How to hire a compensation and benefits analyst

How to hire a compensation and benefits analyst, step by step

Here's a step-by-step compensation and benefits 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 and benefits analyst job description
• Step 5: Post your job
• Step 6: Interview candidates
• Step 7: Send a job offer and onboard your new compensation and benefits analyst
• Step 8: Go through the hiring process checklist

What does a compensation and benefits analyst do?

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1. Identify your hiring needs

   The compensation and benefits analyst hiring process starts by determining what type of worker you actually need. Certain roles might require a full-time employee, whereas part-time workers or contractors can do others.

   Determine employee vs contractor status

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

   Yes

   No

   A compensation and benefits analyst's background is also an important factor in determining whether they'll be a good fit for the position. For example, compensation and benefits analysts from different industries or fields will have radically different experiences and will bring different viewpoints to the role. You also need to consider the candidate's previous level of experience to make sure they'll be comfortable with the job's level of seniority.

   Here's a comparison of compensation and benefits analyst salaries for various roles:

   Type of Compensation And Benefits Analyst	Description	Hourly rate
   Compensation And Benefits 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.	$22-53
   Human Resources Supervisor	A human resources supervisor is a professional responsible for developing and administering human resources programs so that the company can achieve efficient operations. Human resources supervisors coordinate all stages of the hiring process, such as checking all candidates' backgrounds, conducting interviews, and drug screening... Show more	$22-42
   Analyst	Analysts are employees or individual contributors with a vast experience in a particular field that help the organization address challenges. They help the organization improve processes, policies, and other operations protocol by studying the current processes in place and determining the effectiveness of those processes... Show more	$25-47

   Show more

2. Create an ideal candidate profile

   Common skills:

   • HRIS
   • Human Resources
   • Compensation Programs
   • Open Enrollment
   • Data Analysis
   • FLSA
   • HIPAA
   • Cobra
   • Market Data
   • FMLA
   • Benefit Programs
   • Data Integrity
   • Analytical Support
   • Compensation Surveys

   Check all skills

   Responsibilities:

   • Lead project to insource FMLA process from external vendor generating administration cost savings.
   • Manage employee payroll and input data into ADP system; handle billing, create invoices and bank reconciliations.
   • Create and manage communication materials via PowerPoint publish to sales organization.
   • Maintain and update employee records and organizational data in HRIS to ensure accuracy and data integrity.
   • Coordinate with third party leave administrator to administer and track FMLA leaves of absences and disability payments.
   • Input payroll information for all salary increases, insurance deductions, new hire and termination information to ADP payroll.

   More compensation and benefits analyst duties

3. Make a budget

   Including a salary range in your compensation and benefits analyst job description is one of the best ways to attract top talent. A compensation and benefits analyst can vary based on:

   • Location. For example, compensation and benefits analysts' average salary in south carolina is 53% less than in new jersey.
   • Seniority. Entry-level compensation and benefits analysts 58% less than senior-level compensation and benefits analysts.
   • Certifications. A compensation and benefits analyst with certifications usually earns a higher salary.
   • Company. Working for an established firm or a new start-up company can make a big difference in a compensation and benefits analyst's salary.

   Average compensation and benefits analyst salary

   $73,143yearly

   $35.16 hourly rate

   ---

   Entry-level compensation and benefits analyst salary

   $47,000 yearly salary

   Updated December 14, 2025

   Average compensation and benefits analyst salary by state

   Rank	State	Avg. salary	Hourly rate
   1	New York	$96,387	$46
   2	California	$95,458	$46
   3	Rhode Island	$91,637	$44
   4	Massachusetts	$90,244	$43
   5	District of Columbia	$89,735	$43
   6	Washington	$87,868	$42
   7	Colorado	$85,029	$41
   8	Michigan	$78,731	$38
   9	Illinois	$76,507	$37
   10	North Carolina	$73,898	$36
   11	Minnesota	$71,337	$34
   12	Texas	$70,083	$34
   13	Arizona	$70,052	$34
   14	Georgia	$69,367	$33
   15	Indiana	$63,901	$31
   16	Kentucky	$60,574	$29
   17	Wisconsin	$60,090	$29
   18	Florida	$56,025	$27

   Average compensation and benefits analyst salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	Quest Software	$93,343	$44.88
   2	Rambus	$92,874	$44.65
   3	Royal Bank of Canada	$89,076	$42.83
   4	General Electric	$81,916	$39.38
   5	OmniTRAX	$76,891	$36.97
   6	HMT	$76,617	$36.84
   7	ACS Solutions	$75,566	$36.33
   8	The Travelers Companies	$75,167	$36.14
   9	Austin Industries	$75,076	$36.09
   10	The Independent Traveler	$74,663	$35.90	1
   11	Cambridge Mobile Telematics	$74,526	$35.83
   12	Johnson Controls	$74,378	$35.76
   13	PDS Tech	$74,267	$35.71
   14	Thermon	$73,371	$35.27
   15	World Wildlife Fund	$70,016	$33.66
   16	Ball	$69,128	$33.23	2
   17	Cummins	$68,356	$32.86
   18	ON Semiconductor	$67,079	$32.25
   19	Cherokee Nation Businesses	$65,756	$31.61
   20	Oil-Dri Corporation of America	$65,390	$31.44

4. Writing a compensation and benefits analyst job description

   A compensation and benefits 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 and benefits analyst job description:

   Compensation and benefits analyst job description example

   MTS is seeking a human resource professional with experience in benefits administration to join the team as the Benefits and Compensation Analyst. The Benefits and Compensation Analyst processes changes and updates to benefit elections, retirement contributions, health savings, wellness reimbursements and personnel information. The Benefits and Compensation Analyst also determines eligibility and assists employees in the enrollment process for state and federal leave, and assists employees with filing claims. Essential duties include, but are not limited to, the following:
   Essential Functions
   
   * Assists employees with benefits enrollment forms.
   * Participates in open enrollment meetings with benefits providers and employees.
   * Processes changes and updates to benefit elections, retirement contributions, health savings, wellness reimbursements and personnel information.
   * Enters and maintains employee information in HRIS databases and external benefit carrier databases.
   * Accurately processes payroll authorities and other salary administration documentation in accordance with MTS policy.
   * Completes salary surveys and compiles salary statistics to assist with proper administration of the MTS compensation structure.
   * Assists employees with filing claims and acts as a liaison between MTS employees and its benefit carriers.
   * Responds to or appropriately directs inquiries from the public.
   * Assists with coordination of Health & Welfare program and events.
   * Administers Health and Welfare Trust Fund to ensure accurate and timely processing of benefit enrollments, payments, Cobra notifications, annual reporting, and other tasks as directed by the Board of Trustees.
   * Determines eligibility and assists employees in the enrollment process for FMLA and other applicable state and federal leaves.
   * Processes and verifies information on applications for FMLA and other leaves.
   
   Duties May Include, But Are Not Limited To, The Following:
   
   * Performs other duties as assigned.
   
   QUALIFICATIONS:
   
   Knowledge, Skills and Abilities
   
   Knowledge of or ability to learn MTS policies and regulations, ability to read, understand and apply MTS policies, regulations and union labor contracts; ability to write letters, memoranda and reports using clear, concise and grammatically correct English; ability to speak clearly, distinctly and effectively in person-to-person or small group situations using tact and diplomacy; ability to coordinate and initiate actions necessary to implement decisions and delegate responsibilities to appropriate personnel; ability to establish and maintain priorities in order to complete assignments by deadlines without detailed instructions; skill in verifying the accuracy and completeness of forms and reports; knowledge of Microsoft Word and Excel and the ability to learn and use other software that MTS might have or acquire; ability to exercise discretion and good judgment when applying and interpreting policies and procedures of human resources administration; ability to effectively present information and respond to questions from groups, managers, customers and the general public; ability to represent MTS in a positive way while working with the public; ability to provide professional level support in human resource program areas; ability to use ADP and HRIS software to accomplish given tasks.
   
   Physical Requirements
   
   The successful candidate must be able to fulfill the physical demands of the job such as walking, stooping, sitting, bending, reaching for overhead files and occasional lifting (must be able to lift up to 15 pounds). Must be able to operate a motor vehicle and perform tasks involving manual dexterity, such as use of a computer and 10-key. Work will at times require more than 8 hours per day or an irregular work week to perform the essential duties of the position. Duties will be performed primarily in an office type environment and may require travel to external locations and agencies.
   
   Experience/Education/Certificates/License(s)
   
   * At least five years experience in a benefits administration or human resources generalist role
   * Possess a bachelor's degree from an accredited college or university in Public Administration, Business, Personnel Administration or a closely related field. Requisite knowledge, skills and abilities may be substituted for the degree requirement.
   * ADP experience is highly desirable.
   * Must possess and maintain a valid California Driver's License.
   
   GENERAL:
   
   Must satisfactorily pass all applicable examinations including, but not limited to, a pre-employment physical, drug screen and background check.
   
   SALARY GRADE: #8 ($56,557 - $110,599)*
   
   * Hiring Range is usually mid-range & DOQ

   Copy this example

   

5. Post your job

   To find the right compensation and benefits analyst for your business, consider trying out a few different recruiting strategies:

   • Consider internal talent. One of the most important sources of talent for any company is its existing workforce.
   • Ask for referrals. Reach out to friends, family members, and current employees and ask if they know or have worked with compensation and benefits analysts they would recommend.
   • Recruit at local colleges. Attend job fairs at local colleges to recruit compensation and benefits analysts who meet your education requirements.
   • Social media platforms. LinkedIn, Facebook and Twitter now have more than 3.5 billion users, and you can use social media to reach potential job candidates.

   Post your job online:

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

6. Interview candidates

   To successfully recruit compensation and benefits analysts, your first interview needs to engage with candidates to learn about their interest in the role and experience in the field. You can go into more detail about the company, the role, and the responsibilities during follow-up interviews.

   It's also good to ask about candidates' unique skills and talents. You can move on to the technical interview if a candidate is good enough for the next step.

   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 and benefits analyst

   Once you've found the compensation and benefits analyst candidate you'd like to hire, it's time to write an offer letter. This should include an explicit job offer that includes the salary and the details of any other perks. Qualified candidates might be looking at multiple positions, so your offer must be competitive if you like the candidate. Also, be prepared for a negotiation stage, as candidates may way want to tweak the details of your initial offer. Once you've settled on these details, you can draft a contract to formalize your agreement.

   It's equally important to follow up with applicants who don't get the job with an email letting them know that the position has been filled.

   Once that's done, you can draft an onboarding schedule for the new compensation and benefits analyst. Human Resources should complete Employee Action Forms and ensure that onboarding paperwork is completed, including I-9s, benefits enrollment, federal and state tax forms, etc. They should also ensure that new employee files are created for internal recordkeeping.

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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