What Do Compensation and Benefits Managers Do?
All jobs at any company or organization offer salaries or wages along with benefits such as retirement plans and health care to their workers. In order to determine what are the fairest and most economically viable strategies, compensation and benefits managers analyze budgets, conduct employee reviews and study statistics and legislation to set pay scales and benefit packages. You’ll also present these plans to employees and managers, and contribute to job descriptions and hiring proposals.Due to increasing trends of contracting out human resources rather than hiring within, the compensation and benefits manager field is highly competitive. Overall job growth is slow, with only a 3% rise in numbers of positions predicted between 2012 and 2022, averaging 610 new jobs opening yearly nationwide.
Compensation and Benefits Managers Skills and Abilities
In order to provide comprehensive and accurate analyses of an organization’s financial needs, compensation and benefits managers need to be well-versed in principles of administration and human resources, including strategic planning, resource allocation, recruitment and coordination of personnel. You must also have knowledge of legal codes relating to employment, and accounting and business mathematics. Critical thinking and decision-making skills are essential, and you need to be strong in both verbal and written communication.
Compensation and Benefits Managers Duties
As a compensation and benefits manager, you’ll be responsible for designing new compensation and benefits plans, as well as constantly reviewing existing plans to ensure they still meet company and legal standards and are competitive in the current job market. You’ll examine prevailing policies, salary rates, and government regulations, and analyze statistics to predict future employment needs. Managers also prepare budgets and maintain records and reports of personnel matters and changes, including new hires, performance reviews and exit interviews.Along with developing compensation and benefits plans, you’ll be introducing them to employees, preparing and distributing information about changes to compensation and benefits, and administering the programs. This includes conducting orientations for new workers, collaborating with other departments to write job descriptions and classifications, and creating tools to assist employees and managers in understanding and choosing benefits. You’ll answer employee questions and mediate between employees and benefit providers, and will represent the company in investigation and hearings of personnel-related issues.
Compensation and Benefits Managers Tools and Technology
To prepare budgets and financial reports, managers should be familiar with 10-key desktop calculators for accounting. You’ll also use a variety of computer software to track finances and data, and to prepare reports and policy plans. These electronic resources can include:
- Business analysis and human resource tracking programs
- Electronic accounting books
- Enterprise resource planning (ERP) software
Education and Training for Compensation and Benefits Managers
The majority of compensation and benefits manager positions require a four-year bachelor degree, preferably in business, human resources, accounting or a related field. Additional training in human resources and personnel management can be of use. As well, you will generally need at least five years of experience in human resources or other administrative management.
Compensation and Benefits Managers Salary
Due to the complex demands and experience level required for these positions, salaries are quite high. Lower-paying positions start at around $58,000 a year, while the average salary is $108,000 to $140,000 depending on location, and the top-paid managers can make in excess of $187,000 a year.
Compensation and Benefits Managers Jobs by Geography
The majority of manager positions are in the headquarters of mid-sized to large companies, most often found in population centers in or near large cities. Populous states such as California, New York and Texas have the most compensation and benefits managers as well as the highest paying positions. It’s quite possible you’ll have to look in cities out of state to find the best job for you.