How To Become a Compensation and Benefits Managers

Compensation and benefits managers are responsible for making sure employees receive accurate and fair compensation. This role is critical for attracting and retaining employees. 

What Does a Compensation and Benefits Manager Do?

A compensation and benefits manager works with human resources personnel, recruiters and hiring managers to create compensation packages that are competitive in the job market and internally equitable. As part of this role, C&B managers must analyze all of the jobs at the company they work for to determine what the market value of each job is. 

Because the value of a job can vary depending on the skills and education the person doing the job has, C&B managers may establish a range of appropriate salaries for the position. Additionally, C&B managers are responsible for ensuring that people who perform similar jobs for the company receive similar compensation, regardless of factors such as gender, age and race. 

C&B managers also select the benefits that are included in compensation packages, such as retirement plans, health insurance and assistance with college tuition or student loans. They may also determine whether to offer bonuses and what type of bonuses to offer.

How Do I Become a Compensation and Benefits Manager?

You will probably need a bachelor's or master's degree in human resources, business, finance or a related field to become a C&B manager. Some schools may offer programs with a concentration in compensation and benefits.

Additionally, you need multiple years of experience working in a human resources role. Most people begin their careers as compensation and benefits specialists and work under the supervision of a C&B manager. A background in statistical analysis and finance is helpful because you will utilize these skills when valuing jobs and establishing salaries.

Consider obtaining a relevant certification, such as Certified Employee Benefits Specialist, Certified Compensation Professional or Compensation Management Specialist. You may also want to consider a more general human resources certification, such as those offered by the HR Certification Institute or the Society for Human Resources Management.

What Attributes Should a Compensation and Benefits Manager Have?

C&B managers should be comfortable working with numbers. You will spend a lot of time doing quantitative analysis in this role. This isn't a job for people who don't like math. You also need to be detail-oriented. Compensation packages are technical and you must do a substantial amount of data interpretation and research. 

Because this role involves working with managers, employees and vendors, you need strong communication skills. You should be comfortable communicating on the phone, in person, in writing and through email. You may also be expected to communicate with other parties on video or audio conference calls or give presentations to explain benefits packages to stakeholders.

C&B managers have access to employees' sensitive information, such as salaries and social security numbers. Additionally, most companies prefer that compensation packages be kept confidential. Your employer must be able to trust you to handle this information ethically and discreetly.

You should enjoy doing analysis and be good at it because a substantial portion of your job will involve analyzing spreadsheets, surveys and other data. You can strengthen your analytical skills by taking college-level coursework in statistical and information analysis.

How Much Money Can a Compensation and Benefits Manager Make?

According to the U.S. Bureau of Labor Statistics, job growth in this field is expected to increase by 5% to 9% over the next decade. Recent hiring shortages may drive the value of this position up because competitive compensation packages are vital for attracting employees in a tough labor market.

Your exact salary will depend on the company you work for, your specific job responsibilities and where you live. Typical salaries range from $64,500 to $166,000 per year with director-level employees at large companies in major metro areas claiming the highest salaries. 

C&B managers are an important resource for any company. If you are good at analysis and you like working with numbers and people, a job as a compensation and benefits manager may be a good fit for you.