The principal job of COMPENSATION MANAGERS is to establish and maintain their firm's pay system. Compensation managers make sure pay rates are fair and equitable within the company compared to market rates. Compensation managers make sure that a company's pay scale complies with changing laws and regulations. They check government wage and hour laws, company policies, existing labor contracts, and other salary surveys to determine wage rates. Compensation managers also supervise the care of records and reports that deal with wage rates and job evaluation. They oversee their firm's performance evaluation system.
Salary, Size & Growth
- $83,000 average per year ($40.00 per hour)
- A medium occupation (132,700 workers in 2010)
- Expected to grow moderately (0.8% per year)
Firms usually look for COMPENSATION MANAGERS who are college graduates. Many employers prefer applicants who have majored in human resources or personnel administration, while others look for college graduates with a technical or business background. Prospective compensation managers should take courses in compensation as well as courses in the principles of management, organizational structure, and industrial psychology. No special licensing or certification is required for compensation managers.