How Do I Become a Compensation Manager?

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Compensation managers are salary gurus. Their main focus is on how to plan, direct, and coordinate employee salaries. Companies employ these specialists to ensure budgetary needs are met and employees are paid properly and on time. Usually, compensation managers work hand in hand with benefit managers and at times, duties for both tend to overlap.

By watching market trends and paying attention to data on competitor’s pay scales and benefit packages, compensation managers work hard to develop bonus and incentive packages for company employees. It is important for compensation managers to fully understand a company’s budget and have the ability to translate that understanding into an effective overall salary package.

Education Requirements

Working as a compensation manager means working in human resources, but with a twist. Most of the focus of a compensation manager is on salary and budgetary issues. A strong educational background and degree in Business Administration, Business Management, Finance, or Accounting are needed to successfully work as a compensation manager. In some cases, a Master’s degree in a comparable field of study is also required.

Skills Needed

However, not only must a Compensation Manager possess strong educational credentials, he or she has to be skilled in human resource practices as well. Everyone knows work salaries are tricky. Employees expect to be paid on time and without hiccups. Compensation managers exist to do just that. Their purpose is to keep the salary train rolling smoothly and without fail.

When there are issues concerning paid leave or other salary problems, it is the Compensation Manager who has the responsibility of explaining and/or correcting said issue when it occurs. Employees and companies alike count on the skills of a competent Compensation Manager to get paid on time every time.

Salary & Job Outlook

The field of compensation management is growing steadily at a rate of 3%, according to the US Bureau of Labor Statistics. Technology is playing a part in compensation and pay, just as it is in most aspects of the professional world. Continued technological advances guarantee a greater need for tech savvy Compensation Managers with the skills and knowledge to advance with technology.

The current average salary of a Compensation Manager is roughly $95,000 per year with the lowest wage at $54,060, which is still a nice payday in comparison to jobs of a similar nature.

Overview

Those considering becoming a Compensation Manager are committing to higher education. In order to succeed in the field, the commitment must include completing at least a Bachelor’s degree program. To bring in a top salary, a Master’s degree should be on the list, as well. Experience is vital and if given a chance, anyone looking to break into this field should work to gain as much experience as possible.

Candidates must be willing to work hand in hand with employees, vendors, and employers while remaining ever vigilant on budgetary issues. If hands on work with math, customer service, and problem solving sound interesting, choosing to pursue a career as a Compensation Manager can be a lucrative, satisfying choice.