About this Constellation ShortList™

Because employee cost is the top cost category in almost all industries, enterprises need to raise the level of how they measure, plan and execute compensation management. The sad reality is that in many organizations, compensation decisions are made by people leaders using Microsoft Excel. With the war for talent waging and the next best (often also better paid) job is around the corner, enterprises need to give people leaders better tools to make their compensation decisions more effective.

To be a compensation vendor in this list, vendors must support compensation analysis, planning and the execution of compensation cycles. They also need to have interfaces with the popular human capital management (HCM) software suites (see the Constellation ShortListsfor Global HCM Suites and North American SMB Payroll). With the push to global talent comes the need for global compensation, so the vendors need to be present/active on three continents. Their platforms need to be cloud-based, or they are in the process of migrating to a cloud-based platform in the next 12–18 months. Finally, they need to support the necessary analytics on central planning for finance and HR departments, as well as for line-of-business (LOB) leaders and managers to execute compensation cycles. This includes augmented analytics (e.g., flight risk, attrition risk, engagement impact) that the vendors need to support.

Threshold Criteria

Constellation considers the following criteria for these solutions:

  • Compensation planning capability for finance, HR departments and LOB users
  • Compensation cycle execution for finance, HR and LOB
  • Explanations of compensation changes to employees
  • Out-of-the-box interfaces for popular HCM suites
  • Basic and advanced/augmented analytics with key KPIs
  • Cloud-based or will have in the next 12 months
  • Customers and support for at least three continents
  • Continuous improvement of the enrollment experience
  • More than 750 customers and more than 1.25 million employees’ compensation affected
  • Mobile support for people leaders and at least 200,000+ users


The Constellation ShortList™

Constellation evaluates more than 30 solutions categorized in this market. The Constellation ShortListis determined by client inquiries, partner conversations, customer references, vendor selection projects, market share and internal research.

  • ADP
  • Beqom
  • HRsoft
  • Paylocity
  • PayScale
  • Salary.com


Frequency of Evaluation

Each Constellation ShortList will be updated at least once per year. There could be an update after six months, should the analyst deem it necessary.

Evaluation Services

Constellation clients can work with the analyst and research team to conduct a more thorough discussion of this ShortList. Constellation can also provide guidance in vendor selection and contract negotiation.

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