Occupational analysts conduct research, usually in large firms. They are concerned with occupational classification systems and study the effects of industry and occupational trends upon worker relationships. They may serve as technical liaison between the firm and other firms, government, and labor unions.

Establishing and maintaining a firm’s pay system is the principal job of the compensation manager. Assisted by staff specialists, compensation managers devise ways to ensure fair and equitable pay rates. They may conduct surveys to see how their firm’s rates compare with others and to see that the firm’s pay scale complies with changing laws and regulations. In addition, compensation managers often manage their firm’s performance evaluation system, and they may design reward systems such as pay-for-performance plans.

Employee benefits managers and specialists manage the company’s employee benefits program, notably its health insurance and pension plans. Expertise in designing and administering benefits programs continues to take on importance as employer-provided benefits account for a growing proportion of overall compensation costs, and as benefit plans increase in number and complexity. For example, pension benefits might include savings and thrift, profit-sharing, and stock ownership plans; health benefits might include long-term catastrophic illness insurance and dental insurance. Familiarity with health benefits is a top priority for employee benefits managers and specialists, as more firms struggle to cope with the rising cost of health care for employees and retirees. In addition to health insurance and pension coverage, some firms offer employees life and accidental death and dismemberment insurance, disability insurance, and relatively new benefits designed to meet the needs of a changing workforce, such as parental leave, child and elder care, long-term nursing home care insurance, employee assistance and wellness programs, and flexible benefits plans. Benefits managers must keep abreast of changing Federal and State regulations and legislation that may affect employee benefits.