How to hire a compensation manager

How to hire a compensation manager, step by step

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

What does a compensation manager do?

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1. Identify your hiring needs

   First, determine the employments status of the compensation manager you need to hire. Certain compensation manager 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?

   Yes

   No

   A compensation manager's background is also an important factor in determining whether they'll be a good fit for the position. For example, compensation managers 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 managers.

   Type of Compensation Manager	Description	Hourly rate
   Compensation Manager	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.	$34-66
   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
   Benefits Counselor	A benefits counselor manages the company or organization's employee benefits programs. Job responsibilities may include designing and administering the benefits program to ensure company and employee needs are met, as well as assisting and educating employees in benefits enrollment activities... Show more	$21-56

   Show more

2. Create an ideal candidate profile

   Common skills:

   • Human Resources
   • HRIS
   • Compensation Policies
   • Compensation Practices
   • Customer Service
   • Base Pay
   • Compensation Strategy
   • Market Data
   • FLSA
   • Plan Design
   • Salary Surveys
   • Performance Management
   • Compensation Issues
   • Compensation Philosophy

   Check all skills

   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.
   • Implement programs to ensure the hospital's full compliance with federal HIPAA policies.
   • Implement HIPAA requirements, which include all policies, procedures, and audits of work environment.

   More compensation manager duties

3. Make a budget

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

   • Location. For example, compensation managers' average salary in hawaii is 40% less than in massachusetts.
   • Seniority. Entry-level compensation managers earn 49% less than senior-level compensation managers.
   • Certifications. A compensation manager 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 manager's salary.

   Average compensation manager salary

   $100,119yearly

   $48.13 hourly rate

   ---

   Entry-level compensation manager salary

   $71,000 yearly salary

   Updated December 14, 2025

   Average compensation manager salary by state

   Rank	State	Avg. salary	Hourly rate
   1	California	$129,284	$62
   2	Nevada	$120,128	$58
   3	Massachusetts	$119,843	$58
   4	New York	$118,267	$57
   5	Rhode Island	$116,739	$56
   6	Washington	$115,701	$56
   7	New Jersey	$115,592	$56
   8	Delaware	$112,698	$54
   9	District of Columbia	$112,136	$54
   10	Oregon	$111,805	$54
   11	Pennsylvania	$109,122	$52
   12	Connecticut	$106,485	$51
   13	Mississippi	$104,212	$50
   14	Michigan	$104,021	$50
   15	Virginia	$102,862	$49
   16	North Dakota	$102,819	$49
   17	Maryland	$102,052	$49
   18	Ohio	$97,266	$47
   19	Missouri	$96,741	$47
   20	Minnesota	$96,504	$46

   Average compensation manager salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	DLA Piper	$137,850	$66.27
   2	Google	$128,519	$61.79
   3	The Walt Disney Company	$127,639	$61.36
   4	RSM US	$125,999	$60.58	4
   5	Cloudflare	$124,513	$59.86	1
   6	Anaplan	$122,497	$58.89
   7	Artisan Partners	$121,510	$58.42
   8	Fisher Investments	$120,068	$57.73
   9	J.P. Morgan	$120,044	$57.71
   10	Invesco	$119,572	$57.49	1
   11	Waymo	$119,427	$57.42
   12	Commonwealth	$118,069	$56.76
   13	Michaels Stores	$117,761	$56.62	2
   14	Chime	$115,274	$55.42
   15	Bunge	$114,730	$55.16
   16	Citi	$114,139	$54.87
   17	Salesforce	$113,968	$54.79	10
   18	Texas Instruments	$113,018	$54.34
   19	Belkin	$112,363	$54.02
   20	Amazon	$112,032	$53.86	19

4. Writing a compensation manager job description

   A good compensation manager job description should include a few things:

   • Summary of the role
   • List of responsibilities
   • Required skills and experience

   Including a salary range and the first name of the hiring manager is also appreciated by candidates. Here's an example of a compensation manager job description:

   Compensation manager job description example

   Dematic is hiring a Compensation Manager for the Americas Region, who will lead compensation for the US, Canada and Mexico.
   
   In this position, you will have the opportunity to partner with the Global Total Rewards team to continue building Dematic as an employer of choice through an attractive compensation strategy. You will have the ability to take a concept and create solutions, collaborate with all levels within an organization, be passionate about turning data into a compelling story and implement and manage new programs, including compensation reviews and pay program designs.
   What we offer:
   
   Key Responsibilities
   Trusted advisor to business leaders and HR partners by providing consultation and creative solutions to address compensation challenges in the business. Partner in the development, implementation, and evaluation of strategies and programs designed to provide for equitable and competitive employee compensation. Develop measures and reporting to assess the our compensation approach against market and company goals to help drive business decisions tied to compensation. Research and provide insights across the Americas to support continuous improvement and proactive thinking with future improvements anticipating upcoming compensation challenges. Partner and manage relationships with external compensation vendors for market data in collaboration with Global Total Rewards. Lead regional compensation projects that align with our company philosophy and drive the right behaviors to deliver our business. Responsible for job evaluation and position evaluation working with the business partners. Act as the consulting partner to HRBP in re-org evaluations and competitive analysis. Lead for US, Canada and Mexico the year-end merit process including salary, bonus, compensation grade audits and bonus accruals within Workday. Support short-term and long-term incentives administration programs including creating, tracking and distribution of compensation statements, payout calculations, and coordination with global Payroll teams. Serve as subject matter expert in processes, consulting business partners, and implementation of new system integrations. #LI-LD1
   
   #LI-VNOEL
   
   Tasks and Qualifications:
   
   Qualifications
   Bachelor's Degree required. 7+ years of progressive experience in Human Resources; concentration in Compensation/Total Rewards. Subject matter expert for latest trends in Global Compensation field and have continuous improvement mindset. Excellent relationship building, collaboration with experience partnering with stakeholders and a track record of staying on top of project status. Strong analytical abilities. Detail oriented and strong technical acumen with experience in dealing with large data. Expert in Excel and experience working with HR system and reporting. Ability to mitigate unforeseen problems creatively and effectively.

   Copy this example

   

5. Post your job

   To find the right compensation manager 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 managers they would recommend.
   • Recruit at local colleges. Attend job fairs at local colleges to recruit compensation managers 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.

   Post your job online:

   • Post your compensation manager job on Zippia to find and recruit compensation manager candidates who meet your exact specifications.
   • Use field-specific websites.
   • Post a job on free websites.

6. Interview candidates

   Your first interview with compensation manager candidates should focus on their interest in the role and background experience. As the hiring process goes on, you can learn more about how they'd fit into the company culture in later rounds of interviews.

   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 manager

   Once you have selected a candidate for the compensation manager position, it is time to create an offer letter. In addition to salary, the offer letter should include details about benefits and perks that are available to the employee. Ensuring your offer is competitive is vital, as qualified candidates may be considering other job opportunities. The candidate may wish to negotiate the terms of the offer, and it is important to be open to discussion and reach a mutually beneficial agreement. After the offer has been accepted, it is a good idea to formalize 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.

   Once that's done, you can draft an onboarding schedule for the new compensation manager. Human Resources should complete Employee Action Forms and ensure that onboarding paperwork is completed, including I-9s, benefits enrollment, federal and state tax forms, etc. They should also ensure that new employee files are created for internal recordkeeping.

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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