Education:
76%
Bachelor's Degree
14%
Master's Degree
Compensation or Benefits Manager
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Job Outlook:
As fast as average
Education:
Bachelor's degree
Salary
High:
$217,650.00
Average:
$143,140.00
Hourly
Average:
$68.82
What they do:
Plan, direct, or coordinate compensation and benefits activities of an organization.
On the job, you would:
- Direct preparation and distribution of written and verbal information to inform employees of benefits, compensation, and personnel policies.
- Design, evaluate, and modify benefits policies to ensure that programs are current, competitive, and in compliance with legal requirements.
- Fulfill all reporting requirements of all relevant government rules and regulations, including the Employee Retirement Income Security Act (ERISA).
Important Qualities
Analytical skills. 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.
Business skills. These managers oversee a budget, build a case for their recommendations, and understand how compensation and benefits plans affect an organization’s finances.
Communication skills. Compensation and benefits managers direct staff, give presentations, and work with colleagues. With each of these groups, they must be able to clearly explain concepts and respond to concerns.
Decision-making skills. These managers weigh the strengths and weaknesses of different pay structures and benefits plans and choose the best options for an organization.
Leadership skills. 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.
Personality
| A3 | Your Strengths | Importance |
Characteristics of this Career |
|---|---|---|---|
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93% | Integrity - Job requires being honest and ethical. | |
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92% | Attention to Detail - Job requires being careful about detail and thorough in completing work tasks. | |
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87% | Dependability - Job requires being reliable, responsible, and dependable, and fulfilling obligations. | |
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85% | Initiative - Job requires a willingness to take on responsibilities and challenges. | |
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82% | Cooperation - Job requires being pleasant with others on the job and displaying a good-natured, cooperative attitude. | |
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82% | Leadership - Job requires a willingness to lead, take charge, and offer opinions and direction. | |
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81% | Adaptability/Flexibility - Job requires being open to change (positive or negative) and to considerable variety in the workplace. | |
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81% | Analytical Thinking - Job requires analyzing information and using logic to address work-related issues and problems. | |
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78% | Concern for Others - Job requires being sensitive to others' needs and feelings and being understanding and helpful on the job. | |
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78% | Stress Tolerance - Job requires accepting criticism and dealing calmly and effectively with high-stress situations. | |
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76% | Achievement/Effort - Job requires establishing and maintaining personally challenging achievement goals and exerting effort toward mastering tasks. | |
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75% | Persistence - Job requires persistence in the face of obstacles. | |
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70% | Self-Control - Job requires maintaining composure, keeping emotions in check, controlling anger, and avoiding aggressive behavior, even in very difficult situations. |
| A3 | Your Strengths | Importance |
Strengths |
|---|---|---|---|
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100% | Enterprising - Work involves managing, negotiating, marketing, or selling, typically in a business setting, or leading or advising people in political and legal situations. Enterprising occupations are often associated with business initiatives, sales, marketing/advertising, finance, management/administration, professional advising, public speaking, politics, or law. | |
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72% | Conventional - Work involves following procedures and regulations to organize information or data, typically in a business setting. Conventional occupations are often associated with office work, accounting, mathematics/statistics, information technology, finance, or human resources. | |
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61% | Social - Work involves helping, teaching, advising, assisting, or providing service to others. Social occupations are often associated with social, health care, personal service, teaching/education, or religious activities. |
| A3 | Your Strengths | Importance |
Values of the Work Environment |
|---|---|---|---|
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83% | Relationships - Occupations that satisfy this work value allow employees to provide service to others and work with co-workers in a friendly non-competitive environment. Corresponding needs are Co-workers, Moral Values and Social Service. | |
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78% | Working Conditions - Occupations that satisfy this work value offer job security and good working conditions. Corresponding needs are Activity, Compensation, Independence, Security, Variety and Working Conditions. | |
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78% | Support - Occupations that satisfy this work value offer supportive management that stands behind employees. Corresponding needs are Company Policies, Supervision: Human Relations and Supervision: Technical. | |
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78% | Independence - Occupations that satisfy this work value allow employees to work on their own and make decisions. Corresponding needs are Creativity, Responsibility and Autonomy. | |
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72% | Achievement - Occupations that satisfy this work value are results oriented and allow employees to use their strongest abilities, giving them a feeling of accomplishment. Corresponding needs are Ability Utilization and Achievement. | |
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67% | Recognition - Occupations that satisfy this work value offer advancement, potential for leadership, and are often considered prestigious. Corresponding needs are Advancement, Authority, Recognition and Social Status. |
Aptitude
| A3 | Your Strengths | Importance |
Abilities | Cognitive, Physical, Personality |
|---|---|---|---|
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75% | Written Expression - The ability to communicate information and ideas in writing so others will understand. | |
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75% | Written Comprehension - The ability to read and understand information and ideas presented in writing. | |
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75% | Oral Expression - The ability to communicate information and ideas in speaking so others will understand. | |
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75% | Oral Comprehension - The ability to listen to and understand information and ideas presented through spoken words and sentences. | |
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69% | Problem Sensitivity - The ability to tell when something is wrong or is likely to go wrong. It does not involve solving the problem, only recognizing that there is a problem. | |
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69% | Speech Clarity - The ability to speak clearly so others can understand you. | |
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66% | Speech Recognition - The ability to identify and understand the speech of another person. |
Job Details
Responsibilities
Advise others on legal or regulatory compliance matters.
Manage human resources activities.
Evaluate program effectiveness.
Administer compensation or benefits programs.
Conduct employee training programs.
Supervise employees.
Manage human resources activities.
Administer compensation or benefits programs.
Evaluate program effectiveness.
Administer compensation or benefits programs.
Monitor external affairs or events affecting business operations.
Analyze data to inform personnel decisions.
Develop organizational policies or programs.
Develop operating strategies, plans, or procedures.
Liaise between departments or other groups to improve function or communication.
Prepare financial documents, reports, or budgets.
Prepare reports related to compliance matters.
Maintain regulatory or compliance documentation.
Compile operational data.
Maintain personnel records.
Analyze data to inform personnel decisions.
Develop operating strategies, plans, or procedures.
Recommend organizational process or policy changes.
Negotiate labor disputes.
Investigate industrial or transportation accidents.
Prepare reports related to compliance matters.
Represent the organization in external relations.
Document organizational or operational procedures.
Manage human resources activities.
Prepare operational budgets.
Estimate labor requirements.
Negotiate sales or lease agreements for products or services.
Maintain knowledge of current developments in area of expertise.
| A3 | Your Strengths | Importance |
Attributes & Percentage of Time Spent |
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100% | Electronic Mail - How often do you use electronic mail in this job? | |
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99% | Telephone - How often do you have telephone conversations in this job? | |
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98% | Spend Time Sitting - How much does this job require sitting? | |
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94% | Face-to-Face Discussions - How often do you have to have face-to-face discussions with individuals or teams in this job? | |
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87% | Structured versus Unstructured Work - To what extent is this job structured for the worker, rather than allowing the worker to determine tasks, priorities, and goals? | |
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86% | Contact With Others - How much does this job require the worker to be in contact with others (face-to-face, by telephone, or otherwise) in order to perform it? | |
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85% | Indoors, Environmentally Controlled - How often does this job require working indoors in environmentally controlled conditions? | |
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83% | Freedom to Make Decisions - How much decision making freedom, without supervision, does the job offer? | |
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80% | Work With Work Group or Team - How important is it to work with others in a group or team in this job? | |
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77% | Importance of Being Exact or Accurate - How important is being very exact or highly accurate in performing this job? | |
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76% | Letters and Memos - How often does the job require written letters and memos? | |
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72% | Frequency of Decision Making - How frequently is the worker required to make decisions that affect other people, the financial resources, and/or the image and reputation of the organization? | |
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72% | Impact of Decisions on Co-workers or Company Results - What results do your decisions usually have on other people or the image or reputation or financial resources of your employer? | |
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68% | Importance of Repeating Same Tasks - How important is repeating the same physical activities (e.g., key entry) or mental activities (e.g., checking entries in a ledger) over and over, without stopping, to performing this job? | |
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68% | Coordinate or Lead Others - How important is it to coordinate or lead others in accomplishing work activities in this job? | |
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66% | Time Pressure - How often does this job require the worker to meet strict deadlines? | |
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84% | Duration of Typical Work Week - Number of hours typically worked in one week. |
| A3 | Your Strengths | Importance |
Tasks & Values |
|---|---|---|---|
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87% | Communicating with Supervisors, Peers, or Subordinates - Providing information to supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person. | |
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86% | Establishing and Maintaining Interpersonal Relationships - Developing constructive and cooperative working relationships with others, and maintaining them over time. | |
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83% | Getting Information - Observing, receiving, and otherwise obtaining information from all relevant sources. | |
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83% | Working with Computers - Using computers and computer systems (including hardware and software) to program, write software, set up functions, enter data, or process information. | |
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81% | Making Decisions and Solving Problems - Analyzing information and evaluating results to choose the best solution and solve problems. | |
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79% | Evaluating Information to Determine Compliance with Standards - Using relevant information and individual judgment to determine whether events or processes comply with laws, regulations, or standards. | |
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78% | Updating and Using Relevant Knowledge - Keeping up-to-date technically and applying new knowledge to your job. | |
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78% | Communicating with People Outside the Organization - Communicating with people outside the organization, representing the organization to customers, the public, government, and other external sources. This information can be exchanged in person, in writing, or by telephone or e-mail. | |
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75% | Developing Objectives and Strategies - Establishing long-range objectives and specifying the strategies and actions to achieve them. | |
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74% | Analyzing Data or Information - Identifying the underlying principles, reasons, or facts of information by breaking down information or data into separate parts. | |
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73% | Organizing, Planning, and Prioritizing Work - Developing specific goals and plans to prioritize, organize, and accomplish your work. | |
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72% | Processing Information - Compiling, coding, categorizing, calculating, tabulating, auditing, or verifying information or data. | |
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71% | Resolving Conflicts and Negotiating with Others - Handling complaints, settling disputes, and resolving grievances and conflicts, or otherwise negotiating with others. | |
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70% | Documenting/Recording Information - Entering, transcribing, recording, storing, or maintaining information in written or electronic/magnetic form. | |
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68% | Interpreting the Meaning of Information for Others - Translating or explaining what information means and how it can be used. | |
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67% | Guiding, Directing, and Motivating Subordinates - Providing guidance and direction to subordinates, including setting performance standards and monitoring performance. | |
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65% | Providing Consultation and Advice to Others - Providing guidance and expert advice to management or other groups on technical, systems-, or process-related topics. |
What Compensation and Benefits Managers Do
Managers ensure that pay plans comply with federal regulations.
Compensation and benefits managers plan, develop, and oversee programs to pay employees.
Duties
Compensation and benefits managers typically do the following:
- Coordinate and supervise the work activities of staff
- Set the organization’s pay and benefits structure
- Monitor competitive wage rates to develop or modify compensation plans
- Choose and manage outside partners, such as benefits vendors, insurance brokers, and investment managers
- Oversee the distribution of pay and benefits information to the organization’s employees
- Ensure that pay and benefits plans comply with federal and state regulations
- Prepare a program budget and operate within that budget
Although some managers administer both the compensation and benefits programs in an organization, other managers—particularly at large organizations—specialize and oversee one or the other. However, all compensation and benefits managers routinely meet with senior staff, managers of other human resources departments, and the financial officers of their organization. They use their expertise to recommend compensation and benefits policies, programs, and plans.
Compensation and benefits managers may analyze data to determine the best pay and benefits plans for an organization. They may also monitor trends affecting pay and benefits and assess ways for their organization to improve practices or policies. Using analytical, database, and presentation software, managers draw conclusions, present their findings, and make recommendations to other managers in the organization.
Compensation managers direct an organization’s pay structure. They monitor market conditions and government regulations to ensure that their organization’s pay rates are current and competitive. They analyze data on wages and salaries, and they evaluate how their organization’s pay structure compares with that of other organizations. Compensation managers use this information to maintain or develop pay levels for an organization.
Some also design pay-for-performance plans, which include guidelines for bonuses and incentive pay. They also may help determine commission rates and other incentives for sales staff.
Benefits managers administer an organization’s employee benefits program, which may include retirement plans, leave policies, wellness programs, and insurance policies such as health, life, and disability. They select benefits vendors and oversee enrollment, renewal, and delivery of benefits to the organization’s employees. They frequently monitor government regulations and market trends to ensure that their programs are current, competitive, and legal.
Work Environment
Compensation and benefits managers held about 17,500 jobs in 2022. The largest employers of compensation and benefits managers were as follows:
| Management of companies and enterprises | 22% |
| Professional, scientific, and technical services | 16 |
| Insurance carriers and related activities | 12 |
| Government | 7 |
| Healthcare and social assistance | 6 |
Compensation and benefits managers work in nearly every industry. Most of these managers work in offices.
Work Schedules
Most compensation and benefits managers work full time. Some work more than 40 hours per week. They may work more hours during peak times to meet deadlines, especially during the benefits enrollment period of their organization.
Getting Started
How to Become a Compensation or Benefits Manager
Compensation and benefits managers often start out as compensation, benefits, and job analysis specialists.
Compensation and benefits managers typically need a combination of education and related work experience.
Education
For most positions, compensation and benefits managers typically need a bachelor’s degree in business, human resources, or a related field, such as social science or psychology.
Work Experience in a Related Occupation
Work experience is essential for compensation and benefits managers. Managers often specialize in either compensation or benefits, depending on the experience they gain in previous jobs. Managers often start out as compensation, benefits, and job analysis specialists. Work experience in other human resource fields, in finance, or in management is also helpful.
Licenses, Certifications, and Registrations
Although not required, certification gives compensation and benefits managers credibility because it shows that they have expertise. Employers may prefer to hire candidates with certification, and some positions require it.
Certification often requires several years of related work experience and passing an exam. Professional associations, including the Society for Human Resource Management, the International Foundation of Employee Benefit Plans and WorldatWork, offer certification programs that may be helpful for compensation and benefits managers.
Job Outlook
Employment of compensation and benefits managers is projected to grow 2 percent from 2022 to 2032, about as fast as the average for all occupations.
About 1,100 openings for compensation and benefits managers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
Employment
Organizations continue to focus on reducing compensation and benefits costs, such as by introducing pay-for-performance and health and wellness programs. Organizations will need managers to evaluate and direct these compensation and benefits policies and plans.
However, organizations may contract out a portion of their compensation and benefits functions to human resources consulting firms in order to reduce costs and gain access to technical expertise. For example, to reduce administrative costs, organizations commonly use an outside vendor for processing payroll and insurance claims. These consulting firms automate tasks and operate call centers to handle employee questions, thereby reducing the need for compensation and benefits managers.
Contacts for More Information
For more information about compensation and benefits managers, including certification, visit
International Foundation of Employee Benefit Plans
For more information about human resources careers and certification, visit
Similar Occupations
This table shows a list of occupations with job duties that are similar to those of compensation and benefits managers.
| Occupation | Job Duties | Entry-Level Education | Median Annual Pay, May 2022 | |
|---|---|---|---|---|
|
Administrative Services and Facilities Managers |
Administrative services and facilities managers plan, direct, and coordinate activities that help an organization run efficiently. |
Bachelor's degree | $101,870 |
|
Compensation, Benefits, and Job Analysis Specialists |
Compensation, benefits, and job analysis specialists oversee wage and nonwage programs that an organization provides to its employees in return for their work. They also evaluate position descriptions to determine details such as classification and salary. |
Bachelor's degree | $67,780 |
|
Financial Managers |
Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization. |
Bachelor's degree | $139,790 |
|
Human Resources Managers |
Human resources managers plan, coordinate, and direct the administrative functions of an organization. |
Bachelor's degree | $130,000 |
|
Human Resources Specialists |
Human resources specialists recruit, screen, and interview job applicants and place newly hired workers in jobs. They also may handle compensation and benefits, training, and employee relations. |
Bachelor's degree | $64,240 |
|
Labor Relations Specialists |
Labor relations specialists interpret and administer labor contracts. |
Bachelor's degree | $82,010 |
|
Purchasing Managers, Buyers, and Purchasing Agents |
Buyers and purchasing agents buy products and services for organizations. Purchasing managers oversee the work of buyers and purchasing agents. |
Bachelor's degree | $75,120 |
|
Top Executives |
Top executives plan strategies and policies to ensure that an organization meets its goals. |
Bachelor's degree | $100,090 |
|
Training and Development Managers |
Training and development managers plan, coordinate, and direct skills- and knowledge-enhancement programs for an organization’s staff. |
Bachelor's degree | $120,000 |
|
Training and Development Specialists |
Training and development specialists plan and administer programs that improve the skills and knowledge of their employees. |
Bachelor's degree | $63,080 |