Top Skills for This Career
BLS identifies these as the three highest-rated skills for this detailed occupation. TrustInEd adds the plain-language explanations so visitors understand what each skill means.
Adjusting effectively when priorities, conditions, tools, or expectations change.
Understanding written information and communicating ideas clearly in writing.
Identifying problems, considering possible solutions, and choosing appropriate actions.
How Do You Prepare for This Career?
BLS describes the typical preparation for this occupation. Requirements can vary by employer, state, licensing rules and individual circumstances.
How to Become One
How to Become a Compensation or Benefits Manager 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 & 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 offer certification programs that may be helpful for compensation and benefits managers. Information on certifications is available from CareerOneStop.
Your Next Step
Compare colleges and education options that can support the typical entry-level education for this career.
Pay
the median annual wage for all workers was $50,980.
Job Outlook
Job Outlook Employment of compensation and benefits managers is projected to show little or no change from 2025 to 2035. Despite limited employment growth, about 1,600 openings for compensation and benefits managers are projected each year, on average, over the decade. Most 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 are expected to continue to focus on reducing compensation and benefits costs, for example, by introducing pay-for-performance and health and wellness programs. Organizations will likely 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 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 consolidate work across fewer staff, thereby reducing the need for compensation and benefits managers. Compensation and Benefits Managers Percent change in employment, projected 2025–35 Operations specialties managers 9% Total, all occupations 3% Compensation and benefits managers 1% Note: All Occupations includes all occupations in the U.S. Economy.
What They Do
What Compensation and Benefits Managers Do
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
Work Environment
Compensation and benefits managers held about 23,700 jobs in 2025. The largest employers of compensation and benefits managers were as follows:
| Management of companies and enterprises | 22% |
| Professional, scientific, and technical services | 13 |
| Insurance carriers and related activities | 13 |
| Government, excluding state and local education and hospitals | 6 |
| 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.
Important Qualities
The following are examples of qualities that are important for these workers to perform their duties. For more information, visit the Employment Projections (EP) skills data page. 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.
More Information
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.
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Start with ED →Career data and occupational profile text are sourced from the U.S. Bureau of Labor Statistics Occupational Outlook Handbook and Employment Projections program. Education requirements are typical entry-level requirements and may vary by employer, state, occupation or individual circumstance. View the official BLS profile.