Who are Compensation Managers? Know It All in 1 Minute…

Responsive image

“If you pick the right people and give them the opportunity to spread their wings - and put compensation and rewards as a carrier behind it - you almost don’t have to manage them.”

Jack Welch

Most of us relate the term “compensation management” in the context of getting paid for the work which we are doing. The work can be of any nature i.e. full time engagement or part time. What is common is that the “incentive or reward” that we get for spending our energy not to mention the time is that we are recompensed for it.

From the perception of the companies, the salary that they pay to the employees in return for the work that they do is somewhat that they need to plan for in an extravagant and organized manner. There is no wrong to say that compensation is the “glue” that binds the employee and the employer together and in the organized sector, this is additionally classified in the form of an agreement or a joint mandatory legal document that spells out accurately how much should be paid to the employee and the pay components of the compensation package.

Henceforth, compensation management is something that employer must take seriously if they are to attain a competitive advantage in the market for talent. And here the role of compensation manager comes in.

What does compensation manager do?

Compensation or benefits managers strategize, improve, and supervise programs to define how a company pays their employees and how much the employees are being paid. Benefit managers create plans and synchronize benefits that an employer offers its employees, like health insurance, superannuation plans, and many other benefits. Compensation benefits managers make assured that pay and remunerations plans act in accordance with federal regulations and work in almost every business.

Job responsibilities of compensation and benefits specialists

Everyday accountabilities and duties of compensation and benefits specialists include:

  • Update about compensation and benefits policies and strategies trending in market.
  • Making sure compensation and benefits plans are cost-effective and economical
  • Researching compensation and benefits trends
  • Comparing benefits and compensation plans, job groupings, and salaries through data and cost investigations
  • Internal and external salary benchmarking
  • Scheming reports and references based on research and analysis for senior executive team
  • Formulating and updating job descriptions and occupational categorizations
  • Guaranteeing organization is amenable with state and federal laws
  • Cooperating with outside vendors, such as investment brokers and health insurance vendors

Traits and potentials of compensation and benefits specialists

The characteristics that top support the work of compensation and benefits specialists and managers comprise:

  • Good with numbers: Compensation and benefits experts tend to be numbers-oriented, as this career embraces with a great deal of quantifiable analysis.
  • Logically inclined: The HR compensation and benefits occupation experts require strong analytical capabilities, as they need to analyse trends, reviews, and spreadsheets as to regulate compensation and benefits strategies.
  • Detail-oriented: Compensation and benefits plans are extremely technical in nature, and the work includes a significant amount of research and the clarification of data. Consequently, compensation and benefits managers must be technical as to comprehend how compensation fits into the general purposes of the organization.
  • Good communication: Compensation and benefits experts must be able to communicate efficiently with employees and senior executives. They must also be at ease of presenting programs to employee groups and members of senior administration.
  • Robust Ethics and Discretion: Because compensation and benefits managers deal with trusted information, they must be stewards of ethics and distinct when it comes to handling delicate information.

Industries where Compensation managers can work

Compensation and benefits managers can work almost in every industry. Some compensation and benefits managers are employed by contractors or service providers and handle the compensation and benefits procedure for a handful of client establishments. Maximum of these managers work full-time (40 hours a week) in an office environment. They may work more hours during peak times in order to meet goals and targets, particularly during the reimbursements enrolment period of their establishment.

Read also- How employee compensation impacts company performance?

Job Prospects

Jobseekers can expect good competition for existing jobs because the slow projected growth will outcome in only about 600 new positions over a period of ten years. Compensation and benefits manager positions characteristically offer high pay, and job openings often fascinate many qualified applicants.

Copyright @ PayReview 2024. Evoque Advisory Private Limited is a company registered in India operating under brand name PayReview.