Compensation managers are basically in charge of establishing and maintaining a powerful and effective pay system in the company. They will research far and wide, come up with a good pay system and ensure that the system is updated from time to time according to time changes. Compensation managers should always know and understand the current and upcoming competitive markets for the company’s employee pay and benefits. Above all, they should find ways to make sure that the pay rates offered by their employer are fair and equitable, to make it easy to recruit as well as retain employees.
The duties of a compensation specialist will vary from one company to the other. Those working in larger organizations for instance, may be assisted by staff specialists and only handle specific areas of the workers compensation. In smaller companies, a HR business partner or even the company recruiter may be the one required to handle compensation tasks.
What is important to note especially for employers is that compensation duties are usually a little complicated. They require strong mathematical and statistical skills that only a properly trained and experienced expert might handle efficiently. In most companies, you will find the HR handling everything, including compensation duties. However, there is always need for a specialist whose sole responsibility is compensation.
In places where such a specialist exists, he will be required to establish pay grades that will govern employees at all levels and then establish the pay for employees in those levels as per the government or civil service pay program.
He will also conduct salary surveys with an aim of finding out just how their pay rates compare with those of other employers. Alternatively, he can work with established compensation professional organizations that specialize in compensations to do market comparisons on his behalf, per region and per, number of employees and also per job responsibilities.
The benefits compensation expert will also ensure that the company’s pay scale is complying with the ever-changing state and federal compensation law for both large and small business workers compensation.
The way a company pays its employees is a very important thing in the building and maintenance of a great company. If a business’ pay is not as competitive as its rivals, that business is likely to lose employees to better paying companies. Besides, it may be hard to attract top talent if your business is the least paying in the region or industry.
A compensation manager is therefore the best retention tool any business can have today. Through his knowledge pertaining compensation basics for employers, he will ensure that your business employees are better paid, they are enjoying better benefits and that the business is attracting top talent through its compensation and benefits program. Employers must however ensure that their compensation managers are well appreciated for the great contribution they accord the business, all for the overall benefit of the business.
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