What Does a Compensation Analyst Do?

In order to attract and retain high-quality employees, a compensation analyst ensures that workers within a company receive competitive compensation and benefits. One way to do this is to look into the pay for similar jobs and develop salary and benefit structures based on that information. Internal and external salary surveys are both possible. Analysts in this field usually work in the personnel or human resources departments of companies, governments, or educational institutions.

A compensation analyst can look into future salary predictions and potential changes. He or she may gather salary information and then interpret or analyze it. This information could be presented to management or members of the hiring team in the form of a report.

The compensation analyst also classifies and categorizes current and potential future jobs. Positions can be categorized based on their importance to the employer or the level of responsibility they carry. In order to attract potential employees, an analyst may write job descriptions. If the organization has a human resources website, the analyst is sometimes in charge of updating and maintaining it.

A person in this position must have strong leadership skills because he or she is frequently responsible for guiding the management team through compensation-related issues. Analysts sometimes work with incentive programs in addition to salaries. Bonuses, incentives, and recognition are examples of these. These programs may require compensation analysts to communicate and implement them.

A compensation analyst is frequently required to work with a diverse group of people from various job levels and personality types at all levels of the organization. This necessitates the analyst’s ability to effectively communicate verbally. It is also necessary to have good writing skills.

Other skills required for this type of job include being organized, detail-oriented, and possessing strong analytical abilities. This is particularly useful when analyzing data. A compensation analyst must also be familiar with the most efficient methods for hiring employees. It’s also important to be familiar with the laws and regulations governing veterans’ preferences, fair labor standards, and affirmative action.

In most cases, a bachelor’s degree is sufficient, but some organizations require a master’s degree in business administration (MBA). Certification opportunities are also available to make you a more desirable candidate. The most common is to earn a certification as a Certified Compensation Professional.