boost your total rewards package.