Maximizing ROI and Efficiency: Key Considerations for Evaluating Incentive Plans and Deferred Compensation Systems
Written by EWM Global
When evaluating your incentive plan and deferred compensation administration system, there are several key factors to consider to maximize return on investment, efficiency and value and to be confident that you are selecting a long-term solution that can scale and adapt as your business evolves.
1. Reliability
Does the system deliver on its promises? Vendors may oversell the capabilities of their system, promising to build functionalities to meet their client’s needs and then failing to meet these expectations. It is important to have a clear understanding of the exact functionalities of a system to conduct an effective gap analysis and to achieve your company’s specific goals.
2. Flexibility
How much control do you have over the system to ensure it is best adapted to your company? With many SaaS solutions, you are limited to the features and functionality offered by the vendor and you typically have less control over how the solution is developed and implemented. Pure software solutions can be coupled with expensive consultancy arrangements requiring the engagement of specialists to make any company specific updates or adjustments. An outsourcing partner should ensure that you continue to be empowered to access, monitor and control your data while closely working with you to ensure that your specific business and system needs are met.
3. Security
How secure is your data? Utilizing a system or vendor that specializes in secure data management for your field of business and has robust security protocols in place is especially important when dealing with sensitive data related to compensation. External cloud-based solutions may not provide the same level of security or compliance as your company demands, in particular in the Financial Services space. With vendor solutions, it is important to ensure the data security standards of the vendor are in line with your company’s standards.
4. Automation
Does your system leverage technological solutions? Deferred compensation systems that still rely on manual and spreadsheet processes are no longer viable or competitive in today’s market nor do they meet the stringent audit and compliance regulations that many firms are required to adhere to. Utilizing a system that digitizes these processes, and the related knowledge management, reduces the headaches of administration and reduces key-person dependency and risk of manual error that can cost your company valued time and resources.
5. International Scalability
Does your system allow your company to meet its future scalability and growth targets? Utilizing a vendor with experience and expertise in complex and international plan setups allows your company to readily expand into different regions and markets in line with your business needs to implement global compensation plans that attract and retain top talent and meet international requirements.
6. Cost-Effectiveness
How much time and money does your system save you in the long-term? Outsourced solutions can result in long-term cost savings eliminating the need to hire and train new personnel, including external developers and consultants. This means that your company can focus on its core objectives while reducing the costs associated with carrying out business operations.
Utilizing a deferred compensation administration system that addresses these key considerations provides a range of benefits that can contribute to a return on investment, including improved accuracy, efficiency, transparency, scalability, and expertise. These factors should be evaluated, not just during the implementation phase, but also regularly, to ensure the system is still meeting the company’s needs and contributing to its strategic goals.
At EWM Global, we offer an outsourced IT solution coupled with advisory and business services allowing our clients to benefit from the experience and intellectual capital accumulated over 20+ years in the Financial Services sector. The EWM Global platform is a result of our invaluable insights into the challenges of incentive plan administration through collaborating with world leading financial services institutions.
We partner with our clients to supports them in every phase of the executive compensation lifecycle, from plan implementation to ongoing administration and client support. We strive to be a partner you can collaborate and grow with, ensuring that plan administration never limits your creativity and plan design. Contact us to find out more about our industry-leading platform and how we can work together to achieve your compensation administration goals.
Find out more about EWM Global’s Compensation Administration system by emailing marketing@ewmglobal.com.