Jobs, Duties and Competencies of a Compensation and Benefits

Manager
Career Overview
Compensation managers plan, direct, and coordinate how much an organization
pays its employees and how employees are paid. Benefits managers plan, direct,
and coordinate retirement plans, health insurance, and other benefits that an
organization offers its employees.
Compensation managers are responsible for managing an organizations pay
structure. They monitor market conditions and government regulations to ensure
their pay rates are current and competitive. They may analyze data on wages and
salaries, and they evaluate how their organizations pay structure compares with
that of other companies. Compensation managers then use this information to
maintain or develop pay scales for an organization.
Some also design pay-for-performance plans, which include guidelines for bonuses
and incentive pay. They may help to determine commission rates and other
incentives for sales staff.
Benefits managers administer a companys employee benefits program, which
includes retirement plans, leave policies, wellness programs, and insurance policies
such as health, life, and disability. They select benefits vendors and oversee the
enrollment, renewal, and distribution processes for an organizations employees.
They must frequently monitor government regulations and market trends to ensure
that their programs are legal, current, and competitive.

DUTIES

Compensation and benefits managers typically do the following:

Set the organizations pay structure and benefits offerings
Determine competitive wage rates and develop or modify compensation
plans
Evaluate employee benefits policies to assess whether they are current,
competitive, and legal
Choose and manage outside partners such as benefits vendors and
investment brokers
Coordinate and supervise the work activities of specialists and support staff
Oversee the distribution of pay and benefits information to the organizations
employees
Ensure that pay and benefits plans comply with federal and state regulations
Prepare a program budget and keep operations within budget

Although some managers administer both the compensation and benefits programs
in an organization, other managersparticularly at large organizationsoften

specialize and oversee one or the other. All managers, however, routinely meet with
senior staff, managers of other human resources departments, and the financial
officers of their organization. They provide expertise and make recommendations on
compensation and benefits policies, programs, and plans.
In addition to their administrative responsibilities, compensation and benefits
managers also have several technical and analytical duties. For example, they may
perform complex data analysis to determine the best pay and benefits plans for an
organization. They may also monitor trends affecting pay and benefits and assess
how their organization can improve its practices or policies. Using a variety of
analytical, database, and presentation software, managers draw conclusions,
present their findings, and make recommendations to other managers in the
organization.

IMPORTANT QUALITIES

Analytical skills. Analytical skills are essential for compensation and benefits
managers. In addition to analyzing data on salaries and the cost of benefits, they
must assess and devise programs that best fit an organization and its employees.
Business acumen. Compensation and benefits managers must manage a budget,
build a case for their recommendations, and understand how compensation and
benefits plans affect the companys finances.
Communication skills. Compensation and benefits managers use their
communication skills when directing their staff, giving presentations, and working
with colleagues. For example, they may present the advantages of a certain pay
scale to management and address any concerns.
Decision-making skills. Compensation and benefits managers need strong
decision-making skills. They must weigh the strengths and weaknesses of different
pay structures and benefits plans and choose the best options for an organization.
Leadership skills. Compensation and benefits managers must coordinate the work
activities of their staff and properly administer compensation and benefits
programs, ensuring work is completed accurately and on schedule.
Writing skills. Compensation and benefits managers need strong writing skills to
prepare informational materials on compensation and benefits plans for an
organizations employees. They also must clearly convey recommendations in
written reports.