Blog

Why Compensation Managers Should Wear Capes

Written by Candice Wolken

May 3, 2019

Why Compensation Managers Should Wear Capes Hero

Compensation managers are tremendously valuable to any business. Employee salary and benefit expenses typically represent 40% to 80% of an organization’s gross revenues, and comp managers manage every penny of the process. Their work impacts productivity and is faster than a speeding budget. Some say they can leap office buildings in a single bound!

Compensation Managers Save the Universe

The Bureau of Labor Statistics states that compensation and benefits managers plan, develop, and oversee programs to compensate employees. While accurate at a simplistic level, the impacts of compensation work can be more powerful than a locomotive – and felt throughout an entire organization.

  • Employee engagement and productivity – Perceptions of being paid fairly have repeatedly been shown to have a positive impact on employee engagement and productivity. If an employee believes they are compensated fairly, they are more likely to perform at a higher level.
  • Employee retention – Fair pay play an important role in employee retention. High-performing employees can become a flight risk when they are not paid equitably and competitively. Voluntary turnover can be quite costly to a business. In addition to the costs of recruiting, training and lost production, other turnover costs can include reduced employee morale.
  • Company profitability – Payroll is the largest expense at many organizations. A good compensation manager ensures employees are paid fairly, and also takes care to make sure they are not overpaid to protect organizational profitability.
  • Legal compliance – Compensation managers ensure organizational compliance with applicable federal, state and local regulations such as the Fair Labor Standards Act and minimum wage laws.

Super Powers for HR Decision-Making

Since compensation programs have such a significant impact on an organization’s success, your organization should ensure the right tools are available for compensation decision-making.

Embracing Fair Pay in the War for Talent

Download our white paper to further understand how organizations across the country are using market data, internal analytics, and strategic communication to establish an equitable pay structure.

Copy and paste this HTML to share this article on your site:

Insights You Need to Get It Right

The latest research, expert advice, and compensation best practices all in one place.
Ask This Question Before Transitioning Your Team to Long-Term Remote Work
Ask This Question Before Transitioning Your Team to Long-Term Remote Work Blog
As companies plan their return, some find there may be benefits to maintaining WFH.

Read More

2021 Trends: Compensation & Workforce Transformation
2021 Trends: Compensation & Workforce Transformation Guide
We're seeing a renewed sense of optimism and workforce innovation in 2021.

Read More

DE&I Panel Discussion: Moving the Conversation Forward
DE&I Panel Discussion: Moving the Conversation Forward Webinar
In this panel discussion we will cover what the issue is when improving DE&I.

Read More

Differences Between HR-Reported and Crowd-Sourced Compensation Data
Differences Between HR-Reported and Crowd-Sourced Compensation Data White paper
To make decisions about the value of a job, you need data from a range of sources.

Read More

CompAnalyst Market Data: Smart Matches, Fast Prices, and New Insights
CompAnalyst Market Data: Smart Matches, Fast Prices, and New Insights Data Sheet
The CompAnalyst Market Data platform is easier to use than ever before.

Read More

It's Easy to Get Started

Transform compensation at your organization and get pay right — see how with a personalized demo.