Compensation Analyst Salary
Job Description for Compensation Analyst
Compensation analysts work with human resource and operations professionals to perform a series of functions that ensure the company offers competitive compensation levels to attract and retain talent. At its core, the compensation analyst administers the company's business unit-specific variable pay programs. The work is ongoing, since the compensation analyst is responsible for reviewing and updating existing pay programs and developing new pay programs. In this review process, the compensation analyst observes the pay process, takes note of any inefficiencies or areas in need of improvement, prepares improvement recommendations along with supporting evidence.Read More...
Compensation analysts work closely with human resource staff to collect job data and consistently manage the job-leveling process. The compensation analyst also prices jobs using market data and internal data to ensure consistency in the pay structure across the entire organization. To fulfill these responsibilities, compensation analysts often participate in and conduct wage surveys.
Compensation analysts must have a high degree of attention to detail. They must be punctual, reliable, and able to effectively communicate with people at all levels of the organization. Compensation analysts must also be effective decision makers who can properly collect, analyze, and report data. Due to the technical nature of the position, a bachelor's degree in a relevant field is required for the position.
Compensation Analyst Tasks
- Assist in preparation of merit increase and incentive programs and budgeting.
- Identify relevant market data and trends regarding executive compensation and present recommendations.
- Review and monitor employee pay and recommend reviews if necessary.
- Design and prepare ad hoc compensation and budget related reports for management.
- Write job descriptions and maintain database of all job descriptions.
Common Career Paths for Compensation Analyst
Compensation Analysts who transition into a Compensation Manager role may receive large pay increases as the latter position pays an average $101K per year. When Compensation Analysts are ready for the next step in their careers, they often become Senior Compensation Analysts or Compensation Managers. Those roles pay an additional $16K and $32K, respectively.
Compensation Analyst Job Listings
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Popular Skills for Compensation Analyst
Survey results imply that Compensation Analysts deploy a substantial tool kit of skills at work. Most notably, skills in Project Management, Benefits & Compensation, Data Analysis, and Human Resources Information System (HRIS) are correlated to pay that is above average. Those listing Human Resources as a skill should be prepared for drastically lower pay. PeopleSoft and Microsoft Access also typically command lower compensation. Those familiar with Data Analysis also tend to know Microsoft Office.
Pay by Experience Level for Compensation Analyst
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Compensation Analysts do not generally earn higher incomes from more experience in the field. Salaries of relatively inexperienced workers fall in the neighborhood of $59K, but folks who have racked up five to 10 years see a notably higher median of $68K. Compensation Analysts bring in $72K after working for 10 to 20 years. Individuals who report more than two decades of experience seem to make only slightly more than folks in the 10-to-20 year range; the more senior group sees median earnings in the comparatively modest ballpark of $76K.
Pay Difference by Location
For Compensation Analysts, San Francisco provides a pay rate that is 19 percent greater than the national average. Compensation Analysts will also find cushy salaries in New York (+15 percent), Washington (+13 percent), Boston (+11 percent), and Chicago (+9 percent). Compensation Analysts in San Antonio earn salaries far below the national average by 33 percent, proving that geography overwhelmingly affects the pay scale for those in this field. Employers also pay below the national average in Cincinnati (9 percent lower) and Dallas (6 percent lower).