Skip to main content

HR’s Role in Compensation and Benefits

Show me the money.

Sure, employees work for the love of the job and to build fulfilling careers, but at the end of the day they want a paycheck too. And they want a well-rounded benefits package with health insurance and a retirement plan.

Thoughts immediately turn to human resources when salary and benefits come up, but who exactly in HR is responsible?

Compensation and benefits specialists devise an organization’s salary, bonus and incentive plans. According to All About Careers, small companies likely have a few employees who handle all HR functions. Larger businesses have employees who specialize in one aspect of compensation and benefits, such as payroll management.

Duties are Many, Varied

It’s not an easy job but it is very important, because employee morale is at stake when the topic is compensation. According to The Balance Careers, a compensation manager may have several duties:

  • Develop pay scale and structure
  • Keep competitive pay rates current
  • Ensure that payroll complies with state laws and federal regulations
  • Oversee pay distribution to employees
  • Work with managers to develop employee promotion and retention strategies
  • Oversee compensation and payroll support teams
  • Develop and monitor a department budget

Compensation and benefits experts must understand competitive forces to ensure equitable pay rates. They are key to an organization’s ability to attract and retain employees.

Compensation Manager Skills and Qualities

Not everyone is cut out to be a compensation manager. The Balance Careers lists three qualities that are vital to success. A compensation manager must

  • Be able to effectively explain a company’s pay system and address executive and employee concerns
  • Be able to collect and analyze data to determine the best compensation plan for a company
  • Have a solid working knowledge of math and statistics

Great compensation and benefit plans ensure that good employees are rewarded fairly, which motivates employees to improve performance, notes AllAboutCareers.com. These plans also are important to attract new talent. Most career-minded professionals apply for specific jobs because of salary and incentive packages. Better compensation attracts better applicants.

AllAboutCareers.com maintains that compensation managers play a strategic role in striving to balance the needs of the business with those of its employees. And as compensation and benefits are directly linked to market changes, difficult decisions may fall under their authority.

Pursuing an advanced degree like the online MBA in Human Resource Development at Pittsburg State University expands HR expertise, sharpens leadership skills and opens the door to job opportunities in a number of roles including HR director, vice president of operations, senior manager, HR generalist and other management positions.

Learn more about Pittsburg State University’s MBA in Human Resource Development online program.


Sources:

All About Careers: Human Resources: Compensation, Benefits and Reward

The Balance Careers: What Does A Compensation Manager Do?

Related Articles

Have a question or concern about this article? Please contact us.

Our Commitment to Content Publishing Accuracy


Articles that appear on this website are for information purposes only. The nature of the information in all of the articles is intended to provide accurate and authoritative information in regard to the subject matter covered.

The information contained within this site has been sourced and presented with reasonable care. If there are errors, please contact us by completing the form below.

Timeliness: Note that most articles published on this website remain on the website indefinitely. Only those articles that have been published within the most recent months may be considered timely. We do not remove articles regardless of the date of publication, as many, but not all, of our earlier articles may still have important relevance to some of our visitors. Use appropriate caution in acting on the information of any article.

Report inaccurate article content:

Need More Information?


Submit this form, and an Enrollment Specialist will contact you to answer your questions.

Request Information

Or call 888-712-3017

Ready to Get Started?


Start your application today!

Call 888-712-3017 888-712-3017

for help with any questions you have.