HR's strategic planning boom

Dallas --- Unprecedented increases in health care costs and heightened public scrutiny are redefining the rules of the trade for benefits and compensation professionals.

What was historically an administrative-heavy role in human resource offices is evolving today into a strategic planning position. And a job that requires a bit more know-how in finance and accounting.

''It's changed from a 'this is what we are going to pay people and let's make sure they get their checks' role to a 'what can you bring to the table?' role,'' said Kerry Chou, a practice leader in the professional development division for WorldatWork (www.worldatwork.org), an organization of compensation specialists.

Compensation professionals are responsible for the design, development, implementation and administration of compensation programs that help a company attract, retain and reward employees.

Benefits managers and specialists handle a company's benefits program, notably its health insurance and pension plans.

According to the Bureau of Labor Statistics, 91,000 Americans worked as compensation, benefits and job analysis specialists in 2002.

Although that number is part of about 677,000 human resources, training and labor relations managers and specialists in the United States, jobs in the benefits and compensation field are expected to expand in the next three years.

In a recent survey of 250 compensation and benefits workers, 48 percent said they expect to see a marginal increase in the number of compensation professionals in their organizations by 2008.

Further, 56 percent believe that within five years they will be responsible for designing incentive pay programs; 47 percent said they will probably be responsible for administrating those programs.

That shouldn't surprise those already involved in the industry, said Tom McMullen, a senior consultant with Hay Group, a global organizational consulting firm that conducted the study.

''Compensation professionals will hold more responsibility in management decisions,'' McMullen said. ''We think that in order to provide that level of service, we'll need a bit more resources --- people --- to do that.''

And those people are going to need more education and experience, he said.

A bachelor's degree in human resource management, business administration or finance is typically required for a career in this field.

A focus on finance, continuing education and networking, however, is becoming increasingly important.

''It's very helpful to understand your company's financials,'' said Amy D. Creech, manager of international compensation for Mary Kay Inc. in Addison, Texas. ''A lot of bonus programs deal with the financial metrics, such as income statements, cash flow.''

Creech, who has been in the profession for 12 years, helps manage her company's international compensation programs, which include merit and bonus programs in 23 countries.

''You have to understand what local and global practices look like and how they coincide,'' she said. ''You can be a better strategic partner working with your colleagues if you understand the whole picture.''

In some instances, obtaining a compensation professional or global remuneration professional certification can be useful. Creech has both certifications.

Local associations such as the North Texas Compensation Association (www.ntcassoc.org) also provide networking and educational opportunities to stay abreast of trends in the marketplace.

''With compensation, the marketplace is constantly changing,'' said Creech, who is president of the North Texas group. ''If you want to stay on the cutting edge and move up in this profession, you have to be out there.''

Earnings for compensation, benefits and job analysis specialists vary according to the number of duties required, experience, location and company size.

In 2002, median annual earnings were $45,100, according to the Bureau of Labor Statistics. The lowest 10 percent in these positions earned less than $28,160, and the highest 10 percent earned more than $72,250.

In August, the median salary for someone just starting out as a compensation analyst in Dallas was $46,471, according to the Salary Wizard at www.salary.com. A compensation and benefits manager earned $88,989; a top executive in the field earned $155,387.

''The more knowledge you have, the more you will be able to bring to the table at your company,'' Creech said. ''Companies today will compensate you for that.''

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