Compensation Manager Salary
Average pay for Compensation Managers in the United States is more than reasonable, with annual salaries pushing past the six-figure mark ($96K). Including potential for bonuses and profit sharing — peaking near $21K and $7K, respectively — total cash payment to Compensation Managers can bottom out near $66K or peak near $137K depending on individual performance. Geography is the biggest factor affecting pay for this group, followed by career length. Job satisfaction is high and work is enjoyable for most Compensation Managers. Women make up the majority of Compensation Managers (64 percent) who completed the questionnaire. Nearly all have medical and dental plans, and a strong majority have vision insurance.
Job Description for Compensation Manager
Compensation managers are responsible for ensuring the efficiency and quality of a company's payroll and employee-compensation programs. They work with all types of organizations, from corporations to small businesses, by developing and managing compensation and benefit programs for employees.Read More...
Those in this position plan and implement pay rates, benefits, and paid time-off programs, and may be responsible for organizing healthcare programs or 401(k) programs.
They are generally required to hold a Bachelor's degree in Business, Human Resources, or a related field, though many employers will prefer a Master's degree in Business Administration or Human Resources. Short-term experience in human resources or payroll, as well as some management training, is often needed. Excellent interpersonal and communication skills are required, as these managers work frequently with subordinates.
Compensation managers work with a company's human resources department to ensure effective compensation strategies are carried out. Those in this position must have superior knowledge of the annual job market and the compensation strategies of competing companies in order to attract top employees while maintaining profitability.
Compensation managers have their own offices and generally work indoors during normal week-day business hours. They may occasionally be required to work extended hours or nights and weekends. They answer directly to company executives and may oversee a team of employees, so leadership skills are highly beneficial. Above all, compensation managers must possess superior analytical, quantitative, and problem-solving skills in order to effectively implement attractive employee-compensation programs.
Compensation Manager Tasks
- Manage the selection, training and development of staff.
- Manage the day to day operations of the compensation department's programs; job evaluation, performance appraisal, salary administration and incentive programs.
- Plan all compensation programs, procedures and practices to ensure consistency with organization's overall objectives and are in compliance with professional standards, state and federal regulatory requirements and laws.
Compensation Manager Job Listings
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Popular Skills for Compensation Manager
Survey results show that Compensation Managers use a fair number of skills. Most notably, skills in Human Resources Information System, Microsoft Excel, Data Analysis, and Benefits & Compensation are correlated to pay that is above average. Skills that seem to negatively impact pay include compensation. It is often found that people who know Benefits & Compensation are also skilled in Human Resources Information System (HRIS).
Pay by Experience Level for Compensation Manager
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Salaries for the relatively untried average out to around $88K, but survey participants with five to 10 years of experience earn a significantly higher median of $102K. People with 10 to 20 years of experience make an average of about $108K in this role. Respondents who boast more than two decades on the job don't boast commensurate pay, unfortunately; these veterans see average earnings of only $104K.
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Key Stats for Compensation Manager
Rated 4 out of 5
based on 51 votes.