What is it like being a compensation analyst?

Being a compensation analyst is like being the person who analyzes systems and determines the best distribution of resources in that system. In other words, compensation analysts are hired to develop compensation structures to maximize employee retention. To accomplish this, compensation analysts must research and review different compensation data to make sure the company's remuneration policies are competitive.

What should I study to become a compensation analyst?

To become a compensation analyst, you should study courses in finance, accounting, labor law, management, business administration, and compensation and classification. This is not meant to be an extensive list of courses an aspiring compensation analyst will need, but it does cover the fundamentals needed for the role.

How To Become A Compensation Analyst: What It Is and Career Path

What is a compensation analyst and how to become one

Updated January 8, 2025

4 min read

A compensation analyst is an individual who specializes in analyzing and evaluating compensation packages for employees. They research market trends, salary data, and internal company policies to create fair and competitive pay structures. Compensation analysts work closely with HR departments to ensure that employee salaries align with company goals and budgets. They also provide guidance on employee benefits and incentive programs and may be responsible for conducting surveys to gather data on compensation practices in other companies and industries.

ScoreCompensation AnalystUS Average

Salary

5.2

Avg. Salary $66,487

Avg. Salary $59,228

Stability level

6.0

Growth rate 7%

Growth rate 0.3%

Diversity

4.0

Race

American Indian and Alaska Native 0.50%

Asian 7.73%

Black or African American 10.54%

Hispanic or Latino 14.98%

Unknown 3.93%

White 62.32%

Gender

female 63.82%

male 36.18%

Age - 45

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 45

Stress level

6.0

Stress level is manageable

7.1 - high

Complexity level

8.1

Complexity level is challenging

7 - challenging

Work life balance

6.1

Work life balance is fair

6.4 - fair

What are the pros and cons of being a compensation analyst?

Pros

Opportunity to impact and improve employee compensation and job satisfaction
High demand for compensation analysts in various industries
Analyzing data and conducting research can be intellectually stimulating
Competitive salary and benefits packages
Opportunity to develop skills in data analysis and presentation

Cons

Stressful due to tight deadlines and high stakes decisions
Requires long hours during peak seasons or compensation plan rollouts
Constantly changing regulatory requirements can be challenging to stay up-to-date on
May face resistance or pushback from employees or management when making compensation recommendations
Involves tedious administrative tasks such as data entry and report generation

Key steps to become a compensation analyst

Explore compensation analyst education requirements

Most common compensation analyst degrees

Bachelor's

73.0 %

Master's

17.0 %

Associate

7.2 %

Start to develop specific compensation analyst skills

Skills	Percentages
HR	11.68%
Compensation Programs	6.96%
HRIS	5.66%
PowerPoint	4.54%
Data Analysis	4.53%

Complete relevant compensation analyst training and internships

Accountants spend an average of 6-12 months on post-employment, on-the-job training. New compensation analysts learn the skills and techniques required for their job and employer during this time. The chart below shows how long it takes to gain competency as a compensation analyst based on U.S. Bureau of Labor Statistics data and data from real compensation analyst resumes.

Research compensation analyst duties and responsibilities

Manage vendor relationships with fiscal oversight, and ongoing cost management.
Manage long-term incentive plan administration including SARP and stock option granting programs (LTI).
Create and manage communication materials via PowerPoint publish to sales organization.
Report and manage company healthcare budget and direct all vendor relationships.

Prepare your compensation analyst resume

When your background is strong enough, you can start writing your compensation analyst resume.

You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a compensation analyst resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

Choose from 10+ customizable compensation analyst resume templates

Build a professional compensation analyst resume in minutes. Browse through our resume examples to identify the best way to word your resume. Then choose from 10+ resume templates to create your compensation analyst resume.

Apply for compensation analyst jobs

Now it's time to start searching for a compensation analyst job. Consider the tips below for a successful job search:

Browse job boards for relevant postings
Consult your professional network
Reach out to companies you're interested in working for directly
Watch out for job scams

How do compensation analysts rate their job?

5/5

Based on 1 ratings

5 stars

4 stars

3 stars

2 stars

1 star

Compensation analyst reviews

5.0

A zippia user wrote a review on Jan 2020

Pros

I work with all lines of business, from job evaluation to job market analysis to promotion pay recommendation. I mostly work with internal employees and managers who want assistance understanding our pay practices. Must love Excel!

Cons

Lack of technology tools in the market to manage large data related to managing job descriptions, job codes, headcount, etc.