The jobs and roles within compensation and benefits are diverse and will often intersect with other positions. It’s likely that different organizations will use different names for positions that have the same responsibilities. This can sometimes make it difficult to separate each of the jobs and know exactly what your organization requires when it comes to hiring and filling positions.
To help you identify and hire the right talent we have listed the jobs, descriptions and responsibilities associated with compensation and benefits.
1. Compensation and benefits analyst
A compensation and benefits analyst is an entry-level position within the sector.
They are responsible for data cleaning, data accuracy and the preparation of reports. An analyst will not usually run critical HR or compensation and benefits processes, but they do contribute strongly to the data preparation.
They will also be expected to:
- Focus on the preparatory tasks as they gain experience and learn to recognize the quality of data, which means the data is fit for purpose and represents the reality of the situation
- Learn to use the right data sources and the main compensation and benefits tools within the organization
- Prepare analyses of basic compensation and benefits data under the supervision of a specialist
- Participate in HR projects as a team member and provide input to help the project’s completion
2. Compensation and benefits specialist
Also known as a “remuneration specialist”, the compensation and benefits specialist is generally responsible for overseeing employee compensation and benefits, compensation databases, job descriptions, benchmark compensation, and annual performance reviews.
Other responsibilities that they may be expected to carry out include:
- Defining a fair, equitable, and competitive total compensation and benefits package that fits with an organization’s business strategy and goals
- Developing a consistent compensation philosophy in line with an organization’s culture and objectives
- Ensuring that compensation practices are in compliance with current legislation (e.g. pay equity, human rights, etc.)
- Using various methods and techniques to make data-based decisions on direct financial, indirect financial, and nonfinancial compensations
- Assessing employee needs by conducting psychology surveys, to find out what motivates and engages employees
- Preparing job descriptions, job analysis, job evaluations, and job classifications
- Participating in salary and labor market surveys to determine market pay rates (competitive wages and salaries) and benefits
- Differentiating pay to invest in those in an organization’s workforce that contribute the most value
- Deploying effective communication strategies and success metrics
- Conducting ongoing research into emerging trends, issues, and best practices
- Conducting periodic audits and preparing reports
3. Compensation and benefits administrator
A compensation and benefits administrator is the person responsible for administering and maintaining the organization’s benefits program. They are also in charge of informing and guiding employees on benefits matters, such as eligibility, coverage, and provisions. As benefits administrators, they will also be expected to compile and maintain benefits records and documentation.
Further duties and responsibilities beyond this include:
- Administering employee insurance programs (including life, disability, and health insurance plans)
- Administering employee savings plans that may include an organization’s 401(k) plan, personal savings plans, and deferred compensations plans
- Researching and comparing incentive compensation plans offered by comparable organizations
- Assessing competitors’ plans and making recommendations for enhancements or improvements to keep the company’s plans competitive and effective
- Facilitating an accurate and timely delivery of employer contributions and employee payroll deductions to carriers, plan administrators, or other service providers
- Completing records, reporting, and other documentation required by federal, state, and provider rules, regulations, and policies
- Conducting employee surveys, censuses, and other research efforts to collect accurate quotes from benefit providers
- Identifying and selecting carriers and plans based on quotes, available benefits, and prior experience
- Monitoring administrators’ and insurance carriers’ reports to ensure the organization’s compliance with plan requirements
- Ensuring the organization and plan compliance with the applicable provisions of COBRA, HIPAA, and ERISA
- Maintaining knowledge of economic conditions, the labor market, and other factors to ensure the organization provides competitive, reasonable benefits and compensation scales or structures
- Maintaining knowledge of trends, developments, and best practices in compensation and benefits
4. Compensation and benefits manager
You may see compensation and benefits managers referred to as “payroll managers” or “reward managers”. These are HR specialists who oversee the finances related to a company’s employees, and they are in charge of creating and managing salaries, bonuses, and benefits packages. They also manage an organization’s retirement plans and pension schemes, health insurance, commission payments, and other employee benefits (such as company cars).
Other responsibilities associated with the position of compensation and benefits manager include:
- Benchmarking salaries for every position within an organization, to determine the right market value for a particular job
- Building pay bands based on employee contribution and the skills that an employee has
- Evaluating and assessing job descriptions and assigning them to specific pay bands based on organizational criteria
- Ensuring that pay is equitable internally, so that there is no vast differentiation between similarly-situated peers and coworkers
- Building and developing bonus structures for discretionary and non-discretionary bonuses, while ensuring that both market criteria and internal equity are met
- Creating and managing retirement plans (both fixed contribution plans and fixed distribution plans) with the help of attorneys, employee councils, unions, and vendors
- Determining insurance plans and negotiating costs with insurance companies through a health insurance broker
- Implementing other benefits that employees within an organization are able to enjoy, such as snacks in the breakroom, more vacation days, or lunchtime activities
- Managing the relevant HR software that allows the creation of a flexible compensation and benefits structure
- Tailoring benefits to individual employee demands, in order to see a boost in employee morale and motivation
5. Compensation and benefits director
A compensation and benefits director will be expected to work with senior management, while also forming a key part of the HR department. It is their responsibility to implement the rewards and benefits policies enforced by an organization, as well as ensure they support business objectives and meet legal requirements.
One of the key components of a compensation and benefits director’s role will be the continued evaluation of compensation and benefits packages. This includes evaluating base pay, incentive pay, healthcare and welfare benefits, and retirement benefits. A director in this position will also be expected to manage budgets and have an understanding of company aims and profitability.
Other responsibilities that are likely to be expected of a compensation and benefits director include:
- Developing and implementing the organization’s reward strategy, with a focus on salary benchmarking, retirement arrangements, benefits management, and annual compensation like bonuses and salary reviews
- CABs capability and the ability to advise senior management and HR on all issues relating to this
- Accountability for all policies relating to internal transfers, including knowledge of immigration, expatriate taxation, and mobility practices
- Being the trustee of benefits arrangements (including pensions and healthcare)
- Responsibility for salary reviews to ensure accurate market benchmarking and consistency of application (this includes liaising with third party suppliers)
- Having the latest market knowledge, including recent tax inferences – particularly those concerning benefits and pay
- Designing and implementing relevant and intuitive compensation programs
6. Vice President of compensation and benefits
The VP of compensation and benefits oversees programs for employee compensation and benefits. They are also often responsible for working with employees that are entering the company, including the hiring and interview process.
VP’s of compensation are there to ensure all employees are treated fairly and that employee benefits and compensation are distributed fairly too. Other tasks and responsibilities that are normally handled by them include:
- Evaluating employees for annual pay increases or hourly raises
- Conducting general evaluations of compensation and benefits
- Communicating with relevant employees on implementing solutions to issues relating to compensation and benefits
- Planning, directing, and setting the strategic direction of the organization’s compensation and benefits program
- Overseeing and guiding employees engaged in the compensation and benefits department’s programs (including job evaluation, salary, benefits, and incentive programs)
- Managing compensation and benefits expenditure budgets
Alongside these responsibilities, the individual will also be expected to display specific hard and soft skills. Often, these skills will be related to problem-solving, management skills, oral and written communication, and proficiency with computer programs.
A VP of compensation and benefits will normally report directly to the company’s president and update them on progress and issues where needed.
To be considered for this position within an organization, a candidate is likely to require a Master’s degree and good experience in HR. The exact amount of experience needed will depend on the organization and the position’s scope.
Working with us on hiring in Compensation and Benefits
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