Compensation and benefits managers held about 15,700 jobs in 2021. The largest employers of compensation and benefits managers were as follows:
| Management of companies and enterprises | 25% |
| Professional, scientific, and technical services | 15 |
| Insurance carriers and related activities | 12 |
| Government | 8 |
| Healthcare and social assistance | 6 |
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 combination of education and related work experience.
Education
For most positions, compensation and benefits managers typically need a bachelor’s degree in business, human resources, or a related field, such as social science or psychology.
Work Experience in a Related Occupation
Work experience is essential for compensation and benefits managers. Managers often specialize in either compensation or benefits, depending on the experience they gain in previous jobs. Managers often start out as compensation, benefits, and job analysis specialists. Work experience in other human resource fields, in finance, or in management is also helpful.
Licenses, Certifications, and Registrations
Although not required, certification gives compensation and benefits managers credibility because it shows that they have expertise. Employers may prefer to hire candidates with certification, and some positions require it.
Certification often requires several years of related work experience and passing an exam. Professional associations, including the Society for Human Resource Management, the International Foundation of Employee Benefit Plans and WorldatWork, offer certification programs that may be helpful for compensation and benefits managers.
Compensation and benefits managers typically have an interest in the Helping, Persuading and Organizing interest areas, according to the Holland Code framework. The Helping interest area indicates a focus on assisting, serving, counseling, or teaching other people. The Persuading interest area indicates a focus on influencing, motivating, and selling to other people. The Organizing interest area indicates a focus on working with information and processes to keep things arranged in orderly systems.
If you are not sure whether you have a Helping or Persuading or Organizing interest which might fit with a career as a compensation and benefits manager, you can take a career test to measure your interests.
Compensation and benefits managers should also possess the following specific qualities:
Analytical skills. Analytical skills are essential for compensation and benefits managers. In addition to analyzing data on salaries and the cost of benefits, they must assess and devise programs that best fit an organization and its employees.
Business acumen. Compensation and benefits managers must manage a budget, build a case for their recommendations, and understand how compensation and benefits plans affect the company’s finances.
Communication skills. Compensation and benefits managers use their communication skills when directing their staff, giving presentations, and working with colleagues. For example, they may present the advantages of a certain pay scale to management and address any concerns.
Decision-making skills. Compensation and benefits managers need strong decision-making skills. They must weigh the strengths and weaknesses of different pay structures and benefits plans and choose the best options for an organization.
Leadership skills. Compensation and benefits managers must coordinate the work activities of their staff and properly administer compensation and benefits programs, ensuring work is completed accurately and on schedule.
Writing skills. Compensation and benefits managers need strong writing skills to prepare informational materials on compensation and benefits plans for an organization’s employees. They also must clearly convey recommendations in written reports.
The median annual wage for compensation and benefits managers was $127,530 in May 2021. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $77,040, and the highest 10 percent earned more than $208,000.
In May 2021, the median annual wages for compensation and benefits managers in the top industries in which they worked were as follows:
| Management of companies and enterprises | $135,460 |
| Professional, scientific, and technical services | 131,710 |
| Insurance carriers and related activities | 127,690 |
| Healthcare and social assistance | 118,960 |
| Government | 101,860 |
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.
Employment of compensation and benefits managers is projected to grow 2 percent from 2021 to 2031, slower than the average for all occupations.
Despite limited employment growth, about 1,200 openings for compensation and benefits managers are projected each year, on average, over the decade. Most of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
Employment
Organizations continue to focus on reducing compensation and benefits costs, such as by introducing pay-for-performance and health and wellness programs. Organizations will need managers to evaluate and direct these compensation and benefits policies and plans.
However, organizations may contract out a portion of their compensation and benefits functions to human resources consulting firms in order to reduce costs and gain access to technical expertise. For example, to reduce administrative costs, organizations commonly use an outside vendor for processing payroll and insurance claims. These consulting firms automate tasks and operate call centers to handle employee questions, thereby reducing the need for compensation and benefits managers.
For more information about compensation and benefits managers, including certification, visit
International Foundation of Employee Benefit Plans
For more information about human resources careers and certification, visit
Society for Human Resource Management