Compensation Manager Salary
Compensation Managers in the United States take home approximately $96K per year on average. Overall cash earnings for Compensation Managers stretch from $64K on the lower end to $138K near the top, and the heftiest packages can encompass around $22K from bonuses and $9K from profit sharing. Geography and tenure each impact pay for this group, with the former having the largest influence. Female Compensation Managers are more common than men among those who completed the survey; more than half (65 percent) are women. Medical and dental coverage is claimed by almost all, and a fair number earn vision coverage. For the most part, Compensation Managers enjoy their work and report high levels of job satisfaction.
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 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.
- Manage the selection, training and development of staff.
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Popular Skills for Compensation Manager
Just a handful of professional skills are reported by Compensation Managers who took the survey. 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. Most people familiar with Benefits & Compensation also know 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.
Survey participants with less than five years' experience pocket $86K on average, but those with five to 10 years of experience enjoy a much bigger median of $101K. People with 10 to 20 years of experience make an average of about $109K 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 $108K.