Compensation analysts work directly for companies or agencies which serve various companies to help them determine compensation structures, processes, and practices, as well as provide suggestions for compensation levels and incentive programs such as bonuses. These analysts must conduct research and various analyses in order to develop specialized plans for their companies' needs, and they may also conduct surveys and interviews within their companies.
Compensation analysts must always stay up-to-date with changes regarding compensation within the market; when problems arise, they must identify the root cause/s and create plans of action to solve them. They may also help their companies revise policies and processes regarding compensation and approve salary offers for candidates both inside and outside of the company.
Those in this position must have have strong computer, problem-solving, and research skills, as they frequently create reports and presentations to present findings and suggestions. They may also oversee training classes regarding compensation policies and procedures, so strong communication and public speaking skills are also important. A bachelor’s degree in business, human resources, or a related field may be required by some employers.
Analyst, Compensation Tasks
Write job descriptions and maintain database of all job descriptions.
Assist in preparation of merit increase and incentive programs and budgeting.
Design and prepare ad hoc compensation and budget related reports for management.
Participate in salary surveys, and analyze data from survey sources to determine competitiveness both internally and externally.
Price new jobs utilizing salary surveys or slotting.