How to Become a Compensation Analyst

Step 1: Understand the job description and responsibilities of a Compensation Analyst

What does a Compensation Analyst do?

A Compensation Analyst analyzes, designs, and administers employer compensation programs, including base pay, long and short-term incentives, spot bonuses, commissions, and stock that align with company objectives for recruiting, retention, and employee engagement. Designs and communicates pay structures, grades, compensation budgets, and guidelines. Being a Compensation Analyst advises managers on making effective pay decisions that support employee engagement and comply with compensation policy and budgetary guidelines. Evaluates jobs and develops and maintains job descriptions and job architecture. Additionally, Compensation Analyst participates in compensation surveys, conducts research and analysis on market competitiveness, pay equity, and compensation trends. Requires a bachelor's degree or equivalent. Typically reports to a manager. The Compensation Analyst occasionally directed in several aspects of the work. Gaining exposure to some of the complex tasks within the job function. To be a Compensation Analyst typically requires 2-4 years of related experience.

People's Opinions on Compensation Analyst responsibilities

These analysts usually work in the personnel or human resources departments of businesses, governments, or school systems.

12/31/2019: Altus, OK

Future predictions and prospective changes in salaries may be studied by a compensation analyst.

01/21/2020: Jackson, MS

The compensation analyst also looks at existing and possible future jobs and categorizes them.

01/25/2020: Santa Cruz, CA

An analyst may also write job descriptions to attract prospective employees.

11/27/2019: Tampa, FL

If there is a human resources website for the organization, the analyst is sometimes in charge of updating and maintaining the site.

01/30/2020: Santa Ana, CA
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Step 2: Learn best tips to become a Compensation Analyst

Best tips for those who want to become a Compensation Analyst

Here are some tips to become a Compensation Analyst.

People's Opinions on best tips

Bachelor degree in business, finance, HR or other field related to functional work or role with 5-7 years of relevant work experience OR demonstrated ability to meet the job requirements through a comparable number of years of applicable work experience.

01/30/2020: Gulfport, MS

Requires excellent communication skills with ability to state messages in a clear manner by using language that is easy for others to understand; must be able to modify communication style both formal and informal to match the appropriate level of the audience targeted.

12/14/2019: Lowell, MA

Requires strong understanding of the impact of a message on the organization or customer.

12/11/2019: Amarillo, TX

Must be well versed in compensation theory/practice, and in local, state and federal laws and regulations such as the Fair Labor Standards Act, Equal Pay Act, the Americans with Disabilities Act, minimum wage, overtime and record keeping requirements.

02/21/2020: Erie, PA

Must be organized with an ability to manage workload efficiently to fulfill commitments in a timely manner.

01/06/2020: Lompoc, CA
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Step 3: View best colleges and universities for Compensation Analyst

Best colleges and universities for Compensation Analyst

  • Butler University
  • Carroll College
  • Cooper Union
  • High Point University
  • Princeton University
  • Providence College

Step 4: Think about whether is it worth to be a Compensation Analyst

Is being a Compensation Analyst Worth it?

People's Opinions on lifestyles

If the position itself interests you, you'll be happy to know that as a compensation analyst, your salary would be very solid, allowing you to earn enough to support your children quite nicely.

02/21/2020: Columbus, OH

Because good employees are usually the lifeblood of an enterprise, the work of a compensation analyst impacts the entire business.

02/28/2020: Fargo, ND

If you want to be a compensation analyst, you'll need to stay in college to earn a bachelor's degree in a field such as human resources, business administration or finance.

12/15/2019: Hialeah, FL

Since the core of the job is figuring out salary and benefits structure, you'll want to study compensation, benefits, management, ethics, communication and economics.

12/13/2019: Canton, OH

Try working for a few years in entry-level human resources positions before sending in an application for analyst positions.

02/14/2020: Bradenton, FL
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Step 5: Prepare relevant skills for being a Compensation Analyst

What skills do you need to be a Compensation Analyst?

When looking into a role like this one, you need to take account of your skills and abilities.  The ability to succeed in this role depends upon the possession of the following skills: Benchmarking, HR Policy Administration, Incentive Programs, Market Pricing, Salary Planning, Salary Program Administration, Compensation Budget Modeling, Job Evaluation, Survey Participation, Compensation Program Design.  Although not always necessary, a grasp of these skills can help: Compensation Management Software.  During an interview, try to convey your knowledge of these skills.

People's Opinions on Compensation Analyst skills

Research skills – compensation analysts need large quantities of data to effectively perform their duties.

12/15/2019: Roanoke, VA

To ensure they have the most accurate and up-to-date information, compensation analysts must be capable researchers who know how to get the information they need.

12/15/2019: Evansville, IN

Microsoft Excel expertise – without workbooks and spreadsheets, the amount of data that compensation analysts must deal with would be wholly unmanageable.

01/01/2020: Tucson, AZ

Organization skills – compensation analysts must keep detailed records on personnel and policy.

12/31/2019: Fort Lauderdale, FL

Interpersonal skills – compensation analysts spend large parts of their days talking and working with others, so the ability to communicate effectively with different personality types is essential.

02/13/2020: Seattle, WA
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Step 6: View average salary for Compensation Analyst

How much does a Compensation Analyst make?

The average salary range for a Compensation Analyst is from $68,207 to $83,318. The salary will change depending on your location, job level, experience, education, and skills.

Salary range for a Compensation Analyst
$68,207 to $83,318

Step 7: Find relevant Compensation Analyst jobs, and apply.

Looking for Compensation Analyst jobs?

Here are some Compensation Analyst jobs in the United States.

Search Compensation Analyst Jobs in the United States

Step 8: Explore Career Path of Compensation Analyst