The Roles You Can’t Risk Leaving Vacant: Why Compensation and Benefits Openings Can Hurt You

By Rob Hosking, Executive Director for Administrative and Customer Support, Robert Half

In my last post, I covered several factors that are impacting the search for HR talent, and how savvy organizations are managing to hire successfully in this very complex market.

While leaders continue to staff for a variety of HR professionals, one specialty is in particularly high demand: Compensation and benefits. More clients are requesting assistance staffing roles in this area, and demand is consistent across all industries and geographies. Recent Robert Half research from over 250 HR hiring managers reflects this as well:

In a survey of HR managers asking about their strategic priorities for 2024, compensation and benefits landed at the top of the list (tied with training and development).

64% of HR managers cite the lack of applicants with the required skill sets as their greatest hiring challenge. Meeting candidates’ salary expectations came in second, with 52% of the response.

The most challenging areas to find skilled staff are compensation and benefits (41%) and operations (also 41%)

Compensation and benefits staff handle multiple responsibilities. Depending on the organization, they may set compensation grids; evaluate and update job descriptions; update salary bands for individual roles; and research market trends and make appropriate policy changes to remain competitive in the market.

There’s a bigger spotlight on this function because of inflation: This team must constantly evaluate and re-evaluate starting salaries for candidate offers, as well as existing salaries for current staff. Is the organization competitive in the geographical market and industry? Can staff live comfortably on their salaries with inflation and the rising cost of living? Are competitors pulling talent away with expanded or more innovative benefit offerings?

I noted in my previous post that the timeline to staff a full-time role today is often three months or more. If someone on your comp and benefits team departs — whether it’s for a new role, sudden illness or another reason — you have a big problem. Plenty of things can shift in three months’ time, and these shifts won’t stop because you don’t have the right people in place. Organizations must keep constant and vigilant monitoring of their comp and benefits structure to continue to retain and recruit effectively.

Market demand for certain skills and positions can change quickly, in a matter of days or weeks. As you’re trying to fill your comp and benefits vacancies, your most highly valued staff may be recruited for roles offering higher comp packages. Recruiting for your openings may stall as starting salaries aren’t keeping up with the market. And morale and engagement can dip easily: When a few people start departing, others may follow as they get the sense the grass is greener elsewhere and begin looking for their next opportunity.

One midsized organization I work with lost their comp and benefits specialist along with their payroll manager in a span of two weeks. Leadership was surprised by the departures, and now they’re scrambling to replace both roles and keep functions running while the seats are vacant. It’s a very difficult situation to be in.

Know that just because you are fully staffed now, it doesn’t mean you will be next week or next month. Look closely at your comp and benefits function: Are you paying these team members competitively? Are they challenged and engaged by their work and career path at the company? What tasks or responsibilities have they mastered that would best be delegated or outsourced to others? In which areas would they benefit from having additional resources and support?

Savvy leaders take an “always on” approach to recruiting compensation and benefits staff. They continue to keep their eyes out for great professionals, even when they may not have a current opening.

I encourage you to reach out to us at Robert Half to discuss your compensation and benefits staffing requirements. We can help you evaluate your current organizational structure and offer recommendations on supplementing certain functions with contract staff. Doing so may enable your full-time team to have greater focus on their most important initiatives, and give them a morale lift that keeps them more engaged in this always changing environment.

Follow Rob Hosking on LinkedIn.

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