Human resources technology company Dinamico has created DinamiComp, a compensation management solution that allows employers to become more transparent in evaluating employees and more equitable in paying out salaries.
The tool can prove valuable in today's turbulent job market, where many employers are struggling to bring in and retain talent, especially high-performing people.
DinamiComp is an easy-to-use, fully customizable solution that works with virtually any industry and for organizations of any size. Employers can create their own compensation systems, based on objective metrics of success for each role that they themselves determine. Once the employers have defined the metrics, these are entered into the system as pay differential variables, which guide the algorithms that calculate each employee's salary. The system is easily integrated with current systems and includes budgetary controls that protect the organization and the employees.
As time goes on, employers are able to add more variables and increase or decrease a variable's weight, reflecting the organization's evolving situation and priorities. They can make adjustments as needed, reacting to internal and external market demands.
DinamiComp has an embedded reports function, with both employer-facing and employee-facing sides. This allows employers to create reports detailing an employee's performance, which provide an objective basis during salary raise negotiations or promotion deliberations.
With an equitable compensation scheme, organizations are more likely to attract high-performing individuals, compared to those which use more arbitrary methods. This improves company culture and helps prevent employee attrition.
Dinamico co-founder Dave Betz says that businesses have become very efficient when it comes to buying capital goods, but remain inefficient when dealing with human capital.
“A lot of systems are very arbitrary, and many employers don't know they aren't paying high performers enough until they quit. These systems are very inefficient, and they end up underpaying high performers and overpaying low performers. Both of those situations are not good for business. On the other hand, employers that are able to put together the best teams, where all employees are striving towards a clearly-defined standard of excellence, are more likely to succeed.”
Co-founder Dan Kopp shared an instance where a non-profit organization began working with Dinamico and experienced rapid growth due to a more equitable compensation scheme.
“When the client started working with us 3 years ago, they had $5 million in equity. After 2 years, that equity had grown to $19 million, and they attribute that growth to adopting DynamiComp. They were able to attract and retain high-performing people – each employee knows where they fit in the grander scheme of the organization, and they're all working towards the same goal.”
Kopp added that having an objective and transparent compensation system is especially important in today's economic and social climate. Organizations will be less likely to face allegations of discrimination, because they have the numbers that clearly show an employee's performance in comparison to their peers.
Betz says: “Equity and transparency is always a win-win. The employer wins because they've built their system based on what excellence means for them at each of those positions. And, if all employees strive for that, they will all be on top of the pay scale. We believe that's a good problem to have, because everyone's meeting the organization's clearly defined standards of excellence.”
Media contact
Name: Dan Kopp
Email: dan@dinamicosystems.com
Published by: Omar Hamdi