Compensation AnalystJob Description, Salary, Career Path, and Trends
Compensation analysts support the human resources and finance department by analyzing and determining each employee’s salary and benefits. This job requires professionals to have experience with compensation research and data analysis.
Compensation analysts are responsible for overseeing a company’s remuneration policies and programs. Some of their duties include analyzing positions to understand an employee’s scope of responsibilities, reviewing compensation data to ensure competitive pay, and managing salary structure to create a healthy balance between employee pay and the company’s financial performance.
This career opportunity requires the compensation analyst to be a human resource expert in employment costs, compensation analysis, and benefits. It is important for candidates to have a business background with basic knowledge of computer programs such as Microsoft Word, Excel, and PowerPoint.
Sample job description #1
Perform job evaluations and analysis of jobs, compensation benchmarking, data collection, base salaries and incentives to evaluate internal equity, external competitiveness, and legal compliance of global pay practices
Reviews and analyzes job duties to determine scope of work including assessing and evaluating jobs to determine grade, classification, and market value for new positions, as well as requests for compensation increase, structure, grade, and title changes
Provides analysis and counsel to management on compensation programs and initiatives related to pay structures, short term incentives, pay change recommendations, new hire offers, and wage and hour regulations
Continually evaluate for and implement process efficiencies
Examine compensation trends and develop recommendations supporting business initiatives
Assists in the development and implementation of salary administration, compensation policies, and variable pay plans (e.g., merit, annual incentives, bonuses, awards, sales commission, etc.) for salary administration including policy review and pay structure development
Assists with annual merit increases and other similar projects by working collaboratively with HRIS, Payroll, and cross functional teams to ensure project goals are achieved
Compiles salary survey submission files, performs global job matching, responsible for market pay system maintenance and administration, ensuring accurate market data and internal data validation. Responsible for auditing data on a regular basis
Acts as a main contact for day-to-day compensation matters, including monitoring and answering queries to a functional email inbox
Maintains and updates job description library and job data in appropriate HR systems for new Company roles and changes to existing roles, ensuring consistency among functions
Maintains HR data tools integrity by ensuring the accurate and consistent input of data. Performs regular audits and addresses data concerns
Coordinates and assists with human resource projects, programs, and special assignments
Ensures the confidentiality of sensitive information
Develop, analyze, and maintain complex Excel reports to support data analysis
What skills you bring
2 to 4 years of previous experience with compensation function at a global company preferred
Experience utilizing compensation theory, principles, and practices to perform independent analysis of programs using market data
Must have advanced level Microsoft Excel skills
Above average analytical skills, especially in other MS Office suite products
Proficiency in HRIS systems preferably with Ultipro
Strong data mining and quantitative analysis skills
Must have strong quantitative, critical thinking, and problem-solving skills, with ability to research and analyze various types of data
Excellent verbal, written communication skills, presentation, and facilitation skills as well as interpersonal and consultative skills
Ability to use good judgment, be discreet and highly trustworthy, and demonstrate ethical conduct
Bachelor’s degree in Business Administration, Finance, Human Resources, or equivalent field from an accredited college or university
Certifications in compensation, general HR practice or related fields preferred, especially from associations such as SHRM, World @ Work, or similar
Sample job description #2
Analyzing of all approved or proposed compensation plans, compiling all the source data and requirement needs in the Incentive Compensation excel spreadsheets
Troubleshooting and addressing all incentive questions that are provided from operational, human resources, clinician, and other teams in a timely manner
Maintaining detailed workflows and documentation of all incentive plans
Completing the annual true-up process for all incentives that are applicable to these bonus plans
Developing and implementing calendars for distribution of key compensation plan metrics, results, analytics
Reviewing and approving all discretionary incentive forms that are provided to ensure accuracy and precision
Develop recurring and ad hoc compensation reports, metrics and dashboards
Providing updates to stakeholders on statuses of completion of all incentive plan calculations weekly
Optimization and improvement in the intention of reducing and improving redundant and/or manual processes, making them more effective
Tracking and maintaining audit files for all payment files sent to the payroll department
Required skills and abilities
Proven analytical ability coupled with problem solving and time management skills with the aptitude to multi-task and self-manage through multiple priorities
Proficient in the Microsoft Office suite; advanced knowledge of Microsoft Excel required–including VLOOKUP, Index Match, Pivot Tables, Conditional Formatting and Macros
Identifying and quantifying risks and opportunities to develop strategies to mitigate risk and pursue opportunities
Ability to present financial information to a non-financial audience
Excellent communication, interpersonal, and presentation skills
Detail-oriented and able to perform in a high-pressure environment
Strong analytical thinking and problem-solving skills
Experience working with large amounts of data
Ability to create ad hoc type reports
Maintaining highest level of confidentiality
Taking initiative and be proactive in resolving problems while being able to communicate effectively and follow through in a timely manner
Bachelor’s degree in finance, accounting, healthcare administration, or a related field
Experience working with HR Systems (iCIMS and UKG preferred)
Report writing/creating dashboard experience
Expert Excel skills (Pivot Table creation)
3-5 years’ experience in incentive compensation design and execution, in a fast-paced environment
Sample job description #3
The Compensation Analyst participates in compensation surveys and performs job evaluation and analysis for all company positions.
Participates in salary surveys to obtain current data for job evaluations to ensure the Company’s competitiveness in the marketplace; compiles, analyzes, and evaluates survey data; maintains data sources in CompAnalyst and with internal stakeholders
Evaluates new positions using established methodology and determines grade and level assignment. Creates new job codes and titles for positions and maintains title integrity and job description library
Generates analytics for use by regional, functional, and business unit management to assist with compensation management decisions; Provides summary reports at the end of each measurement and/or merit increase cycle for management review
Reviews and signs off on all pay rate changes to ensure and validate consistency
Assists in the design and administration of training, policies, processes, procedures, and other communications including the annual merit cycle and short-term incentive administration
Works collaboratively with other functional areas including HR Systems, Real Estate, FP&A, and Payroll
Skills and knowledge
Survey and market pricing management
Intermediate excel skill such as the use of pivot tables, VLOOKUP, SUMIF, and COUNTIF
Exposure to Workday HCM and Advanced Compensation
2+ years relevant work experience
Bachelor’s Degree in HR, Business Administration, Accounting, or equivalent experience
Average salary and compensation
The average salary for a Compensation Analyst is $74,400 in the United States. Position salary will vary based on experience, education, company size, industry, and market.
Los Angeles, California
Minneapolis-St. Paul, Minnesota
New York City, New York
Sample interview questions
Why do you want to be a compensation analyst?
What qualities do you possess that helps you succeed as a compensation analyst?
Do you mind walking us through your resume?
Describe what your typical workday would look like at this job.
What do you hope to achieve working here as a compensation analyst?
Could you describe some of the wage-setting projects you’ve been involved in?
Can you write effective job descriptions?
What do you include in the job descriptions you create?
Why are compensation analysts considered an asset in a company?
How do you approach determining salaries and benefits for employees?
How do you solve problems relating to compensation expenses?
How well do you work with others?
If you were hired for this position, how would you evaluate the existing remuneration packages?
What do you do to ensure you stay up to date with labor legislation changes?
What do you believe to be the most important to establish a high employee retention rate?
What software are you comfortable using?
How do you optimize labor costs?
If an employee was underpaid, is it better to correct the mistake now or add it to next month’s payroll?
What’s included in federal and local taxes withholdings?
How do you explain benefits and insurance details simply to employees?
What would you say is your biggest challenge working as a compensation analyst?
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