Compensation Analyst

A globally acclaimed specialist providing world-class business solutions

A compensation analyst works within the Compensation & Benefits or Human Resources department and their role is to help organizations develop fair compensation structures to attract and retain employees by analyzing various data.

They research and evaluate job requirements, competitors’ benefits and salaries and assess current roles to ensure the organization is competitive and complies with state and federal regulations.

They are responsible for designing the organization’s pay structure. It includes determining new employees’ remuneration and regularly reviewing all employee’s compensation packages (base pay, incentives, bonuses, commissions, and stock options) to ensure they are fair and within the employer’s capacity.

A compensation analyst helps determine when to give raises, analyzes trends that will shape compensation, and makes recommendations on how the organization can respond to those trends.

Successful compensation analysts apply skills and competencies like business and financial acumen, strong data literacy, including qualitative and quantitative research methods and analysis, and knowledge of HR policies.

Role and responsibilities
- Conducting job analyses to create a thorough understanding of all tasks and activities a job involves.
- Analyzing a company’s remuneration structures and policies and implementing improvements.
- Researching employee salaries, benefits, and total rewards in similar roles, organizations, and industries and recommending changes based on findings.
- Conducting surveys, one-to-one interviews, and focus groups with employees and managers to document duties, responsibilities, and skills required for each position.
- Collecting feedback on compensation-related issues through the above-mentioned research methods.
- Collecting and analyzing data from market-based compensation surveys to determine market trends.
- Preparing and presenting reports of job and compensation analysis.
- Benchmarking jobs against data collected and market intelligence to determine competitive compensation for each role.
- Preparing and maintaining job classifications and salary scales.
- Evaluating and implementing job analysis tools, techniques, and materials.
- Conducting data on employee productivity and cost analyses for use in employee negotiations and bargaining agreements.