Director of Compensation

Set salary rates for all the employees in your company.
picture of Director of Compensation

Quick Stats

Salary Range
$52,000 – $151,000

Data from U.S. Department of Labor

What do Director of Compensations do?

This is a position found in the human resources department of a company or organization. As a Director of Compensation, you’re the person who figures out how much each employee should be paid, and sets the salary requirements for new jobs.

There’s a definite science behind deciding how much to give a person for the work they do, and you know that science well. The Director of Compensation spends their days looking at a lot of data and research. You study factors like how much similar companies are paying for the same job, how much responsibility is required, and what the cost of living is in your area. And since a salary can be made up of more than just base pay, a Director of Compensation figures out things like added perks (promised bonuses or benefits).

Since you’re the Director of this work group, you look at the big picture. This means making an overall plan for the organization’s compensation. You determine how much of the organization’s budget should go to salaries, figure out how to increase the quality of employees in a specific area, and oversee all the administration work that goes into making and implementing a salary plan. You make sure your company is following all federal salary guidelines, and might work with unions when problems with pay rates arise.

You’re in charge of the Managers and assistants in your department as well. This means you hire, fire, and perform evaluations. You also help when tough problems come up, and oversee the quality of the work done in your department.

Should I be a Director of Compensation?

You should have a bachelor's degree or higher and share these traits:
  • Detail Oriented: You pay close attention to all the little details.
  • Team Player: You're able to listen, communicate, and work with tons of different people.
  • Ready for a Challenge: You jump into new projects with initiative and drive.

  • Also known as: Compensation Director, HRIS Director, Human Resources Information System Director

    How to become a Director of Compensation

    Most Director of Compensations have a Bachelor's degree. Chart?chd=s:ada9da&chl=|certificate+%285%25%29||bachelor%27s+%2890%25%29|master%27s+%285%25%29|&cht=p3&chs=466x180&chxr=0,0,90
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