Compensation and Benefits Managers

Compensation and benefits managers plan, develop, and oversee programs to pay employees.

Duties

Compensation and benefits managers typically do the following:

• Coordinate and supervise the work activities of staff
• Set the organization’s pay and benefits structure
• Monitor 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 operate 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. However, all compensation and benefits managers routinely meet with senior staff, managers of other human resources departments, and the financial officers of their organization. They use their expertise to recommend compensation and benefits policies, programs, and plans.

Compensation and benefits managers may analyze data to determine the best pay and benefits plans for an organization. They may also monitor trends affecting pay and benefits and assess ways for their organization to improve practices or policies. Using analytical, database, and presentation software, managers draw conclusions, present their findings, and make recommendations to other managers in the organization.

Compensation managers direct an organization’s pay structure. They monitor market conditions and government regulations to ensure that 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 organizations. Compensation managers use this information to maintain or develop pay levels 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 an organization’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 oversee 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.

Compensation and benefits managers held about 20,900 jobs in 2024. The largest employers of compensation and benefits managers were as follows:

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. Some work more than 40 hours per week. They may work more hours during peak times to meet deadlines, especially during the benefits enrollment period of their organization.

Compensation and benefits managers typically need a bachelor’s degree and related work experience.

The median annual wage for compensation and benefits managers was $140,360 in May 2024.

Employment of compensation and benefits managers is projected to decline 0 percent from 2024 to 2034.

Despite declining employment, about 1,500 openings for compensation and benefits managers are projected each year, on average, over the decade. All of those openings are expected to result from the need to replace workers who transfer to other occupations or exit the labor force, such as to retire.