What Does a Compensation Analyst Do?
Compensation analysts study salary statistics in order to develop appropriate compensation structures. They play an integral role as part of a corporation's human resources team and ensure that employee salaries are both competitive and reasonable. Applicants usually need a bachelor's degree as well as previous compensation experience in order to obtain employment in this role. This position requires applicants who are able to communicate effectively with people of all job levels and personalities.
|Required Education||Bachelor's degree|
|Certification||Voluntary Certified Compensation Professional credential|
|Projected Job Growth (2018-2028)*||6% (compensation, benefits, and job analysis specialists)|
|Average Salary (2019)**||$63,470 (compensation analyst)|
Source: *U.S. Bureau of Labor Statistics, **Payscale.com
Comp Analyst Job Description
Compensation analysts conduct analysis on internal and external salary statistics. Based on the information collected, they recommend, develop, and implement an appropriate employee compensation structure. This structuring involves configuring pay grades, evaluating new employee titles, and ongoing reclassification of these pay grades.
Compensation analysts also might create and apply employee incentive plans to maintain and attract talent. They usually work in partnership with the rest of the human resources team to ensure that compensation and bonus programs can compete with other businesses.
This position requires applicants who are able to communicate effectively with every level of employee within their company, along with a variety of different personalities. Compensation analysts must have good evaluation skills and the ability to convey information in legible reports to their human resources and executive groups. Since most compensation analysts assist in writing job descriptions, writing skills are also valuable.
How to Become a Compensation Analyst
Compensation Analyst Training
Compensation, benefits, and job analysis specialists need a bachelor's degree in a field such as human resources, business administration, or finance. Common course topics in human resources bachelor's degree programs include compensation, benefits, management, ethics, communication, and economics.
Compensation Analyst Work Experience
Most prospective employers also require applicants to possess relevant work experience. Aspiring compensation analysts can gain experience by working in entry-level human resources positions before applying for analyst positions. This training will ensure that the applicant has some experience working with employees in a human resources environment.
Certification is available for those who wish to demonstrate their knowledge and potentially advance their careers. World at Work offers the Certified Compensation Professional (CCP) exam. The International Foundation of Employee Benefit Plans offers continuing education opportunities and designations in compensation management, group benefits, retirement plans, and total compensation.
Compensation Analyst Salary and Job Outlook
The U.S. Bureau of Labor Statistics projects average employment growth of 6% for compensation, benefits, and job analysis specialists from 2018 to 2028. According to Payscale.com these professionals earned an average annual salary of $63,470 in 2019, while the BLS reports that compensation managers made an average annual salary of $99,973 that same year.
Compensation analysts develop compensation structures by analyzing salaries and job responsibilities. They create employee compensation structures, which often include pay grades and titles. Many compensation analysts have a bachelor's degree and some obtain certification to advance their career.