HIRE BOSTON
March 18-24, 2005
Changing times creating compensation exec demand
By JUDY WARNER
Special to the Journal
Compensation for senior-level human resources executives steeped in compensation capability is heating up as the economy improves and larger businesses look to both recruit and retain talented employees.
Growth in such industries as biotech, technology and health care is creating demand at a time when specialists in compensation are increasingly rare.
“Nine or 10 years ago, the feeling in the industry was that it was good to be a generalist. Now that we’re looking for specialists, they are either rare or impossible to find,” says Russell Campanello, senior vice president at Keane Inc. in Boston.
The demand for midlevel compensation executives had been steady – but in the past 12 to 24 months, senior-level compensation managers have been in greater demand notes human resources consultant Rita B. Allen.
“Most organizations had to have competitive reward systems, and the supply (of talent) has been limited locally. I tell all new graduates to consider the field of compensation because it is so strategic,” says Allen, formerly of Gatti Associates who now runs her own eponymous career-consulting firm in Waltham (www.ritaballenassociates.com).
There’s a “depth to compensation,” Allen says, because the skills that are required range from having good business sense to understanding the different methods of compensation, including base, variable, executive, incentive and performance-based models.
Moreover, when compensation is evaluated as a variable rather than a fixed cost, which is more prevalent in service-based rather than manufacturing-based industries, payment portfolios become “increasingly aggressive,” says Campanello.
Preferred candidates have experience designing, implementing and maintaining executive compensation packages. “There’s always a need for creative compensation programs,” Allen adds.
Understanding compliance is also important. Changes in accounting rules requiring publicly traded companies to report stock options as expenses will create a host of new questions. “When this takes effect,” Keane’s Campanello says, “it may reduce the value of stock options, forcing companies to evaluate whether more incentive or performance-based options are preferred…..Right now, there is a lack of clarity on the value of stock options.:
Peter Lupo , national compensation practice leader at Aon Consulting, says the most important skill is the ability of a compensation manager to interact with senior management. This is particularly true with executive compensation. The interaction between human resources and the CEO and board of directors in crucial in how to appropriately compensate people,” Lupo maintains.
JOB POSTINGS
Current job openings in the Boston area include a director of compensation at teaching hospital Beth Israel Deaconess Medical Center. With more than 7,000 nonunion employees and a staff of four, the director of compensation for Beth Israel would oversee market pricing for all employees in direct patient care, research and administrative positions, performance incentives and management and executive compensation. The position requires eight to 10 years of relevant experience and “a track record of accomplishment.” To apply, see www.bidmc.harvard.edu
State Street Bank seeks a compensation analyst for its Quincy office. The post works with colleagues and HR managers to identify and implement compensation, conduct surveys and analyze data to ensure market competitiveness, as well as develop and update compensation materials. Minimum of two years compensation experience and strong analytical, communication and organizational skills required. View www.jobs.statestreet.com/jobs/ or contact Jennifer Olson, staffing consultant at State Street, 225 Franklin St., Boston.
The University of Massachusetts Medical School in Worcester seeks a compensation manager. The position, which reports to the director of compensation, benefits and HR services, includes the coordination of staff compensation programs, the review of grade and salary levels, development of salary surveys and analysis of data, among other tasks. To apply online, see www.umassmed.edu; click on “jobs” and search 03-0255.
HIRE BOSTON is interested in your company’s hiring outlook and practices. Contact reporter Naomi R. Kooker at nkooker@bizjournals.com or send job listing directly to hireboston@bizjournals.com