What is Enterprise Compensation Management (ECM)?

Enterprise Compensation Management (ECM) definition

The organisation, processing and optimisation of compensation in a large organisation, typically run using HR software. Larger multi-site companies can use ECM software to compare compensation across multiple geographies, providing key information on different worker expectations.

Questions that enterprise compensation management seeks to answer include:

  • “Do our staff feel they are being adequately compensated?”
  • “Are our pay rates in line with comparable industry players?”
  • “Is compensation in our organisation broken down (by basic salary and employee benefits) into the most attractive options for both employer and employee?”
  • “Are we striking the right balance between empowering our employees and therefore reducing the attrition rate and reducing costs?”

Enterprise compensation management has become more widespread as companies have come to see their workers as adding value to the organisation rather than just factors of production.