How to hire a compensation director

How to hire a compensation director, step by step

Here's a step-by-step compensation director 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 director job description
• Step 5: Post your job
• Step 6: Interview candidates
• Step 7: Send a job offer and onboard your new compensation director
• Step 8: Go through the hiring process checklist

What does a compensation director do?

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1. Identify your hiring needs

   Before you start hiring a compensation director, identify what type of worker you actually need. Certain positions might call for a full-time employee, while others can be done by a part-time worker or contractor.

   Determine employee vs contractor status

   Is the person you're thinking of hiring a US citizen or green card holder?

   Yes

   No

   A compensation director's background is also an important factor in determining whether they'll be a good fit for the position. For example, compensation directors from different industries or fields will have radically different experiences and will bring different viewpoints to the role. You also need to consider the candidate's previous level of experience to make sure they'll be comfortable with the job's level of seniority.

   This list shows salaries for various types of compensation directors.

   Type of Compensation Director	Description	Hourly rate
   Compensation Director	Compensation managers plan, develop, and oversee programs to determine how much an organization pays its employees and how employees are paid. Benefits managers plan, direct, and coordinate retirement plans, health insurance, and other benefits that an organization offers its employees.	$40-76
   Hris Manager	An HRIS manager or commonly known as a human resource information system manager, is responsible for supporting and maintaining the company's HR systems. They primarily perform the complex task of making sure all HR systems are compliant with labor regulations and regularly updated... Show more	$36-70
   Employee Benefits Coordinator	An employee benefits coordinator works at a company's human resources department, where they are in charge of overseeing benefits programs and assisting employees in its enrollment procedures. Their responsibilities usually include answering inquiries, discussing benefits and retirement plans, helping employees process their requirements, and updating employees with any changes related to their applications... Show more	$14-28

   Show more

2. Create an ideal candidate profile

   Common skills:

   • Human Resources
   • Healthcare
   • HRIS
   • Base Pay
   • Compensation Strategy
   • Performance Management
   • Oversight
   • Global Compensation
   • Compensation Policies
   • Compensation Committee
   • Strategic Direction
   • Market Data
   • Strategic Objectives
   • Market Analysis

   Check all skills

   Responsibilities:

   • Lead RFP effort and implementation of a company wide employee assistance program (EAP).
   • Manage PeopleSoft information system and reporting, including the successful implementation in Europe.
   • Manage special projects, develop senior level presentations and handle communications on behalf of SVP
   • Leverage economies of scale to secure most competitive deal, and greatly decrease risk of IRS and DOL non-compliance.
   • Lead an HRIS initiative and successfully develop and implement a worldwide web-base, performance management tool.
   • Develop FLSA protocols ensuring that FLSA designations, overtime and pay issues are in compliance with applicable laws.

   More compensation director duties

3. Make a budget

   Including a salary range in your compensation director job description is a great way to entice the best and brightest candidates. A compensation director salary can vary based on several factors:

   • Location. For example, compensation directors' average salary in hawaii is 45% less than in idaho.
   • Seniority. Entry-level compensation directors earn 47% less than senior-level compensation directors.
   • Certifications. A compensation director with a few certifications under their belt will likely demand a higher salary.
   • Company. Working for a prestigious company or an exciting start-up can make a huge difference in a compensation director's salary.

   Average compensation director salary

   $117,485yearly

   $56.48 hourly rate

   ---

   Entry-level compensation director salary

   $85,000 yearly salary

   Updated December 15, 2025

   Average compensation director salary by state

   Rank	State	Avg. salary	Hourly rate
   1	Oregon	$136,095	$65
   2	Maine	$131,992	$63
   3	Washington	$131,382	$63
   4	New Jersey	$126,284	$61
   5	Tennessee	$125,246	$60
   6	Massachusetts	$123,540	$59
   7	Michigan	$119,413	$57
   8	Virginia	$118,770	$57
   9	Nebraska	$117,462	$56
   10	Illinois	$115,727	$56
   11	Connecticut	$113,741	$55
   12	New York	$113,297	$54
   13	California	$111,946	$54
   14	Pennsylvania	$110,842	$53
   15	Ohio	$109,805	$53
   16	Arizona	$109,587	$53
   17	Colorado	$108,897	$52
   18	District of Columbia	$106,863	$51
   19	Florida	$106,432	$51
   20	Texas	$105,269	$51

   Average compensation director salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	Milbank Tweed Hadley & Mc Cloy	$139,129	$66.89
   2	Sprinklr	$128,246	$61.66
   3	Benihana	$126,322	$60.73
   4	Flexport	$126,259	$60.70
   5	Instabase	$125,002	$60.10
   6	Michaels Stores	$124,509	$59.86	2
   7	Salesforce	$124,036	$59.63	9
   8	Microsoft	$123,169	$59.22	3
   9	Nike	$118,196	$56.83
   10	Aon	$117,734	$56.60	2
   11	Sumo Logic	$116,868	$56.19
   12	Enel Green Power	$116,262	$55.90
   13	Silicon Valley Bank	$115,267	$55.42
   14	KPMG LLP	$114,597	$55.09	2
   15	Zillow Group	$114,211	$54.91
   16	Rosendin Electric	$112,945	$54.30	9
   17	Alvarez & Marsal	$112,650	$54.16	2
   18	DISCO	$112,467	$54.07
   19	Arkema	$111,638	$53.67	1
   20	Visa	$110,850	$53.29

4. Writing a compensation director job description

   A compensation director 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 director job description:

   Compensation director job description example

   Global Compensation Director
   
   As the Global Compensation Director, you will drive projects and provide analysis to attract and retain the best talent in the industry. You will handle the development, implementation, communication, and administration of innovative compensation programs including job architecture, short and long-term incentives, commission plans, incentive plans, benchmarking and survey analysis, emerging trends, new technologies and compensation training. You will also handle the development of Corporate incentive bonus plans for a variety of different business units.
   
   Key Responsibilities
   
   The requirements listed below are representative of the knowledge, skill, and/or ability required. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.
   
   What you'll do as the Global Compensation Director:
   Own the design, delivery, and support of global compensation programs Lead strategic compensation projects such as annual compensation planning cycles, bonus processes, retention programs, M&A, etc. Assist in the short and long-term compensation strategy and execution, including, but not limited to job leveling, career-pathing, attraction, retention, reward and recognition, incentive design, communication methods, and education. Lead compensation design projects that require a broad understanding of compensation center of excellence programs (e.g. short term incentives, job architecture, long term incentives, base pay programs, salary structures, budgeting, benchmarking, etc.) Design and deliver compensation training and communication Ensure company compliance with local laws governing both compensation and benefits practices, and highlight potential issues Provide compensation consulting and support throughout the business Collaborate closely with HR Business Partners, regional leaders, and key business stakeholders to provide recommendations on day to day needs such as new hire offers, promotions, and job leveling Provide subject matter expertise and support on HR Technology projects related to compensation requirements, process, reporting, testing, and data
   What you'll bring as the Global Compensation Director:
   6+ years broad-based compensation experience in high tech; CCP preferred Bachelor's degree or equivalent combination of education and experience Expertise in compensation market practices, rules/regulations, and compliance Excellent communicator and influencer Able to navigate remote management/team collaboration and are comfortable with virtual communication tools Ability to analyze data, create, and share meaningful insights Innovative and naturally curious team player with skills to influence at all levels Self-starter with great organization skills and follow-through, with the ability to prioritize your workload and balance concurrent projects Ability to demonstrate confidence, credibility, and good judgment, and to take on new challenges Experience with ADP, Radford, Exactly and PayScale or similar systems/tools #LI-KS1
   
   #LI-Remote
   As a rapidly growing global provider of IT solutions, we've expanded from Seattle to Sydney and beyond - with reach in over 80 countries around the world. Today's top brands count on Zones and our world-class partners - Microsoft, Apple, Cisco, Dell, Lenovo, and more - to transform their enterprises. To support this transformation, Zones offers products and services across four Solution Environments: Workplace Modernization, Network Optimization, Data Center Transformation, and Security Fortification. Zones offers a comprehensive Benefits package
   
   While we're committed to providing top-tier solutions, we're just as committed to supporting our own team. Our employees enjoy a variety of comprehensive benefits, including medical/dental/vision coverage, life insurance, a 401(k) plan with matching provision, paid time off, and much more. And as a Minority Business Enterprise, a Corporate Plus member of the Northwest Minority Supplier Development Council, and an Equal Employment Opportunity Employer, our community is just as diverse.
   
   At Zones, work is more than a job - it's an exciting career immersed in an inventive, collaborative culture. If you're interested in working on the cutting edge of IT innovation, sales, engineering, operations, administration, and more, Zones is the place for you!

   Copy this example

   

5. Post your job

   To find the right compensation director for your business, consider trying out a few different recruiting strategies:

   • Consider internal talent. One of the most important sources of talent for any company is its existing workforce.
   • Ask for referrals. Reach out to friends, family members, and current employees and ask if they know or have worked with compensation directors they would recommend.
   • Recruit at local colleges. Attend job fairs at local colleges to recruit compensation directors who meet your education requirements.
   • Social media platforms. LinkedIn, Facebook and Twitter now have more than 3.5 billion users, and you can use social media to reach potential job candidates.

   To find compensation director candidates, you can consider the following options:

   • Post your job opening on Zippia or other job search websites.
   • Use niche websites that focus on engineering and technology jobs, such as hrcrossing, ihirehr, hrjobs, shrm hr jobs.
   • Post your job on free job posting websites.

6. Interview candidates

   During your first interview to recruit compensation directors, engage with candidates to learn about their interest in the role and experience in the field. During the following interview, you'll be able to go into more detail about the company, the position, and the responsibilities.

   You should also ask about candidates' unique skills and talents to see if they match the ideal candidate profile you developed earlier. Candidates good enough for the next step can complete 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 director

   Once you've selected the best compensation director candidate for the job, it's time to write an offer letter. In addition to salary, this letter should include details about the benefits and perks you offer the candidate. Ensuring that your offer is competitive is essential, as qualified candidates may be considering other job opportunities. The candidate may wish to negotiate the terms of the offer, and you should be open to discussion. After you reach an agreement, the final step is formalizing the agreement with a contract.

   It's also important to follow up with applicants who do not get the job with an email letting them know that the position is filled.

   To prepare for the new employee's start date, you can create an onboarding schedule and complete any necessary paperwork, such as employee action forms and onboarding documents like I-9 forms, benefits enrollment, and federal and state tax forms. Human Resources should also ensure that a new employee file is 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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