Compensation Manager Salary
Salaries for Compensation Managers in the United States are generous, with average pay above six figures ($96K) per year. With some bonuses approaching $22K and certain profit sharing proceeds approaching $9K, overall incomes of Compensation Managers spread between $64K and $140K depending on individual performance. Location is the biggest factor affecting pay for this group, followed by years of experience. Nearly all claim medical and dental insurance and a strong majority get vision coverage. The majority of Compensation Managers claim high levels of job satisfaction. Female Compensation Managers are more common than men among those who completed the survey; more than half (65 percent) are women. This report is based on answers to PayScale's salary questionnaire.
|Salary||$62,021 - $128,112|
|Bonus||$2,868 - $21,846|
|Profit Sharing||$0.00 - $8,726|
|Total Pay (|
XTotal Pay combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, overtime pay and other forms of cash earnings, as applicable for this job. It does not include equity (stock) compensation, cash value of retirement benefits, or the value of other non-cash benefits (e.g. healthcare).)
|$64,401 - $140,486|
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
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 are correlated to lower pay, on the other hand, include compensation. Most people familiar with Benefits & Compensation also know Human Resources Information System (HRIS).
Pay by Experience Level for Compensation Manager
Pay by Experience for a Compensation Manager has a positive trend. An entry-level Compensation Manager with less than 5 years of experience can expect to earn an average total compensation of $89,000 based on 71 salaries provided by anonymous users. Average total compensation includes tips, bonus, and overtime pay. A Compensation Manager with mid-career experience which includes employees with 5 to 10 years of experience can expect to earn an average total compensation of $103,000 based on 119 salaries. An experienced Compensation Manager which includes employees with 10 to 20 years of experience can expect to earn an average total compensation of $109,000 based on 120 salaries. A Compensation Manager with late-career experience which includes employees with greater than 20 years of experience can expect to earn an average total compensation of $105,000 based on 46 salaries.
Pay Difference by Location
Surpassing the national average by 27 percent, Compensation Managers in San Francisco receive some of the highest pay in the country. Compensation Managers can also look forward to large paychecks in cities like Philadelphia (+19 percent), New York (+18 percent), Columbus (+14 percent), and Hartford (+13 percent). The lowest-paying market is Cleveland, which sits 27 percent below the national average, proving that location is a significant contributor to overall pay. Workers in Jacksonville and Houston earn salaries that trail the national average for those in this profession (6 percent less and 2 percent less, respectively).
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Key Stats for Compensation Manager
Rated 5 out of 5
based on 57 votes.