Hands-on processing of payment paperwork, entering and extracting data, and providing administrative support to a business or organization are typical responsibilities of a compensation administrator. This position typically interacts with information management systems, entering and extracting the data required to deliver compensation on time and accurately. A compensation administrator may also collaborate with the organization’s procurement department to ensure that contractors and suppliers are paid. In addition, he or she may be in charge of verifying changes that affect payroll. Outside inquiries or requests involving individuals who receive compensation from the administrator’s firm may be handled those in this position.
This position usually entails a variety of clerical duties aimed at ensuring that the firm’s employees are paid on time. A compensation administrator’s main responsibility is to ensure that payments to employees are distributed in a timely and accurate manner. A company or organization must usually comply with a slew of compensatory laws and reporting requirements before receiving a payment. Depending on the size of the organization, the compensation administrator may handle these procedures himself or delegate them to those who report to him. A compensation administrator’s job also includes keeping track of changes in the company’s workforce, such as new hires and terminations.
Workers will be dissatisfied if they are underpaid, so accurate data entry is always a prized attribute in compensation distribution. The importance of completing tasks on time is also highly regarded. This is for a variety of reasons, including maintaining employee morale and avoiding the numerous penalties that could be levied against a company for failing to pay employees on time. For these reasons, a compensation administrator will most likely be hired or retained based on their ability to enter and extract data in a timely and accurate manner.
A compensation administrator may be asked to handle vendor procurement payments on occasion. Although these payments may not be covered the laws that protect and enforce fair labor practices and compensation, accurate compensation administration is still highly valued. Late or incorrect payments to vendors can result in the loss of a vendor, as well as legal action to recover a bad debt. In some companies, the compensation administrator’s time may be used for a variety of other tasks, as the same set of skills may be useful to the company in other areas.
A compensation manager oversees a company’s compensation strategies on a larger scale. His or her responsibilities frequently include determining executive pay. He or she may be in charge of a company’s entire compensation strategy.