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, incentive pay, and performance management programs. Evaluates jobs, determines pay grades, participates in compensation surveys, and performs associated analysis. Being a Compensation Analyst ensures that requests for pay adjustments comply with current compensation policy. Typically requires a bachelor's degree. Additionally, Compensation Analyst typically reports to manager. The Compensation Analyst gains exposure to some of the complex tasks within the job function. Occasionally directed in several aspects of the work. To be a Compensation Analyst typically requires 2 to 4 years of related experience.
These analysts usually work in the personnel or human resources departments of businesses, governments, or school systems.
Future predictions and prospective changes in salaries may be studied by a compensation analyst.
The compensation analyst also looks at existing and possible future jobs and categorizes them.
An analyst may also write job descriptions to attract prospective employees.
If there is a human resources website for the organization, the analyst is sometimes in charge of updating and maintaining the site.
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.
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.
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.
Requires strong understanding of the impact of a message on the organization or customer.
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.
Must be organized with an ability to manage workload efficiently to fulfill commitments in a timely manner.
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?
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.
Because good employees are usually the lifeblood of an enterprise, the work of a compensation analyst impacts the entire business.
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.
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.
Try working for a few years in entry-level human resources positions before sending in an application for analyst positions.
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.
Research skills – compensation analysts need large quantities of data to effectively perform their duties.
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.
Microsoft Excel expertise – without workbooks and spreadsheets, the amount of data that compensation analysts must deal with would be wholly unmanageable.
Organization skills – compensation analysts must keep detailed records on personnel and policy.
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.
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 $64,901 to $78,900. The salary will change depending on your location, job level, experience, education, and skills.
- View average salary for the United States
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Average salary for Compensation Analyst jobs
- Compensation Analyst IV
- Compensation Analyst I
- Compensation Analyst II
- Compensation Analyst III
- Principal Compensation Analyst
- Entry Compensation Analyst
- Intermediate Compensation Analyst
- Senior Compensation Analyst
- Sales Compensation Analyst