Compensation And Benefits Managers: Schools and Careers

About Compensation And Benefits Managers

Compensation and Benefits Managers are responsible for planning, directing, and/or coordinating an organization's pay system and employee benefits programs. In some organizations, usually larger ones, the job functions are split into separate positions: the compensation systems are managed by a Compensation Manager, while management of benefits activities is done by an Employee Benefits Manager. Average-size or smaller firms typically consolidate the functions into one position.

In most organizations, the compensation and benefits manager is assisted by staff of specialists with expertise in different areas such as pay scales, salary structures, performance evaluation systems, and employee benefits programs. Sometimes each of these specialties is covered by one person and in other cases several of them are overseen by a single individual. In either scenario, the compensation and benefits manager is the person ultimately responsible for implementing and maintaining a fair and equitable salary structure and for handling the company's employee benefits program.

Compensation and Benefits Manager Responsibilities

A compensation and benefits manager's duties are those actions which result in the development, implementation, or management of an organization's rewards and benefit policies. In addition to ensuring that the salary structure in place is a fair and equitable one, the manager also needs to see to it that the organization's pay scale is in compliance with all applicable laws or regulations. Managers typically conduct surveys to see how their company's salary structure compares with others. In most firms, managers also direct the organization's performance evaluation system and they often design pay-for-performance plans and similar systems to reward employees.

The benefits programs managed by a compensation and benefits manager usually include, at minimum, a set of health insurance plans and pension plans. As benefit plans increase in number and complexity and as employer-provided benefits account for a growing proportion of a firm's capital, this job function takes on increasing importance. In many organizations, the scope of employee benefits has been growing in recent years and correspondingly, the scope of a manager's responsibilities has been growing as well. In addition to conventional health insurance and pension coverage, benefits managers are often responsible for the management of life insurance programs, dental and optical insurance coverage, disability and accidental death insurance programs, profit-sharing plans, stock options, thrift savings plans, car leasing, and employee relocation or severance packages.

A list of typical duties performed by a compensation and benefits manager might include the following:

• Continually re-evaluating salary structure to ensure a balance between cost control and attracting/retaining a quality staff
• Conducting job evaluations to ensure fairness in salaries
• Researching salary rates and benefits offered by other employers in the same business sector
• Recommending changes to pension and insurance plans
• Identifying causes of personnel problems and developing recommendations for improvement
• Negotiating with union representatives on issues relating to pay and benefits
• Developing and maintaining personnel records systems
• Fulfilling reporting requirements in accordance with all relevant government regulations
• Distributing information to inform employees of benefits, compensation, and personnel policies
• Directing work activities of subordinates and staff members
• Designing or procuring tools to assist employees in benefits selection and to guide managers through compensation decisions

Most compensation and benefits managers put in a standard 40-hour work week. However, there are times of the year when most of them are required to work very long hours. This usually happens during those periods when managers are negotiating employee and benefit contracts. Typically, a manager's work is conducted in an office environment, most often in pleasant and comfortable surroundings. They may work alone or as a member of a team.

The job requires specialized knowledge and skills, largely in the analytical and verbal areas. Managers must be familiar with pertinent laws and regulations and must be aware of how salaries and benefits in other organizations compare with those in their firm. They also need to be able to work with numbers and be skilled at conducting research, analyzing complex data, and maintaining comprehensive records.

Employment Outlook

According to the U.S. Department of Labor Bureau of Labor Statistics (USDL BLS), employment of compensation and benefits managers is expected to grow faster than the average for all occupations through the next decade. Demand for managers in this field will be strong due to the increasing complexity of laws and regulations governing employee benefits and also due to the growing importance of compensation and benefits packages in attracting top employee talent. Factors which could slow this demand include corporate restructuring, downsizing, and corporation mergers and acquisitions. In general, college graduates with advanced degrees will have the best chances for employment and advancement in this profession.

Compensation and Benefits Manager Training, Certification, and Licensing

Although it is possible to get a job as a compensation and benefits manager without a college degree, almost all managers hold at least a bachelor's degree and many have master's or doctoral degrees. Those who seek top management positions should strive for a master's degree in business administration, human resources, or labor relations. College coursework useful for this field includes courses in business law and administration, finance, economics, computer science, and accounting. A background in law is also desirable, as managers to an increasing extent are required to interpret the growing number of laws and regulations governing employee benefits and salaries.

Certification is generally not required for compensation and benefits manager positions; however, some employers prefer it. It is safe to say that certification can only enhance career opportunities as well as professional growth. The Society for Human Resources Management offers two levels of certification. Both of these, the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR) certifications, require a minimum level of experience as well as a passing score on a comprehensive exam. Two other certifications are offered by the International Public Management Association for Human Resources. They are the IPMA-Certified Professional (IPMA-CP) and the IPMA-Certified Specialist (IPMA-CS) certifications. Some organizations offer certifications which can be obtained by successfully completing a program consisting of a series of college-level courses with exams. One of these organizations is the International Foundation of Employee Benefit Plans.

Resources for Compensation and Benefits Managers

• Society for Human Resource Management
• The International Public Management Association for Human Resources
• International Society of Certified Employee Benefit Specialists
• Employee Benefits and Compensation
• International Foundation of Employee Benefit Plans
• World at Work
• Information on Employee Retirement Income Security Act (ERISA)
• Labor and Employment Relations Association

Major Employers of Compensation and Benefits Managers

Although some compensation and benefits managers are self-employed as consultants, most of them are salaried employees. Managers can be found in government agencies at all levels of government. They are also employed by medium and large corporations in all types of industry, as well as by school systems and universities. Other major employers include consulting firms that specialize in employee compensation and/or benefits management. Many employers, especially smaller ones, will contract out the design of their compensation and benefits packages to one of these consulting firms.

Schools for Compensation And Benefits Managers are listed in the column to the left.

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