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How to hire a compensation/benefits specialist

Compensation/benefits specialist hiring summary. Here are some key points about hiring compensation/benefits specialists in the United States:

  • HR departments typically spend 15% of their expenses on recruitment.
  • It usually takes about 12 weeks for a new employee to reach full productivity levels.
  • It typically takes 36-42 days to fill a job opening.
  • The median cost to hire a compensation/benefits specialist is $1,633.
  • Small businesses spend an average of $1,105 per compensation/benefits specialist on training each year, while large companies spend $658.
  • There are currently 4,277 compensation/benefits specialists in the US and 38,011 job openings.
  • Washington, DC, has the highest demand for compensation/benefits specialists, with 2 job openings.
  • Saint Louis, MO has the highest concentration of compensation/benefits specialists.

How to hire a compensation/benefits specialist, step by step

To hire a compensation/benefits specialist, you need to identify the specific skills and experience you want in a candidate, allocate a budget for the position, and advertise the job opening to attract potential candidates. To hire a compensation/benefits specialist, you should follow these steps:

Here's a step-by-step compensation/benefits specialist hiring guide:

  • Step 1: Identify your hiring needs
  • Step 2: Create an ideal candidate profile
  • Step 3: Make a budget
  • Step 4: Write a compensation/benefits specialist job description
  • Step 5: Post your job
  • Step 6: Interview candidates
  • Step 7: Send a job offer and onboard your new compensation/benefits specialist
  • Step 8: Go through the hiring process checklist

What does a compensation/benefits specialist do?

Compensation/benefits specialists are professionals who manage and oversee the compensation and benefits of employees of an organization. These specialists are required to develop compensation programs that will improve the performance, engagement, and satisfaction of all employees. They must create and analyze the evaluations and classifications of job descriptions while conducting market research on salary and labor to define benchmarks. Compensation/benefits specialists must also ensure that compensation practices are following the current laws and regulations as well as assessing the needs of employees through organizational surveys.

Learn more about the specifics of what a compensation/benefits specialist does
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  1. Identify your hiring needs

    First, determine the employments status of the compensation/benefits specialist you need to hire. Certain compensation/benefits specialist roles might require a full-time employee, whereas others can be done by part-time workers or contractors.

    Determine employee vs contractor status
    Is the person you're thinking of hiring a US citizen or green card holder?

    You should also consider the ideal background you'd like them a compensation/benefits specialist to have before you start to hire. For example, what industry or field would you like them to have experience in, what level of seniority or education does the job require, and how much it'll cost to hire a compensation/benefits specialist that fits the bill.

    Here's a comparison of compensation/benefits specialist salaries for various roles:

    Type of Compensation/Benefits SpecialistDescriptionHourly rate
    Compensation/Benefits SpecialistCompensation, benefits, and job analysis specialists conduct an organization’s compensation and benefits programs. They also evaluate position descriptions to determine details such as a person’s classification and salary.$17-35
    Benefits & Payroll AdministratorThe Benefits and Payroll Administrator manages the company's payroll, ensuring work benefits and employee documents are secure. The administrator also delivers employees' issues and concerns to the company's proper channels... Show more$17-32
    Benefits ManagerA benefits manager is primarily in charge of overseeing and handling a company's benefits programs and projects for employees. Their responsibilities revolve around coordinating with human resources to gather accurate data, improve existing benefits programs, and creating new ones in adherence to the company's policies and regulations... Show more$18-50
  2. Create an ideal candidate profile

    Common skills:
    • HRIS
    • Cobra
    • Compensation Programs
    • Open Enrollment
    • FMLA
    • Federal Laws
    • HIPAA
    • Benefits Administration
    • Payroll System
    • Compensation Policies
    • Workers Compensation
    • ERISA
    • Compensation Surveys
    • Salary Surveys
    Check all skills
    Responsibilities:
    • Integrate efforts on actions and programs where joint OPM functional effort are necessary to accomplish recruitment and enhance organizational effectiveness.
    • Generate and distribute FMLA approval/denial notification letters to the requesting associates via certify mail.
    • Recognize for improving the tracking system for personnel within the organization allowing oversight and knowledge of all instructors and administrative personnel.
    • Interpret requirements documents and benefits structures into enrollment system design using SQL coding used to drive benefit option eligibility.
    More compensation/benefits specialist duties
  3. Make a budget

    Including a salary range in your compensation/benefits specialist job description is one of the best ways to attract top talent. A compensation/benefits specialist can vary based on:

    • Location. For example, compensation/benefits specialists' average salary in south carolina is 54% less than in new jersey.
    • Seniority. Entry-level compensation/benefits specialists 51% less than senior-level compensation/benefits specialists.
    • Certifications. A compensation/benefits specialist with certifications usually earns a higher salary.
    • Company. Working for an established firm or a new start-up company can make a big difference in a compensation/benefits specialist's salary.

    Average compensation/benefits specialist salary

    $52,140yearly

    $25.07 hourly rate

    Entry-level compensation/benefits specialist salary
    $36,000 yearly salary
    Updated January 30, 2026

    Average compensation/benefits specialist salary by state

    RankStateAvg. salaryHourly rate
    1New Jersey$70,137$34
    2New York$69,367$33
    3California$66,662$32
    4Connecticut$66,435$32
    5Massachusetts$64,741$31
    6Maryland$60,473$29
    7Washington$59,777$29
    8District of Columbia$59,104$28
    9Minnesota$56,448$27
    10Virginia$54,824$26
    11Pennsylvania$52,292$25
    12Illinois$52,069$25
    13North Carolina$49,645$24
    14Colorado$49,480$24
    15Georgia$46,558$22
    16Michigan$45,488$22
    17Texas$44,927$22
    18Tennessee$44,433$21
    19Indiana$40,315$19
    20Florida$37,505$18

    Average compensation/benefits specialist salary by company

    RankCompanyAverage salaryHourly rateJob openings
    1Microsoft$100,469$48.302
    2Santander Bank$77,200$37.12
    3International Software Systems$70,535$33.91
    4U.S. Pharmacopeia$70,278$33.79
    5Pwc$70,229$33.7615
    6Santander Private Banking International$69,795$33.56
    7Frontier Technologies$68,491$32.93
    8CIBC World Markets$64,770$31.14
    9Infotech$64,331$30.93
    10IntelliPro$64,324$30.932
    11CARE$64,004$30.77
    12Bluebeam$63,361$30.461
    13Wellex$62,876$30.23
    14The Washington Post$60,874$29.271
    15Atlanta Braves$59,618$28.66
    16Mercer$57,470$27.632
    17QuantumScape$55,757$26.81
    18Prometric$55,396$26.63
    19ASML Holding$53,170$25.561
    20Washington State University$52,880$25.42
  4. Writing a compensation/benefits specialist job description

    A compensation/benefits specialist job description should include a summary of the role, required skills, and a list of responsibilities. It's also good to include a salary range and the first name of the hiring manager. To help get you started, here's an example of a compensation/benefits specialist job description:

    Compensation/benefits specialist job description example

    Danvers, MA

    Full Time or Part Time

    Once Trained Hybrid Model

    Summary:

    Care Dimensions, a leading non-profit hospice and palliative care organization, is looking for the a mission-driven, customer service oriented TEAM PLAYER, to oversee and administer Care Dimensions' rewards packages. The Total Rewards Specialist will join a team of seven other HR professionals, where collaboration and teamwork is our mantra. We get the honor of helping over 600 employees (who do amazing things every day) with all things HR. This role is a fantastic opportunity to learn the ins and outs of a variety of rewards program elements - ranging from compensation and benefits to wellness and recognition.

    The Care Dimensions' Total Rewards Specialist serves the Care Dimensions workforce through the administration of a full array of benefits offerings, designed to attract and retain employees. Focused on researching, recommending, and implementing innovative benefit programs across the organization, and leading Care Dimensions' Employee Wellness Program. The Total Rewards Specialist serves as an internal expert on all benefits programs and works closely with the Director of HRIS & HR Operations, benefit broker and carriersto design and implement plans, resolve eligibility issues and escalate service and/or claims issues on behalf of employees.

    After in-person training (approximately 3 weeks), this role is a hybrid role, with the expectation of 3 days/week in the office.

    Does this sound like something you'd be interested in? If so, keep reading. Here are some details of each area that this position is responsible for:

    Benefit & Retirement Plan Administration
    • Ensure compliance with applicable laws, regulations, policies and procedures for benefit administration and delivery, and recommend policy and procedure changes.
    • Demonstrates a clear understanding of all the provided benefits as well as the terms of eligibility for each employee.
    • Administer enrollment, renewal, and delivery of benefits; Conducts benefits training with all new hires in orientation; ensures any follow up necessary for new hires to enroll.
    • Routine administration of retirement plans.
    • Develop new communication plans and resources that assist employees in making maximum use of benefit programs and improve their health.
    • Identify and implement best in class practices in benefits and wellness programming through participation in appropriate professional and industry groups.
    • Administers enrollments for all benefits, including Open Enrollment, new hires and 403(b) educational meetings.
    • Assist other HR staff by making benefits, wellness and total rewards a part of the talent acquisition and management process, training programs and employee relations.
    • Audits and submits benefits billing and processes timely with detailed accuracy.

    Wellness Program Management:
    • Co-chair and lead Care Dimensions' Wellness Committee and Employee Wellness program " Your Wellbeing. "
    • Optimize value of robust wellness programming to health plan results, productivity, organizational performance and participant quality of life.
    • Implement and administer engagement initiatives to enhance the participation in and value from health benefits, wellness initiatives, other benefits and financial programs for a diverse workforce.
    • Assist with development and administer education and outreach programs to foster financial literacy and security for employees.

    Compensation
    • Participate in compensation and benefits surveys to analyze company's competitive position
    • Conduct job evaluations and salary reviews using market data
    • Analyze and forecast costs of compensation programs

    Position Qualifications:
    • Associates or Bachelor's degree preferred
    • Minimum 2-3 years' experience in employee benefits and/or HR administration.
    • Excellent written and verbal communication skills; ability to present to groups of people as well as discuss complex ideas interpersonally.
    • Knowledge of COBRA, ERISA, HIPAA, FMLA, ADAAA, Section 125, Affordable Care Act and related state and federal regulations preferred.
    • Strong analytical and organizational skills with the ability to handle multiple projects/tasks, recognize priorities and meet deadlines
    • Demonstrated advanced skills in Microsoft Office Suite and HRIS systems.
    • Ability to communicate at all levels of organization and work well within a team environment in support of organizational objectives.
    • Customer service oriented with the ability to work well under pressure.
    • Strong attention to detail and accuracy, excellent organizational skills with ability to prioritize, coordinate and simultaneously maintain multiple projects with high level of quality and productivity.
    • Ability to work with minimal supervision, take initiative and make independent decisions.
  5. Post your job

    To find compensation/benefits specialists for your business, try out a few different recruiting strategies:

    • Consider internal talent. One of the most important talent pools for any company is its current employees.
    • Ask for referrals. Reach out to friends, family members, and your current work to ask if they know any compensation/benefits specialists they would recommend.
    • Recruit at local colleges. Attend job fairs at local colleges to recruit entry-level compensation/benefits specialists with the right educational background.
    • Social media platforms. LinkedIn, Facebook, and Twitter have more than 3.5 billion users, and they're a great place for company branding and reaching potential job candidates.
    Post your job online:
    • Post your compensation/benefits specialist job on Zippia to find and recruit compensation/benefits specialist candidates who meet your exact specifications.
    • Use field-specific websites.
    • Post a job on free websites.
  6. Interview candidates

    To successfully recruit compensation/benefits specialists, your first interview needs to engage with candidates to learn about their interest in the role and experience in the field. You can go into more detail about the company, the role, and the responsibilities during follow-up interviews.

    It's also good to ask about candidates' unique skills and talents to see if they match your ideal candidate profile. If you think a candidate is good enough for the next step, you can move on to the technical interview.

    The right interview questions can help you assess a candidate's hard skills, behavioral intelligence, and soft skills.

  7. Send a job offer and onboard your new compensation/benefits specialist

    Once you've decided on a perfect compensation/benefits specialist candidate, it's time to write an offer letter. In addition to salary, it should include benefits and perks available to the employee. Qualified candidates may be considered for other positions, so make sure your offer is competitive. Candidates may wish to negotiate. Once you've settled on the details, formalize your agreement with a contract.

    It's also good etiquette to follow up with applicants who don't get the job by sending them an email letting them know that the position has been filled.

    After that, you can create an onboarding schedule for a new compensation/benefits specialist. Human Resources and the hiring manager should complete Employee Action Forms. Human Resources should also ensure that onboarding paperwork is completed, including I-9s, benefits enrollment, federal and state tax forms, etc., and that new employee files are created.

  8. Go through the hiring process checklist

    • Determine employee type (full-time, part-time, contractor, etc.)
    • Submit a job requisition form to the HR department
    • Define job responsibilities and requirements
    • Establish budget and timeline
    • Determine hiring decision makers for the role
    • Write job description
    • Post job on job boards, company website, etc.
    • Promote the job internally
    • Process applications through applicant tracking system
    • Review resumes and cover letters
    • Shortlist candidates for screening
    • Hold phone/virtual interview screening with first round of candidates
    • Conduct in-person interviews with top candidates from first round
    • Score candidates based on weighted criteria (e.g., experience, education, background, cultural fit, skill set, etc.)
    • Conduct background checks on top candidates
    • Check references of top candidates
    • Consult with HR and hiring decision makers on job offer specifics
    • Extend offer to top candidate(s)
    • Receive formal job offer acceptance and signed employment contract
    • Inform other candidates that the position has been filled
    • Set and communicate onboarding schedule to new hire(s)
    • Complete new hire paperwork (i9, benefits enrollment, tax forms, etc.)
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How much does it cost to hire a compensation/benefits specialist?

Hiring a compensation/benefits specialist comes with both the one-time cost per hire and ongoing costs. The cost of recruiting compensation/benefits specialists involves promoting the job and spending time conducting interviews. Ongoing costs include employee salary, training, benefits, insurance, and equipment. It is essential to consider the cost of compensation/benefits specialist recruiting as well the ongoing costs of maintaining the new employee.

The median annual salary for compensation/benefits specialists is $52,140 in the US. However, the cost of compensation/benefits specialist hiring can vary a lot depending on location. Additionally, hiring a compensation/benefits specialist for contract work or on a per-project basis typically costs between $17 and $35 an hour.

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