Job Outlook for:
Compensation and Benefits Managers
SOC: 11-3111 OOH: U023
| Compensation and Benefits Managers Quick Stats |
|
| Total Jobs in 2016 | 15,800 |
| Expected Growth | 5% (As fast as average) |
| New Jobs To Be Added from 2016 to 2026 |
800 |
| Median Pay | $75,000 or more |
- Job Outlook for Compensation and Benefits Managers
- Pay for Compensation and Benefits Managers
- What do Compensation and Benefits Managers do all day
- The work environment
- How to become one
Employment Outlook for Compensation and Benefits Managers
Employment of compensation and benefits managers is projected to grow 5 percent from 2016 to 2026, about as fast as the average for all occupations.
Organizations continue to focus on reducing compensation and benefits costs. Many firms have attempted to reduce costs by introducing various strategies, such as pay-for-performance and health and wellness programs. Organizations will need managers to evaluate and direct these compensation and benefits policies and plans.
Organizations will need the expertise of benefits managers when choosing, updating, and administering their benefits policies. Similarly, compensation managers will be needed to analyze compensation policies and design competitive compensation packages.
Many organizations increasingly contract out a portion of their compensation and benefits functions to human resources consulting firms in order to reduce costs and gain access to technical expertise. For example, to reduce administrative costs, organizations commonly use an outside vendor for processing payroll and insurance claims. These consulting firms can automate tasks and operate call centers to handle employee questions, thereby reducing the need for compensation and benefits managers.
Job Prospects
Jobseekers can expect strong competition for available jobs because compensation and benefits manager positions typically offer high pay, and job openings often attract many applicants. Those who have a master’s degree, certification, and extensive experience working with compensation or benefits plans should have the best job opportunities.
Typical Pay for Compensation and Benefits Managers
The median annual wage for compensation and benefits managers was $116,240 in May 2016. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $66,150, and the highest 10 percent earned more than $199,950.
In May 2016, the median annual wages for compensation and benefits managers in the top industries in which they worked were as follows:
| Insurance carriers and related activities | $126,940 |
| Professional, scientific, and technical services | 125,650 |
| Management of companies and enterprises | 125,190 |
| Healthcare and social assistance | 104,800 |
| Government | 95,850 |
Most compensation and benefits managers work full time. About 1 in 3 worked more than 40 hours per week in 2016. They may work more hours during peak times to meet deadlines, especially during the benefits enrollment period of their organization.
What Compensation and Benefits Managers Do All Day
Compensation and benefits managers plan, develop, and oversee programs to compensate employees.
Duties
Compensation and benefits managers typically do the following:
- Coordinate and supervise the work activities of specialists and support staff
- Set the organization’s pay and benefits structure
- Determine competitive wage rates to develop or modify compensation plans
- Choose and manage outside partners, such as benefits vendors, insurance brokers, and investment managers
- Oversee the distribution of pay and benefits information to the organization’s employees
- Ensure that pay and benefits plans comply with federal and state regulations
- Prepare a program budget and keep operations within that budget
Although some managers administer both the compensation and benefits programs in an organization, other managers—particularly at large organizations—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.
Compensation and benefits managers may perform 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 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.
Compensation managers are responsible for managing an organization’s pay structure. They monitor market conditions and government regulations to ensure their organization’s pay rates are current and competitive. They analyze data on wages and salaries, and they evaluate how their organization’s pay structure compares with that of other companies. Compensation managers 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 also may help determine commission rates and other incentives for sales staff.
Benefits managers administer a company’s employee benefits program, which may include retirement plans, leave policies, wellness programs, and insurance policies such as health, life, and disability. They select benefits vendors and manage enrollment, renewal, and delivery of benefits to the organization’s employees. They frequently monitor government regulations and market trends to ensure that their programs are current, competitive, and legal.
Work Environment for Compensation and Benefits Managers
Compensation and benefits managers held about 15,800 jobs in 2016. The largest employers of compensation and benefits managers were as follows:
| Management of companies and enterprises | 24% |
| Professional, scientific, and technical services | 13 |
| Government | 10 |
| Insurance carriers and related activities | 9 |
| Healthcare and social assistance | 8 |
Compensation and benefits managers work in nearly every industry. Most of these managers work in offices.
Work Schedules
Most compensation and benefits managers work full time. About 1 in 3 worked more than 40 hours per week in 2016. They may work more hours during peak times to meet deadlines, especially during the benefits enrollment period of their organization.
How To Become a Compensation or Benefits Manager
Compensation and benefits managers need a combination of education and related work experience.
Education
Compensation and benefits managers typically need a bachelor’s degree for most positions. Managers usually need a bachelor’s degree in human resources, business administration, business management, finance, or a related field.
Work Experience in a Related Occupation
Work experience is essential for compensation and benefits managers. Managers often specialize in either compensation or benefits, depending on the type of experience they gain in previous jobs. Managers often start out as compensation, benefits, and job analysis specialists. Work experience in other human resource fields, finance, or management is also helpful for getting a job as a compensation and benefits manager.
Licenses, Certifications, and Registrations
Although compensation and benefits managers are not legally required to be certified, certification can show expertise and credibility. Employers may prefer to hire candidates who are certified, and some positions may require certification.
Certification programs for management positions often require several years of related work experience to qualify for the certifying exam. Many professional associations for human resources workers offer certifications. Some associations, including the International Foundation of Employee Benefit Plans and WorldatWork, offer certification programs that specialize in compensation and benefits. Others, including the HR Certification Institute, offer general human resources credentials.
Important Qualities
Analytical skills. Compensation and benefits managers analyze data on salaries and the cost of benefits, and assess and devise programs that best fit an organization and its employees.
Business skills. Compensation and benefits managers administer a budget, build a case for their recommendations, and understand how compensation and benefits plans affect the company’s finances.
Communication skills. Compensation and benefits managers direct staff, give presentations, and work with colleagues. For example, they may write about and present the advantages of a certain pay scale to management and address any concerns.
Decisionmaking skills. Compensation and benefits managers 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 coordinate the work activities of their staff and properly administer compensation and benefits programs, ensuring work is completed accurately and on schedule.
"Compensation and Benefits Managers" SOC: 11-3111 OOH Code: U023