By Svetlana Rovenskaya, July 2014
Benefits and compensation managers can work as in house employees or within a human resources department of a company or organization; they can also work as consultants providing external consulting services regarding issues concerning benefits and compensation.
Benefits and compensation managers are typically tasked with the responsibility of overseeing, determining, and synchronizing the salary and benefits packages for all employees in their organization. Benefits and compensation managers are also responsible for researching, selecting, and administering health insurance, retirement plans, and other various sorts of benefits which the organization provides to its employees.
Compensation and benefits managers are also responsible for overseeing, evaluating, and adjusting the overall budget of their respective organization or company with respect to employee pay scale and structure. Benefits and compensations managers interact with management on a regular basis working together to develop and implement compensation and benefits packages that will attract the ideal candidates and help to encourage job retention. Compensation and benefits managers must ensure that the policies they create and implement support the overall financial goals of their organization.
Benefits and compensation managers are also responsible for making sure that the policies that they are developing and enforcing are having the results they are intended to produce. One way in which this can be done is through the administering of employee surveys in order to get the necessary feedback and data to analyze the overall effect of the benefits and compensation packages offered by the company or organization. In order to ensure that employee feedback is honest and unbiased, anonymity and confidentiality of the surveys must be maintained at all times.
Job Duties of Managers Specializing in Compensation
Compensation Managers who specialize solely in issues involving compensation focus primarily on developing, adjusting, and implement all of the compensation and salary packages for all employees working for their company organization. The job of a compensation manager also extends to determining adequate pay for independent contractors and outside hires for all types of various external or consulting positions. If the company or organization is paying an individual or even a company for services, it is the role of the compensation manager is to determine the appropriate amount and type of compensation.
Compensation managers must constantly research the compensation structures of other similarly situated organizations and take action to adjust their pay scales accordingly to stay competitive in a dynamic market. There are many various compensation strategies that compensation managers can choose to employ, including strategies that pay a rate just at the market rate, just below the market rate, or well above the market rate. Some compensation strategies are a mix of multiple approaches combined together in a way thought to be best suited to meet the overall goals of the company or organization. The strategy that is used to determine employee pay scale is selected based on its intended effectiveness to achieve the overall employment goals that the company or organization is striving to meet. In addition to salary structure and packages, compensation managers are also responsible for being one of the key decision makers involved in awarding bonuses.
Job Duties of Managers Specializing in Benefits
Benefits Managers who focus solely on issues involving employee benefits as opposed to compensation focus primarily on developing, overseeing and implementing policies and procedures regarding benefits offered to employees. Benefits managers must also maintain constant vigilance to ensure that all benefits policies at their company or organization are in compliance with all applicable laws, rules, and regulations. Benefits managers are also responsible for researching, selecting, administering various types of employee benefits offered by their company or organization including retirement benefits, and health insurance benefits.
Benefits managers are also responsible for developing and administering employee sick leave, vacation, disability, and other similar workplace policies. Developing and implementing flex time policies is another job duty of the benefits manager. Other indirect financial benefits such as reimbursement for education credits, discounts for services from certain selected vendors, and various employee wellness benefits are all also the responsibility of the benefits manager. It is up to the benefits manager to oversee these respective programs, as well as develop and implement them in a way that best overall serves the goals of the company or organization.
About the Author: Svetlana Pham is a New Jersey based freelance writer. She has a BA in English from Rutgers University and an J.D. from New York Law School.