Compensation Analyst Job Description, Key Duties and Responsibilities
If you need to know what the job description of a compensation analyst is, this post will be useful to you. You will learn about the duties and responsibilities compensation analysts are majorly assigned.
In this post, you will also learn about qualities, qualifications, experience, etc. that you may be required to meet if you are seeking the compensation analyst job with most companies. Please read on:
What Does a Compensation Analyst Do?
Compensation analysts help organizations attract and retain talented employees. Their primarily responsibility is to ensure that employee compensation and benefits are equitable and competitive by developing appropriate pay structures for the organization using information collected from within and outside the organization.
The compensation analyst job description entails providing assistance in the overall delivery of the key compensation cycles, including salary increase, short-term and long-term incentive programs.
It also involves assisting in the set-up, delivery, and support of the company’s online integrated compensation planning tool; conducting market equity studies, promotion, and new hire recommendations.
Compensation analysts are also responsible for providing analytical support in the design, development, and cost modeling of variable pay plans.
Their role also entails establishing whether employees are being paid reasonably by conducting surveys on existing pay packages in the organization and comparing with data from other organizations.
The findings from the survey assist the analyst to structure a compensation package for the organization’s employees that is comparable to what is obtainable in other organizations.
They are responsible for the analysis of compensation trends by performing reviews of current trend and predicting future compensation trends with the goal of determining whether the organization is on the right path and sustaining its employees’ compensation packages.
The compensation analyst work description includes contributing to the development of employee hiring and retention policies.
It involves providing advice to managers and employees on compliance requirements related to compensation policies; as well as providing proper recommendations related to salary increases.
The compensation analyst is also responsible for evaluating jobs to determine the value of a position based on the responsibilities of the employee; assessed against the value of other positions, and the financial performance of the company.
Compensation Analyst Job Description Example/Sample/Template
The compensation analyst performs various functions in support of an organization’s compensation program by administering compensation related tasks and contributing to the overall compensation strategy of the organization.
They analyze jobs through observation, survey, or interview techniques, and recommend classification and pay grade compared to market data to aid the administration of the company’s job evaluation program.
The compensation analyst job description consists of the following tasks, duties, and responsibilities that they are typically assigned by most employers:
- Responsible for maintaining regular reports, trackers, and databases
- Actively contribute to building new reports, trackers, and databases related to HR and compensation
- Responsible for drafting and sending out personnel action forms to the payroll department
- Assist with compensation projects and special reports
- Responsible for confidential and sensitive compensation or financial data
- Responsible for the maintenance of the job description log
- Collaborate with the financial analysis team to appropriately assign job codes
- Responsible for entering and tracking requested salary changes through the approval process
- Responsible for maintaining employee salary records
- Provide support in the administration of the organization’s annual merit raise program, where applicable
- Summarize job analysis and evaluation of compensation information in a quarterly compensation reports
- Ensures that the company adheres to federal and state laws, including reporting requirements
- Perform other duties as assigned within human resources and compensation.
Compensation Analyst Requirements – Skills, Knowledge, and Abilities for Career Success
If you are seeking the compensation analyst role with any organization, you will need to prove to them that you can perform the obligations, purpose, and objectives of the role that will be assigned to you excellently by meeting the requirements of the job.
The typical requirements applicants for the compensation analyst job are commonly expected to meet include the following:
- Education: They require a Bachelor’s degree in Business, Finance, Human Resources, Mathematics, Economics, and Accounting, but a Master’s degree is preferred. Depending on the policy of the employer, they may also require some years (0-4years) of related work experience
- Certification: some organizations prefer to hire a Certified Compensation Professional (CCP)
- Knowledge: They must be familiar with standard concepts, practices, and procedures in the human resources compensation field and a solid understanding of compensation practices and trends. They also require experience with Pay-Setting and Compensation, Benchmarking, and Salary Surveys
- Self- starter: They must possess the ability to work independently, while exercising proper judgment and sound decision making
- Computer skills: They must be proficient with Microsoft applications (i.e., Excel, Word, etc.). Also, a working knowledge or experience with SAP, Success Factors, Cognos and Access is a plus
- Strong work ethic: They must be disciplined, hardworking, and dependable
- Discrete: They must possess the ability to maintain sensitive data in a confidential manner
- Attention to detail: They require meticulous attention to detail to b able to achieve high level of accuracy in their job
- Communications skill: They must possess excellent oral and written communication skills for effective work relationship
- Interpersonal skills: They must possess the ability to influence and maintain relationship with others
- Research skills: They must possess a strong aptitude for research, analysis, and data management
- Organizational skills: They require the ability to set priorities and effectively manage multiple assignments in a flexible environment
- They also require strong analytical and quantitative reasoning skills with a focus on high accuracy.
If you are an employer needing to write a description for the compensation analyst job in your organization, you can apply the sample job description above in making one.
With a comprehensive description of the available compensation analyst role in your company, well qualified candidates will be attracted to your offer and you will have the opportunity to hire the best person for the position.
The content of this article is also beneficial to individuals who are interested in the compensation analyst career to improve their knowledge of what the role involves.
Job Assessment Tests: How to Top Your Competition
As part of the hiring process, most applicants that passed the initial Resume/CV screening phase are required to pass an assessment test for the job or apprenticeship position they are applying for.
The goal of this phase is to determine if the candidate has the appropriate set of skills and qualities to excel on the job.
Find out the tests you will be needing to take for the position you are applying for; get lots of success proven Practice materials to prepare with now: Sure way to make high scores in job tests.