Why Compensation Planning Software is Essential in 2025

Many leading companies, including Aeqium, SAP, and Workday, offer compensation planning solutions designed to help HR teams navigate modern compensation challenges. Selecting the right platform ensures better pay transparency, compliance, and efficiency in managing salary structures.

Compensation planning is a critical function for teams looking to attract, retain, and reward employees effectively. In 2025, the complexity of managing merit cycles, pay equity, bonuses, and total rewards has increased significantly. Relying on spreadsheets or outdated systems can lead to errors, inefficiencies, and compliance risks.

That’s why businesses are turning to modern compensation planning software to automate workflows, provide data-driven insights, and ensure fair, competitive compensation structures.

But with so many options available, which software is the best fit for your HR team? We’ve reviewed the top tools based on features, ease of use, and HR team feedback to help you make the right choice.

Top Compensation Planning Software in 2025

Workday Compensation

Why Workday Compensation? Workday Compensation is a comprehensive enterprise compensation management solution designed to help organizations automate salary planning, merit increases, and incentive programs. It is widely used by large enterprises that need flexible compensation structures and real-time analytics.

🔹 Key Features:

• Advanced analytics and real-time reporting to optimize pay structures.
• Pay equity and compliance tools to ensure fair compensation practices.
• Seamless integration with Workday’s full HCM suite for a connected HR experience.

Pricing: Requires a Workday subscription; enterprise-level pricing.

Website: Workday.com

Aeqium

Why Aeqium? Aeqium is an industry-leading compensation planning software designed for growing mid-sized and enterprise companies. It eliminates spreadsheet chaos with automated merit cycles, salary adjustments, and compensation formula writing powered by AI. Designed specifically for compensation planning, the whole system works seamlessly to create a focused, easy to use compensation planning process.

🔹 Key Features:

• AI-powered compensation formula writing to ensure fair, data-driven salary adjustments.
• Compensation cycle automation to eliminate manual tracking.
• Total rewards insights for salary, equity, and bonus transparency.
• No-code customization to adapt to your unique pay structures.
• Seamless integration with HRIS platforms like Workday, Carta, and Greenhouse.

Pricing: Custom pricing based on company size and needs.

Website: Aeqium.com

HRSoft Compensation Management

Why HRSoft Compensation Management? HRSoft is a compensation management platform designed for large enterprises that need to manage merit increases, salary adjustments, and incentive pay planning. It is known for its ability to handle complex compensation structures while ensuring compliance with corporate pay policies.

🔹 Key Features:

• Total rewards statements to improve pay transparency for employees.
• Pay-for-performance tools to align compensation with business objectives.
• Integration with HRIS, payroll, and performance management systems.

Pricing: Custom pricing based on company needs.

Website: HRSoft.com

Beqom Compensation Management

Why Beqom Compensation Management? Beqom provides an end-to-end enterprise compensation management solution that supports salary planning, bonus management, and long-term incentive programs. It is widely used by global enterprises needing scalable, compliance-focused compensation tools.

🔹 Key Features:

• Total compensation management covering salary, bonuses, commissions, and equity.
• Advanced budgeting and forecasting tools to optimize compensation spend.
• Pay-for-performance alignment ensuring merit-based rewards.
• Compliance tracking to support pay equity and regulatory requirements.
• Seamless integration with HRIS and payroll systems.

Pricing: Custom pricing based on company needs.

Website: Beqom.com

Xactly Incent

Why Xactly Incent? Xactly Incent is a leading enterprise compensation management solution that specializes in incentive compensation, sales performance management, and commission-based compensation planning. It helps companies streamline and automate compensation workflows, ensuring pay-for-performance strategies align with business objectives.

🔹 Key Features:

• Automated incentive and commission calculations to eliminate manual errors.
• Real-time performance tracking for incentive-based compensation.
• Deep analytics and reporting to optimize compensation structures.
• Seamless integration with CRM, HRIS, and payroll systems.

Pricing: Custom pricing based on company needs.

Website: XactlyCorp.com

Salary.com CompAnalyst

Why Salary.com CompAnalyst? Salary.com’s CompAnalyst platform provides enterprise-level compensation planning and salary benchmarking solutions. It helps HR teams manage merit cycles, incentive programs, and pay equity analysis using real-time market data and advanced analytics.

🔹 Key Features:

• Comprehensive compensation benchmarking with real-time salary data.
• Automated salary and bonus planning to streamline compensation adjustments.
• Pay equity analysis tools to ensure compliance with regulatory standards.
• Seamless integration with HRIS and payroll systems for better data flow.

Pricing: Custom pricing based on company size and requirements.

Website: Salary.com

Payfactors

Why Payfactors? Payfactors, part of Payscale, provides enterprise-grade compensation planning and salary benchmarking solutions. It is designed to help HR teams automate pay equity analysis, create structured compensation strategies, and make data-driven salary decisions.

🔹 Key Features:

• Comprehensive compensation benchmarking using real-time salary data.
• Pay equity analysis tools to ensure compliance with regulatory standards.
• Seamless integrations with HRIS and payroll systems for smooth implementation.
• Customizable compensation structures tailored to business needs.

Pricing: Custom pricing based on company size and features required.

Website: Payscale.com

SAP SuccessFactors Compensation

Why SAP SuccessFactors Compensation? SAP SuccessFactors Compensation is part of SAP's enterprise HR suite, designed to help organizations manage salary structures, merit increases, and incentive programs at scale. It is built for enterprises that need advanced compensation planning and pay equity tools.

🔹 Key Features:

• Comprehensive salary and bonus planning.
• Pay-for-performance modeling to align compensation with company goals.
• Integration with SAP’s full HCM suite.
• Equity management tools for stock grants and employee transparency.
• Integrations with HRIS and payroll for streamlined data sync.

Pricing: Custom pricing.

Website: SAP.com

PeopleFluent Compensation

Why PeopleFluent Compensation? PeopleFluent Compensation is designed for enterprise-level compensation management, helping organizations optimize salary structures, bonuses, and incentive plans with a high degree of configurability..

🔹 Key Features:

• Pay-for-performance automation to align employee rewards with business goals.
• Comprehensive analytics and compliance tracking for pay equity and budgeting.
• Integration with HRIS and payroll systems for seamless compensation planning.
• Deep integrations with payroll and ERP systems.

Pricing: Requires a Workday subscription; enterprise-level pricing.

Website: PeopleFluent.com

UKG Pro Compensation

Why UKG Pro Compensation? UKG Pro Compensation is a comprehensive solution for managing salary structures, incentive programs, and pay-for-performance strategies within a unified HR suite that includes compensation forecasting and modeling. It’s best suited for companies that need deep compensation insights.

🔹 Key Features:

• Compensation analytics and insights to ensure fair and competitive pay structures.
• Integration with payroll and workforce management for a streamlined experience.
• Compensation scenario planning to test different pay structures.
• Enterprise-grade security and compliance features.

Pricing: Custom pricing based on modules selected.

Website: UKG.com

Dayforce Compensation by Ceridian

Why Dayforce Compensation? Dayforce Compensation is part of Ceridian’s enterprise HR suite, offering a unified approach to salary planning, merit increases, bonus allocation, and pay equity tracking. It is designed to integrate compensation planning with real-time payroll and workforce data, reducing administrative overhead and improving decision-making.

🔹 Key Features:

• Real-time compensation insights for budgeting and forecasting.
• Pay-for-performance modeling to align compensation with business goals.
• Pay equity tools to ensure compliance across different geographies.
• Comprehensive salary and compensation modeling.
• Integration with Oracle’s full HCM suite to streamline workforce planning.

Pricing: Based on company size and benchmarking needs.

Website: dayforce.com

How to Choose the Right Compensation Planning Software

When selecting a compensation planning tool, consider: 

Company Size & Needs – Do you need enterprise-level planning or software that can work across different nations and currencies? 

Key Features – Does the software support merit cycles, bonuses, equity, and pay transparency?

Integration Capabilities – Can it connect with your HRIS, payroll, and finance tools? 

AI & Automation – Does it eliminate manual errors and provide data-driven insights? 

Compliance & Pay Equity – Does it help you stay compliant with regulations?

Conclusion: Choosing the Right Compensation Planning Software

Each of these tools offers unique strengths. When choosing the right one for you, you need to make sure that the tool fits your needs. This is why we recommend using an RFP (Request for Proposal) AND requesting a custom demo to ensure the tool accommodates your specific requirements.

Choosing the right compensation software is a long-term investment. To make sure it aligns with your specific needs, we recommend using a structured evaluation process.

‍Download our free RFP template to compare vendors and find the best fit.

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