New Study Reveals Financial Services Industry Addresses Top Workforce Issues & Achieves Real ROI with Enterprise Compensation Management Software
Business Editors/High-Tech Writers
BURLINGAME, Calif.--(BUSINESS WIRE)--Dec. 15, 2003--
Kadiri Launches Online ECM Forum to Help Financial Services Executives Reach Compensation Optimization
Financial Services companies are meeting their top employee-related challenges and experiencing rapid ROI by implementing Enterprise Compensation Management (ECM) software like Kadiri TotalComp(TM), according to a wide-ranging survey of large U.S. Financial Services firms.(a) With ECM solutions, Financial Services organizations are optimizing compensation spending, achieving improved budgetary control and addressing top workforce issues such as attracting and retaining talented employees and improving workforce performance.
With an average annual revenue of $10 billion, up to 60 percent of which is spent on compensation, the Financial Services firms surveyed projected significant cost and productivity savings in key workforce management areas by automating and streamlining the compensation management process through the implementation of an ECM solution. For example, annual benefits would yield:
-- Improvements in line manager productivity (time spent on managing compensation), resulting in average savings of $2 million.
-- Increased budgetary control and visibility into the compensation process for an average savings of over $2 million.
-- Greater retention of top performers and reduction of unwanted employee turnover that would net over $1.4 million in savings.
-- Productivity improvements in the overall compensation process that would result in an average savings of over $300,000.
"The Financial Services industry has experienced a substantial amount of mergers and acquisitions in recent years, further adding to the complexity of the compensation planning process within many organizations," said Jay Weir, senior researcher for HR.com. "As a result, ECM solutions such as Kadiri TotalComp are gaining significant traction in the industry as companies look to simplify the compensation process and reduce costs to increase competitive advantage. Kadiri is clearly committed to helping financial services organizations improve workforce productivity, and the adoption of ECM solutions by the financial services industry will only increase as companies continue to realize rapid and quantifiable results."
Already in use at many of the Top Financial Services firms and Fortune 1000 enterprises, ECM solutions are continuing to grow in popularity as they enable companies to achieve a number of immediate and quantifiable benefits, including a return on initial investment within one year. Kadiri's ECM solution, Kadiri TotalComp, simplifies compensation process for line-managers at Financial Services companies such as Washington Mutual, Visa, Comerica and Wells Fargo by providing a total comp view of their employees' compensation packages -- including salary, stock and bonuses. As a result managers are able to make strategic, equitable compensation decisions -- supporting a performance-based culture with improved productivity and proper pay distribution.
In the past, the ability of Financial Services companies to implement effective and flexible performance-based compensation systems was inhibited by legacy, paper-based processes, disparate compensation systems, and a lack of decision-making support at the line-manager level. Replacing those out-dated, error-prone systems with the next generation of ECM applications like Kadiri TotalComp, Financial Services organizations maintain visibility, control and accountability of their complex compensation practices and spending.
"Kadiri recognizes the difficulty of mapping compensation to individual performance for tens or hundreds of thousands of employees across large financial institutions and is committed to unifying this process while delivering maximum, immediate ROI," said Dan Federman, CEO at Kadiri. "As a sign of our commitment to the Financial Services sector, we have sponsored the development of the ECM Forum for Financial Services, an online Executive Resource Center to serve as a hub for compensation expertise and to facilitate compensation management best practices."
New ECM Forum: An Exclusive Resource Center for Compensation and HR Executives in Financial Services
As of Dec. 4, 2003, Kadiri launched the ECM Forum as an exclusive resource to HR and Compensation executives in the Financial Services industry. The Forum offers members expert help with today's complex Enterprise Compensation Management (ECM) challenges, as well as a unique opportunity to gain fresh perspectives on critical issues like pay-for-performance, stock option expensing, Sarbanes-Oxley, compliance and more. The site will feature interviews with peers and industry experts, the latest news and research on compensation management, and opportunities to network and interact with HR and compensation peers at other financial services institutions. The ECM Forum for Financial Services can be found at www.ecmforum.com/fs.
(a) To identify workforce issues and quantify ROI from ECM solutions, this study was conducted across six Financial Services subcategories including Mortgage, Retail, Investment Banking, International Banking, Credit Card Services, and Non-Bank Financial Services. The average annual revenue of participating firms was $10 billion with a low of $680 million and a high of $45 billion. Total employee populations ranged from 4,500 to 110,000 employees. The focal review populations for this study averaged 20,000 employees with variations based upon divisions and corporate guidelines. To obtain a full copy of this study please call or visit www.kadiri.com.
Kadiri Inc. is the leading provider of Enterprise Compensation Management (ECM) solutions. The company's Kadiri TotalComp(TM) product simplifies the complexities of total direct employee compensation -- including salary, variable pay and stock -- and enables strategic pay for performance by empowering line managers to make, equitable, policy based pay decisions and take ownership of the compensation process. This is accomplished by combining deep functionality with personalized, "just-in-time" situation specific guidance and knowledge management technologies. Highly functional and configurable, Kadiri TotalComp is revolutionizing the way large companies manage total compensation. Customers include Dow Jones (NYSE:DJ), Dupont (NYSE:DD), The GAP (NYSE:GPS), Kaiser Permanente, Longs Drugs, Motorola (NYSE:MOT), Qwest (NYSE:Q), Visa, Washington Mutual (NYSE:WM) and Wells Fargo (NYSE:WFC). Kadiri is a privately held company headquartered in Burlingame, Calif., and can be contacted at or www.kadiri.com.
Kadiri TotalComp is a trademark of Kadiri Inc. All other names are trademarks or registered trademarks of their respective owners.
CONTACT: Kadiri Inc.
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