Compensation analysts bring outside and inside data together to determine salary and benefits offerings. They have to balance offering competitive packages to workers while making sure their companies can justify the cost of payroll and incentives. Compensation analysts often classify positions and evaluate job descriptions for compliance with state and federal laws.
Salary scales are typically determined by conducting surveys, performing research and modeling data, making analytical skills a key aspect of a compensation analyst job description. A background in business, accounting or finance can give someone what it takes to develop matrices that become part of the corporation’s policies. Critical thinking is important for correctly interpreting data.
Detail-oriented people tend to carry out the duties of compensation analysts successfully, helping their organizations stay in step with the marketplace. Be sure your compensation analyst job description highlights the strong communication skills needed to present information and collaborate with managers.
Compensation Analyst Job Summary
As a compensation analyst at our organization, you’ll shape policies that reward employee contributions. You’ll be part of Human Resources but will have regular contact with IT, legal and field managers. Your knowledge of our company’s goals and analysis of data will be used to guide every aspect of our wage program. As you report to our manager of compensation, you’ll be given opportunities to assist with special projects and take courses to keep you abreast of the latest trends. Your work with salary scales will impact our ability to attract and retain the best talent and therefore help our company to flourish.
- Gather data and perform statistical analysis and interpretation of information to develop and adjust salary grades in accord with company goals
- Classify job descriptions for all current and open positions, working in conjunction with hiring managers to define duties and responsibilities while ensuring regulatory compliance
- Conduct annual and ad-hoc surveys, evaluate data integrity, summarize results, produce reports and present findings to decision makers
- Keep up with pending changes that will affect hiring, earnings and benefits, such as adjustments to minimum or living wage
- Train field associates to ensure that guidelines are understood and matrices are applied correctly, handling complaints and resolving problems with graceful professionalism
- Evaluate payment change requests from department heads and provide final approval or denial within standard time frames
- Create models and projections for retention and bonus programs, showing annual and fiscal impact for each alternative
- Develop and document procedures to streamline processes and ensure continuity during absences
Job Skills & Qualifications
- Bachelor’s degree in business administration or related field
- Advanced Microsoft Excel skills to create calculations, charts and graphs
- Solid understanding of HR systems, job codes and salary tables
- Ability to work under pressure and regularly re-prioritize tasks
- At least three years of experience in a similar role
- Knowledge of the retail sector
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Compensation Analyst Job Responsibilities
Since the way your compensation analyst job description is written says a lot about the way your company operates, you want to make sure that every part of it is ship-shape, and that starts with your job responsibilities section. This section should make up the bulk of a well-developed compensation analyst job description. Spend the time properly beefing up this portion to make a solid first impression on jobseekers, and you have a better chance of attracting the first-rate candidates that you really want to hire.
A captivating job responsibilities section entices desired candidates by positioning the job as a role worth filling. Avoid long-winded, rambling blocks of text in favor of bullet points that are short, sweet and to the point. Don’t go overboard with your list, either. Five or six bullet points should be enough to communicate the salient information.
Feel free to refer to the following list of examples as you develop your own compensation analyst job responsibilities:
- Coordinate with HR management in planning and budgeting for the company’s overall compensation program design
- Evaluate and expedite company compliance with all applicable governing bodies’ standards
- Administer and analyze the results of market surveys and other evaluation tools to ensure that the company’s compensation rates remain equitable and competitive within the industry
- Collaborate with the company’s talent acquisition team to strengthen employee retention rates
Compensation Analyst Job Specifications
While the job qualifications and skills section is usually nowhere near as long as the job responsibilities section, it is no less crucial when it comes to recruiting the right candidate into your company’s fold. After all, if you’re looking for a results-oriented compensation analyst, you need a results-oriented compensation analyst job description.
The job qualifications and skills section is your opportunity to root out any obviously unqualified jobseekers at the outset of your recruitment efforts and avoid the hassle and wasted resources involved in dealing with them at a later point in the process. Be accurate and comprehensive when developing this section, and your compensation analyst job description will be more effectual in the long run.
Use these compensation analyst job specifications examples as food for thought as you are developing your own:
- Minimum of a 4-year degree in human resources or a closely related field
- 7 years of general HR work experience, at least 5 years of which must involve experience primarily in performing compensations functions
- Superior proficiency in qualitative and quantitative data analyses
- Solid working knowledge of all legal and regulatory aspects of compensation programs, both state and federal
- Professional certification in the human resources field preferred