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What Does a Compensation Analyst Do

Growth Trends for Related Jobs

As a working mother, you may have wondered who decides how much money you're worth in your job and the type of benefits you should get. The answer is usually a compensation analyst, especially for larger companies. These workers are tasked with developing equitable and competitive pay structures for a business. To do this, they review information gathered inside as well as outside the company. If the position itself interests you, you'll be happy to know that as a compensation analyst, your salary would be very solid, allowing you to earn enough to support your children quite nicely.

Job Description

Every company needs talent to thrive, and most people use salary and benefits information when they're deciding where to work. A compensation analyst is the person charged with attracting and retaining the type of employees the company needs. To do this, the compensation analyst collects and reviews information about salaries and benefits within the organization as well as information about what competitors are paying. Because good employees are usually the lifeblood of an enterprise, the work of a compensation analyst impacts the entire business.

Education Requirements

If you want to be a compensation analyst, you'll need to stay in college to earn a bachelor's degree in a field such as human resources, business administration or finance. Since the core of the job is figuring out salary and benefits structure, you'll want to study compensation, benefits, management, ethics, communication and economics. Some employers require a master’s degree in business administration.

But a degree probably isn't enough to get you a good job. You'll need to get relevant work experience before shooting for the position. Try working for a few years in entry-level human resources positions before sending in an application for analyst positions. This may get you a better job or get you a good job faster.

Another help in getting a job is certification. Several Certified Compensation Professional exams are available, including one from World at Work. Once you get into the job, consider continuing education classes from the International Foundation of Employee Benefit Plans.

According to the Bureau of Labor Statistics, the median salary for these specialists is $62,080 per year. Median means that half of all analysts working in the United States earn more than this and half earn less. Those finding employment as a manager with compensation analyst duties earn considerably more, almost double.

An individual with a bachelor's degree can expect a salary range from between $53,867 to $57,134, according to Salary.com. If you get an MBA or other graduate degree, you may earn $54,621 to $57,727.

Relevant Industry

Compensation analysts work in nearly every industry. Wherever businesses have a large number of employees, they may need a salary specialist.

Years of Experience

According to the PayScale website, the average salary for a compensation analyst in this country is $62,000 per year. Those in entry-level jobs may earn 5 percent less than this, while after a decade of experience, you may see 13 percent more salary. If you have around two decades of experience, your salary may be 19 percent higher than average, while after that, look for a salary of 22 percent more.

Job Growth Trend

According to the Bureau of Labor Statistics, employment in the area is likely to increase by 9 percent over the next decade.