What does a compensation manager do?
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.
Compensation manager responsibilities
Here are examples of responsibilities from real compensation manager resumes:
- 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.
- Ensure legal compliance relate to ERISA, wage and hour, separation agreements, and plan parameters.
- Create job postings on web sites; conduct reference checks for potential employees; research and recommend solutions on FLSA employee issues
- Perform job evaluation and FLSA classification.
- Perform analysis and recommendations base on HRIS audits.
- Develop section of proxy devote to executive compensation.
- Review ongoing analysis of employee insurance benefit eligibility under the ACA.
- Project management of ACA implementation including data integration between ADP and BeneTrac.
- Prepare annual financial statements and summary plan descriptions for healthcare and retirement plans.
- Perform all payroll and employee benefit relate account reconciliations against the general ledger.
Compensation manager skills and personality traits
We calculated that 11% of Compensation Managers are proficient in Human Resources, HRIS, and Compensation Policies. They’re also known for soft skills such as Leadership skills, Analytical skills, and Business skills.
We break down the percentage of Compensation Managers that have these skills listed on their resume here:
- Human Resources, 11%
Researched and made recommendations in regard to revision or creation of human resources policies and presented finalized documents to leadership.
- HRIS, 6%
Managed and integrated multiple, non-communicating HRIS database systems.
- Compensation Policies, 6%
Direct preparation and distribution of written and verbal information to inform employees of compensation policies.
- Compensation Practices, 5%
Led integration of positions and compensation practices for North American division of global acquisition.
- Customer Service, 4%
Evaluate existing customer service replies to customers to improve communication and education of employees and customers.
- Base Pay, 4%
Reevaluated, refined, reorganized and implemented compensation programs including base pay programs, incentive packages and management bonus programs.
"human resources," "hris," and "compensation policies" are among the most common skills that compensation managers use at work. You can find even more compensation manager responsibilities below, including:
Leadership skills. The most essential soft skill for a compensation manager to carry out their responsibilities is leadership skills. This skill is important for the role because "compensation and benefits managers coordinate the activities of their staff and administer compensation and benefits programs, ensuring that the work is completed accurately and on schedule." Additionally, a compensation manager resume shows how their duties depend on leadership skills: "served in expert advisory role to executive leadership team for all compensation issues. "
Analytical skills. Another soft skill that's essential for fulfilling compensation manager duties is analytical skills. The role rewards competence in this skill because "compensation and benefits managers analyze data on wages and salaries and the cost of benefits, and they assess and devise programs that best fit an organization and its employees." According to a compensation manager resume, here's how compensation managers can utilize analytical skills in their job responsibilities: "analyze compensation policies, government regulations, and prevailing wage rates to develop competitive compensation plan. "
Business skills. compensation managers are also known for business skills, which are critical to their duties. You can see how this skill relates to compensation manager responsibilities, because "these managers oversee a budget, build a case for their recommendations, and understand how compensation and benefits plans affect an organization’s finances." A compensation manager resume example shows how business skills is used in the workplace: "develop & provide tools that will effectively assist business around the globe to administer compensation policies and procedures. "
Communication skills. compensation manager responsibilities often require "communication skills." The duties that rely on this skill are shown by the fact that "compensation and benefits managers direct staff, give presentations, and work with colleagues." This resume example shows what compensation managers do with communication skills on a typical day: "created communication tools for managers and hr professionals to increase standardization of, and transparency with, compensation policies. "
The three companies that hire the most compensation managers are:
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Compare different compensation managers
Compensation manager vs. 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. They must also liaise with benefits and insurance providers, assist the human resources staff in maintaining and updating employee records, and conduct regular reviews and assessments to ensure that all procedures adhere to standards and regulations.
There are some key differences in the responsibilities of each position. For example, compensation manager responsibilities require skills like "compensation policies," "compensation practices," "customer service," and "base pay." Meanwhile a typical employee benefits coordinator has skills in areas such as "workers compensation," "powerpoint," "background checks," and "cobra." This difference in skills reveals the differences in what each career does.
On average, employee benefits coordinators reach lower levels of education than compensation managers. Employee benefits coordinators are 11.1% less likely to earn a Master's Degree and 2.6% more likely to graduate with a Doctoral Degree.Compensation manager vs. 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. This job requires a full understanding of health care benefits, comprising medical, dental, and life insurance, including knowledge of pertinent regulations and legislation. In addition, benefits counselors may also need to be knowledgeable and updated with other incentives such as pensions and stock ownership.
In addition to the difference in salary, there are some other key differences worth noting. For example, compensation manager responsibilities are more likely to require skills like "human resources," "compensation policies," "compensation practices," and "base pay." Meanwhile, a benefits counselor has duties that require skills in areas such as "veterans," "hr," "open enrollment," and "term disability." These differences highlight just how different the day-to-day in each role looks.
Benefits counselors earn lower levels of education than compensation managers in general. They're 9.1% less likely to graduate with a Master's Degree and 2.6% more likely to earn a Doctoral Degree.Compensation manager vs. Benefit director
Benefits directors are professionals who plan and direct the overall design, implementation, and administration of an organization's health and welfare benefits programs. To support the decision making of the management, these directors are required to analyze benefit options and predict future costs. They should study programs so that they can identify benefit options as well as obtain advice from consultants. Benefits directors must study existing and new legislation so that they can comply with federal, state, and legal requirements and advise the management on needed actions.
There are many key differences between these two careers, including some of the skills required to perform responsibilities within each role. For example, a compensation manager is likely to be skilled in "compensation policies," "compensation practices," "customer service," and "base pay," while a typical benefit director is skilled in "oversight," "erisa," "open enrollment," and "hipaa."
Benefit directors make a very good living in the technology industry with an average annual salary of $97,541. On the other hand, compensation managers are paid the highest salary in the technology industry, with average annual pay of $98,035.benefit directors typically earn lower educational levels compared to compensation managers. Specifically, they're 5.0% less likely to graduate with a Master's Degree, and 0.0% less likely to earn a Doctoral Degree.Compensation manager vs. Employee benefits director
Types of compensation manager
Updated January 8, 2025
