If you want to work in human resources and become a compensation manager, there are a variety of paths you can take to get started. Compensation managers work within organizations to assess employee roles and develop fair compensation programs that ensure a steady supply of highly qualified and satisfied workers. While compensation managers must adhere to organizational goals and financial constraints, their ability to assess the value of human capital and provide benefits that comply with government regulations is critical to their success.
Before specializing in employee benefits, most compensation managers work in another area of human resources. To work as a compensation manager, you must have a broad understanding of human resources, including recruitment, hiring, benefits administration, employee development, and payroll. Furthermore, having current knowledge of government rules and regulations, as well as guidelines for current pay rates in various industries, can serve as a solid foundation for professional compensation and benefits work.
If you want to work as a compensation manager, the first step is to get the training and education you’ll need to succeed in this demanding profession. Taking college-level human resources and accounting courses that will lead to at least a four-year degree will prepare you for work as a qualified compensation manager. Although educational and training requirements vary industry and job duties, you should begin your career in human resources or payroll to gain the necessary work experience that will lead to a position as a compensation manager later on.
Obtaining a master’s degree in compensation management is often required to advance to a higher level of responsibility as a compensation manager. It’s also important to get certified an internationally recognized human resources industry association, which can help you get a job as a compensation expert at a corporate level. This will open up many more opportunities for you in compensation management, potentially leading to higher pay and other benefits.
The best compensation managers have a minimum of five to ten years of experience analyzing employee performance, developing employee compensation programs, and processing employee benefits packages. Furthermore, many compensation professionals conduct regular studies to see if current pay levels are in line with industry standards. This ensures that all employees are fairly compensated for the types and amounts of work they perform, ensuring that employee satisfaction remains high. If you want to work as a compensation manager, you’ll need to keep your skills up to date in these key areas.