Compensation and Benefits Managers
Additional Information
Duties
Managers of compensation and benefits often conduct the following:
- In charge of supervising the work of your employees.
- Organize your company's compensation and perks.
- To design or change compensation plans, keep an eye on the market's wage rates.
- Management of external partners, such as insurance brokers, financial advisors, and benefits suppliers
- Ensure that workers receive information about their salaries and perks.
- Maintain federal and state regulations on compensation and benefits.
- Prepare a budget for the program and stick to it.
While some managers supervise both the company's salary and benefits programs, others—particularly in big organizations—concentrate their efforts and manage either one or the other. As a result, all compensation and benefits managers meet with senior personnel, managers of other HR departments, and the company's finance executives on a regular basis. With their knowledge, they provide recommendations on salary, benefits policies and initiatives.
Data may be analyzed by compensation and benefits managers to find the optimum pay and benefit programs for a company. In addition, they may keep tabs on changes in compensation and benefits and determine how their company's procedures and policies might be improved. A manager's job is to gather and analyze data, present results, and make suggestions to the rest of the organization's management using analytical and presentation software.
An organization's pay system is controlled by compensation managers. For this reason, they are always on the lookout for changes in the market and new government rules that might affect their pay rates. Wage and salary data is analyzed to see how their organization's pay structure compares to that of other companies. This information is used by compensation managers to sustain or develop pay levels in a company.
Pay-for-performance plans, which include criteria for bonuses and incentive pay, are also created by a small number of companies. They may also play a role in determining sales personnel compensation and other incentives.
Employee benefit programs, including as pensions, leave policies, health and life insurance, and other types of coverage, are typically overseen by benefit administrators. In addition to selecting contractors for employee benefits, they also manage employee registration, renewal, and delivery of those benefits. They keep a close eye on government rules and market developments to guarantee that their programs are current, competitive, and legally acceptable.
Education
A bachelor's degree in business administration, human resources, or a closely related discipline like social science or psychology is often required for most roles in pay and benefits management.
Working Knowledge of a Related Field
For compensation and benefits managers, experience in the field is vital. It's not uncommon for managers to specialize in either salary or benefits based on their prior expertise. Compensation, benefits, and job analysis experts are common entry-level positions for managers. In addition to expertise in human resources, finance, or management, it is beneficial to have work experience in other related sectors.
Registration, Certification, and Licenses.
Managers in the field of compensation and benefits benefit from certification, even if it isn't compulsory. Candidates with certification may find it easier to get hired by employers, and certain jobs even need it.
Passing an exam and working in a related field are typically required to obtain certification. Many professional organizations, such as the Society of Human Resource Management, International Foundation of Employee Benefit Plans, and WorldatWork, provide certification programs for pay and benefits managers that may be beneficial.
Characteristics of Critical Importance
Analytical abilities. " Managers in the compensation and benefits field examine data on pay and salaries and the costs of benefits, and they assess and design programs that best match a firm and its workers.
Business know-how A budget is overseen by these managers; they establish the case for their suggestions, and they understand the impact of compensation and benefits programs on an organization's finances.
Skills in verbal and nonverbal communication. Managers of compensation and benefits supervise, present, and collaborate with others. They must be able to properly explain concepts and address issues with each of these groups.
The ability to make decisions. Pay structures and benefits programs are analyzed by these managers, who then select the finest solutions for a firm.
The ability to lead. Those responsible for the administration and coordination of salary and benefit plans make sure that their employees' tasks are executed appropriately and on time.
Pay
Compensation and benefits managers made an average of $125,130 a year as of May 2020. There are two extremes of earnings in each given occupation: those earning more than the median and those earning less. Between the bottom 10% and the top 10% of earners, no one earned less than $70,920.
Job Projections
From 2020 to 2030, employment of compensation and benefits managers is expected to expand at a slower rate than the national average of 6%.