35 Compensation Manager Interview Questions & Answers
Below is a list of our Compensation Manager interview questions. Click on any interview question to view our answer advice and answer examples. You may view 5 answer examples before our paywall loads. Afterwards, you'll be asked to upgrade to view the rest of our answers.
Career Goals
1. What are some of your goals as a compensation professional. How can we help you achieve those goals?
How to Answer
As your interviewer considers all of the candidates, one factor that might tilt their decision in favour of one over the others is a clear sense of your professional goals. Think about your career goals, and speak on them with confidence, ensuring that while you are on a path, this position would not be a stop-over.
Written by Amy Hagan on September 13th, 2021
Answer Example
"At this point in my career, I feel that I've accomplished almost all of my career goals in working my way up the ranks as a Payroll Manager, Compensation Analyst and Compensation Manager. The reason I applied for this job is really because I want to broaden my wings and bring my experience to a company that is making a difference in the lives of people on a daily basis. Being a mission driven person, the tech and manufacturing industries have never given me that final piece of gratification that your organization would."
Written by Amy Hagan on September 13th, 2021
Common
2. If you were to join as our next Compensation Manager, what would be reasonable to expect from you in the first 90 days on the job?
How to Answer
At some point during your time with them, your interviewer will be looking to hear that you have a plan for what your first three months on the job would look like. While ultimately trying to determine if you have the skills to run the compensation section independently or if you still need some oversight, they'll also look to hear that you'll have both some long-term and short-term goals if hired for this role. This is your chance to ensure the interviewer that you are skilled enough for this position to know what to do in your first 90 days on the job and that you have a plan to accomplish these goals.
Written by Amy Hagan on September 13th, 2021
Answer Example
"During my first three months on the job, I would complete a quick internal audit to get a total state of compensation at this company. I would also spend time getting to know my business partners and their needs. I would also take plenty of time to get to know my team so I can learn quickly how each team member likes to be lead. Last and not least, I would set one year, five year and ten year goals for the overall compensation department."
Written by Amy Hagan on September 13th, 2021
Common
3. What challenges would you be looking forward to if hired aboard as our next Compensation Manager?
How to Answer
This is a common interview question, asked to help a hiring manager determine what you are looking for in your next job and whether you would be a good fit for the position your are being interviewed for. To impress your interviewer, try to do as much research possible about the organization and focus on why you think you would be a good fit. Your interviewer will want you to be seeking a challenge, so be sure to discuss an aspect of this role that you may not have experience with during your career and you are more than willing to tackle if hired.
Written by Amy Hagan on September 13th, 2021
Answer Example
"The first challenge for me would be to step into a new industry and learn the ins and outs of compensation there. As you can see from my resume, all of my career in payroll and compensation has been in manufacturing and I'm really looking forward to broadening my horizons and learning a new industry like yours. I have several compensation colleagues that I've met at different events who are thriving in your industry and they all find this work challenging and fulfilling."
Written by Amy Hagan on September 13th, 2021
Competency
4. How do you approach compensation-related challenges as a successful Compensation Manager?
How to Answer
Tackling compensation challenges on a regular basis is the bread and butter part of the job of a Compensation Manager. Your interviewer will be looking to really dig into how you approach compensation issues and challenges to get a feel for how you will handle this job with their organization. Prior to your interview, think of a compensation challenge you have faced in your career the clearly demonstrates using your problem solving abilities to create a positive outcome. Make sure you use a specific example and provide the interviewer with insight into how you would solve problems in this role.
Written by Amy Hagan on September 13th, 2021
Answer Example
"Three years ago, my organization was going through a period where a large portion of our sales force was turning over and the lack of retention and consistency was having a major impact on our customers and overall sales. After I obtained information from employee exit interviews, it turns out that most of our salesforce was leaving to take jobs with a more consistent and larger salary based pay structure. For many years prior, our sales staff were compensated on a full incentive and commission base. I assured my HR Director and CEO that I would begin a compensation study right away and I quickly found out that most of our competitors paid about 50-75% of total compensation on a base salary and the remaining percentage on commission and pay for performance. Knowing that our sales staff were always in the $60-$80k range for annual compensation, I worked with our sales director to build a new compensation package that involved 50% base salary, 40% commission and 10% monthly pay for performance. Moving forward, we were able to recruit back a couple of strong sales team members that had previously left and keep our great team together to this day."
Written by Amy Hagan on September 13th, 2021
Competency
5. Writing job descriptions as a Compensation Manager can be both an art and a science. Why do you think you are good at writing job descriptions?
How to Answer
At times, Compensation Managers are called upon to assist in the job description creating and editing processes. At some point during your interview, your interviewer will look to hear that you know how critical compensation is to job descriptions. As you answer, try to highlight your ability to write job descriptions effectively when taking into consideration the key duties of a position that impact pay grade and FLSA status.
Written by Amy Hagan on September 13th, 2021
Answer Example
"Yes, writing job descriptions can be both a science and an art. I have over ten years of experience reviewing and editing formal job descriptions in the retail and banking industries. I was taught the proper formatting in college, and through my years of experience, I have been able to master the craft. Now I have designed an SOP and a model job description that makes it much easier to capture all of the duties, KSA, and education required to do a job. I always keep a keen eye on items in the job description that can impact exempt versus non-exempt employment status. On top of that, managers need to be aware that job descriptions need to match the actual reality of the job."
Written by Amy Hagan on September 13th, 2021
Competency
6. How do you ensure all compensation and benefits programs stay legally compliant?
How to Answer
At the heart of this question, your interviewer wants to know how you stay abreast of changing laws in compensation and benefits. This question can show the interviewer how you keep track of new legislation and use that to modify existing compensation and benefits programs when necessary. Because legalities surrounding benefits have continually changed over the last 10 to 15 years, staying on top of changes is necessary to ensure that an organization is compliant and you will be tasked as the expert on this as the next Compensation Manager with this organization.
Written by Amy Hagan on September 13th, 2021
Answer Example
"HR laws are always changing. Not only do we have to pay attention to the statutory laws, but we also have to pay attention to new case law. To do that, I am part of several list services. I belong to SHRM, and I get daily emails that provide me with updates on any changes to compensation and benefits laws. If a change affects us, I ensure that I update all the policies to reflect the changes. I don't just stop there, however. I also take the time to educate our hiring managers on the changes."
Written by Amy Hagan on September 13th, 2021
Competency
7. The Compensation Manager we hire needs to be fluent in all things Microsoft Excel. What experience do you have in using pivot tables within Excel for compensation data?
How to Answer
As a compensation professional, you are likely aware of all the great functions that the Microsoft Excel program can perform for you in your work. While there are great programs that help compensation professionals organize and analyze large amounts of data, sometimes the old reliable spreadsheet can be just as beneficial for project work. At some point during your interview, your interviewer may want dig into your experiences with Excel. with this question, they are specifically talking about the PivotTables within the program that are used to house large data sets. If you have direct experience, discuss that in detail with your interviewer and talk about how using the program assisted you in your work. If you don't have experience with this function in Excel, be sure to research it and talk about its importance in aggregating numerical data and using the program to analyze large amounts of data.
Written by Ryan Brunner on September 7th, 2021
Answer Example
"I have received Microsoft Office Specialist: Expert certification two years ago and have been a user of Excel for over 15 years. I was trained in using a PivotTable early in my career to run company payroll and learned the ropes really quickly. While I do use an enhanced software program now to house full compensation data, I still use Excel for compiling data from the many compensation surveys and studies I purchase each year."
Written by Ryan Brunner on September 7th, 2021
Competency
8. As our next Compensation Manager, are you familiar with any of the latest and greatest compensation management software that is available today?
How to Answer
To help them in determining if you will be the type of Compensation Manager that can utilize technology to bring their department into the future, your interviewer is hoping that you are familiar with some of the great systems and tools that are available to help analyze and coordinate compensation data. If you have experience with any compensation specific software, be sure to talk about the system and how you used it in your work. As well, prior to your interview, be sure to research the great technology that is available to compensation professionals so you can talk about the different things available and how they may benefit you in this role.
Written by Ryan Brunner on September 7th, 2021
Answer Example
"In my current position, I was an advocate for bringing on Payfactors as a system we utilize. I love this system for its ability to house our entire compensation work in one place. We are even able to store our job descriptions in the system to help ensure that similar jobs fall within the same pay ranges. From attending industry conferences and networking with others, I know there are other great systems like PeopleSoft, Ceridian and Paycom that intuitively analyze and store compensation data for organizations. I'm very fluent in systems like this and would always be open to trying new and innovative things in this role as your next Compensation Manager."
Written by Ryan Brunner on September 7th, 2021
Competency
9. Are you familiar with job evaluation processes and different methods for conducting them?
How to Answer
Proper job evaluations are necessary when comparing jobs within an organization to determine the appropriate pay rates and scales for particular roles. If proposed this question during your interview, you will be expected to perform job evaluations as the next Compensation Manager at this organization. If you do have experience in conducting job evaluations, talk in detail about the process you used and how you believe these processes can translate to this role. If you don't have direct experience, be sure to research the different job evaluation methods that include both quantitative and qualitative approaches and when each method works the best.
Written by Amy Hagan on September 13th, 2021
Answer Example
"Typically, I use pretty standard processes for evaluating a job. We start with a review of the job description, and then if needed, we conduct more analysis. Recently, I had a difficult position to fill. I decided that I needed to complete an extra evaluation of this job. I scheduled a time to shadow another employee with similar job functions. I was able to more clearly articulate the KSAs needed to do the job. Once I was able to list the KSAs, I could do a comp study on the job. I found that we were about 25% below market. We were able to raise the pay in short order and help our recruitment team fill the position quickly."
Written by Amy Hagan on September 13th, 2021
Discovery
10. What drew you to the compensation field and this role as a Compensation Manager?
How to Answer
To ensure that they are hiring a motivated Compensation Manager to join their team, your Interviewer wants to know what drew you to this career field. As you answer, walk your interviewer through your educational and career path that led you up to this point in your career while also talking about the personal draws to this field that you feel on a daily basis in your work. Make sure to speak with passion as you answer will be looking for a truly invested candidate.
Written by Amy Hagan on September 13th, 2021
Answer Example
"Growing up, I always liked numbers and math, and I liked to be strategic as well. Compensation analysis and management combine both, so I took a dual educational path in HR and accounting. Salaries are a key part of attracting new employees. It's my job to ensure we are paying enough, but not too much. It's also my job to ensure we have the proper pay mixes. I get the chance to research and analyze, which is a perfect match for me."
Written by Amy Hagan on September 13th, 2021
Discovery
11. Work-life balance is important to all staff at this organization. How do you balance your work life and personal life to maintain a healthy and happy status in both?
How to Answer
In looking to hire a happy and focused Compensation Manager to lead your team, your interviewer ideally wants to hear that you are able to balance your work and personal lives in the healthiest of ways. Staff burnout has become all too common in the 21st century, so talk about ways that you refresh yourself outside of work and don't hesitate to talk about your hobbies, interests and family life outside of work. In the end, talk about the importance of coming to work stress free and ready to lead the compensation team at this organization into the future.
Written by Ryan Brunner on September 7th, 2021
Answer Example
"I have always been a full throttle person that works hard and plays hard, and this balance keeps my mind in the right place at all times. I've certainly been exposed the stresses of a hard work day as a Compensation Manager, but I'm able to handle those days with ease because I don't take that stress home with me. In my free time, I am a family first person. My family enjoys many different recreational activities. We spend countless hours on the water and hiking and biking trails all around the state. My kids are also very active participants in sports and we travel many weekends with them."
Written by Ryan Brunner on September 7th, 2021
Education
12. Tell me about your education in compensation. Did your degree track require you to take classes in compensation?
How to Answer
Even though they can get a high level overview of our education by looking at your application materials, your interviewer wants you to discuss the educational path you have taken to get to this point in your career. This question is especially crucial for candidates that do not have a formal degree in HR, business administration or accounting. When answering this question, ensure that you put the interviewer at ease by reassuring them that you have the proper education for this role.
Written by Amy Hagan on September 13th, 2021
Answer Example
"I have my Bachelor's degree in business administration with a concentration in finance. As I worked for a time in finance, I got the opportunity to work part-time in staff compensation and really loved the work. While we did not have specific compensation courses in my Bachelor's program, I have taken additional courses outside of my degree to pursue this career path. For instance, I have a CCP certification. I feel that both my educational training and professional experience make me the best candidate to join your team as your next Compensation Manager."
Written by Amy Hagan on September 13th, 2021
Experience
13. Tell me about a time when you had to analyze an important employment offer that was challenging. What thought process did you go through to come to a decision?
How to Answer
While Compensation Managers aren't often directly involved in the day to day operations of extending job offers to candidates, they can be when the staff are trying to navigate negotiations or when a new role is created. In asking this question, your interviewer wants to know you have the ability to effectively analyze and put a job offer together when needed. If you have an example of a time that you were consulted on your experience and knowledge surrounding a candidate job offer, talk about the situation and what you brought to the table to provide a solution. If you don't have the direct experience in a situation like this, you can certainly walk through what you feel would be the key discussion and research points when approached in this role.
Written by Amy Hagan on September 13th, 2021
Answer Example
"Last year, my company was bringing on a new VP of business development. This was a new role that did not belong to any job families that were currently established at the company. I had to determine which job family this role best fit. From there, I had to do market research to determine what the industry pay mix standards were. This position, according to the market, is heavily bonused and we did not have a bonus structure set up for this type of position. Therefore, not only did I have to find the right salary and pay-mix, but I also had to design a bonus structure. I'm proud of this project. Not only because of all the variables involved, but it helped the company find a suitable candidate."
Written by Amy Hagan on September 13th, 2021
Experience
14. What experience with direct payroll operations would you bring to our team as our next Compensation Manager?
How to Answer
Compensation Managers often oversee the full payroll operations and payroll operations teams. Your interviewer is looking to hear what aspects of payroll operations you have experience in. When you answer, be sure to include any experience in the collection of payroll documentation like W4's, scheduling and overseeing payroll cycles, creation of policies surrounding payroll, processing various withholdings and issuance of paychecks. As you answer, make it clear that you are knowledgeable and functional in full payroll operations if hired.
Written by Ryan Brunner on September 7th, 2021
Answer Example
"As you can see from my resume, I spent the first two years out my Bachelor's degree program processing payroll for a large retail employer. I am forever grateful for this experience, because I really got to learn the ins and outs of the full spectrum of payroll. As my career progressed to a Payroll Supervisor with another organization to a Compensation Analyst in my current role, I would feel comfortable in leading the payroll team here at your organization."
Written by Ryan Brunner on September 7th, 2021
Experience
15. In your current role, have you been impacted by any recent changes to FLSA laws?
How to Answer
As the next Compensation Manager with this organization, you will be relied upon to ensure that the organization is compliant with all Fair Labor Standards Act laws as they apply to employee wages. In asking this question, your interviewer is looking to hear that you have innate knowledge on the FLSA laws and how they apply to the organization that you work for. If you were impacted by more recent changes in the law, be sure to talk about those changes and what you had to do ensure your organization was compliant. If you weren't directly impacted, simply let your interviewer know that you are aware of the changes. To really seal the deal with your answer to this question, try to talk about how these changes may have impacted the organization that you are interviewing with.
Written by Ryan Brunner on September 7th, 2021
Answer Example
"While not directly impacted by recent changes to the FLSA, I am fully aware of the change that made the minimum salary threshold for exempt staff to be over $35,000 per year. In my current role, a majority of our staff are non-exempt and the exempt management and leadership staff are well above that threshold. Were you impacted at all by this recent change? If so, how were things handled to be in compliance?"
Written by Ryan Brunner on September 7th, 2021
Experience
16. Have you ever been a part of developing a competitive benefits program in any of your previous roles?
How to Answer
To get a feel for the full experience you will bring to their team as the next Compensation Manager, your interviewer wants to know that you know the steps of implementing a new benefits program. If you have direct experience in the full benefits administration process, make sure to talk about any roles that you have played during your career. They also want to know that you understand that employers must be competitive with their benefits packages to attract employees, so talk about any experience you have in implementing new benefits are a win-win for both employees and the organization.
Written by Amy Hagan on September 13th, 2021
Answer Example
"Implementing new benefits programs is one of the most rewarding aspects of my job. I am most proud of the menu of benefits programs that I helped bring to my current organization. To begin this process a few years back, I conducted a survey to find out what benefits were most important to our employees. We found, after reviewing answers, that different employees value different benefits. Instead of offering just one benefit, we decided to give each employee a set amount of money to spend on benefits of their choice. I created a menu with all the different benefits, and employees could order the benefits of their choice. This saved the company money, and the employees really enjoyed and benefited from having the options that were most beneficial for them and their families."
Written by Amy Hagan on September 13th, 2021
Experience
17. Tell me about a job or setting where great precision to detail was required to complete a task. How did you handle that situation?
How to Answer
Working in compensation requires detailed work and as their next Compensation Manager, your interview wants to hear that you have a keen eye for the details required . As you answer, talk about your attention to detail, and ways that you ensure your own standard of work. Don't hesitate to talk about any tools that you use to ensure that you are very detailed in what you do. If possible, give an example of a complicated project where you had to pay attention to the fine details in the past to prove your ability to do just this in this role
Written by Amy Hagan on September 13th, 2021
Answer Example
"I am a detail-orientated person, and that is one of the reasons I chose the compensation field. We get to work with numbers and people. However, my work needs to be accurate and free of mistakes. Therefore, I have some checks and balances in place to ensure my work is error-free. I always take the time to check over my work for mistakes and don't hesitate to have a colleague put a second set of eyes on it as well. I'm also thorough when it comes to writing up reports, and of course I check spelling and grammar checking and syntax to ensure that my work is clean and detailed."
Written by Amy Hagan on September 13th, 2021
Experience
18. Please give me some examples of wage setting projects that you have been a part of.
How to Answer
As a Compensation Manager, your interviewer is looking to determine your experience and expertise in compensation analysis. Specifically for this question, they are looking to hear that you've been part of a wage setting project where you had to diagnose an issue, conduct thorough research and work to set the best possible wage for a particular job or career set.
Written by Amy Hagan on September 13th, 2021
Answer Example
"During my career, I have been part of several of these types of projects. The one that is most recently is with my current employer. The labor contract was about to expire with the union. The union decided they would run a class and comp study and use the material to justify higher raises. When management learned that the union was going to do their own study, they assigned me a project to complete a study on behalf of management. Typically we would outsource an entire class and comp study, but I purchased software that allowed me to create a custom class and comp in-house in time for labor negotiations. Management was pleased with the report, and we were able to meet an agreement with the union."
Written by Amy Hagan on September 13th, 2021
Experience
19. As our next Compensation Manager, what experience in implementing bonus systems would you bring to our team?
How to Answer
If a question regarding bonus systems is proposed to you during your interview, you can be sure that this organization uses bonus structures as part of the compensation package for at least some its staff. Your interviewer will be trying to determine your proficiency in establishing and managing bonus programs. Provide them with an example when you had to create or manage a bonus program. Also, don't hesitate to give your insight as a compensation professional on why bonus pay is a useful practice for an organization.
Written by Amy Hagan on September 13th, 2021
Answer Example
"I used to work for a large warehousing company at the start of my compensation career. When I joined, the team was struggling to find the right mix of personal bonuses and team bonuses. We needed the employees to work together to meet our goals, but we also needed to drive individual performance. We created a bonus system that rewards employees for their individual performance, The individual part of the bonus program paid out at 80%. Then we implemented a team bonus. If the team met all goals, employees were able to keep all 80% of their individual bonus and add 20% on for team performance, However, if the team performed poorly, not only did the employees miss out on the team bonus, but they also lose 50% of their individual bonus. This structure was well received by all and helped promote teamwork throughout the company."
Written by Amy Hagan on September 13th, 2021
Experience
20. Have you ever sat at the negotiating table for benefits like healthcare coverage, dental coverage, disability insurance or retirement benefits?
How to Answer
Your interviewer is asking this question to determine your technical skills as it relates to negotiating benefits. If you do have experience in being a part of the shopping and negotiation process, that is great! Be sure to talk about that experience, what your role was and any positive outcome that came of it. If you don't have experience at the negotiating table, that is okay. Just be sure to talk about what would be important in creating a win-win situation for both the company and its employees while at the negotiating table.
Written by Amy Hagan on September 13th, 2021
Answer Example
"For the past few years, our HMO prices have been growing at a rate much larger than our PPO prices. Last year, after receiving the second double-digit increase in two years, we decided it was time to shop for a new HMO. We hired a broker to go out and shop the best prices for us. We formed a committee to review the broker's contracts. The committee was made up of employees, managers, and HR. We wanted to ensure we had feedback from all stakeholders. As a committee, we were able to identify a new company to provide our HMO coverage. We saved money, and the benefits were richer for our employees as well."
Written by Amy Hagan on September 13th, 2021
Leadership
21. As our next Compensation Manager, when would you give positive feedback to your team?
How to Answer
Prior to even applying for this Compensation Manager role, you have to consider the fact that you will be supervising the work of others. To get a feel for your management style, your interviewer wants to hear what you feel is the right amount of positive feedback that you would give those that you supervisor and how you would give it. In the end, they want to know that you can motivate your team. Be open about your management style in a question like this. If you can gather anything about the organization's culture during your research and interview, this is a good time for you to match your own values with theirs.
Written by Amy Hagan on September 13th, 2021
Answer Example
"As I searched for a new position, I was really looking for a solid match with an organization that holds the same values as I do. This organization treats their customers and staff like family, and I have this same philosophy for how I treat those that I manage. I have found that positive feedback is a great motivating tool for individuals and their team. I make a conscious effort to give positive feedback as often as I can. I also try to give feedback as close in proximity to the action I am trying to reinforce."
Written by Amy Hagan on September 13th, 2021
Leadership
22. How would you describe the type of manager you would be as our next Compensation Manager?
How to Answer
If you made it to the interview stage in their search for their next Compensation Manager, your interviewer likely feels very confident in your ability to lead all technical aspects of the compensation department. Where they will look to dig into more with this question is what type of manager and leader they would be hiring to lead the full team of compensation staff. Prior to your interview, be sure to put some serious thought into how you will describe your management and leadership style. Some key points that you want to hit on are your ability to motivate others, communicate effectively, delegate tasks appropriately and be a strategic partner for other leaders within the organization.
Written by Ryan Brunner on September 7th, 2021
Answer Example
"I feel very fortunate to have worked under some great managers during my career and I've learned a lot from every great manager I've had. I consider myself to be a very flexible manager that has an innate ability to tailor my management style to each individual. I am a firm believer in leading by example to help motivate my team and being open with all communications to my team. People respond positively in an open and transparent environment and that is the environment I like to provide. Last, I like to put my team to work to the best of their strengths and assign work to match people's abilities. If hired as your next Compensation Manager, one of my first goals would be to learn the ins and outs of my team and each person's strengths and weaknesses."
Written by Ryan Brunner on September 7th, 2021
Leadership
23. Tell me about a time when you had to train a new colleague or direct report. Would you be comfortable in training new staff on the compensation team here?
How to Answer
As a Compensation Manager with this organization, you may have direct reports and will be responsible for the training of all staff within the department. At some point during your interview, your interviewer will try to determine if you can train your employees on the skills they will need to succeed as part of the compensation department. If possible, try to talk about a specific time where you trained a new employee and what tactics you used to ensure that the end goal of the training was achieved. If you do not have this direct experience at this point in your career, you can cite a time when you had to educate and train a hiring manager on the compensation processes.
Written by Amy Hagan on September 13th, 2021
Answer Example
"I have had to train new hires in HR on compensation for the last three years in my current role. I am the only dedicated comp professional in our organization, but my HR Director wanted to make sure that there were backups just in case I was not in the office. I had to train my co-workers on the HRIS system and how to pull appropriate reports. I also showed them how to craft an offer letter and extend it to the candidate. Now when I take a vacation, I do not have to come back to a lot of work because my co-workers can cover for me when I am out."
Written by Amy Hagan on September 13th, 2021
Problem Solving
24. Talk about a time you had to handle a conflict in the workplace. How did you handle that situation and what did you learn that you bring forward to this day?
How to Answer
As their next Compensation Manager, your interviewer realizes that you will likely face some conflict on the job. That conflict may come from your direct reports or high level leaders within the organization. To get a feel for how you handle person to person conflict in the workplace, they are proposing this question to you. No matter what situation you talk about, your interviewer will be looking to hear you talk about some key strategies and techniques that you used that prove your ability to handle conflict in a positive manner. Talk about your ability to communicate clearly, listen attentively and make sound judgements on behavior. They will also look to see that you were able to meet the conflict head on and with confidence, as you'll be relied upon to do so in this role.
Written by Ryan Brunner on September 7th, 2021
Answer Example
"Last year, I had to manage a conflict that a direct report of mine was having with a manager that was external to our department. I found out about the conflict from the external manager in an email. He let me know that my employee was rude in email and over the phone and that he didn't appreciate that behavior and wanted me to handle it appropriately. My first move was to talk directly to my employee to hear their side of the story. She let me know that the manager had been pressuring her for information one morning and she made it clear to him that she couldn't tackle the task until the next day. Not liking that answer, he continued to press her via email throughout the day and she admitted that she snapped on him via email and apologized for that. After seeing the email chain, I honestly didn't fault her getting angry at the manager. I briefly coached my employee on handling a situation like that if it ever happened again and told her to always involve me if things ever got out of hand like that. I let my employee know that I would handle the manager and I talked with him to let him know that I thought he was out of line in his communication with her when he was told when work would get done. He didn't know the workload that my team was under at the time and apologized for his actions. Looking back on this situation, I know that remaining calm and gathering all of the facts from both parties was essential in finding a great outcome."
Written by Ryan Brunner on September 7th, 2021
Problem Solving
25. Talk about a time when you had to take disciplinary with a direct report. What did you learn from that situation that you can bring to our organization?
How to Answer
It is important to understand that this role as a Compensation Manager is a management role with direct reports, so your interviewer needs to know that you the full toolbox of management skills to lead a team. If you have an example of a time where you had to take disciplinary action, share it with the interviewer. If you are new to management and do not have experience, you can share with the interviewer that you do not have the specific experience but understand the steps of coaching and eventually disciplining employees. As you answer, talk about the importance of proper documentation of performance.
Written by Amy Hagan on September 13th, 2021
Answer Example
"This would be my first management role supervising other, so I have never had to issue discipline to an employee. However, in preparation for my first role in management, I have taken leadership development classes. One of the classes that I took was managing employee performance. In this course, I learned how to craft write-ups and how to coach employees on their performance. The most important thing I learned during this class was to get HR involved until you feel comfortable enough issuing discipline on your own. While I feel confident in my abilities, I would work with HR until I had more experience under my belt."
Written by Amy Hagan on September 13th, 2021
Problem Solving
26. Can you describe a time where you had an issue with benefits. How were you able to find a solution?
How to Answer
In proposing this question to you, your interviewer is trying to gauge both your customer service and judgment skills. As the Compensation Manager for this organization and the expert on the benefits administration side, you will be tasked with being the problem solver on the organization's benefits. If you do have experience in working with issues surrounding benefits, provide your interviewer with an example of a time where you solved a problem for an employee. If you don't have direct benefits administration experience, discuss how you would use your excellent problem solving and communication skills to find a solution.
Written by Amy Hagan on September 13th, 2021
Answer Example
"Yes, I have one example that I will never forget. We had a spouse of an employee who had a pre-term baby. As you know, there is a time limit when a child can be added to health insurance coverage. We did not know that the employee's spouse had given birth and with all of the hardship and stress the employee's family was under, they didn't take the action needed to add the new child to their coverage. I worked with the employee to have the hospital write a letter stating the employee's spouse and child were both under medical care, and we were able to present the letter to the insurance carrier. Because of the extenuating circumstance, the carrier approved the baby being added to the insurance effective back to the date of birth. It was a pretty small amount of work that ended up having the greatest of impact on a valued employee and their family."
Written by Amy Hagan on September 13th, 2021
Scenario Based
27. The Compensation Manager we hire will need to break down complex data in a way that could be quickly understood and acted on by your team of HR specialists and support staff. How would you go about doing this?
How to Answer
Whether you will be working with complex compensation survey data or advanced pivot tables within an Excel spreadsheet, you will need to have the ability to present this complex information to key stakeholders and HR colleagues in a manner that is simplified and makes sense to them. With this question, your interviewer is checking to ensure that you have the knowledge and skills to break down a complex set of information, both into Layman's terms and into smaller parts. Talk about how you would explain complicated data to your colleagues in this role and, if possible, give an example of a time that you did just this on the job.
Written by Amy Hagan on September 13th, 2021
Answer Example
"Compensation data can be confusing to people that don't live and breathe compensation on a daily basis. Over the course of the last three years, I've been making a strong push for our nursing staff to be compensated more competitively compared to other health care organizations. I put together a comprehensive reports on a three year history of compensation surveys in our region and I broke all of the information in my report in terms that were easy to understand for all of our senior leadership. I customized my report to group different shifts with reported wages and compared this against our current scales at that time. In the end, the report was successful in convincing our leadership that new wage scales would need to be implemented for our different nursing positions for us to stay competitive."
Written by Amy Hagan on September 13th, 2021
Scenario Based
28. If hired as our next Compensation Manager, what HR and compensation system experience would you bring to our team?
How to Answer
In answering this question, you should talk through all of your experience with different HRIS and compensation/payroll systems. You should be familiar with the company's system, but you do not have to have specific experience using the system first-hand. Do some research about the system and find out what it has in common with other systems that you have used in the past. No matter how you answer this question, make sure your interviewer walks away from your conversation knowing that you are comfortable and competent working in any system with a little training.
Written by Amy Hagan on September 13th, 2021
Answer Example
"I have used several HRIS systems in the past. Most have the same underlying concepts, which allows for compensation professionals like me to navigate between different systems. I see that you use the ADP HRIS suite. I have not used ADP in the past, but I researched the system and found similarities to PeopleSoft and WorkDay and these are both systems that I have a lot of familiarity with. I feel confident that I could learn the system."
Written by Amy Hagan on September 13th, 2021
Scenario Based
29. If you are meeting with a newly promoted manager who does not understand internal compensation policies, what would you do?
How to Answer
Here, your interviewer is trying to see if you have the ability to explain internal compensation and payroll processes to someone that needs the information internally as you may be called upon to do this frequently if hired as the next Compensation Manager. Tell your interviewer about a time when you had to explain compensation processes to an internal client. As you discuss this, talk about the methods you use to ensure that others understand what you are teaching them.
Written by Amy Hagan on September 13th, 2021
Answer Example
"I have coaching sessions even after I do an initial compensation orientation with all new hiring managers at my current organization. One time, I remember a newly promoted manager that did his own salary study for a position he was recruiting for. When I told him what the maximum salary was for the position, he did not understand why he could not offer a higher salary. I sat down with him and explained internal equity and total compensation and how that impacts current staff and future hires. After our conversation, he retooled his salary study as a result, and we didn't have an issue after that."
Written by Amy Hagan on September 13th, 2021
Scenario Based
30. Tell me about a time when you had to manage multiple compensation projects at once. How did you prioritize your work in this situation?
How to Answer
In looking to hire you as their next Compensation Manager, your interviewer is trying to see how you would handle competing priorities and projects in this role. For this question, try to give examples of how you prioritized your work in the past when faced with many different projects and duties at one time. As you answer, be sure to talk about your thought processes in prioritizing your work and talking about ways that you stay organized and on track in your work. Any way you answer, make sure that your interviewer walks away from your interview knowing that you can multitask all duties that would come your way in this role.
Written by Amy Hagan on September 13th, 2021
Answer Example
"Over the past nine years I worked in a busy compensation role, regularly handling multiple duties and projects at one time. This experience has really prepared me for a promotion to your Compensation Manager role. Right now, I handle the day to day duties of payroll processing, along with oversight of our entire payroll team. On top of the payroll processing, I'm also managing several compensation survey studies. I'm in process of completing two surveys and analyzing the results of another. To stay on top of all of these projects, I utilize the tasks function in Outlook, along with Microsoft OneNote. These tools help me manage my day and important deadlines in ensuring that I stay on track on a daily and weekly basis."
Written by Amy Hagan on September 13th, 2021
Teamwork
31. As our next Compensation Manager, why do you feel building rapport with those you will work closely with is vital to your success in this role?
How to Answer
Your interviewer is trying to determine if you have the ability to build a strong rapport with colleagues and staff. They are trying to get a sense of your ability to collaborate, and why these are so necessary in your role.
Written by Amy Hagan on September 13th, 2021
Answer Example
"If hired for this role, I know that the leaders and employees of your organization will be placing their trust in me as your next Compensation Manager. Compensation is extremely important to helping employees live a happy and fulfilling life and important for the organization to be fair and just in all of their practices. And one of the ways I aim to do that is through transparency and accountability. As well, my communications would be clear and educational and I would always keep an open door for any leader, colleague or staff member to approach me."
Written by Amy Hagan on September 13th, 2021
Trust
32. Why do you think it is important for companies to hire compensation professionals?
How to Answer
While it may seem like it, your interviewer certainly isn't looking for you to justify your work by asking this question. What they are looking for is that you have a definite understanding of why compensation departments exist and why they are vital to the success of any organization. When answering this question, ensure you impart to the interviewer the strategic importance of compensation. Spend time talking about how proper compensation can assist companies in meeting strategic goals.
Written by Amy Hagan on September 13th, 2021
Answer Example
"To be their most efficient, an organization needs to make sure they have the right people in the right place at the right time to meet their strategic goals. If a company pays too high of a wage, they lose valuable dollars. If a company pays too little, they lose their best team members to other organizations. Most organization's largest bill is in the form of wages and benefits. If you do not have a compensation professional on staff, you may not be paying enough, or you may be paying too much. It is a science to find the right salary that works for both the employer and the employee. Compensation professionals understand this nuance, and that is why they are a critical hire for any organization."
Written by Amy Hagan on September 13th, 2021
Trust
33. What was the most useful criticism you ever received?
How to Answer
As they are considering you to be their next Compensation Manager, your interviewer is checking to ensure you can receive and implement positive feedback in your work. In this role, you will be working with a wide variety of high level leaders and the ability to take criticism in a positive way is imperative. Make sure your example includes how you were able to respond to the criticism.
Written by Amy Hagan on September 13th, 2021
Answer Example
"I value all feedback that I receive. I treat it as a gift. There is one time that stands out in my mind. A few years ago when I was a Compensation Analyst for a large healthcare organization, I had a division administrator approach me about a recent email communication that I had sent his way. He approached me in person because he wasn't able to decipher a lot of the information that I had sent him that he originally requested. In our conversation, it became very clear that a lot of the terminology I had used was hard for him to comprehend. So we talked through the information that I had sent so it was clear to him. I learned an important lesson from the feedback that I received from him and now I try to be cognizant of the way I communicate to different people."
Written by Amy Hagan on September 13th, 2021
Trust
34. What drew you to applying to be our next Compensation Manager?
How to Answer
Because Compensation Managers are employed in every business and industry, you ultimately have the choice on where you want your career to take you. In asking this question, your interviewer wants to hear that you had a direct purpose in choosing to apply and interview with their organization rather than just applying to any job that may have been out there. They ultimately want to hear that you would bring a personal investment into their organization if hired. Prior to interviewing, and hopefully even prior to applying, you should do your research into overall business, mission and values of the organization you are interviewing with so you can tie those values to your own. No matter how you answer this question, make sure that your interviewer walks away from your time together confident in your commitment to this role and their organization.
Written by Ryan Brunner on September 7th, 2021
Answer Example
"When I applied for this role, I honestly wasn't actively considering a new position. Last month, a current staff member at your organization recommended that I apply because they knew that I had the skills and experiences to take your compensation team to the next level. In conversation with them, they spoke so highly of your mission in bringing technological advances to a field that is helping so many people throughout the world. They also spoke highly of the organization's mission of enhancing environmental change in all that you do. These are values that I hold near and dear to my heart and the more that I researched your organization and this role, I knew that this would be a great fit for me for the rest of my career."
Written by Ryan Brunner on September 7th, 2021
Trust
35. What do you like least about working in the compensation field?
How to Answer
The interviewer is looking to see if you can give honest feedback about what you do not like about working in the compensation field. Ideally, they'll be looking to hear you talk about a duty or area of the work that you find displeasing while talking about how you handle the task with efficiency and professionalism. It is best to acknowledge a part of your job that you are not crazy about so your interview gets good insight into who they would be hiring for this position. Then shift the answer to how you are trying to improve that aspect of your job.
Written by Amy Hagan on September 13th, 2021
Answer Example
"At times the day to day duties can become repetitive. So I have a number of ways to break the rhythm up. sometimes its a simple as having something to listen to while I work, other times I create smaller goals for me to achieve, and this small shift motivates me in a new way. I try and schedule my weeks so that I'm not doing the same task for too may hours in a row, and I find these changed in patterns and rhythms helps to boost my concentration and keeps me positive. In this role as a Compensation Manager with your organization, I look forward to bringing my skills to leading the entire payroll team and working on more exciting, big picture compensation projects."
Written by Amy Hagan on September 13th, 2021