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Compensation Manager Job Description: Top Duties and Qualifications

Edited by Indeed Employer Content Team
Last updated July 16, 2025
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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

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4 min read

A 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager, or Compensation and Benefits Manager, oversees the wages and benefits that employees receive for their work. They develop compensation programs, monitor their effectiveness and make revisions when necessary.

Compensation Manager duties and responsibilities

The main responsibility of a 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager is to ensure that employees receive fair compensation in accordance with all laws and regulations. Some key Compensation Manager job duties include:

  • Creating compensation programs that establish pay grades and criteria for raises

  • Developing new benefits programs to increase total compensation for employees

  • Researching market trends to evaluate the competitiveness of salaries

  • Reviewing, evaluating and revising compensation programs regularly

  • Conducting surveys to assess employee satisfaction with pay and benefits

  • Advising managers and supervisors about matters related to pay

  • Aligning compensation programs with recruitment strategies to attract quality candidates

  • Complying with federal, state and local compensation laws, such as minimum wage regulations

Hire your next Compensation Manager today.

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Hire your next Compensation Manager today.

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Compensation Manager Job Description Examples

Example 1

Job Title: Sr. Sales Compensation Manager

Location: Nashville TN 37219

Duration: 6+ Months

Job Description:

Sales Compensation / Incentive Design.

Responsible for roll out and execution of Sales Incentive programs in line with compensation policies, practices and processes.

Supports, guides and provides subject matter expertise to HR Managers, Sales Leadership, Sales Operations and Recruiters regarding sales incentive compensation matters, policies, etc.

Designs sales incentive compensation programs, policies and processes, by collecting and analyzing results from local benchmarking partners and collecting business requirements and market developments.

Executes analysis of plan effectiveness and determination of return on compensation investments.

Required:

Bachelors in HR / Business / Fin/Acct / Mathematics or other relevant discipline.

5-10 years of professional experience including at least 5-years of experience in sales and service compensation design.

Business-oriented understanding (global is a plus) of planning and analytics practices for sales process, modeling, operations, a management, and sales finance.

Practical experience in sales compensation, sales operations, sales finance or related fields.

Experience in management consulting or sales operations is preferred.

Strong communication, interpersonal, and presentation skills.

Demonstrated ability to influence decision making at senior levels in an organization.

Strong project management skills and an ability to lead change management activities.

Certified Sales Compensation Professional (CSCP ) would be a plus.

Job Types: Contract, Full-time

Salary: $50.00 - $60.00 per hour

Benefits:
  • Dental insurance
  • Health insurance
  • Paid time off
    Schedule:
  • 8 hour shift
  • Day shift
  • Monday to Friday



    Ability to commute/relocate:
  • Bothell, WA 98021: Reliably commute or planning to relocate before starting work (Required)

    Education:
  • Bachelor's (Preferred)

    Experience:
  • Designing Sales Compensation: 5 years (Required)
  • Designing Sales Incentives: 5 years Location: In person

    • Example 2

    Title: Sr Compensation Manager

    Duration: 6 months

    Location: Cambridge, MA

    Job Description:

    Your role:

  • Responsible for roll out and execution of Sales Incentive programs in line with compensation policies, practices and processes.
  • Supports, guides and provides subject matter expertise to HR Managers, Sales Leadership, Sales Operations and Recruiters regarding sales incentive compensation matters, policies, etc.
  • Designs sales incentive compensation programs, policies and processes, by collecting and analyzing results from local benchmarking partners and collecting business requirements and market developments.
  • Builds and maintains effective working relationships with various management levels within NA Region to understand sales strategy and offer counsel on design alternatives to reinforce the linkage between strategy and sales behavior.
  • Executes analysis of plan effectiveness and determination of return on compensation investments.
  • Collaborates with Sales Operations, IT and other functions as required to develop data capture and reporting capabilities for implementing plans and for assessing plan effectiveness.
  • Develops metrics, goals, training and communication processes designed to manage the evolution of incentive plans in keeping with changing business strategies and market conditions.
  • Collaborates with Commissions and Commercial Operations to support the resolution of incentive pay issues.
  • Participates in the communication regarding incentive policies, processes and cross-functional issues.
  • Develops and presents compensation plans and policies subject to executive management approval.
  • Executes external market analyses to determine pay competitiveness. Assesses job level and mix of guaranteed and variable compensation for positions eligible for customized NA Region incentive plans.
  • Translates sales strategies into incentive programs to reinforce behavior that helps achieve business performance goals.
  • Influences the decision-making process and final outcome by providing detailed analyses, models and recommendations.

    You're the right fit if: (4 x bullets max)

    Bachelors in HR / Business / Fin/Acct / Mathematics or other relevant discipline

    5-10 years of professional experience including at least 5-years of experience in sales and service compensation design

    Business-oriented understanding (global is a plus) of planning and analytics practices for sales process, modeling, operations, a management, and sales finance.

    Practical experience in sales compensation, sales operations, sales finance or related fields

    Experience in management consulting or sales operations is preferred.

    Strong communication, interpersonal, and presentation skills

    Demonstrated ability to influence decision making at senior levels in an organization

    Strong project management skills and an ability to lead change management activities

    Certified Sales Compensation Professional (CSCP ) would be a plus

    Job Type: Contract

    Salary: From $37.00 per hour



    Experience:
  • Certified Sales Compensation Professional (CSCP ): 3 years (Preferred)
  • sales compensation / incentive design: 6 years Location: In person

    • Example 3

    Are you interested in making a difference in healthcare by assisting our operations team and building relationships with customers? As a member of our technical services team, that is exactly what you will do! Here, you will be a part of a dynamic and supportive team that provides solutions to our customers in their time of need.

    Job Description
  • Develop compensation policies, programs and processes.
  • Build and foster relationships with business leaders and decision makers through consultative efforts.
  • Provide training and consultation to HR colleagues, managers and stakeholders
  • Drive and coordinate the change management as needed
  • Keep apprised of country and local compensation regulations and standard practices
  • Consult with HR and business stakeholders on business needs and solutions; provide strategic view, while also serving as a hands-on leader with accountability for tactical execution
  • Participate in management of annual compensation cycle
  • Develop effective communications for compensation initiatives as needed
  • Collaborate with global compensation team colleagues to provide consistent messaging and guidance in alignment with global initiatives.
  • Collaborate with colleagues across HR, payroll, legal and finance across the region
  • Communicate with HR Business Partners on compensation environment in the region
  • May oversee the work of Compensation Analyst(s)

    Requirements:*
  • Minimum Bachelor’s Degree, or equivalent
  • 5+ years professional compensation experience with both analytical and strategic skills
  • Experience in performance management and pay-for-performance programs
  • Strong business acumen
  • Knowledge of local employment law and compensation practices across the region

    What we offer

    We value our employees tremendously and do what we can to help them stay happy and healthy, at work and away from it. In addition to a supportive and healthy environment, we offer: Small, dynamic and tight-knit teams that encompass a supportive and collaborative atmosphere

    We are proud to be an Equal Opportunity Employer:

    If you're looking for a career that offers opportunities for growth, continual development, professional challenge and the chance to make a real difference, apply today!

    Job Type: Full-time

    Pay: $86,412.00 - $91,640.00 per year

    Benefits:
  • 401(k)
  • Health insurance
  • Life insurance
  • Paid time off
    Schedule:
  • Monday to Friday



    Education:
  • Bachelor's (Required)

    Experience:
  • Human resources: 5 years Location: In person
    • Our mission

    Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

    Read our editorial guidelines
    Job Description Best Practices
    Optimize your new and existing job descriptions to reach more candidates
    Get the Guide

    What does a 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager do?

    A Compensation Manager plays a vital role in recruitment and retention. By completing Compensation Manager job duties, they can help your company offer compensation packages with competitive pay and benefits, increasing your chances of attracting quality candidates. In addition, their work makes it possible to offer pay increases and expanded benefits and perks that can increase job satisfaction and encourage employees to stay with your company. A skilled 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager can also help you control costs by developing creative solutions that add greater perceived value to compensation packages without requiring large increases in spending.

    Compensation Manager skills and qualifications

    Those who succeed in 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager careers typically possess skills that allow them to meet or exceed job performance expectations. Here are some qualifications that can help you identify quality candidates:

    • Research and analytical skills to gather and interpret data

    • Computer skills to use spreadsheet, word processing, e-mail and HR software

    • Interpersonal and collaborative skills to work well with members of the management team

    • Problem-solving skills to find solutions to challenges

    • Management skills to delegate tasks related to developing and revising compensation plans

    • Extensive knowledge of laws related to compensation and benefits

    • Strong written and verbal communication skills to produce reports and give presentations

    • Time management skills to adhere to deadlines

    3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager experience requirements

    Generally, previous work experience in human resources is necessary to perform well in Compensation Manager careers. Most managers start out working for a few years as compensation and benefits analysts, a role that oversees specific elements of compensation and benefits plans. In some cases, several years of work experience in finance or other areas of human resources may be sufficient to prepare candidates for success. This is especially true for individuals who have previous experience managing or supervising others.

    Compensation Manager education and training requirements

    Most employers prefer candidates to have at least a bachelor’s degree in business or human resources. A master’s degree in one of these fields may be necessary to fill open 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager positions at large corporations. When reviewing resumes, you may wish to prioritize candidates who hold certification in compensation management.

    Examples include the SHRM Certified Professional (SHRM-CP) and Senior Certified Professional (SHRM-SCP) designations from the Society for Human Resource Management (SHRM), Certified Employee Benefit Specialist (CEBS) status from the International Foundation of Employee Benefit Plans (IFEBP) and the Certified Compensation Professional (CCP) credential from WorldatWork. Requirements for certification vary but usually involve completing a training program and/or having proven work experience in the field, plus passing an examination.

    3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager salary expectations

    According to Indeed Salaries, the average salary for a Compensation Manager is $96,997 per year. Actual salaries for Compensation Manager careers are based on location, employer size, experience, education, training and certification status.

    Job description samples for similar positions

    If the description of a 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager doesn’t fully reflect what you’re looking for in an open position, consider the following alternatives:

    Compensation Manager job description FAQs

    Who reports to a 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager?

    At smaller companies, a Compensation Manager may be the only employee who works with compensation and benefits. However, many companies have a compensation and benefits department that the 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager leads. With this type of organizational structure, one or more Compensation and Benefits Specialists will typically report to the Compensation Manager. The manager may also supervise one or more Administrative Assistants.

    Who does a Compensation Manager report to?

    The organizational structure of a company determines who a 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager reports to. At large companies, the HR Manager may serve as the immediate supervisor for the Compensation Manager, as well as HR Specialists working in other areas, such as employee development. Other companies have the Compensation Manager report directly to the HR Director or the Vice-President of HR.

    What is the difference between a 3870194human resources10.33compensation manager2.61hr2.02manager1.95case manager1.42541135741436000.00112636.12230000.00YEARLY36138642025-10-012025-10-312025-09-012025-09-302025-11-05Compensation Manager and a Benefits Coordinator?

    A Benefits Coordinator is responsible for enrolling employees in benefits programs, fielding questions regarding benefits and updating benefits information. The Compensation Manager’s job is to develop the entire package of benefits. In some cases, a Benefits Coordinator may report to the Compensation Manager.

    Job Description Best Practices
    Optimize your new and existing job descriptions to reach more candidates
    Get the Guide

    Three individuals are sitting at a table with a laptop, a disposable coffee cup, notebooks, and a phone visible. Two are facing each other, while the third’s back is to the camera. The setting appears to be a bright room with large windows.

    Hire your next Compensation Manager today.

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    Job Description Examples

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