What Does a Compliance Manager Do?

A Compliance Manager plays a critical role in an organization’s governance, risk management, and compliance (GRC) framework. Their primary responsibility is to ensure that the company operates in accordance with all applicable laws, regulations, internal policies, and industry standards. By doing so, they help safeguard the organization from legal exposure, reputational damage, and operational risk.

In the context of a corporate board or governance environment, a compliance manager also ensures that board activities are conducted ethically, transparently, and in alignment with regulatory and fiduciary obligations. They play an essential role in shaping, implementing, and monitoring compliance programs that support the board’s integrity and oversight responsibilities.

When Should an Organization Hire a Compliance Manager

RULE OF THUMB: MORE THAN 50 ENTITIES, 100 LICENSES, and 50 TAX FILINGS

An organization should consider hiring a Compliance Manager when its regulatory obligations become too complex or numerous to manage informally or across multiple departments. This often occurs during periods of rapid growth, entry into new markets, increased scrutiny from regulators, or expansion across multiple jurisdictions. If the organization is subject to industry-specific regulations—such as in finance, healthcare, or manufacturing—or must maintain licenses, certifications, or internal controls, a dedicated Compliance Manager becomes essential. Their role ensures the company remains aligned with legal requirements, avoids costly penalties, and fosters a culture of ethical conduct and accountability. Hiring a Compliance Manager proactively can also support smoother audits, reduce operational risk, and position the organization for sustainable, compliant growth.

Why In-House Corporate Teams Struggle with Compliance

In-house corporate teams often struggle with compliance due to a combination of growing regulatory complexity, limited resources, and inefficient systems. As regulations frequently change across local and global jurisdictions, staying current becomes a constant challenge—especially for teams that are already juggling multiple responsibilities without sufficient staffing or budget. Many organizations still rely on fragmented data sources and manual processes, such as spreadsheets and email, which increases the risk of errors and missed deadlines. The problem is further compounded by global expansion and the proliferation of legal entities, each with unique compliance obligations. Without a centralized system or clear visibility, teams find it difficult to track filings, renew licenses, or provide timely reporting to leadership. Additionally, specialized compliance knowledge is often lacking in-house, particularly in highly regulated industries. To address these challenges, companies are increasingly adopting compliance management software and automation tools, which streamline workflows, enhance data accuracy, and help in-house teams stay ahead of evolving regulatory demands without needing to expand headcount.

What does it cost training a compliance manager annually?

The cost of training a compliance manager can vary widely depending on factors such as industry, certification level, location, and whether the training is conducted in-house or through external providers. Professional certification programs like the Certified Compliance & Ethics Professional (CCEP), Certified Regulatory Compliance Manager (CRCM), or International Compliance Association (ICA) diplomas typically range from $1,500 to $6,000, covering exam fees, materials, and instruction. In-house training programs may cost between $1,000 and $5,000 per employee, factoring in development time, learning platforms, and potential use of external trainers. Additionally, compliance managers often require ongoing education through conferences, webinars, or continuing professional education credits, which can add another $500 to $2,500 annually. Hidden costs, such as time off for training, productivity loss during onboarding, and travel expenses for in-person sessions, should also be considered. Altogether, the total investment in training a compliance manager in their first year can range from $2,500 to over $10,000, depending on the depth and delivery of the training.

Average Salary for a Compliance Manager

United States (2024 Estimates)

By Industry (U.S. Averages)

• Financial Services & Banking: $110,000 – $140,000

• Healthcare & Life Sciences: $100,000 – $130,000

• Technology & SaaS: $95,000 – $120,000

• Energy/Utilities: $105,000 – $135,000

• Retail & Manufacturing: $90,000 – $115,000

By Location (U.S. Major Markets)

• New York, NY / San Francisco, CA: $120,000 – $150,000+

• Chicago, IL / Boston, MA: $100,000 – $130,000

Business Case (Software vs Compliance Managers)

If a company invests in a compliance software solution costing between $10,000 and $30,000 annually, along with hiring an entry-level compliance manager (earning around $70,000 per year), and that combination effectively replaces the workload of two senior-level compliance managers (each earning approximately $130,000 per year), the total annual savings can be substantial.

Here’s the breakdown:

💡 Total Estimated Savings: $160,000 per year

This cost efficiency demonstrates how the right mix of technology and junior talent can dramatically reduce overhead while maintaining compliance performance—especially when automation handles manual, repetitive tasks that would otherwise demand higher-cost senior expertise.