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.
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.