How to hire a compensation consultant

How to hire a compensation consultant, step by step

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

What does a compensation consultant do?

Post a compensation consultant job for free, promote it for a fee

Post free

1. Identify your hiring needs

   The compensation consultant 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 consultant's background is also an important factor in determining whether they'll be a good fit for the position. For example, compensation consultants 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 consultant salaries for various roles:

   Type of Compensation Consultant	Description	Hourly rate
   Compensation Consultant	Compensation managers plan, develop, and oversee programs to determine how much an organization pays its employees and how employees are paid. Benefits managers plan, direct, and coordinate retirement plans, health insurance, and other benefits that an organization offers its employees.	$31-59
   Hris Manager	An HRIS manager or commonly known as a human resource information system manager, is responsible for supporting and maintaining the company's HR systems. They primarily perform the complex task of making sure all HR systems are compliant with labor regulations and regularly updated... Show more	$36-70
   Benefit Director	Benefits directors are professionals who plan and direct the overall design, implementation, and administration of an organization's health and welfare benefits programs. To support the decision making of the management, these directors are required to analyze benefit options and predict future costs... Show more	$35-79

   Show more

2. Create an ideal candidate profile

   Common skills:

   • Human Resources
   • Project Management
   • Data Analysis
   • HRIS
   • Salary Administration
   • Base Salary
   • Compensation Issues
   • Compensation Practices
   • Compensation Strategy
   • Market Data
   • Stock Options
   • Compensation Policies
   • FLSA
   • Survey Data

   Check all skills

   Responsibilities:

   • Lead development of automate total compensation planning system in PeopleSoft environment to focus management control and communications.
   • Formulate recommendations regarding development of company salary structure, FLSA exemptions, job revisions and organizational structures.
   • Job evaluations, compensation/performance analysis, HRIS and staff management.
   • Developed/delivered staff consultant training programs on sales compensation, FLSA, and executive compensation regulations.
   • Support compensation administration and HRIS implementation
   • Develop valuation model for options and other LTI vehicles for use in the survey and on client projects.

   More compensation consultant duties

3. Make a budget

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

   • Location. For example, compensation consultants' average salary in hawaii is 40% less than in washington.
   • Seniority. Entry-level compensation consultants earn 48% less than senior-level compensation consultants.
   • Certifications. A compensation consultant 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 consultant's salary.

   Average compensation consultant salary

   $90,436yearly

   $43.48 hourly rate

   ---

   Entry-level compensation consultant salary

   $65,000 yearly salary

   Updated December 16, 2025

   Average compensation consultant salary by state

   Rank	State	Avg. salary	Hourly rate
   1	California	$114,929	$55
   2	Washington	$113,067	$54
   3	New York	$112,227	$54
   4	Nevada	$111,767	$54
   5	Pennsylvania	$108,677	$52
   6	Oregon	$107,466	$52
   7	District of Columbia	$102,817	$49
   8	Massachusetts	$98,559	$47
   9	Virginia	$95,086	$46
   10	Maryland	$93,763	$45
   11	Tennessee	$92,560	$45
   12	Connecticut	$91,997	$44
   13	Michigan	$90,134	$43
   14	Kansas	$86,774	$42
   15	Texas	$86,721	$42
   16	Arizona	$85,931	$41
   17	North Carolina	$83,308	$40
   18	Ohio	$83,219	$40
   19	Illinois	$81,970	$39
   20	Georgia	$81,182	$39

   Average compensation consultant salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	Microsoft	$120,215	$57.80
   2	DoorDash	$115,667	$55.61
   3	RGP	$115,101	$55.34
   4	Parsons	$113,802	$54.71	1
   5	Cisco	$110,392	$53.07
   6	Twitter	$108,480	$52.15
   7	American Century Investments	$107,642	$51.75
   8	Warner Bros.	$105,805	$50.87	6
   9	Dell	$105,204	$50.58	2
   10	Amazon	$104,719	$50.35	18
   11	Nike	$103,056	$49.55
   12	Northern Trust	$102,620	$49.34	4
   13	Nutanix	$99,330	$47.75	20
   14	Perrigo	$99,114	$47.65
   15	Ocean Capital	$98,726	$47.46
   16	Avnet	$98,128	$47.18
   17	General Motors	$97,306	$46.78
   18	Insperity	$96,230	$46.26
   19	Zillow Group	$95,770	$46.04
   20	Intel	$95,681	$46.00	1

4. Writing a compensation consultant job description

   A compensation consultant 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. To help get you started, here's an example of a compensation consultant job description:

   Compensation consultant job description example

   US-OR-Portland
   
   Type: Regular Full-Time
   System Office 1120 Building
   
   Overview
   
   

   Our mission of making life better for others includes every person we serve, including our employees. By promoting fair, competitive and equitable pay practices, you will help to support management-level and employee customers so that Legacy Health can most effectively work as a team with a unified goal. If this is how you view your work as a Compensation Consultant, we invite you to consider this opportunity.

   This is a remote position - incumbents, who reside in Oregon or Washington only, may work at home, on the road or in a satellite location for all or part of their workweek. There may be occasional situations that require work to be performed on-site at an assigned Legacy Health location.

   All new hires are required to come to a designated Legacy Health office location in Portland, Oregon prior to their start date for a new hire health assessment and to complete new hire paperwork.

   Note that our employee health plan coverage is for providers based in the Legacy Health geographic region. To find providers in our network click here. Urgent and emergent coverage is available outside Legacy Health's geographic region and telehealth is available within Oregon and Washington.

   This position may require initial training and orientation to be site-based, before transitioning to the remote schedule.

   
   
   Responsibilities
   
   

   Assist in the administration of Legacy's compensation program. Review, analyze and evaluate hourly and salaried positions throughout Legacy Health based upon job descriptions and on-site audits. Evaluate positions using established systems and market data, determine grades and salary range, and prepare documentation records of the analysis and recommendation(s). Complete compensation surveys and market analysis. Assist line management in the preparation or updating of job descriptions and competency assessments. Make reclassification recommendations and determine the exempt/nonexempt FLSA status of each position. Conduct analysis of internal equity by department or job group. Review off-salary-review-cycle changes in wages and salaries for internal equity and conformance with policy. Regularly handle special assignments and projects.

   
   
   Qualifications
   
   

   Education: Bachelor's degree in human resources, business administration or related field or equivalent experience required.

   Experience: Minimum four years' experience working with position analysis, job evaluation and systems and market surveys required.

   Skills: Excellent organizational, written and verbal communication and customer service skills to be able to interact effectively with all levels of personnel within and outside of the Legacy community. Proficiency using computers: spreadsheets, databases, and word processing software. Technical knowledge requirements include mathematical and statistical skills for data analysis; the ability to understand and apply the intent of policies, guidelines and regulations in diverse situations; skill in understanding management principles sufficiently to soundly advise line management in compensation matters; ability to conceive and present concepts logically for reports and recommendations; an inclination for detail oriented work, and a thorough understanding of State and Federal wage and hour laws.

   LEGACY'S VALUES IN ACTION:

   Follows guidelines set forth in Legacy's Values in Action.

   Equal Opportunity Employer/Vet/Disabled

   
   
   

   PI194173098

   Copy this example

   

5. Post your job

   There are a few common ways to find compensation consultants for your business:

   • Promoting internally or recruiting from your existing workforce.
   • Ask for referrals from friends, family members, and current employees.
   • Attend job fairs at local colleges to meet candidates with the right educational background.
   • Use social media platforms like LinkedIn, Facebook, and Twitter to recruit passive job-seekers.

   Post your job online:

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

6. Interview candidates

   Your first interview with compensation consultant candidates should focus on their interest in the role and background experience. As the hiring process goes on, you can learn more about how they'd fit into the company culture in later rounds of interviews.

   It's also good to ask about candidates' unique skills and talents to see if they match your ideal candidate profile. If you think a candidate is good enough for the next step, you 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 consultant

   Once you've decided on a perfect compensation consultant 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.

   You should also follow up with applicants who don't get the job with an email letting them know that you've filled the position.

   After that, you can create an onboarding schedule for a new compensation consultant. Human Resources and the hiring manager should complete Employee Action Forms. Human Resources should also ensure that onboarding paperwork is completed, including I-9s, benefits enrollment, federal and state tax forms, etc., and that new employee files are created.

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.)

   Sign up to download full list

   Sign up

How much does it cost to hire a compensation consultant?