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What is a Compensation Analyst

Compensation analysts are hired to develop the compensation structures to maximize employee retention. They do this by analyzing remuneration packages depending on the position's responsibilities. As a Compensation Analyst, you will be in charge of the company's remuneration policies and programs. You will research and review different compensation data to make sure the company's remuneration policies are competitive. Similarly, you will ensure the companies comply with the relevant laws and regulations concerning compensation and remuneration. You will then prepare salary data and charts.

The educational requirement for this role is a bachelor's degree in business administration or human resources. However, professional certification is an added advantage. Compensation analysts are proficient with the use of Microsoft Office Word, Excel, and PowerPoint for data entry. Strong problem-solving and excellent verbal and written communication skills are also needed for the role. In addition, you must be proficient in compensation research and data analysis. You will earn an average of $30.23 an hour or $62,886 annually.

There is more than meets the eye when it comes to being a Compensation Analyst. For example, did you know that they make an average of $32.01 an hour? That's $66,590 a year!

Between 2018 and 2028, the career is expected to grow 6% and produce 5,300 job opportunities across the U.S.

What Does a Compensation Analyst Do

There are certain skills that many Compensation Analysts have in order to accomplish their responsibilities. By taking a look through resumes, we were able to narrow down the most common skills for a person in this position. We discovered that a lot of resumes listed Business skills, Analytical skills and Communication skills.

Learn more about what a Compensation Analyst does

How To Become a Compensation Analyst

If you're interested in becoming a Compensation Analyst, one of the first things to consider is how much education you need. We've determined that 73.0% of Compensation Analysts have a bachelor's degree. In terms of higher education levels, we found that 17.0% of Compensation Analysts have master's degrees. Even though most Compensation Analysts have a college degree, it's impossible to become one with only a high school degree or GED.

Choosing the right major is always an important step when researching how to become a Compensation Analyst. When we researched the most common majors for a Compensation Analyst, we found that they most commonly earn Bachelor's Degree degrees or Master's Degree degrees. Other degrees that we often see on Compensation Analyst resumes include Associate Degree degrees or High School Diploma degrees.

You may find that experience in other jobs will help you become a Compensation Analyst. In fact, many Compensation Analyst jobs require experience in a role such as Human Resources Coordinator. Meanwhile, many Compensation Analysts also have previous career experience in roles such as Human Resources Generalist or Human Resources Assistant.

What is the right job for my career path?

Tell us your goals and we'll match you with the right jobs to get there.

And if you’re looking for a job, here are the five top employers hiring now:

  1. Microsoft Jobs (37)
  2. AT&T Jobs (33)
  3. Dell Jobs (13)
  4. IBM Jobs (18)
  5. Citigroup Jobs (15)
Average Salary
$66,590
Average Salary
Job Growth Rate
6%
Job Growth Rate
Job Openings
24,965
Job Openings
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Compensation Analyst Career Paths

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Average Salary for a Compensation Analyst

Compensation Analysts in America make an average salary of $66,590 per year or $32 per hour. The top 10 percent makes over $92,000 per year, while the bottom 10 percent under $48,000 per year.
Average Salary
$66,590
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How much should you be earning as an Compensation Analyst? Use Zippia's Salary Calculator to get an estimation of how much you should be earning.
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5 Compensation Analyst Resume Examples

Learn How To Write a Compensation Analyst Resume

At Zippia, we went through countless Compensation Analyst resumes and compiled some information about how to optimize them. Here are some suggestions based on what we found, divided by the individual sections of the resume itself.

View Compensation Analyst Resume Examples And Templates

And if you’re looking for a job, here are the five top employers hiring now:

  1. Microsoft Jobs (37)
  2. AT&T Jobs (33)
  3. Dell Jobs (13)
  4. IBM Jobs (18)
  5. Citigroup Jobs (15)

Choose From 10+ Customizable Compensation Analyst Resume templates

Zippia allows you to choose from different easy-to-use Compensation Analyst templates, and provides you with expert advice. Using the templates, you can rest assured that the structure and format of your Compensation Analyst resume is top notch. Choose a template with the colors, fonts & text sizes that are appropriate for your industry.

Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume
Compensation Analyst Resume

Compensation Analyst Demographics

Compensation Analyst Gender Distribution

Male
Male
36%
Female
Female
64%

After extensive research and analysis, Zippia's data science team found that:

  • Among Compensation Analysts, 63.8% of them are women, while 36.2% are men.

  • The most common race/ethnicity among Compensation Analysts is White, which makes up 64.4% of all Compensation Analysts.

  • The most common foreign language among Compensation Analysts is Spanish at 38.9%.

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Compensation Analyst Education

Compensation Analyst Majors

33.7 %

Compensation Analyst Degrees

Bachelors

73.0 %

Masters

17.0 %

Associate

7.2 %

Top Colleges for Compensation Analysts

1. University of Pennsylvania

Philadelphia, PA • Private

In-State Tuition
$55,584
Enrollment
10,764

2. Boston University

Boston, MA • Private

In-State Tuition
$53,948
Enrollment
17,238

3. University of Minnesota - Twin Cities

Minneapolis, MN • Private

In-State Tuition
$14,760
Enrollment
31,451

4. Northwestern University

Evanston, IL • Private

In-State Tuition
$54,568
Enrollment
8,451

5. SUNY College at Oswego

Oswego, NY • Private

In-State Tuition
$8,440
Enrollment
7,039

6. University of Southern California

Los Angeles, CA • Private

In-State Tuition
$56,225
Enrollment
19,548

7. Baylor University

Waco, TX • Private

In-State Tuition
$45,542
Enrollment
14,159

8. Harvard University

Cambridge, MA • Private

In-State Tuition
$50,420
Enrollment
7,582

9. Villanova University

Villanova, PA • Private

In-State Tuition
$53,308
Enrollment
6,819

10. San Diego State University

San Diego, CA • Private

In-State Tuition
$7,488
Enrollment
30,018
Job Openings

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Online Courses For Compensation Analyst That You May Like

Managing Employee Compensation
coursera

Whether you're writing paychecks or wondering where yours comes from, this course is for you! We begin by asking: "To succeed, what kind of a person does your organization need to attract, retain, and motivate?" From there, we'll explain how to align your organization's objectives, its pay philosophy, and ultimately the way it designs and implements its salary structure, short-term incentives, long-term incentives, and benefits. Interested in learning more about the technical aspects of compensa...

Salary Negotiation - How to Ask for and Receive a Pay Raise
udemy
4.9
(427)

A Salary Negotiation step-by-step plan to prepare you for asking and receiving a pay raise...

Data Science Career Guide - Interview Preparation
udemy
4.7
(2,180)

Prepare for your Data Science Interview with this full guide on a career in Data Science including practice questions!...

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Top Skills For a Compensation Analyst

The skills section on your resume can be almost as important as the experience section, so you want it to be an accurate portrayal of what you can do. Luckily, we've found all of the skills you'll need so even if you don't have these skills yet, you know what you need to work on. Out of all the resumes we looked through, 20.3% of Compensation Analysts listed Compensation Programs on their resume, but soft skills such as Business skills and Analytical skills are important as well.

Best States For a Compensation Analyst

Some places are better than others when it comes to starting a career as a Compensation Analyst. The best states for people in this position are Washington, California, Oregon, and New Jersey. Compensation Analysts make the most in Washington with an average salary of $93,577. Whereas in California and Oregon, they would average $83,391 and $80,494, respectively. While Compensation Analysts would only make an average of $80,077 in New Jersey, you would still make more there than in the rest of the country. We determined these as the best states based on job availability and pay. By finding the median salary, cost of living, and using the Bureau of Labor Statistics' Location Quotient, we narrowed down our list of states to these four.

1. District of Columbia

Total Compensation Analyst Jobs:
116
Highest 10% Earn:
$117,000
Location Quotient:
2.58
Location Quotient is a measure used by the Bureau of Labor Statistics (BLS) to determine how concentrated a certain industry is in a single state compared to the nation as a whole. You can read more about how BLS calculates location quotients here

2. California

Total Compensation Analyst Jobs:
918
Highest 10% Earn:
$118,000
Location Quotient:
1.17
Location Quotient is a measure used by the Bureau of Labor Statistics (BLS) to determine how concentrated a certain industry is in a single state compared to the nation as a whole. You can read more about how BLS calculates location quotients here

3. North Dakota

Total Compensation Analyst Jobs:
23
Highest 10% Earn:
$104,000
Location Quotient:
0.93
Location Quotient is a measure used by the Bureau of Labor Statistics (BLS) to determine how concentrated a certain industry is in a single state compared to the nation as a whole. You can read more about how BLS calculates location quotients here
Full List Of Best States For Compensation Analysts

How Do Compensation Analyst Rate Their Jobs?

Zippia Official Logo

5.0

Compensation AnalystJanuary 2020

5.0

Zippia Official LogoCompensation AnalystJanuary 2020

What do you like the most about working as Compensation Analyst?

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! Show More

What do you NOT like?

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

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Top Compensation Analyst Employers

We've made finding a great employer to work for easy by doing the hard work for you. We looked into employers that employ Compensation Analysts and discovered their number of Compensation Analyst opportunities and average salary. Through our research, we concluded that Sprint was the best, especially with an average salary of $69,918. Robert Half International follows up with an average salary of $66,253, and then comes Pearson Plc with an average of $66,300. In addition, we know most people would rather work from home. So instead of having to change careers, we identified the best employers for remote work as a Compensation Analyst. The employers include Dropbox, C&S; Wholesale Grocers, and Jabil

Most Common Employers For Compensation Analyst

RankCompanyZippia ScoreAverage Compensation Analyst SalaryAverage Salary
1$101,086
2$87,140
3$85,086
4$82,082
5$81,460
6$79,438

Compensation Analyst Videos

Becoming a Compensation Analyst FAQs

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.

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