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Posted On: January 8, 2018 by Henry R. Steele

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.

Job Duties

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.

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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.

Education Requirements

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

Minimum Education

Bachelor’s Degree

National Salary

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.

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$20,000

$137,000

Salary Distribution

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.

Arkansas Hawaii Minnesota Oklahoma
Arizona Iowa Missouri Pennsylvania
California Illinois North Carolina South Carolina
Colorado Indiana Nebraska Texas
Connecticut Kansas New Jersey Virginia
DC Massachusetts New Mexico Washington
Florida Maryland New York Wisconsin
Georgia Michigan Ohio
Arkansas$63,075 Rank: 15th
The average salary ranks 15th among states in the country. There were also job openings from employers like Walmart.

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$31,000

$105,000

Salary Distribution
Arizona$57,989 Rank: 22nd
The average salary ranks 22nd among states in the country. There were also job openings from employers like State of Arizona.

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$21,000

$111,000

Salary Distribution
California$66,700 Rank: 11th
The average salary ranks 11th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting, Optimal Sales Search, Sacramento Municipal Utility District, and TheBestIRS, Insurance Recruiting Specialists.

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$10.80

$72.10

Salary Distribution
Colorado$54,201 Rank: 27th
The average salary ranks 27th among states in the country. There were also job openings from employers like Vaco, LLC and Lawrence Associates.

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$8.90

$58.25

Salary Distribution
Connecticut$55,872 Rank: 25th
The average salary ranks 25th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting, Questor Consultants, Inc., and Cartus.

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$18,000

$115,000

Salary Distribution
DC$81,963 Rank: 1st
The average salary ranks 1st among states in the country. There were also job openings from employers like Ajilon and Robert Half Finance & Accounting.

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$40,000

$138,000

Salary Distribution
Florida$57,331 Rank: 23rd
The average salary ranks 23rd among states in the country. There were also job openings from employers like Taylor White, Kforce Finance and Accounting, Vaco, LLC, and Orlando Utilities Commission.

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$8.95

$62.75

Salary Distribution
Georgia$58,944 Rank: 21st
The average salary ranks 21st among states in the country. There were also job openings from employers like Robert Half Management Resources, Randstad Professionals, and Global SCR.

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$11.35

$59.30

Salary Distribution
Hawaii$54,251 Rank: 26th
The average salary ranks 26th among states in the country. There were also job openings from employers like Staffing Solutions of Hawaii.

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$27,000

$83,000

Salary Distribution
Iowa$71,659 Rank: 3rd
The average salary ranks 3rd among states in the country. There were also job openings from employers like Robert Half Finance & Accounting.

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$35,000

$121,000

Salary Distribution
Illinois$69,971 Rank: 6th
The average salary ranks 6th among states in the country. There were also job openings from employers like EASF, Hirewell, Revolution Technologies, and Interim HR Consulting.

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$33,000

$120,000

Salary Distribution
Indiana$69,392 Rank: 8th
The average salary ranks 8th among states in the country. There were also job openings from employers like Conexess.

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$21,000

$145,000

Salary Distribution
Kansas$45,036 Rank: 30th
The average salary ranks 30th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting.

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$22,000

$74,000

Salary Distribution
Massachusetts$70,443 Rank: 5th
The average salary ranks 5th among states in the country. There were also job openings from employers like Liberty Mutual, Willmott & Associates, Inc., Beacon Hill Staffing, and AP Accounting & Finance.

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$34,000

$120,000

Salary Distribution
Maryland$61,834 Rank: 16th
The average salary ranks 16th among states in the country. There were also job openings from employers like National Security Agency, Aerotek, Johns Hopkins University, and Robert Half Finance & Accounting.

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$14,000

$157,000

Salary Distribution
Michigan$69,041 Rank: 9th
The average salary ranks 9th among states in the country. There were also job openings from employers like Groupe LEADER, Venteon, Aerotek, and Ajilon.

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$14,000

$175,000

Salary Distribution
Minnesota$69,849 Rank: 7th
The average salary ranks 7th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting, inSync Staffing, Hire Talent, and Adecco.

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$16.50

$63.80

Salary Distribution
Missouri$66,639 Rank: 12th
The average salary ranks 12th among states in the country. There were also job openings from employers like Steele Technology Partners and curta.

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$33,000

$108,000

Salary Distribution
North Carolina$60,153 Rank: 20th
The average salary ranks 20th among states in the country. There were also job openings from employers like City Of Raleigh, Mecklenburg County, Elite Personnel Group, LLC, and Will Reveal If Interested.

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$12.45

$58.55

Salary Distribution
Nebraska$30,278 Rank: 31st
The average salary ranks 31st among states in the country. There were also job openings from employers like Remedy Intelligent Staffing.

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$7.85

$23.70

Salary Distribution
New Jersey$70,821 Rank: 4th
The average salary ranks 4th among states in the country. There were also job openings from employers like Parker and Lynch, Top Prospect Group, Robert Half Finance & Accounting, and Execu|Search.

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$28,000

$132,000

Salary Distribution
New Mexico$56,901 Rank: 24th
The average salary ranks 24th among states in the country. There were also job openings from employers like Central New Mexico Community College and Bernalillo County Government.

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$22,000

$106,000

Salary Distribution
New York$73,223 Rank: 2nd
The average salary ranks 2nd among states in the country. There were also job openings from employers like Direct Sales Recruiting, LLC, Execu|Search, Michael Page, and Nigel Frank International.

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$15,000

$174,000

Salary Distribution
Ohio$61,129 Rank: 18th
The average salary ranks 18th among states in the country. There were also job openings from employers like Tata Consultancy Services (TCS), Ohio State University, Robert Half Finance & Accounting, and Software Specialists.

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$17,000

$131,000

Salary Distribution
Oklahoma$48,812 Rank: 29th
The average salary ranks 29th among states in the country. There were also job openings from employers like Aerotek, University of Central Oklahoma, and Manpower.

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$21,000

$87,000

Salary Distribution
Pennsylvania$51,340 Rank: 28th
The average salary ranks 28th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting, Adecco, Robert Half Management Resources, and Resourcehunt group.

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$10.95

$49.30

Salary Distribution
South Carolina$64,815 Rank: 14th
The average salary ranks 14th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting.

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$27,000

$118,000

Salary Distribution
Texas$64,829 Rank: 13th
The average salary ranks 13th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting, Mackenzie Stuart plc, NextStep Recruiting, and Tata Consultancy Services (TCS).

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$28,000

$116,000

Salary Distribution
Virginia$67,364 Rank: 10th
The average salary ranks 10th among states in the country. There were also job openings from employers like Federal Reserve Bank of New York, AppleOne, Kforce, and Robert Half Finance & Accounting.

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$26,000

$127,000

Salary Distribution
Washington$60,672 Rank: 19th
The average salary ranks 19th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting and City of Seattle.

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$12.60

$59.00

Salary Distribution
Wisconsin$61,666 Rank: 17th
The average salary ranks 17th among states in the country. There were also job openings from employers like UW Health.

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$31,000

$94,000

Salary Distribution

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

Learn More

Related Careers

Career Name Average Salary
Henry R. Steele
Henry R. Steele
Managing Editor
Henry is Managing Editor of BusinessStudent.com. He is a seasoned business professional who regularly consults with local business's throughout Southern California. Henry pursued his undergrad in Business and Economics at the University of San Diego and gained valuable life changing experience through a unique internship upon graduation.Follow on Twitter.com

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