# Best Compensation Planning Software - Page 5

  *By [Grace Savides](https://research.g2.com/insights/author/grace-savides)*

   Compensation planning software design equitable and merit-based salary structures for employees. These products help companies develop compensation strategies that support their overall business plans, operating objectives, and employee needs. Compensation plans developed by these tools explain information on salaries, benefits, incentives, budgets, development levels, and employee eligibility for raises and bonuses.

HR departments use compensation planning software in collaboration with team managers to track employee compensation over time and provide insights into pay trends. Additionally, the software allows forecasting prospective business needs, including budget management for hiring across departments and potential expansion plans.

Compensation planning tools also track whether pay equity discrepancies exist amongst different groups across the organization. These solutions enable businesses to be more pay transparent to their employees, helping them to retain top performers.

Compensation planning software often shares functionalities with other HR software. [Compensation management software](https://www.g2.com/categories/compensation-management), for instance, offers similar capabilities but goes further by including bonus structures. It also offers reporting for compensation across the company, specifically by analyzing data and providing compensation dashboards. This software is distinct from compensation planning as planning looks at pay from a high level and forecasts for the future. Meanwhile, management analyzes the pay data in the organization's current state.

Another category with similar features is Salary and Benchmarking software, which uses external data sources to determine pay bands and what employees should be paid. [Pay equity software](https://www.g2.com/categories/pay-equity) analyzes pay equity across an organization to ensure employees are being paid fairly.

To qualify for inclusion in the Compensation Planning category, a product must:

- Create compensation budgets, including the logic and pay rules to facilitate planning
- Adjust compensation plans for merit increases and company-wide bonuses
- Organize pay data to communicate the reasoning of salary decisions to key stakeholders transparently
- Integrate with compensation management, salary and benchmarking, pay equity, or other HR solutions





## Category Overview

**Total Products under this Category:** 76


## Trust & Credibility Stats

**Why You Can Trust G2's Software Rankings:**

- 30 Analysts and Data Experts
- 29,200+ Authentic Reviews
- 76+ Products
- Unbiased Rankings

G2's software rankings are built on verified user reviews, rigorous moderation, and a consistent research methodology maintained by a team of analysts and data experts. Each product is measured using the same transparent criteria, with no paid placement or vendor influence. While reviews reflect real user experiences, which can be subjective, they offer valuable insight into how software performs in the hands of professionals. Together, these inputs power the G2 Score, a standardized way to compare tools within every category.


## Best Compensation Planning Software At A Glance

- **Leader:** [CaptivateIQ](https://www.g2.com/products/captivateiq/reviews)
- **Highest Performer:** [Remuner](https://www.g2.com/products/remuner/reviews)
- **Easiest to Use:** [CaptivateIQ](https://www.g2.com/products/captivateiq/reviews)
- **Top Trending:** [Lattice](https://www.g2.com/products/lattice-lattice/reviews)
- **Best Free Software:** [Salary.com](https://www.g2.com/products/salary-com-salary-com/reviews)




## Parent Category

[HR Software](https://www.g2.com/categories/hr)



## Related Categories

- [Performance Management Software](https://www.g2.com/categories/performance-management)
- [Core HR Software](https://www.g2.com/categories/core-hr)
- [Compensation Management Software](https://www.g2.com/categories/compensation-management)