The Latest Updates from compACT by Kinixsys

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compACT compensation software manages a company’s Salary Review, Incentives, and Bonus Planning Process, automating compensation plans.

We continue to improve the compACT software, customizing to the needs of both enterprise  and small to mid-tier companies.

Total Rewards 2016 Wrap Up – Compensation is changing with the times.


Total Rewards 2016 – Compensation Insights

Total Rewards 2016 Monday (June 6) Demo:
Best Practices With or Without Compensation Software

Total Rewards 2016 World at Work - cmopACT is an Exhibitor

As we share a few photos from Total Rewards 2016, we want to thank the entire World at Work crew, and those who attended our demo of compACT’s new compensation software.

Plus we gave away 3 World at Work books each day at Booth #407 .

As usual, it was a great conference with many searching for a new way to manage compensation software!

Michael Thathuvaswamy, CEO |  877-477-8233

The Demo was fun, a packed room.


Sam Reeve of Performensation
The demo was presented by compACT and by Sam Reeve of Performensation, who does an awesome job of introducing compensation software as seen by enterprise, mid-tier, and small business viewpoints.


Total Rewards 2016 Takeaways
Water makes a conference, we ran out the first day!


compACT at World at Work Total Rewards 2016
Before the conference – setting up.


compACT Compensation Books
3 Books a day – the big Handbook on the left was most popular!
Arun Rozario founder of compACT by Kinixsys
Arun Rozario, co-Founder of compACT by Kinixsys, shares a Handbook with a winner of our drawing on Day 1, Andrew Baxter of Nutanix.


Meet compACT at Total Rewards 2016 – Booth #407 and Monday Demo

What is the impact of compensation on your company?

Total Rewards 2016 Monday (June 6) Demo:  4:30-5:30
Best Practices With or Without Compensation Software



Total Rewards 2016 World at Work - cmopACT is an Exhibitor

Impact your World is the theme for 2016 Total Rewards, and as CEO of Kinixsys – creators of compACT compensation software – we like to create impact.  I’d like to personally invite you to discover the impact of compensation on your organization and how to measure it.

Plus we are giving away 3 World at Work books each day at Booth #407 (maybe to you, drop by to see :-).

My team of compensation pros will also be on hand to help with questions. I’ll also be presenting if you’d like to connect on Monday 4:30-5:30. Hope to see you in San Diego.

Michael Thathuvaswamy, CEO |  877-477-8233

Download 2016 Compensation Impact Report (PDF)

The Compensation Impact Report - Why Compensation Software Matters to Small, Mid-Tier, and Enterprise Businesses

We are interested in learning more about your experiences with compensation software. Please complete the short survey and receive the Compensation Management Checklist white paper as our thanks for sharing your insights.

$90,000 Healthcare Case Study PDF

“We use a rather cumbersome Excel Spreadsheet for compensation management within our 1,200+ employee organization. Requiring excessive man-hours to maintain, this approach is error prone while constraining our ability to make appropriate salary/wage adjustments in a timely manner.

Because of these deficiencies, we perpetually run the risks of losing key employees to competitors. An example would be the loss of a higher-end employee for whom we were remiss in maintaining their salary at a competitive level.

The ultimate cost to us was the equivalent of their annual $90K+ salary when taking into account the recruitment of a replacement, training and the lag time for the new employee to get to full productivity”. CFO, California Hospital

The 2016 Compensation Impact Report – New Small Business Rules, Simple Pricing, and Love of the Cloud

Why Compensation Software Matters to Small, Mid-Tier, and Enterprise Organizations

Insights from the 2016 Compensation Impact Report



Since compensation is the #1 reason that most people work for a company,  HR leaders invest a lot of effort to ensure that compensation is done right. For small companies,  the problem with doing it right comes at crunch time: four to eight weeks when compensation numbers are crunched  for final reporting.

The 2016 Compensation Impact Report shares findings that clearly separate small business from larger organizations in terms of needs, requirements, and ease of use.

Is compensation software  helping them to achieve that goal? We ran a survey of 204 HR professionals about  how they were using compensation software.  This report reveals what we’ve learned from the experiences and insights shared by HR professionals,  from entry level to executive in small, mid-tier, and enterprise  businesses.

The Compensation Impact Report - Why Compensation Software Matters to Small, Mid-Tier, and Enterprise Businesses
Download 2016 Compensation Impact Report


Key 1: Comp Plan execution is where problems usually arise.
Excellent compensation plans often get lost in translation due to inefficient tools like Excel.

Key 2: HR needs real-time insight to manage compensation.
You can’t wait until all the paperwork rolls up at the end of the process.

Key 3: Your compensation system must save time and money.
Be sure that the system has controls that ensure managers stay within budget, saving the organization from overspending and wasting time.

What is the impact of compensation on your company? (short survey)

Hope is in the cloud

If you are considering compensation software,  then an important question  is, “Do people find these systems effective and good enough to meet their needs?” Most do (see Figures 4 and 5). In particular, organizations are likely to be happy with cloud-based systems.

Compensation Software Satisfaction
Takeaways for Small Business

1. Most users are satisfied that compensation software is effective/easy to use and meets most needs (59% and 62%, respectively).

2. However, users are even more likely to be satisfied if it is a cloud-based system (76% and 90%, respectively).


Compensation Impact Report - Satisfaction with compensation software

Takeaways for Mid-tier and Enterprise Organizations

1. Mid-tier and enterprise organizations are more likely than small organizations to be satisfied that their compensation software is effective/ easy to use (71% and 74%, respectively).

2. However, users are even more likely to be satisfied if it is a cloud-based system (83% and 89%, respectively).


How much should companies pay?

We asked companies  how much they were willing to pay for a compensation planning system. Answers ranged  from organizations that couldn’t afford $25 per employee to those that would pay $75 to $100 per employee.  This distribution puts the average upper limit at around $50 per employee (see Figure 6).

compensation impact report - what would be too much to pay

Graph excludes participants who had “No opinion.”


Takeaways for all organizations

1. Most organizations won’t pay more than $50/employee for compensation softwar

2. 14% of organizations, presumably those with complex compensation needs, find that $75-$100/employee is justified.

3. The price will depend on the complexity and requirements of your compensation plan; many suites offer compensation software  as a cheap module addition to a suite.

4. Be sure that the solution offered will be able to execute your compensation plan because every business has a unique compensation plan.

What is the impact of compensation on your company? (short survey)



Where should you look for the payoff?

The survey showed  that HR managers are focusing on whether compensation software  can do what they need and do it easily. This isn’t wrong,  but to justify an investment  in software, don’t just emphasize  how it is good for the HR department; instead,  emphasize  how new software  is good for the organization  because  it improves the firm’s ability to manage compensation.

Takeaways for all organizations

1. The big value of compensation software comes from helping the organization to better manage its investment  in

2. An important secondary payoff from compensation software is that it improves efficiency within

3. Good compensation management helps to recruit and retain employees.

Download the 2016 Compensation Impact Report

Why San Francisco Salaries are Higher than Other Cities (and it’s not just the Cost of Living) – The Power of Geographic Differentials

What are Geographic Differentials?

Geographic differentials are market-driven pay variations between locations.

Companies use these differences when pricing the same job in different geographic markets. The objective is to control costs where it is not necessary to pay at national levels, or to ensure adequate pay in areas where the market is much higher than the national average.

Now you might think that living in San Francisco, one of the more expensive cities in the U.S., would naturally have higher salaries because of the cost of living alone.

In spite of what many think, it is not an adjustment based on cost of living.

Salary Geographic Differentials

Geographic differentials are usually expressed as a

percentage that’s applied to a national market rate.

For example, a job with a median national salary of $60,000 might pay twenty percent (120%) more, or $72,000, in San Francisco, but ten percent less, or $54,000, in Jackson, Mississippi.

How are Geographic Differentials  calculated?

Geographic differentials are expressed as a percent of the base-line data point.


If research shows that a geographic location pays, on average, 90% of the national average, or in other words 10 percent less than the national average:

  • Plus/Minus Geo Diff: -10%\
  • Geo Diff Ratio:    90%

Note:  You will find compensation professionals use the same term for both calculations, depending on their original training.

Ensure that your group is consistent in using this term. For purposes of example, we are going to use the Geographic Differential ratio.

Calculation of Market Rates

Some companies adjust their market data for geographic differences before reporting it to management or using it to develop their compensation program.

(Of course, this would not be appropriate for market data that is already adjusted for geographic differences, such as “by region” cuts of the data).


National Salary Range Example

Salary structure differences

This is one of the most commonly used methods to address geographic differentials.

  • Compensation professionals create a “core” range, based on their headquarters location or a national average, and then create structures for each geographic region starting with the core range points.
  • This recognizes differences in average pay levels for each location, allowing you to manage different control points, or slot jobs up or down through salary grades on the basis of local market data.
  • Usually, the different geographic locations are grouped into salary areas or plans and ranges created for each grouping.


Salary Range Geographic Differnetials


Individual pay adjustments and differentials

Companies typically increase the pay for individuals when they move to a location that demands higher rates of pay. It is rare to go the other direction adjusting pay downward when someone goes to a lower pay location.


Mary H. is transferred from her job in Buffalo, New York to the same job in New York City.

The company has only one salary range for this job, which is closer to Buffalo pay rates than those in New York City. In order to make up for the difference in pay levels between the two locations, Mary is given a 10% raise to go to New York City.

(Typically, Mary is not asked to take a salary reduction if she returns to Buffalo, unless it’s made clear in the original move).


Temporary pay adjustments or re-assignment bonuses

These are typically used when an employee is on assignment in a higher wage area. If the change is made to the employee’s salary, the wage adjustment will continue until the employee is re-assigned, returns to the prior job or transfers to another location.


Mary H. from the above example receives a 10% increase in pay while she is on assignment in New York City. When she returns to  Buffalo, her pay is reduced.

Supplemental payments

Supplemental payments are often used when an employee is on temporary assignment in a higher paying geographic area.

Supplemental payments differ from temporary pay adjustments in that supplemental payments are usually used in very short assignments (A few days to a few weeks) and provided in one or two payments rather than a temporary salary increase.

What should you consider when choosing a geographic differential methodology?

  • Are you recruiting nationally or locally for each job or job grouping? National averages may still work for you in the former case.
  • If you’re creating your own geographic differentials, are there industry differences that may account for some of the differences you’re seeing in your data?  The industry difference may have originated from a survey whose participants are from one or two key industries only.
  • Do they apply to non-exempt, lower paid jobs?
  • Or are there actual differences for higher paid positions from different cities?

How are differentials  used? For creating ranges?  Or applying to market data?

They’re used both ways, based on a variety of different circumstances. Much depends on your company’s compensation philosophy, history, politics or, sometimes, whim.

Where can you obtain Geographic Differential market data?

There are two ways to obtain the differential from external resources. You can calculate the differentials based on the survey data you have for various geographic regions…or you can use formulas provided by one of the big consulting firms such as ERI, Towers Watson or Mercer.

It’s better not to rely on government created tables (Bureau of Labor Statistics, etc) because they have other factors built in that can exaggerate the differences, and the data is often too old by the time it’s published.

Making Geographically Differentiated Pay Equal – Begin with a Sound Methodology

The basic principle you need to work from is that employees expect equal pay for equal work. Geographically differentiated pay can still be equal, but you need a sound methodology to back it up. Meantime, subjective arguments can be thrown at you from managers with their own agendas.

Compensation professionals have heard managers argue it both ways:

“I must pay more in rural locations to attract the good people from the metro areas”


“I must pay more in large metro areas because the competition is stiffer for talent”

This latter argument usually wins the day in a contest of wills. However, the better handle you have on your geographic differential statistics, the more you can keep your organization’s policies on track with the real world, based on real numbers.

Watch Your Words with Geographic Differentials

Be careful when naming the different geographic groupings — use non-offensive language. Remember that status and ego are easily affected by categorizations in the compensation world, and you don’t want to go around slapping on labels that make some people feel their jobs are somehow less valuable than those at other locations.

This actually applies to all labels you use in the compensation arena – and business in general today. In a socially driven world, communication about compensation is of critical importance.

compACT ROI Analysis delivers Insights at HR Technology and Conference Expo 2015

 compACT Salary Increase Administration Software

Return on Investment (ROI) Analysis for HR Technology Conference & Expo

CHICO, CA, October 5, 2015  — The need for formalized base and variable pay management is imperative to a company’s operational efficiency.  Automated Salary Increase administration provides a clear structure to compensation initiatives, ensuring validity and consistency in salary decisions. Although there are many significant benefits to implementing our software, we have outlined some cost saving areas to help facilitate your decision.

compensation management application

Time Savings – Compensation Group

A compensation professional wears many hats: designing compensation programs, communicating philosophies, compliance, analysis, ongoing industry education, market research, just to name a few.  Administrative tasks are a necessary and critical part of the job but imagine what you could accomplish if you were required to spend less time on administration and more time utilizing your education, experience and creativity.

How much time does your compensation group spend on the administration of your annual salary review process? How long do you spend auditing data, creating spreadsheets, counseling Managers, analyzing results, training, generating reports and processing increases?  What if we could help you decrease that time by 75%?

Position Avg Salary* FTE Days Cost
Compensation Director/Manager $136,000 1 20 $10,563.11
Senior Compensation Analyst $84,000 1 30 $9,786.41
Compensation Analyst $57,000 1.5 30 $9,961.17
Trainer $75,000 2 5 $2,912.62
Total 85 $33,223.30
Time/Cost Savings using CompACT 63.75 $24,917.48
*National average from, rounded

Manager Productivity

For Managers, the salary review process is often considered burdensome.  The time it takes managers to analyze data and enter recommendations for their team can be considerably shortened with the CompACT application.  CompACT can communicate your compensation program structure and give your managers immediate access to budgets, guidelines and any historical employee data to facilitate analysis and recommendations.   Would your managers appreciate getting their recommendations done in half the time?

Not knowing the specific details for each organization, this calculation utilizes several assumptions for determining the cost, including:

  • Managers currently spend 6 hours on planning compensation rewards for their entire direct report population as well as reviewing subordinate manager recommendations
  • Average base salary per manager is $90,000
Manager Count Avg Salary* Hours spent per manager Cost
100 $90,000 6 $25,962
Time/Cost Savings using CompACT 3 $12,981

Retaining your Best Employees

Not maintaining competitive pay rates (internally and industry) are a costly liability for any organization.  The US Department of Labor’s Bureau of Labor Statistics estimates average costs to replace a worker in private industry at $13,996. How many employees left your company in the past year to pursue opportunities elsewhere and was their decision motivated by salary? How long did it take to replace and train the new hires? If you could decrease turnover conservatively by 2%, simply by ensuring equitable pay among your employees, it could total a significant cost savings.


# Employees Cost to replace employee Total Cost of Turnover
100 $13,996.00 $1,399,600
Cost Savings by reducing turnover 2% $27,992


Software that can grow with your company

compACT allows you to customize your application based on your current and future requirements.  Compensation programs evolve and our software can evolve with you.  We can accommodate companies of any size and programs of any complexity.

Benefit Summary

The benefits include but are not limited to:

  • Time Saving on Administration
  • Facilitate Salary Administration for Managers
  • Accuracy/Equity in pay decisions to promote employee retention
  • Detailed Analysis and reporting capabilities
  • Software that can grow with your company


The Bottom Line*

compACT provides an organization with a significant competitive advantage to strategically and equitably manage all aspects of employee compensation programs while providing your organization with important tools to keep an eye on the bottom line. Our flexible pricing options make our product a viable and worthwhile option for any size organization.


*Although this document was intended to provide you with a general idea of the potential cost savings associated with an implementation of our product, we would be happy to work with you to create a more detailed ROI using your specific company information.  

compACT hosts private, invitation only event for Compensation Professionals at SHRM 2015 Annual Conference & Exposition in Las Vegas

Calling all Compensation Professionals at SHRM 2015 Annual Conference & Exposition in Las Vegas!

KINIXSYS SHRM 2015 Compensation Event

We’ve had a amazing response!
But no worries! Please stop by Booth #3050 on Sunday or Monday and mention “Comp Event”.
We still have a limited supply of invites to give away.

SHRM 2015 Event Floor Map - CompACT by Kinixsys
SHRM 2015 Event Floor Map (Click to Enlarge)

Mingle and network with other SHRM Compensation Professionals. This is a great opportunity for you to make new connections and discover how your peers are solving compensation problems.

Door Prizes!!

We will be raffling a number of door prizes including $250 in cash!

The Details

June 29, 2015
5:30pm – 7:00pm
Westgate Hotel and Casino
(Hotel is located directly next door to the Las Vegas Convention Center)

Westgate las vegas

Kinixsys to Showcase CompACT Compensation Management Application at the World at Work 2015 Total Rewards Conference

Kinixsys will be offering a special opportunity for attendees to sign up to receive a sneak peak of the upcoming new version of CompACT. Plus receive exclusive access to a free evaluation of the application and special conference pricing.


CHICO, CA, May 13, 2015  — Kinixsys, a leading HR Software Development company will be showcasing CompACT a Compensation Management Application on May 18-20 at the World at Work 2015 Total Rewards Conference in Minneapolis MN (

“We are very pleased to be exhibiting at this conference. Our company’s 13 years of dedication to effective compensation planning and unparalleled customer service aligns itself perfectly with World at Work’s philosophy, which is to bring together human resource professionals and the experienced solution providers that can positively impact their organization,” said Steve Weinberg, Business Development Director for Kinixsys.

In addition, Kinixsys will be offering a special opportunity to attendees to receive a “sneak peak” of the upcoming new release of CompACT. Attendees who sign up will receive exclusive access to a free evaluation plus special conference pricing.

“I am very excited about the new CompACT Version and what it will do for companies of just about any size,” said Michael R. Thathuvasamy, CEO. “This new release is our most flexible and cost effective to date. This makes it a win-win situation for everyone.”

CompACT is a powerful compensation management application that strengthens the link between pay and performance by guiding managers through salary, bonus and stock allocation decisions. CompACT allows managers to see the immediate effect of decisions on overall budget. Compensation teams can automate the approval process for pay recommendations and experience unparalleled reporting flexibility.

Kinixsys is a dynamic and vibrant Information Technology services organization that develops enterprise applications for the Human Resources / Compensation Management space and other verticals. Their customer base covers a wide range of industries including health insurance, manufacturing, technology, financial services and utilities. Visit the Kinixsys Web Site to learn about CompACT, their highly configurable compensation management system.

Announcing compACT compensation management software

  • Provides the tools to help your management team to easily understand the compensation process and take ownership in their pay decisions
  • Increased retention and engagement of top performers
  • Decreased cost of compensation plan administration
  • Lower TCO (Total Cost of Ownership) than on-premise ERP systems


Compensation team is EmPowered ! CompACT provides its administrators the power to configure and accelerate compensation planning and management.

An Administrator can

  • Load and audit data
  • Manually update ad hoc data changes
  • Configure business rules and data
  • Control application access
  • Turn components on and off
  • Customize warning messages
  • Assign special users
  • Modify workflow instantaneously
  • Override exceptions to business rules
  • Set/update budgets
  • Audit usage
  • Audit activity
  • Run standard and ad hoc, on demand analyses

CompACT’s built-in suite of reports and charts gives you instant access to your most frequently used analyses, and advanced reports including market and intra-organizational comparisons. Customized and ad hoc reports can be created in seconds.