People Data and How It Elevates Your Compensation Review Processes
Why Accurate People Data is the Key to Unlocking Workday’s Advanced Compensation
In today’s fast-paced workplace, compensation management isn’t just a necessity—it’s a strategic advantage. To attract, retain, and motivate top talent, organisations must get it right. Enter Workday’s Advanced Compensation tool: a solution designed to streamline the annual review process, automate workflows, and deliver clear, tailored employee compensation statements. No more clunky mail merges or manual errors! But here’s the catch: even the most powerful tools depend on one critical factor—accurate people data. Without it, the effectiveness of your compensation strategy is at risk.
What Is ‘People Data’?
When we talk about people data, we’re not just talking about pay. It’s everything that defines and contextualises your workforce:
Job Data: Titles, profiles, and management levels.
Personal Data: Names, addresses, and demographic details.
Organisational Data: Locations, hierarchies, and supervisory structures.
Transactional Data: Job changes, absences, and time off.
This data fuels the functionality of Workday’s Advanced Compensation tool. But why is accuracy so essential?
Why Accurate People Data Matters
1. Ensuring Fairness and Compliance
Fairness begins with the right data. Precise classifications—by role, location, or tenure—ensure compensation decisions are aligned with policies and equal pay laws. When your data is robust, you’re not just complying with regulations; you’re fostering a culture of trust and equity.
2. Driving Better Decision-Making
Advanced analytics are only as good as the data they’re built on. Reliable, up-to-date records empower your team to make informed decisions, whether it’s budgeting for merit increases, planning bonuses, or designing long-term incentive plans. Accurate data means actionable insights, not second-guessing.
3. Boosting Employee Trust
Discrepancies erode confidence. Incomplete or outdated data undermines trust, both in the process and the organisation itself. Clean, transparent data ensures smoother conversations between managers and employees, reinforcing fairness and credibility.
Critical Areas for Accurate Data
Employee Demographics
Details like job titles, locations, and employment types are vital for effective planning. For example, location-based cost-of-living adjustments rely on precise geographic data. Including demographic data (where legally permitted) can also highlight and address pay disparities.
Performance Metrics
Performance often ties directly to merit increases and bonuses. If managers are basing recommendations on inaccurate or outdated metrics, high performers could feel undervalued, while low performers may be overcompensated. Valid performance data ensures recognition is earned and equitable.
Market Benchmarking
External benchmarking requires precise job descriptions and competitive positioning. Without accurate data, organisations risk overpaying or underpaying relative to market rates, missing out on the strategic benefits of Workday’s tools like compa-ratio modeling.
HR Process Data
Compensation calculations depend on clear, accurate records of absences, job changes, and organisational structures. Errors here can disrupt workflows, delay approvals, and compromise security and visibility.
Best Practices for Maintaining Accurate People Data
Centralise Data Collection
Make Workday the single source of truth. Standardised data entry and processing reduce inconsistencies and ensure alignment across systems.
Conduct Regular Audits
Routine data checks catch errors early, minimising last-minute corrections during critical processes like annual reviews.
Empower Employees with Self-Service
Allow employees to update their own profiles (within limits). It’s a simple way to keep records current while reducing administrative burdens.
Automate Data Integration
Integrate systems like payroll, benefits, and performance tools to create seamless data flows and eliminate manual errors.
Train and Engage Stakeholders
Equip HR teams and managers with the skills and knowledge to maintain data quality. Make them champions of accuracy by showing how it impacts decisions and outcomes.
The Bottom Line
Workday’s Advanced Compensation tool is a game-changer—but only if the data feeding it is rock-solid. Accurate people data isn’t just a box to tick; it’s the foundation of effective compensation strategies.
When you prioritise data accuracy, you’re not just streamlining processes.You’re building a stronger, fairer organisation where employees trust the systems that govern their pay. Invest in clean, accurate data today, and watch as your compensation processes—and your people—thrive.