Compensation Manager Salary
Average pay for a Compensation Manager in the United States is considerable, rounding six figures at $97K per year. Cash earnings for Compensation Managers — including $21K in bonuses and $5K in profit sharing proceeds near the top of the pay scale — generally stretch from $66K to $137K depending on individual performance. Geographic location and career duration each impact pay for this group, with the former having the largest influence. Most Compensation Managers like their work and job satisfaction is high. Women account for the majority of Compensation Managers who responded to the questionnaire — 64 percent to be exact. In this profession, almost all enjoy medical and dental coverage, and a fair number have vision insurance, as well. This snapshot results from replies to PayScale's salary survey.
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|Salary||$63,320 - $124,677|
|Bonus||$2,548 - $20,899|
|Profit Sharing||$0.00 - $5,182|
|Total Pay (||$66,280 - $136,587|
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.
Common Career Paths for Compensation Manager
Popular Skills for Compensation Manager
Survey takers who work as Compensation Managers usually report a few specific 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 pay less than market rate 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 $89K, but survey participants with five to 10 years of experience earn a significantly higher median of $103K. After working for 10 to 20 years, Compensation Managers make a median salary of $109K. Respondents who boast more than 20 years of experience can't seem to boast paychecks reflecting that extensive experience, though; veteran Compensation Managers report making only $105K on average.
Pay Difference by Location
For those looking to make money, Compensation Managers in San Francisco enjoy an exceptional pay rate, 26 percent above the national average. Compensation Managers will also find cushy salaries in Philadelphia (+19 percent), New York (+17 percent), Columbus (+13 percent), and Hartford (+12 percent). One of the biggest compensable factors for Compensation Managers is geography, with workers in Cleveland earning a whopping 28 percent below the national average. Two other places where employers offer below-median salaries are Jacksonville (7 percent less) and Houston (2 percent less).
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Key Stats for Compensation Manager
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