A compensation manager is in charge of a company’s exempt and non-exempt employees’ salaries and benefits. She is expected to make sure that each job’s pay is fair, equitable, and competitive with similar jobs in the demographic. Normally, her job falls under the purview of the human resources department.
The ability of a company to attract and retain good employees is often critical to its success. If the company has a good reputation for treating and paying its employees well, it will attract the best candidates. A good compensation manager creates compensation and benefit packages that attract the best candidates for open positions.
When a company creates a new position or revamps an existing one to increase or decrease the responsibilities that come with it, a compensation manager looks into the typical salary and benefits that come with it. She frequently examines similar job postings for local businesses of similar size and value. She establishes salary ranges and benefits that she believes are fair and competitive based on her findings.
Rates of retention and other benefits, such as profit sharing or company pension plans, are also factors that a compensation manager considers when creating compensation plans. If a job classification has a high turnover rate, she may choose to raise the base salary or add benefits to make it more appealing to those looking for a stable job. She might also promote advancement opportunities to entice applicants who want to advance in their careers.
A compensation manager writes job descriptions and consults with other managers on classifications in addition to creating salary and benefit packages. Her and other human resources employees frequently disagree about whether a position should be exempt or non-exempt. For non-exempt jobs, the difference between paying an employee a salary or an hourly rate, as well as the overtime factor, can be significant. Understanding the laws that govern these classifications at the local and regional levels is critical to a compensation manager’s success.
When an employee is hired or fired, the compensation manager is usually included in the process. She is also responsible for explaining benefits and compensation packages to new hires. Her job entails informing departing employees when their benefits will expire, as well as how any unused vacation or sick time will be handled.
When it comes to labor disputes, benefits, harassment, or discrimination, the compensation manager, along with other human resource staff members, is frequently consulted. She may also be called upon to assist employees with benefit issues. When a payroll issue arises, the compensation manager is frequently asked to assist in its resolution.
A bachelor’s degree in finance, business, or human resources management is typically required for this position. It’s also a plus if you have previous work experience in these fields. It’s a plus if you have experience with compensation or payroll operations.