What does a Compensation Analyst do?
Published 4 min read
A compensation analyst is responsible for conducting job evaluations to determine appropriate salary ranges for positions, as well as developing and administering compensation programs. They may also be responsible for analyzing data to identify trends in compensation, and making recommendations to management on how to improve the organization's overall compensation structure.
Compensation Analyst job duties include:
- Research and analyze compensation data for jobs of similar scope and responsibility
- Develop recommendations for compensation changes based on market data and internal equity
- Prepare detailed reports summarizing findings and recommendations
- Work with HR business partners to develop and implement new compensation programs
- Manage the administration of existing compensation programs, including salary planning, bonus plan administration, and long-term incentive plan administration
- Conduct job evaluations to determine appropriate salary levels for new and existing positions
- Assist with the development and implementation of employee recognition programs
- Monitor compliance with FLSA and other applicable wage & hour laws
- Provide guidance and support to managers and employees on compensation-related issues
Compensation Analyst Job Requirements
Most compensation analysts have a bachelor's degree in human resources, business administration, or a related field. Some employers may prefer candidates who have a master's degree in human resources or business administration. Certification is not required for this position, but some analysts choose to pursue certification through the Human Resources Certification Institute (HRCI) or the Society for Human Resource Management (SHRM). Compensation analysts typically have at least five years of experience working in human resources, payroll, or a related field.
Compensation Analyst Skills
- Analytical skills
- Profit and loss analysis
- Financial analysis
How to become a Compensation Analyst
A compensation analyst is a human resources professional who designs and implements employee compensation programs. In order to become a compensation analyst, one must first earn a bachelor’s degree in human resources, business, or a related field. Many employers also require compensation analysts to have at least two years of experience working in human resources or a related field.
Once you have the necessary education and experience, you can begin applying for jobs as a compensation analyst. When applying for jobs, be sure to highlight your experience designing and implementing employee compensation programs. You should also emphasize any skills you have in data analysis, as most compensation analysts spend a significant amount of time analyzing data to determine how to best structure employee compensation programs.
If you are hired as a compensation analyst, your first few months on the job will likely be spent shadowing more experienced colleagues and learning about the organization’s current compensation programs. Once you have a good understanding of the organization’s needs, you can begin designing and implementing new employee compensation programs. This process typically involves conducting extensive research, analyzing data, and developing recommendations for senior management.
Compensation analysts typically work full-time during regular business hours; however, some flexibility may be required in order to attend meetings with senior management or meet deadlines. Although the job can be challenging at times, it is also very rewarding to know that you are helping to ensure that employees are fairly compensated for their hard work.
Related: Compensation Analyst Resume Example