In a small business, payroll and compensation are critical functions. While they don’t directly generate revenue, these departments ensure employees are paid accurately and fairly—providing the fundamental motivation for staff to perform at their best. Professionals in these areas perform a range of tasks to ensure operations run smoothly and efficiently.
Payroll Manager
The payroll manager oversees daily operations within the payroll department. Depending on the organization’s size, they may work independently or manage a team of payroll staff. While they typically do not run payroll directly, they maintain payroll records, hire and train staff, and coordinate audits. Additionally, payroll managers may collaborate with senior management to select and implement payroll administration software.
Payroll Clerk
Reporting to the payroll manager, the payroll clerk handles day-to-day payroll transactions. This includes compiling employee time sheets, entering data into timekeeping systems, and calculating wages with appropriate deductions such as taxes, insurance premiums, union dues, and Social Security. Payroll clerks then process payments through electronic transfers or physical checks.
Compensation Manager
A compensation manager oversees the design and administration of a company’s compensation and benefits strategies. This senior role typically manages a team, including a compensation analyst and benefits administrator. The manager ensures job descriptions align with salary ranges, conducts salary surveys to maintain competitive pay structures, and selects insurance providers to offer benefits that meet employee needs while staying within budget.
Compensation Analyst
Supporting the compensation manager, the compensation analyst performs data-driven tasks such as analyzing internal and industry salary trends to determine appropriate pay grades. They also conduct detailed surveys to benchmark compensation practices against other organizations and provide insights to guide decision-making.
Administrator
The benefits administrator, reporting to the compensation manager, implements and manages employee benefits programs. Acting as the liaison between staff and insurance providers, they educate employees about eligibility, enroll them in appropriate plans, and maintain all benefits-related records.
