Road to riches: compensation management can put you on the path to success

HR Magazine, June, 2004 by Kathryn Tyler

* Exceptional communication skills. "You're talking about people's pay; you can't get any closer to them. Communication is key," Kabin says. Compensation professionals need to be able to interact with senior executives, as well as front-line employees. Moreover, compensation professionals need to be comfortable developing and delivering oral presentations to senior management.

* Managerial skills. "Compensation professionals who have been successful in their careers are often supervisors with direct reports, so managerial skills are also desirable," says Kabin.

* Discretion and an ethical orientation. Compensation specialists need to be extremely discreet, since they deal with confidential information. "We feel that we are stewards of ethics in the profession," Kabin says. "We are privy to sensitive information. We know when there will be layoffs because we're designing severance packages. If our neighbor is going to get laid off, we're not going to divulge that information."

If this describes you, perhaps you should consider studying for and taking a certification exam to help prove that you have what it takes.

Compensation Certification

Certification isn't mandatory for compensation specialists. However, certification is becoming more common, and employers often require it for those entering the field. Certification sets a minimum standard of knowledge.

Indicative of the importance and complexity of the specialty, there are four U.S. compensation-related certifications: CCP, GRP, CEBS and compensation management specialist (CMS).

Younger people coming into compensation management tend to have certification more often than more experienced compensation specialists, Dorf says. However, certification requirements will likely increase, he predicts, as more companies ask for independent credentials to verify qualifications.

CCP and GRP certifications are offered by WorldatWork; CEBS and CMS certifications are offered by the IFEBP.

CEBS is a joint program of the IFEBP and the Wharton School of the University of Pennsylvania. "Completing a CEBS [program] is like having an undergraduate degree in employee benefits," says Swarthout.

The most widely held designation is WorldatWork's CCP. "The CCP designation assesses strategic and functional competence in rewards management, with the primary focus on compensation," says Kabin. "The six core examinations and three elective examinations assess competence across the entire compensation body of knowledge, as measured by performance on nine 100-question multiple-choice examinations."

How does one choose a designation? First, HR professionals need to decide whether they want to specialize in international or domestic compensation plans. The GRP program covers issues relating to international benefits and compensation, such as foreign exchange rates and expatriate compensation.

Next, an individual needs to determine whether it is crucial to learn both benefits and compensation management, or just compensation. Compensation and benefits are inextricably linked, but not all organizations approach them as a package. The CEBS program covers both benefits and compensation, but the CCP program covers compensation only.