The following article discusses the career path of Compensation Analyst. Learn about how to become one, education requirements, job duties, traits and qualities, national salary outlook as well as top national employers of Compensation Analysts.<!- mfunc feat_school ->
Compensation analysts work with operations and human resource professionals in order to make sure the organization can attract new talent and retain it, focusing on competitive compensation packages. The main goal of a compensation analyst is to make sure that the pay programs offered by the organization are administered properly.
Although an analyst technically analyzes current situations, the work of compensations analysts is ongoing. This is because they make sure that all pay programs are up to date, regularly reviewing their effectiveness and appropriateness. They also develop new pay programs as and where needed, reviewing processes as they go along. This means they have to have an in-depth understanding of the pay process, determine and identify where inefficiencies exist, identify areas for improvement and make recommendations on this, using evidence.
Usually, the compensations analysts are found within the human resources department. Here, they have the best access to job data, which enables them to level the different jobs within the organization. They also use both internal and market data to price up certain jobs, thereby making sure that the pay structure is consistent across the organization as a whole. One of the tools they use to achieve this is the wage survey.
Other job duties of a compensation analyst include:
- Making sure that the organization is fully compliant with the different laws and regulations in their area, including reporting requirements
- Monitoring of taxes for equalization and cost differentials, ensuring that the appropriate variable pay packages and incentives are in place.
- Analyzing data and market trends and using these to create market pricing recommendations and developing salary structures
- Monitoring and reviewing employee pay and compensation and recommending these for review if and when needed
- Gathering market trends and data in relation to executive compensation and write reports and recommendations based on that
Where We Work
According to the U.S. Bureau of Labor Statistics, there were 15,800 compensation and benefits managers in 2016. The largest employers of these professionals were:
- Management of companies and enterprises: 24%
- Professional, scientific, and technical services: 13%
- Government: 10%
- Insurance carriers and related activities: 9%
- Healthcare and social assistance: 8%
How to Become
Compensation analysts have to be able to pay attention to detail. They also have to be reliable, punctual, and very effective communicators. Furthermore, they need to have experience in collecting data, analyzing it, and reporting on it. Because this is all quite technical in nature, it is generally expected for a compensation analyst to have a bachelor’s degree as a minimum.
Compensation analysts usually need a bachelor’s degree in a field such as degrees in business administration, degrees in human resources, degrees in finance, or degrees in business management. Work experience is also essential. Usually, they enter the workplace as administrators for compensation and benefits, and then choose to specialize in one of those two areas.
There is no legal requirement for these professionals to become certified. However, certification is generally appreciated by employers as it demonstrates commitment to excellence. There are also some positions that do require certification. Someone usually has to have a number of years’ experience before they can become certified through associations such as WorldatWork, the International Foundation of Employee Benefit Plans, and the HR Certification Institute.
Traits & Qualities
The most effective compensation analysts have the following traits to some degree or other:
- Strong analytical skills
- Excellent business skills
- Great communication skills, both verbal and written
- Strong business skills
- Excellent decision making skills
- Great leadership skills
The national average salary estimate for Compensation Analyst was $66,326. This number is estimated from over 270,124 employees, users past and present job advertisements from Indeed.com. This equates to an hourly salary of $34.54 and monthly of $5,527.
- Most Reported
Salary by State
The following section lists Compensation Analyst salaries in each state around the country. The figures are based on the total number of job postings through Indeed.com. For example, DC had the largest quoted salary of $81,963 while Nebraska had the smallest quoted salary of $30,278.
Top 20 National Employers
According to Indeed.com, the following states had employers looking to hire a Compensation Analyst. The quoted salary figure represents the average salary from all job postings by this employer.
|Employer Name||Location||Average Salary|
|Marcum Search LLC||New York||$110,000|
|Ezra Penland Actuarial Recruitment||Ohio||$102,254|
|Accurate Staffing Solutions Corp.||New York||$100,000|
|Robert Half Finance & Accounting||California||$95,961|
|Optimal Sales Search||California||$94,869|
|Sacramento Municipal Utility District||California||$90,751|
|Direct Sales Recruiting, LLC||New York||$88,392|
|Parker and Lynch||New Jersey||$87,927|
|TheBestIRS, Insurance Recruiting Specialists||California||$87,909|
|Federal Reserve Bank of New York||Virginia||$87,709|
- Compensation, Benefits, and Job Analysis Specialists …
- Compensation Analyst: Career and Salary Facts – Learn.org
|Career Name||Average Salary|
|Business Operations Manager||$68,007|
|Supply Chain Analyst||$66,387|