Department of Labor Logo United States Department of Labor
Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Compensation and Benefits Managers

Summary

compensation and benefits managers image
Compensation and benefits managers work in nearly every industry.
Quick Facts: Compensation and Benefits Managers
2022 Median Pay $131,280 per year
$63.11 per hour
Typical Entry-Level Education Bachelor's degree
Work Experience in a Related Occupation 5 years or more
On-the-job Training None
Number of Jobs, 2022 17,500
Job Outlook, 2022-32 2% (As fast as average)
Employment Change, 2022-32 400

What Compensation and Benefits Managers Do

Compensation and benefits managers plan, develop, and oversee programs to pay employees.

Work Environment

Compensation and benefits managers work in nearly every industry. Some work more than 40 hours per week.

How to Become a Compensation or Benefits Manager

Compensation and benefits managers typically need a bachelor’s degree and related work experience.

Pay

The median annual wage for compensation and benefits managers was $131,280 in May 2022.

Job Outlook

Employment of compensation and benefits managers is projected to grow 2 percent from 2022 to 2032, about as fast as the average for all occupations.

About 1,100 openings for compensation and benefits managers are projected each year, on average, over the decade. Many 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.

State & Area Data

Explore resources for employment and wages by state and area for compensation and benefits managers.

Similar Occupations

Compare the job duties, education, job growth, and pay of compensation and benefits managers with similar occupations.

More Information, Including Links to O*NET

Learn more about compensation and benefits managers by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What Compensation and Benefits Managers Do About this section

Compensation and benefits managers
Managers ensure that pay plans comply with federal regulations.

Compensation and benefits managers plan, develop, and oversee programs to pay employees.

Duties

Compensation and benefits managers typically do the following:

  • Coordinate and supervise the work activities of staff
  • Set the organization’s pay and benefits structure
  • Monitor competitive wage rates to develop or modify compensation plans
  • Choose and manage outside partners, such as benefits vendors, insurance brokers, and investment managers
  • Oversee the distribution of pay and benefits information to the organization’s employees
  • Ensure that pay and benefits plans comply with federal and state regulations
  • Prepare a program budget and operate within that budget

Although some managers administer both the compensation and benefits programs in an organization, other managers—particularly at large organizations—specialize and oversee one or the other. However, all compensation and benefits managers routinely meet with senior staff, managers of other human resources departments, and the financial officers of their organization. They use their expertise to recommend compensation and benefits policies, programs, and plans.

Compensation and benefits managers may analyze data to determine the best pay and benefits plans for an organization. They may also monitor trends affecting pay and benefits and assess ways for their organization to improve practices or policies. Using analytical, database, and presentation software, managers draw conclusions, present their findings, and make recommendations to other managers in the organization.

Compensation managers direct an organization’s pay structure. They monitor market conditions and government regulations to ensure that their organization’s pay rates are current and competitive. They analyze data on wages and salaries, and they evaluate how their organization’s pay structure compares with that of other organizations. Compensation managers use this information to maintain or develop pay levels for an organization.

Some also design pay-for-performance plans, which include guidelines for bonuses and incentive pay. They also may help determine commission rates and other incentives for sales staff.

Benefits managers administer an organization’s employee benefits program, which may include retirement plans, leave policies, wellness programs, and insurance policies such as health, life, and disability. They select benefits vendors and oversee enrollment, renewal, and delivery of benefits to the organization’s employees. They frequently monitor government regulations and market trends to ensure that their programs are current, competitive, and legal.

Work Environment About this section

Compensation and benefits managers
Compensation and benefits managers coordinate the work activities of specialists in offices.

Compensation and benefits managers held about 17,500 jobs in 2022. The largest employers of compensation and benefits managers were as follows:

Management of companies and enterprises 22%
Professional, scientific, and technical services 16
Insurance carriers and related activities 12
Government 7
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.

How to Become a Compensation or Benefits Manager About this section

Compensation and benefits managers
Compensation and benefits managers often start out as compensation, benefits, and job analysis specialists.

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.

Important Qualities

Analytical skills. Compensation and benefits managers analyze data on wages and salaries and the cost of benefits, and they assess and devise programs that best fit an organization and its employees.

Business skills. These managers oversee a budget, build a case for their recommendations, and understand how compensation and benefits plans affect an organization’s finances.

Communication skills. Compensation and benefits managers direct staff, give presentations, and work with colleagues. With each of these groups, they must be able to clearly explain concepts and respond to concerns.

Decision-making skills. These managers 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 coordinate the activities of their staff and administer compensation and benefits programs, ensuring that the work is completed accurately and on schedule.

Pay About this section

Compensation and Benefits Managers

Median annual wages, May 2022

Compensation and benefits managers

$131,280

Operations specialties managers

$130,950

Total, all occupations

$46,310

 

The median annual wage for compensation and benefits managers was $131,280 in May 2022. 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 $77,230, and the highest 10 percent earned more than $217,650.

In May 2022, 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 $154,110
Professional, scientific, and technical services 142,570
Insurance carriers and related activities 126,220
Healthcare and social assistance 121,780
Government 104,310

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.

Job Outlook About this section

Compensation and Benefits Managers

Percent change in employment, projected 2022-32

Operations specialties managers

11%

Total, all occupations

3%

Compensation and benefits managers

2%

 

Employment of compensation and benefits managers is projected to grow 2 percent from 2022 to 2032, about as fast as the average for all occupations.

About 1,100 openings for compensation and benefits managers are projected each year, on average, over the decade. Many 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.

Employment projections data for compensation and benefits managers, 2022-32
Occupational Title SOC Code Employment, 2022 Projected Employment, 2032 Change, 2022-32 Employment by Industry
Percent Numeric

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

Compensation and benefits managers

11-3111 17,500 17,800 2 400 Get data

State & Area Data About this section

Occupational Employment and Wage Statistics (OEWS)

The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area.

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.org. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

CareerOneStop

CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

Similar Occupations About this section

This table shows a list of occupations with job duties that are similar to those of compensation and benefits managers.

Occupation Job Duties ENTRY-LEVEL EDUCATION Help on Entry-Level Education 2022 MEDIAN PAY Help on Median Pay
Administrative services managers Administrative Services and Facilities Managers

Administrative services and facilities managers plan, direct, and coordinate activities that help an organization run efficiently.

Bachelor's degree $101,870
compensation benefits and job analysis specialists image Compensation, Benefits, and Job Analysis Specialists

Compensation, benefits, and job analysis specialists oversee wage and nonwage programs that an organization provides to its employees in return for their work. They also evaluate position descriptions to determine details such as classification and salary.

Bachelor's degree $67,780
Financial managers Financial Managers

Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.

Bachelor's degree $139,790
Human resources managers Human Resources Managers

Human resources managers plan, coordinate, and direct the administrative functions of an organization.

Bachelor's degree $130,000
Human resource specialists Human Resources Specialists

Human resources specialists recruit, screen, and interview job applicants and place newly hired workers in jobs. They also may handle compensation and benefits, training, and employee relations.

Bachelor's degree $64,240
Labor Relations Specialists

Labor relations specialists resolve employee-management disputes and negotiate labor contracts.

Bachelor's degree $82,010
Purchasing managers, buyers, and purchasing agents Purchasing Managers, Buyers, and Purchasing Agents

Buyers and purchasing agents buy products and services for organizations. Purchasing managers oversee the work of buyers and purchasing agents.

Bachelor's degree $75,120
Top executives Top Executives

Top executives plan strategies and policies to ensure that an organization meets its goals.

Bachelor's degree $100,090
Training and development managers Training and Development Managers

Training and development managers plan, coordinate, and direct skills- and knowledge-enhancement programs for an organization’s staff.

Bachelor's degree $120,000
training and development specialists image Training and Development Specialists

Training and development specialists plan and administer programs that improve the skills and knowledge of their employees.

Bachelor's degree $63,080
Suggested citation:

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Compensation and Benefits Managers,
at https://www.bls.gov/ooh/management/compensation-and-benefits-managers.htm (visited February 14, 2024).

Last Modified Date: Wednesday, September 6, 2023

What They Do

The What They Do tab describes the typical duties and responsibilities of workers in the occupation, including what tools and equipment they use and how closely they are supervised. This tab also covers different types of occupational specialties.

Work Environment

The Work Environment tab includes the number of jobs held in the occupation and describes the workplace, the level of physical activity expected, and typical hours worked. It may also discuss the major industries that employed the occupation. This tab may also describe opportunities for part-time work, the amount and type of travel required, any safety equipment that is used, and the risk of injury that workers may face.

How to Become One

The How to Become One tab describes how to prepare for a job in the occupation. This tab can include information on education, training, work experience, licensing and certification, and important qualities that are required or helpful for entering or working in the occupation.

Pay

The Pay tab describes typical earnings and how workers in the occupation are compensated—annual salaries, hourly wages, commissions, tips, or bonuses. Within every occupation, earnings vary by experience, responsibility, performance, tenure, and geographic area. For most profiles, this tab has a table with wages in the major industries employing the occupation. It does not include pay for self-employed workers, agriculture workers, or workers in private households because these data are not collected by the Occupational Employment and Wage Statistics (OEWS) survey, the source of BLS wage data in the OOH.

State & Area Data

The State and Area Data tab provides links to state and area occupational data from the Occupational Employment and Wage Statistics (OEWS) program, state projections data from Projections Central, and occupational information from the Department of Labor's CareerOneStop.

Job Outlook

The Job Outlook tab describes the factors that affect employment growth or decline in the occupation, and in some instances, describes the relationship between the number of job seekers and the number of job openings.

Similar Occupations

The Similar Occupations tab describes occupations that share similar duties, skills, interests, education, or training with the occupation covered in the profile.

Contacts for More Information

The More Information tab provides the Internet addresses of associations, government agencies, unions, and other organizations that can provide additional information on the occupation. This tab also includes links to relevant occupational information from the Occupational Information Network (O*NET).

2022 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2022, the median annual wage for all workers was $46,310.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

Work experience in a related occupation

Work experience that is commonly considered necessary by employers, or is a commonly accepted substitute for more formal types of training or education.

Number of Jobs, 2022

The employment, or size, of this occupation in 2022, which is the base year of the 2022-32 employment projections.

Job Outlook, 2022-32

The projected percent change in employment from 2022 to 2032. The average growth rate for all occupations is 3 percent.

Employment Change, 2022-32

The projected numeric change in employment from 2022 to 2032.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Employment Change, projected 2022-32

The projected numeric change in employment from 2022 to 2032.

Growth Rate (Projected)

The percent change of employment for each occupation from 2022 to 2032.

Projected Number of New Jobs

The projected numeric change in employment from 2022 to 2032.

Projected Growth Rate

The projected percent change in employment from 2022 to 2032.

2022 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2022, the median annual wage for all workers was $46,310.