How to Become a Compensation and Benefits Manager

In order to become part of a Human Resources Team as a compensation and benefits manager, you will want to focus on getting a college degree, developing relevant skills, becoming familiar the process of certification, staying abreast of industry trends and changes, understanding industry  related regulations, researching internships, getting an entry level job in a human resource department,  and becoming connected with a network of others in the field.

Education for Compensation and Benefits Managers

To get the best start possible you will want to begin to work on earning your bachelor’s degree in human resources, business administration, finance, or a related field. Tantamount to success in this endeavor will begin by finding a college to meet your needs. Make sure to research the institutions thoroughly. Investigate their reputations in the human resources community and whether or not they are accredited. Read reviews as to their suitability for your goal to become a compensation and benefits manager. Online programs are available in abundance from some of the most respected colleges and universities, and of course, there are traditional on-campus options. If you cannot financially afford to attend a four-year degree program right away, look into the prospects for attending a junior or community college to satisfy your general education requirements. One important thing to remember—make sure any credits you earn from the junior or community college will be transferable to the 4-year college you are interested in eventually attending. 

Develop Relevant Skills

1. Begin to study various benefit programs which corporations are offering their employees. Find out what state or federal regulations apply and begin to familiarize yourself with these regulations. The specifics of the mandates may change over time, but you will get the gist of what you will need to deal with in the future.
2. Since compensation and benefits managers must deal directly with employees within the corporation or government agency, you will want to make sure your people skills are exemplary, and that you are comfortable handling highly confidential information.
3. Data management will be part of your job, so assess your abilities to be attentive to detail and accuracy.
4.  Research and become familiar with HRIS (Human Resources Information Systems), which is benefits administration software. 

Know Your Certifications

One of your long-term goals in becoming a professional compensation and benefits manager will be to become certified. Professional organizations and trade associations are the granting bodies (and will be discussed in the next section). Here is a sampling of certifications.

1. Certified Employee Benefits Specialist (CEBS)
2. Professional in Human Resources (PHR) or Senior Professional in Human Resources (SPHR) from the HR Certification Institute
3. Society for Human Resource Management Certified Professional (SHRM-CP) or Senior Certified Professional (SHRM-SCP)

Become a Member of a Trade Association or Professional Organization

The old adage of “It’s all about who you know..” is always applicable in securing a top paying position within a company for whom you wish to work. Trade associations and professional organizations are one of the keyways to becoming a successful compensation and benefits manager. They offer a plethora of educational classes and seminars, mentoring opportunities, certifications, and networking opportunities. They are also a wealth of information regarding compliance and regulatory updates, and they have job boards, career fairs, and company websites. 

1. WorldatWork https://worldatwork.org/ 

“Worldat Work is a global nonprofit organization focused on compensation, benefits, and total rewards. They offer certifications, educational programs, research, and networking opportunities for compensation and benefits professionals.” 

2. International Foundation of Employee Benefit Plans (IFEBP) https://www.ifebp.org/

 According to their website, “The International Foundation of Employee Benefit Plans is the premier educational organization dedicated to providing the diverse employee benefits community with objective, solution-oriented education, research and information to ensure the health and financial security of plan beneficiaries worldwide.” 

3. Society for Human Resource Management (SHRM) https://www.shrm.org/  

While not exclusively focused on compensation and benefits, SHRM is a prominent HR professional organization that offers resources, education, and networking opportunities for HR professionals, including those involved in compensation and benefits.

Secure an Internship as a Compensation and Benefits Managers

Having an internship under your belt is one of the best and most valuable tools you will take to an interview. The key to discovering who is hiring interns and offering various internship programs is to check the abovementioned resources (trade organizations and professional associations). Other sources are large corporations, HR consulting firms, non-profit organizations, government agencies, and healthcare institutions. For example, JPMorgan Chase & Co. offers a 10-week human resources analyst development program. To give you a taste of what companies with internships are looking for, here is what JPMorgan Chase & Co. said, 

“Valued Qualities: We’re looking for highly motivated, analytical and passionate people who will challenge the way we do things and aren’t intimidated to provide feedback so we can improve.

You should be flexible, adaptable and enjoy working with people from various backgrounds and parts of the world.  We’re always looking for innovative ways to improve our processes and engage employees, so bring your best ideas.

Key skills: Those with strong project management, communication, interpersonal skills and strategic thinking will do well in our teams. You should be collaborative, open to new challenges, a natural problem solver and take ownership of your work.”

 Job Outlook for Compensation and Benefits Managers

According to the U.S. Bureau of Labor Statistics (https://www.bls.gov/), Compensation and Benefits Managers have promising opportunities for the time period spanning 2022-2032. The field is growing by 2% per year, which is slightly lower than the 6% average growth rate. Government experts predict that each year over 1,100 openings will become available (between 2022-2032), due to replacing workers who leave the profession, leave the work force and/or retire. Over the ten-year time span (2022-2032) it is projected that a total of 400 new positions will be created. In 2022 there were 17,500 individuals working as financial analysts. The median pay per year was $131,280, while the median hourly wage was $63.11. (As a reminder, the “median” amount is not an average, it is the middle value of a dataset. For the U.S. BLS definition go to: https://www.bls.gov/cps/definitions.htm#medianearnings) .

By getting a college degree, developing relevant skills, becoming familiar the process of certification, staying abreast of industry trends and changes, understanding industry related regulations, researching internships, getting an entry level job in a human resource department, and becoming connected with a network of others in the field, you will be on your way to a prosperous and satisfying career as a compensation and benefits manager.