As you want to know the Definition of Enterprise Compensation Management ECM

Definition: Enterprise Compensation Management ECM

Employee Compensation, being one of the biggest operating expenses in any organization has a significant impact on the bottom line and plays an integral role in the generally organization’s success.

Enterprise Compensation Management (ECM) refers to the tactical compensation policies that stimulate employees to support business goals while optimizing the organization’s compensation spending and keeping it in arrangement with the organization’s budget.

ECM marks the shift in Human Capital Management from a planned cost center to a deliberate organizational advantage as the financial impact of lowering employee turnover, aligning budgetary goals

And increasing efficiency is recognized by executive management while determining the total valuation of an organization.

An effective ECM system must be able to afford guidance to managers so that their recommendations are within budget.

Similarly as PMS represents a noteworthy investment for an organization.

The system should be able to provide recommendations to the managers that are consistent with employee performance.

ECM broadly consists of the two components- budgeting and compensation.

While budgeting relates to the personnel cost.

Compensation consists of devising compensations scheme include fixed and variable components.