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The differences between compensation managers and payroll managers can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 4-6 years to become a compensation manager, becoming a payroll manager takes usually requires 2-4 years. Additionally, a compensation manager has an average salary of $100,119, which is higher than the $86,147 average annual salary of a payroll manager.
The top three skills for a compensation manager include human resources, HRIS and compensation policies. The most important skills for a payroll manager are customer service, human resources, and payroll system.
| Compensation Manager | Payroll Manager | |
| Yearly salary | $100,119 | $86,147 |
| Hourly rate | $48.13 | $41.42 |
| Growth rate | 2% | -3% |
| Number of jobs | 7,941 | 6,972 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 57% |
| Average age | 46 | 48 |
| Years of experience | 6 | 4 |
A compensation manager is primarily responsible for developing and establishing a company's payment scale and system, ensuring all employees are well-compensated while putting the company's welfare into consideration. Moreover, a compensation manager must ensure to distribute benefits and pay rate in adherence to the laws and regulations, identify the wage rate of competitor companies, monitor the budget, and oversee the payroll and payment processes, ensuring accuracy and timeliness. Furthermore, as a manager, it is essential to lead the team, all while implementing the company's policies and regulations.
A payroll manager is responsible for monitoring the payment process of all employees. Payroll managers oversee payroll records, reviewing calculable taxes and other deductions, creating a comprehensive summary of payroll details, managing payroll discrepancies, and releasing payroll checks through the organization's payment method. They must also follow strict procedures on legal requirements and tax obligations. A payroll manager must have excellent analytical and communication skills, especially on responding to the employees' inquiries and concerns, as well as managing the performance of the payroll staff.
Compensation managers and payroll managers have different pay scales, as shown below.
| Compensation Manager | Payroll Manager | |
| Average salary | $100,119 | $86,147 |
| Salary range | Between $71,000 And $139,000 | Between $63,000 And $117,000 |
| Highest paying City | Sacramento, CA | San Francisco, CA |
| Highest paying state | Massachusetts | California |
| Best paying company | DLA Piper | Ep Energy |
| Best paying industry | Technology | Finance |
There are a few differences between a compensation manager and a payroll manager in terms of educational background:
| Compensation Manager | Payroll Manager | |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 57% |
| Most common major | Business | Accounting |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between compensation managers' and payroll managers' demographics:
| Compensation Manager | Payroll Manager | |
| Average age | 46 | 48 |
| Gender ratio | Male, 43.1% Female, 56.9% | Male, 22.0% Female, 78.0% |
| Race ratio | Black or African American, 11.2% Unknown, 3.4% Hispanic or Latino, 10.0% Asian, 8.4% White, 66.6% American Indian and Alaska Native, 0.4% | Black or African American, 9.9% Unknown, 6.1% Hispanic or Latino, 18.6% Asian, 6.1% White, 57.8% American Indian and Alaska Native, 1.5% |
| LGBT Percentage | 35% | 10% |