Compensation Consultant Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a compensation consultant. Feel free to use our compensation consultant job description template to produce your own. We also provide you with information about the salary you can earn as a compensation consultant.
Who is a Compensation Consultant?
Compensation consultants are third-party consultants who offer advice to companies on the compensation of employees, executives, and directors. Compensation consultants are usually retained to provide impartial advice that will ensure that compensation decisions do not exceed industry standards. Board members and top executives, in particular, can set their compensation without the need for supervision. Stockholders and regulators will be able to see that independent counsel is retained to prove that compensation packages were fair and not meant to be a raid on the company.
For the average person, the compensation packages received by top executives and board members of multinational corporations can seem exorbitant. These packages can include stock options, wages, and incentives. You may also be eligible for substantial deferred payments, severance, or special retirement benefits. Most benefits of compensation packages are contractual, and they are guaranteed. The executive is entitled to most of the benefits, regardless of how good he performs.
Compensation consultants can be an important tool for balancing the system. An executive can still be paid millions of dollars in compensation if he is dismissed for poor performance. It can appear as though a departing executive is getting an unjust win without independent verification of the amount of his compensation package.
When it comes to making decisions about compensation, the top executives of a corporation or their board of directors may hire remuneration consulting firms. The firm is armed with information about comparable companies and standard compensation structures in the industry. The consultants review the compensation package the company wants to offer and determine the director’s value, taking into consideration his unique characteristics. The consultant prepares a written recommendation about the total compensation package and its components.
A few organizations might be hesitant to hire a compensation consultant because they don’t know if it can add value to their business. A compensation consultant’s core function is to assess an organization’s current approach toward compensation and recommend sustainable and actionable changes that will increase employee satisfaction and retention while helping the company to be as efficient as possible.
It is often a question of whether you should develop your pay programs internally or hire a consultant to help you. Here are five reasons why you should consider hiring a compensation consulting company:
- Time Factor
A consultant can help you focus on the issues at hand without having to deal with other problems. Without distractions, the consultant can focus on the completion of your project to meet your deadline.
- Experience
A consultant has a wealth of knowledge and experience from dealing with different clients. They can respond quickly to your needs and not have to “reinvent” the wheel or learn as they go.
- Objectivity
A consultant will offer objective solutions to your problems and alternatives that best suit your administrative capabilities and your needs. Avoid assuming that one size that fits all solutions will work. Templates should not be used as a tool for effective consultancy.
- Cost/Benefit
Companies often try to solve the problem themselves. The cost of failure can be high, as it involves lost opportunities, poor management, and damaged credibility with employees. Consultants can quickly identify the problem and develop solutions that are efficient and effective.
- Accessibility
Even highly qualified professionals sometimes need assistance. This is why it is so important to have a consultant. Consultants have the resources, time, and experience to complement the company’s internal talent.
Compensation Consultant Job Description
Below are the compensation consultant job description examples you can use to develop your resume or write a compensation consultant job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a compensation consultant include the following:
- Designing, developing, and implementing compensation programs for different job categories within a company.
- Researching payment levels to update existing incentive and compensation packages
- Analyzing compensation data to identify potential problems and ensure equity.
- Consulting with HR to discuss individual employees’ salary requirements.
- Ensuring that compensation plans comply with labor legislation
- Preparing job descriptions that match compensation programs.
- Providing recommendations for improvements in compensation plans and pay levels
- Ensuring that compensation plans are aligned with company revenue goals.
- Analyzing all compensation programs to ensure their effectiveness and help to create appropriate models.
- Interviewing candidates and conducting analysis. Il
- Identifying all job requirements, providing feedback to managers, and analyzing all data from the market.
- Assisting in the management of all market compensation programs and making recommendations for improvements to all targets.
- Evaluating market data and ensuring accuracy and efficiency.
- Assisting the executive management with the recommended compensation target,
- Ensuring compliance with all federal and state regulations, and administering all compensation programs.
- Assisting management in determining all salary requirements.
- Using all published surveys to determine the market and to prepare job descriptions for all compensation programs.
- Assisting with management to resolve any departmental structure problems.
- Participating in third-party surveys, collaborating with management, and supporting all human resource departments in all compensation decisions.
- Monitoring market data, and developing compensation plans and salary structures.
- Maintaining and updating an efficient HRIS system.
- Evaluating all changes and giving training to HR staff.
- Organizing custom surveys of compensation programs that can help in resolving any compensation issues.
- Assuring compliance with all state and federal regulations for compensation programs
- Managing the global survey cycle for compensation and the vendors
- Conducting ad-hoc research and analysis to identify trends, opportunities, and issues
- Using a combination of HR expertise, objectivity, relationship skills, and business acumen to influence senior leaders
- Assisting in ensuring that job titles for the assigned functions conform to job titling guidelines
- Ensuring that all jobs in the assigned functions are matched correctly based on survey level conversions to each country’s surveys
- Assisting with all aspects of the Annual Review Cycle (EMEA)
- Giving guidance to HR Consultants regarding salary and incentive proposals
- Analyzing compensation recommendations
- Assisting with field-based incentive compensation plan design, administration governance communication, and program management
- Participating in the administration company-wide programs relating to base pay, bonuses, and policies as well as performance management
- Providing analytical services for different compensation programs and projects to ensure that their objectives are met in an efficient, timely, and consistent manner with plan provisions.
- Partnering with the assigned business area and providing support to help develop, implement, and manage compensation policies and programs
- Getting advice from Human Resource Business Partners & Business Leaders on matters relating to compensation
The following are other important tasks:
- Evaluation and Development of Compensation Strategies and Policies
A compensation consultant can meet you right where you are. The consultant will evaluate your compensation strategy and help you develop a strategy to align your compensation policies and packages with your overall organizational goals and strategies.
- Job Evaluation Plan
Compensation consulting is about looking at each role as a part of the whole organization. A job evaluation plan can be used to help you determine the relative value of each role within your organization to ensure that all employees are compensated fairly.
- External Market Analysis
Some companies struggle to offer competitive salaries when hiring while others overspend on compensation. A consultant can help you identify a solution to get top talent to your company and stay within your budget.
- Performance Management
Companies increasingly base their compensation on performance. A compensation consultant can help you establish performance-based pay and associated policies.
- Executive Compensation
There are many elements that you need to monitor and manage (base salary, long-term, and short-term incentives, perquisites, etc.). Executive compensation can be complex and controversial. Consulting helps organizations find the right approach to executive compensation for their employees and executives.
- Communicating with employees
Employees value transparency especially when it is about compensation. The best compensation consultants will make sure they outline their new strategy clearly and have a plan for answering questions.
Qualifications
- Bachelor’s degree in human resource management, finance, or a related field.
- Minimum of two years of experience in the field of compensation consulting.
- Expertise in payroll procedures and the best labor law practices.
- Familiarity with payroll software like Simple Pay or HR management systems such as Bamboo HR.
- Collaboration with managers and HR staff to develop effective compensation plans.
- Solid knowledge of current market statistics and pay scales.
- Capability to innovate and implement new systems and compensation programs as needed.
Essential Skills
- Resourcefulness
As a compensation consultant, you will need to use a variety of resources. You may be responsible for conducting salary surveys, researching job opportunities, assigning tasks to specific job roles, or working with the management team to create stronger compensation programs. You will find that being resourceful is key to your success as a compensation consultant. Without accurate and continuous information, this can become overwhelming.
- Communication skills
Communication skills are also required of a compensation consultant. They must communicate effectively in many formats. A compensation consultant is a skilled writer. It is common to deliver compensation documents and presentations or work with Human Resource teams in updating policies. Write clearly and concisely about the compensation offered by your company.
- Negotiation skills
A compensation consultant should be able to negotiate when he or she goes into meetings with executives to discuss increases in pay or benefits. This can be done by using salary surveys that reflect the current compensation at other companies. Your organization will be able to negotiate for a more attractive salary, which will allow you to gain top talent and enable more innovation.
- Analytical skills
What can a compensation consultant do when all the data from salary surveys, reports, and other information is accumulated? To interpret the data with business objectives, a compensation consultant must have strong analytical skills. These consultants often use analytical skills to spot trends and conduct succession planning sessions. They also push for changes in compensation in specific areas.
- Business-oriented
Compensation consultants need to look at the larger picture to determine the benefits and compensation that employees should receive. Talking regularly with the human resource and supervisory teams to understand what drives performance is very important. This vision is essential to ensure that the compensation plan meets overall needs.
- Expertise
A compensation consultant can be successful if they have at least five to 10 years of experience in the industry. This goes one step further. An experienced compensation consultant will look for creative ways to win the competition by offering benefits and compensation that attracts a better workforce.
- Technical skills
Top compensation consultants are resourceful and utilize technology to reach their goals. Cloud-based technology solutions make it possible to use computerized salary surveys, sign up for industry alerts, and access compensation tools.
- Organizational skills
Although it takes a lot to be a compensation consultant, this is not enough. Technology tools can be used by compensation managers to create a system that tracks and records benefits and remind them of meetings with key decision-makers.
How to Become a Compensation Consultant
- Earn a degree
A Bachelor’s degree in Business or another related field is required to start your career as a Compensation consultant. This will ensure that you remain competitive for employers. To be able to apply for entry-level jobs and enter the workforce, you should focus on your industry-specific skills. An internship as a Compensation Consultant may be necessary to obtain your Bachelor’s degree and learn the skills needed to enter the workforce.
- Select a specialty
You may need to select a specialty as a Compensation Consultant. You should decide which area of compensation consultancy you are most comfortable in and then continue to take active steps towards your chosen compensation consultant specialty.
- Start at an entry-level position
After completing a Bachelor’s degree in Business or another related field, you can usually start your career as an Entry-Level Compensation Consultant. After completing a four-year Bachelor’s degree in a related field, you can become a compensation consultant. You may consider certification as a certified compensation professional, depending on what type of compensation consultant job you are interested in.
- Career advancement
There are many career paths for compensation consultants after they have reached the entry-level. To move up to the senior position as a compensation consultant, it can take approximately 2 years to become an Entry-Level Compensation Consultant. To advance your career as a Compensation Consultant, you will need to have approximately 2 years of experience in each position. You may need to obtain additional education, a master’s degree in a related field, or special certifications to further your career as a Compensation Consultant.
- Opportunities for continuing education
To advance your career as a Compensation Consultant, not all companies and industries require continuous education. This degree can help you move up to higher-paying jobs more quickly. A graduate degree in business can take up to 4 years.
Where to Work
Most compensation consultants work in an office environment and also work full-time.
Compensation Consultant Salary Scale
Compensation consultants earn an average salary of $88,532 annually in the United States.