Compensation and Benefits Manager Job Description
A Compensation and Benefits Manager develops, implements, and manages the entire remuneration system in an organization.
The role is responsible for salary, benefits, bonuses, incentives, and rewards throughout the organization, and plans and executes the whole system in consultation with senior management.
The Compensation and Benefits Manager must factor in internal requirements and the organization’s positioning in the employment environment when planning its compensation policies. The role requires strategic thinking, planning expertise, and analytical talent.
A Compensation and Benefits Manager will normally have an HR background and may progress into a senior HR management role.
What Does Compensation and Benefits Manager Typically Do?
A Compensation and Benefits Manager develops and administers benefits schemes, salary and commission structures, and all other areas relating to remuneration and reward in the organization.
A Compensation and Benefits Manager is responsible for:
- Benchmarking the organization’s compensation system to determine its competitiveness
- Planning salary, benefit schemes, bonuses, and rewards
- Ensuring equitable and balanced compensation across the organization
- Maintaining compliance with all relevant legislation
- Suggesting improvements to senior management
- Tracking staff retention, organizational career-pathing, and promotions
- Managing external benefits providers
- Overseeing all payroll runs
- Managing and leading the payroll team
Benchmarking the Organization’s Compensation System To Determine Competitiveness
The Compensation and Benefits Manager compares the organization’s compensation and benefits policy to other industry players and the local employment market to ensure the organization can attract and retain the right people. The role must flag any issues, propose solutions to senior management, and implement corrective action where necessary.
Planning Salary, Benefit Schemes, Bonuses, and Rewards
The Compensation and Benefits Manager prepares the annual compensation plan in line with the organization’s strategy. The plan must include salary increments benchmarked against the organization’s growth and the macro-environment. It must also include the full range of benefits schemes offered by the organization, performance-related bonus systems, and any other reward or incentive scheme the organization wants to offer.
Benefit schemes can include pension plans, healthcare, gym memberships, crèche facilities, housing or relocation allowances, or in-house staff catering. The Compensation and Benefits Manager must determine all the financial implications, identify suppliers, and set up metrics to measure the effectiveness of all the benefits schemes.
Ensuring Equitable and Balanced Compensation Across the Organization
The Compensation and Benefits Manager is responsible for ensuring that employees are paid fairly for what they do. The role must audit the entire workforce to make sure that similar roles are being paid at the same level, no discrimination is entrenched in the system, and pay is linked to measurable performance throughout the organization.
Maintaining Compliance With All Relevant Legislation
The Compensation and Benefits Manager must ensure that the compensation system adheres to all applicable tax regulations, labor laws, and company-specific policies.
Any legislative changes must be implemented quickly, communicated to employees, and fed into the organization’s financial plans and record-keeping systems.
The Compensation and Benefits Manager should liaise regularly with Accountants and Tax Advisors to keep abreast of developments.
Suggesting Improvements to Senior Management
The Compensation and Benefits Manager should keep track of any improvement opportunities for the compensation and benefits system and should propose improvements to senior management for consideration. A good Compensation and Benefits Manager will ask what financial benefits the improvements will offer to the organization, and the proposal should aim to provide an answer.
Tracking Staff Retention, Organizational Career-Pathing, and Promotions
The Compensation and Benefits Manager should measure and trend staff retention, the success of the organization’s career-pathing systems, and the rate at which employees can expect promotion. They must also benchmark these metrics against competitors and the local employment market and suggest policy improvements if necessary.
Managing External Benefits Providers
The Compensation and Benefits Manager must ensure that pension funds, healthcare providers, and all other benefits providers are delivering value and enhancing the wellbeing of the organization’s employees. The role should also check the marketplace for alternatives regularly, negotiate better terms with current providers, and look for additional benefits to add to the package.
Overseeing All Payroll Runs
The Compensation and Benefits Manager is responsible for ensuring that every payroll run is correct, complete, and executed in a timely manner.
Managing and Leading the Payroll Team
Depending on the organization, the Compensation and Benefits Manager may also be responsible for the growth, development, and advancement of the payroll team members.
Compensation and Benefits Manager Salary
The national average salary for a Compensation and Benefits Manager will typically be between $100,000 and $130,000 annually in the U.S. The median is around $115,466.
What Is the Compensation and Benefits Manager Pay Difference by Location?
Average salaries for a Compensation and Benefits Manager differ by location as follows:
|San Francisco, CA||$144,332|
|New York, NY||$138,906|
What Is the Compensation and Benefits Manager Pay Difference by Experience Level?
Depending on experience, a Compensation and Benefits Manager pay will vary as follows:
|Experience Level||Average Salary|
|< 1 year||$109,535|
Compensation and Benefits Manager Job Description Template
We at [Company Name] are proud of our reputation as an employer of choice in our industry. We are looking for a strategically-minded Compensation and Benefits Manager to help us ensure that our reputation remains strong in the future.
You will be responsible for the strategic and tactical management of all our remuneration and reward schemes, and your success will result in us being able to grow by attracting and retaining the best people.
You will report to senior management and will be expected to work with all levels of our company.
Compensation and Benefits ManagerJob Responsibilities
- Managing payroll end-to-end
- Managing and improving our benefits schemes
- Working with senior management to plan future compensation and benefit policies
- Ensuring ongoing compliance with all relevant legislation
- Leading and managing the payroll team for peak performance
Required Skill Set
- Bachelor’s degree in Payroll, HR, Accounting, or Finance
- At least ten years’ experience in a payroll position
- Expert knowledge of common payroll systems
- Expertise in common HRIS (Human Resources Information Systems)
- In-depth understanding of all relevant legislation
- Excellent strategic thinking ability
- Total attention to detail
- Team leadership experience
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