A compensation manager oversees salaries and benefits, designs packages to attract qualified candidates, establishes fair and competitive salary ranges, and handles issues related to labor disputes, benefits, and payroll. Candidates for this position typically have a bachelor’s degree in finance, business, or human resource management.
A compensation manager oversees the salaries and benefits of a company’s exempt and non-exempt employees. Generally, she is expected to ensure that compensation for each job is fair, equitable and competitive with similar jobs in the demographic. Your job is typically a function of the human resources department.
A company’s success often depends heavily on its ability to attract and retain good employees. If the company has a reputation for treating and paying employees well, it will attract the most qualified candidates. A good compensation manager designs salary and benefit packages that will attract the best candidates for available positions.
When an organization creates a new position or redesigns an old one to increase or decrease the responsibilities associated with it, a compensation manager researches the salary and benefits normally associated with it. She often reviews similar posts for local businesses that are similar in size and value. Based on her findings, she establishes salary ranges and benefits that she considers to be fair and competitive.
Other factors a compensation manager often considers when establishing compensation plans are retention rates and other benefits such as profit sharing or company pension plans. If a job classification has a reputation for high turnover, it may choose to increase base pay or increase benefits to make it more attractive to those seeking job stability. It can also promote advancement opportunities to attract candidates seeking career growth.
In addition to creating salary and benefit packages, a compensation manager often writes job descriptions and cross-checks with other managers for ratings. Deciding whether or not a position should be exempt is a commonly debated determination by her and other human resources officials. This difference between paying an employee a wage or hourly rate and the related overtime factor for non-exempt jobs can be significant. Understanding what local and regional laws govern these classifications is important to a compensation manager’s success.
When an employee is hired or fired, the compensation manager is often part of the procedure. Traditionally, she is also required to explain benefits and compensation packages to new hires. Their job typically involves letting departing employees know when benefits expire and how unused vacation or sick time will be handled.
If issues arise related to labor disputes, benefits, harassment or discrimination, the compensation manager is typically called upon for input, along with other members of the human resources team. She may also be asked to help employees resolve benefit issues. When a problem arises with the payroll, the compensation manager is regularly asked to help with rectification.
Candidates for this position are typically required to have a bachelor’s degree in finance, business, or human resource management. Work experience in these areas is also preferred. The history of compensation or payroll operations is considered an asset.
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