How to hire a compensation analyst

How to hire a compensation analyst, step by step

Here's a step-by-step compensation analyst hiring guide:

• Step 1: Identify your hiring needs
• Step 2: Create an ideal candidate profile
• Step 3: Make a budget
• Step 4: Write a compensation analyst job description
• Step 5: Post your job
• Step 6: Interview candidates
• Step 7: Send a job offer and onboard your new compensation analyst
• Step 8: Go through the hiring process checklist

What does a compensation analyst do?

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1. Identify your hiring needs

   Before you post your compensation analyst job, you should take the time to determine what type of worker your business needs. While certain jobs definitely require a full-time employee, it's sometimes better to find a compensation analyst for hire on a part-time basis or as a contractor.

   Determine employee vs contractor status

   Is the person you're thinking of hiring a US citizen or green card holder?

   Yes

   No

   You should also consider the ideal background you'd like them a compensation analyst to have before you start to hire. For example, what industry or field would you like them to have experience in, what level of seniority or education does the job require, and how much it'll cost to hire a compensation analyst that fits the bill.

   This list presents compensation analyst salaries for various positions.

   Type of Compensation Analyst	Description	Hourly rate
   Compensation Analyst	Compensation, benefits, and job analysis specialists conduct an organization’s compensation and benefits programs. They also evaluate position descriptions to determine details such as a person’s classification and salary.	$23-43
   Benefits & Payroll Administrator	The Benefits and Payroll Administrator manages the company's payroll, ensuring work benefits and employee documents are secure. The administrator also delivers employees' issues and concerns to the company's proper channels... Show more	$17-32
   Payroll And Benefits Coordinator	A Payroll and Benefits Coordinator works as a member of a company's human resources department where their role is to oversee and organize procedures related to preparing and processing employee salaries and benefits, ensuring accuracy and timeliness. They are responsible for setting goals and guidelines, maintaining payroll records and employee timesheets, preparing and processing the necessary documentation, liaising with internal and external business partners, delegating tasks among staff, and resolving issues and concerns if any arise... Show more	$16-28

   Show more

2. Create an ideal candidate profile

   Common skills:

   • HR
   • Compensation Programs
   • HRIS
   • PowerPoint
   • Data Analysis
   • Customer Service
   • FLSA
   • Salary Surveys
   • Market Data
   • Strong Analytical
   • Compensation Surveys
   • Compensation Policies
   • Pivot Tables
   • Compensation Practices

   Check all skills

   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.
   • Manage special projects, develop senior level presentations and handle communications on behalf of SVP
   • Provide oversight of sales compensation short-term incentive programs.

   More compensation analyst duties

3. Make a budget

   Including a salary range in your compensation analyst job description is a great way to entice the best and brightest candidates. A compensation analyst salary can vary based on several factors:

   • Location. For example, compensation analysts' average salary in south dakota is 51% less than in washington.
   • Seniority. Entry-level compensation analysts earn 47% less than senior-level compensation analysts.
   • Certifications. A compensation analyst with a few certifications under their belt will likely demand a higher salary.
   • Company. Working for a prestigious company or an exciting start-up can make a huge difference in a compensation analyst's salary.

   Average compensation analyst salary

   $66,487yearly

   $31.96 hourly rate

   ---

   Entry-level compensation analyst salary

   $48,000 yearly salary

   Updated January 23, 2026

   Average compensation analyst salary by state

   Rank	State	Avg. salary	Hourly rate
   1	California	$92,878	$45
   2	Washington	$88,356	$42
   3	Oregon	$79,071	$38
   4	Rhode Island	$75,828	$36
   5	Massachusetts	$75,668	$36
   6	District of Columbia	$75,635	$36
   7	New York	$75,475	$36
   8	Virginia	$74,047	$36
   9	Minnesota	$72,737	$35
   10	Pennsylvania	$71,252	$34
   11	Connecticut	$70,432	$34
   12	Delaware	$69,099	$33
   13	Colorado	$68,201	$33
   14	Iowa	$67,792	$33
   15	Michigan	$67,435	$32
   16	Maine	$67,325	$32
   17	North Dakota	$65,996	$32
   18	Georgia	$65,552	$32
   19	Texas	$65,444	$31
   20	Illinois	$64,548	$31

   Average compensation analyst salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	Meta	$116,946	$56.22	4
   2	Google	$107,994	$51.92	3
   3	Microsoft	$105,115	$50.54
   4	Apple	$99,338	$47.76	2
   5	MongoDB	$89,693	$43.12
   6	NVIDIA	$89,547	$43.05
   7	Adobe	$89,395	$42.98	3
   8	Cloudflare	$88,438	$42.52
   9	Pure Storage	$87,317	$41.98	1
   10	Sumitomo Mitsui Financial Group	$87,312	$41.98
   11	Signature Bank	$87,019	$41.84
   12	eBay	$86,518	$41.60
   13	Macy's	$86,506	$41.59
   14	LinkedIn	$86,179	$41.43
   15	Zulily	$85,711	$41.21
   16	Bristol-Myers Squibb	$85,490	$41.10
   17	Renesas Electronics	$85,120	$40.92	4
   18	Amazon	$84,547	$40.65	12
   19	Northern Trust	$84,518	$40.63	8
   20	NBCUniversal	$84,057	$40.41	7

4. Writing a compensation analyst job description

   A compensation analyst job description should include a summary of the role, required skills, and a list of responsibilities. It's also good to include a salary range and the first name of the hiring manager. Below, you can find an example of a compensation analyst job description:

   Compensation analyst job description example

   The Sales Compensation Analyst role is an opportunity that calls for a skilled, hands-on, analytical professional who will lead the improvement and expansion of the Visa sales compensation program to multiple business units throughout our global footprint. The right candidate is a self-motivated puzzle-solver who can quickly establish relationships across the organization, define and document processes, and track implementation and accomplishment of integration projects. This person will be responsible for the day-to-day engagement with multiple business units and stakeholders across the organization, where they will also track key initiatives associated with and provide their expertise about Sales Compensation plans.
   
   The candidate must possess strong knowledge of Sales Compensation. In addition, the candidate must have strong interpersonal and collaboration skills to partner effectively with numerous stakeholders across business units, commercial operations peers, and sales and executive leadership at all levels of the organization. This role reports to the Director, Sales Compensation and will be an individual contributor.
   
   This role supports global business units and is expected to maintain schedule flexibility to periodically support needs outside of typical local working hours.
   Responsibilities
   
   Calculate and validate monthly commission payments and SPIFFs based on Sales Compensation plan provisions
   
   Implement sales compensation platform updates to reflect changes in sales hierarchy, plan rules, rate tables, quotas, etc.
   
   Help create and distribute Sales Compensation plans to Sales employees
   
   Respond to Sales inquiries and incidents regarding Sales Compensation plans and payments.
   
   Work with Sales Operations and Business Intelligence to resolve any Sales Compensation-related questions or issues.
   
   Provide ad-hoc research and analysis on other related variable pay projects as identified by management. Summarize findings and communicate recommendations to Sales Compensation managers.
   
   This is a hybrid position. Hybrid employees can alternate time between both remote and office. Employees in hybrid roles are expected to work from the office two days a week, Tuesdays and Wednesdays with a general guidepost of being in the office 50% of the time based on business needs.

   Copy this example

   

5. Post your job

   There are various strategies that you can use to find the right compensation analyst for your business:

   • Consider promoting from within or recruiting from your existing workforce.
   • Ask for referrals from friends, family members, and current employees.
   • Attend job fairs at local colleges to find candidates who meet your education requirements.
   • Use social media platforms like LinkedIn, Facebook, and Twitter to reach potential job candidates.

   Post your job online:

   • Post your compensation analyst job on Zippia to find and recruit compensation analyst candidates who meet your exact specifications.
   • Use field-specific websites.
   • Post a job on free websites.

6. Interview candidates

   Recruiting compensation analysts requires you to bring your A-game to the interview process. The first interview should introduce the company and the role to the candidate as much as they present their background experience and reasons for applying for the job. During later interviews, you can go into more detail about the technical details of the job and ask behavioral questions to gauge how they'd fit into your current company culture.

   Remember to include a few questions that allow candidates to expand on their strengths in their own words. Asking about their unique skills might reveal things you'd miss otherwise. At this point, good candidates can move on to the technical interview.

   The right interview questions can help you assess a candidate's hard skills, behavioral intelligence, and soft skills.

7. Send a job offer and onboard your new compensation analyst

   Once you've decided on a perfect compensation analyst candidate, it's time to write an offer letter. In addition to salary, it should include benefits and perks available to the employee. Qualified candidates may be considered for other positions, so make sure your offer is competitive. Candidates may wish to negotiate. Once you've settled on the details, formalize your agreement with a contract.

   It's also good etiquette to follow up with applicants who don't get the job by sending them an email letting them know that the position has been filled.

   To prepare for the new compensation analyst first day, you should share an onboarding schedule with them that covers their first period on the job. You should also quickly complete any necessary paperwork, such as employee action forms and onboarding documents like I-9, benefits enrollment, and federal and state tax forms. Finally, Human Resources must ensure a new employee file is created for internal record keeping.

8. Go through the hiring process checklist

   • Determine employee type (full-time, part-time, contractor, etc.)
   • Submit a job requisition form to the HR department
   • Define job responsibilities and requirements
   • Establish budget and timeline
   • Determine hiring decision makers for the role
   • Write job description
   • Post job on job boards, company website, etc.
   • Promote the job internally
   • Process applications through applicant tracking system
   • Review resumes and cover letters
   • Shortlist candidates for screening
   • Hold phone/virtual interview screening with first round of candidates
   • Conduct in-person interviews with top candidates from first round
   • Score candidates based on weighted criteria (e.g., experience, education, background, cultural fit, skill set, etc.)
   • Conduct background checks on top candidates
   • Check references of top candidates
   • Consult with HR and hiring decision makers on job offer specifics
   • Extend offer to top candidate(s)
   • Receive formal job offer acceptance and signed employment contract
   • Inform other candidates that the position has been filled
   • Set and communicate onboarding schedule to new hire(s)
   • Complete new hire paperwork (i9, benefits enrollment, tax forms, etc.)

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How much does it cost to hire a compensation analyst?