Compensation Analyst Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a compensation analyst. Feel free to use our compensation analyst job description template to produce your own. We also provide you with information about the salary you can earn as a compensation analyst.
Who is a Compensation Analyst?
Compensation is a form of payment given to employees or workers in recognition of work done. The process of compensation analysis involves recommending employees’ financial and other packages to employers and organizations. They accurately research compensation procedures, policies, and packages and recommend fair play in the structure and function of a firm. They use their analysis of the job market to make employers understand and comprehend the importance of financial fair play at work. However, he or she works within the confines of the company’s financial goals; they provide recommendations that are fair, competitive, and beneficial to all and sundry. In most firms, these professionals are stationed or work in the human resources unit; they use their training and skills to determine the exact amount for a particular position or role. A compensation analyst studies the main tasks in a job posting and reconciles them to the accurate or appropriate salary or pay depending on the current trend in remuneration and/or factor rate system.
There are various definitions for a compensation analyst; however, most experts define compensation analysts as individuals and professionals employed in the human resources unit of firms and businesses to analyze workers’ benefits, salaries, and other compensation. While making recommendations, they ensure that both parties get a fair deal. They compare and contrast salaries and compensations for similar roles in different companies and arrive at a fair figure. After analysis and research, these figures are suggested or passed to management for implementation.
A compensation analyst adheres to federal laws and procedures while working; he or she creates or develops a salary structure that matches an employer or organization’s vision. They may review a firm’s existing salary scale and make suggestions for adjustments if necessary. Some compensation analysts write the salary and benefits sections of a job posting or description. Most have efficient knowledge of the organization’s module Operandi, financial structure, and overall vision and targets. Data compilation and analysis form part of the duties of a compensation analyst; they help the human resources manager or employer to develop technical reports using federal or state labor laws. In some companies, a compensation analyst reports to a senior compensation manager and assists them in classifying jobs, establishing exempt and non-exempt statuses, and researching various salary scales.
Furthermore, they collaborate with stakeholders and other professionals to maintain knowledge of industry trends and development. Using data and statistics, they develop attractive salary packages and compensation structures. In addition, a compensation analyst ensures employee retention and optimizes recruitment by recommending competitive benefits packages. They are meticulous, have excellent business acumen, and possess proficiency in salary analysis and trends. They create healthy employee-employer financial packages to maintain a healthy work and salary balance. The role of a compensation analyst also involves making recommendations on salary raises and more. A compensation analyst is logical and methodical in nature; he or she is interested in accounting, finance, and research.
Compensation Analyst Job Description
Below are the compensation analyst job description examples you can use to develop your resume or write a compensation analyst job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a compensation analyst include the following:
- Assess, evaluate, and review new openings in preparation for recruitment or employment. This ensures that positions are classified accordingly and appropriately.
- Consider, appraise, and review a worker’s demand or inquiry relating to salary level or structure.
- Review questionnaires, confer with supervisors, evaluate jobs and positions, and write reports and recommendations.
- Relay findings and suggestions to managers and employers.
- Analyze and determine market pay rates using results of surveys and published research.
- Administer and formalize findings and recommendations from research where necessary.
- Perform job reviews, contract reviews, and project audits and document findings and reports to assist project reporting.
- Research and clarify issues relating to compensation and benefits.
- Ensure resolution of pay and compensation misunderstandings by adopting contractual provisions and historical practices.
- Adhere to PCC systems rules, policies, regulations, and procedures while working.
- Participate in formal compensation appeal hearing and attend to employee’s appeal.
- Create, supply, support, and analyze data on positions and projects.
- Develop and suggest salary scales for newly hired employees and participate in yearly salary reviews.
Qualifications
An aspiring compensation analyst must ace certain qualifications and requirements to be considered for the position. These qualifications may span experience, education, certification, and training among others. However, there are core qualifications or requirements that are compulsory in every setting or company. These include;
- Compensation analyst degree and education requirements: Education is compulsory for a role in compensation analysis. Several citadels of learning and universities offer degree courses in or related to the field. A bachelor’s degree is the least educational qualification for this position. Specific or related courses that can suffice for a compensation analyst are finance, business administration, law, and human resources management. Individuals who wish to advance their career and boost their earning potential can enroll in a master’s degree; they will learn about retirement plans, compensation, benefits administration, and bonuses and incentives while pursuing such an advanced degree.
- Compensation analyst certification: To be a more competitive candidate, an individual must apply for and gain relevant certification in the industry. Also, most compensation analysts’ certifications come with advanced skills, added knowledge, and more expertise in compensation analysis. An example of a certifying body is the World at Work society or association of certified professional compensation analysts. This body offers professional certificates for aspiring compensation analysts. The process involves rigorous training and passing a certification exam. Thematic areas include base and variable pay, human resource accounting, pricing, and job analysis
- Experience requirements: Experience and expert knowledge of compensation and compensation processes are also required for employment. Recruiters and entities that hire compensation managers often ask for a minimum of two years of experience in a similar or related role. In some organizations, applicants will be required to provide proof of three or more years of experience. An entry-level role in the field can help individuals build years of experience; afterward, they can move up the ladder and apply for senior roles.
- Computer and Microsoft Office proficiency or expertise: Candidates must be proficient and skilled in the Microsoft Office suite and other related computer applications. He or she must have the dexterity to operate Microsoft Word, PowerPoint, and Excel respectively. Knowledge of HRIS systems is an added advantage.
Essential Skills
Research and expert analysis showed that data and detail orientation, critical thinking, and communication are some of the attributes of a compensation specialist. The most successful analysts can process and compare data and present it in esculent forms to employers. They observe strict compliance with organizational rules and guidelines and demonstrate professionalism and confidentiality always. Essential compensation analysts’ skills are important for negotiating equitable employee benefits, classifying and rating jobs, and drafting technical reports. A breakdown of these skills is given below;
- Ability to read and write: Some of the daily duties and responsibilities of a compensation analyst involves reviewing and improving a job description; hence, they should be able to read and write. Reading and/or writing skills are important for correcting mistakes in a job posting. Normally, they will work with the hiring manager, seek clarifications, and rectify any observed issues on the job description.
- Ability to conduct research: A compensation analyst often consults with experts compare what is obtainable in other companies for the same position, and makes recommendations where necessary. Research skills are needed to perform the aforementioned. Research skills enable the compensation analyst to investigate the salary structure for each role in the company, conduct surveys, and source information from salary reports respectively. They also collaborate with companies and firms in the industry to decipher how they define their pay rates. They use this skill to get information, reports, and data on federal and state laws with regard to compensation.
- Organization and time management: A compensation analyst should be an excellent time manager and organizer; thriving in compensation analysis involves performing several tasks in a limited period. Remember, he or she must provide analysis on different job openings at once; hence, they need an organization to put everything in order. Similarly, they utilize their time management skills to meet deadlines and schedules.
- Knowledge of the law and legal practices: Compensation analysts must always operate according to the law. There are several laws and guidelines regarding compensation and benefits. He or she must know legal procedures for determining the compensation package for each position. For example, a compensation analyst must appraise and peruse the Fair Labor Standard Act to ascertain if a certain role is subject to or exempted from the provisions. This will enable the compensation analyst to recommend equitable and fair compensation and pay for different positions to employers. Relatively, this skill enables them to suggest ways to improve compensation packages and develop policies, and strategies to conform to trends or development in the law.
- Computer skills: To effectively conduct research and source information electronically, these professionals need excellent computer skills. Most organizations have migrated from analog to digital modes of operation nowadays. Thus, a compensation analyst must be computer proficient to keep up with trends.
How to Become a Compensation Analyst
If you plan to become a compensation analyst, then you need to learn the education requirement, experience, skills, and roles and responsibilities of the position. Importantly, an aspiring compensation analyst must know the right steps to take to begin a career in compensation analysis. Undoubtedly, an endeavor as a compensation analyst is a brilliant career move; these experts or professionals enjoy flexible schedules and an exemplary work-life balance. Hence, follow the guidelines below to start a career in compensation analysis;
- Complete a bachelor’s degree in a relevant course: An individual must complete education to qualify for a role as a compensation analyst. Normally, most employers mandate at least a bachelor’s degree. Courses that can suffice include human resources management, business management, and labor relations. In addition, a graduate degree in any behavior science, liberal arts, or social science course is accepted by several employers.
- Get relevant work experience through entry-level positions: Experience is crucial in compensation analysis; hence, an individual must gain work experience in the field to be a better candidate. Usually, most aspiring compensation analysts begin from entry-level positions and grow into higher roles with years of experience. An internship or apprenticeship can also provide necessary work experience. Similarly, a role in human resources in any organization is another way of gaining relevant compensation analysts’ experience.
- Pursue an advanced degree to gain more skills: A master’s degree in a related field is important for career advancement and growth. It also provides advanced knowledge and skills as well as helps to boost your earning capacity. In addition, an advanced degree in a compensation analysis-related field enables the candidate to learn how to review variable pay, review regulations and principles, and evaluate different compensation policies and techniques.
- Obtain industry-related certification(s): A certified compensation analyst is believed to be a proficient and outstanding compensation analyst. Prospective compensation analysts can obtain industry-related certificates as certified sales compensation professionals or certified compensation professionals for instance.
Where to Work as a Compensation Analyst
A compensation analyst can be employed or hired by different firms, enterprises, entities, companies, or organizations. They can work for scientific and technical institutes or services, professional bodies, insurance firms, and retail companies. He or she can also work in the human resources department of large corporations. Some are hired by the government to work as local government financial advisers; others work for brokerage firms, natural gas distribution enterprises, and non-profit groups.
Compensation Analyst Salary Scale
Remunerations and salaries serve as morale boosters for most employees. Therefore, most compensation analysts enjoy fair salaries and bonuses from their employers. Most times, these salaries are competitive and enticing. Thus, the annual salary of a compensation analyst has been estimated to be approximately $75,123. These professionals enjoy added benefits such as ownership plans, stock options, and insurance.