Compensation and benefits managers typically do the following:
Although some managers administer both the compensation and benefits programs in an organization, other managers - particularly at large organizations - often 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 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.
Compensation managers are responsible for managing an organization's pay structure. They monitor market conditions and government regulations to ensure their 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 includes 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 must frequently monitor government regulations and market trends to ensure that their programs are current, competitive, and legal.