How To Become A Compensation Manager: What It Is and Career Path

What is a compensation manager and how to become one

Updated January 8, 2025

4 min read

A compensation manager designs, implements, and manages an organization's compensation and benefits. They work with HR departments to ensure that employees receive fair and competitive pay and benefits. Their duties include conducting market research to determine industry standards, analyzing employee performance to determine raises and bonuses, and creating job descriptions for new positions. They also negotiate with unions and government agencies. The compensation manager works to attract and retain employees while maintaining the companyâ€™s budget.

ScoreCompensation ManagerUS Average

Salary

7.6

Avg. Salary $100,119

Avg. Salary $59,228

Stability level

6.0

Growth rate 2%

Growth rate 0.3%

Diversity

2.6

Race

American Indian and Alaska Native 0.44%

Asian 8.38%

Black or African American 11.20%

Hispanic or Latino 9.99%

Unknown 3.42%

White 66.57%

Gender

female 56.89%

male 43.11%

Age - 46

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 46

Stress level

6.0

Stress level is manageable

7.1 - high

Complexity level

7.6

Complexity level is challenging

7 - challenging

Work life balance

4.5

Work life balance is fair

6.4 - fair

What are the pros and cons of being a compensation manager?

Pros

Competitive salary and benefits
Opportunities for career growth and advancement
Exposure to various departments and business units
High demand for experienced compensation managers
Ability to work independently and manage projects

Cons

Can be stressful when dealing with complex compensation structures or budget constraints
Requires strong analytical skills and attention to detail
Difficult to quantify the impact of compensation decisions on employee satisfaction and retention
May be perceived as a cost center rather than a revenue generator
Risk of burnout due to high workload and responsibility

Key steps to become a compensation manager

Explore compensation manager education requirements

Most common compensation manager degrees

Bachelor's

71.2 %

Master's

20.2 %

Associate

5.4 %

Start to develop specific compensation manager skills

Skills	Percentages
Human Resources	11.36%
HRIS	6.49%
Compensation Policies	5.65%
Compensation Practices	5.21%
Customer Service	4.45%

Complete relevant compensation manager training and internships

Accountants spend an average of Less than 1 month on post-employment, on-the-job training. New compensation managers learn the skills and techniques required for their job and employer during this time. The chart below shows how long it takes to gain competency as a compensation manager based on U.S. Bureau of Labor Statistics data and data from real compensation manager resumes.

Research compensation manager duties and responsibilities

Implement and manage the company's HRIS/benefits system (HRB ADP system).
Manage and integrate multiple, non-communicating HRIS database systems.
Manage special projects, develop senior level presentations and handle communications on behalf of SVP
Perform EEO tracking and reporting.

Prepare your compensation manager resume

When your background is strong enough, you can start writing your compensation manager resume.

You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a compensation manager resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

Choose from 10+ customizable compensation manager resume templates

Build a professional compensation manager resume in minutes. Browse through our resume examples to identify the best way to word your resume. Then choose from 10+ resume templates to create your compensation manager resume.

Apply for compensation manager jobs

Now it's time to start searching for a compensation manager job. Consider the tips below for a successful job search:

Browse job boards for relevant postings
Consult your professional network
Reach out to companies you're interested in working for directly
Watch out for job scams

How do compensation managers rate their job?

-/5

5 stars

4 stars

3 stars

2 stars

1 star

Compensation manager reviews

A zippia user wrote a review on Jan 2020

Pros

I work with all lines of business, from job evaluation to job market analysis to promotion pay recommendation. I mostly work with internal employees and managers who want assistance understanding our pay practices. Must love Excel!

Cons

Lack of technology tools in the market to manage large data related to managing job descriptions, job codes, headcount, etc.