Compensation Analyst
In the recruiting industry, a compensation analyst is a specialist in employee compensation like salaries and benefits packages. These specialized human resources professionals are highly trained in labor costs, salary analysis and benefits structures. Compensation analysts use metrics and models to understand current salary trends and predict future trends. A compensation analyst can work with recruiters and other HR professionals to help develop compensation plans and ensure that employees are getting fair pay and benefits for their work. Compensation analysts are generally employed by recruiting firms or organizations as part of a human resources department. For recruiters looking to expand their skill set, compensation analysis can be a great addition to general recruiting knowledge and make a recruiter more competitive in the job market.
Compensation Analysis
Compensation analysis shows the employer whether or not they are paying their employees a reasonable rate. Salary analysis is a complex system that involves taking salary data from many different companies. Salaries are compared by region, industry, job title and level of experience. Salary isn’t the only element to a compensation plan, and benefits analysis is another aspect of the job. Sophisticated compensation models include indirect benefits such as option and profit pools, profit sharing, and even deferred pay programs. They typically map out total aggregate spending and pay for a certain number of years, both for internal corporate finances and for recruiting and retention purposes.
Job Market Analysis
Not only does a compensation analyst look at the current compensation plans in their company, but they also analyze general job market trends, including salary and benefits trends. Analysts use models and metrics to analyze current job market trends and predict future trends. With this information, the compensation analyst can better inform management about where salaries and benefits will need to be one, two or three years in the future.
Compensation Management
Ongoing management of compensation plans is also another part of the job. Not only do compensation analysts have to be good at running metrics and analyzing data, they also need the interpersonal skills of managers. Analysts work with executives and upper management in many different departments, not just the human resources department, so they need to have strong leadership and communication skills.
Becoming a Compensation Analyst
Most human resources professionals need a bachelor’s degree in business administration or human resources to get a job. For compensation analysis, business degrees are sometimes better than HR degrees, and a master’s degree in business administration is required by some organizations. There are also certifications available, including becoming a Certified Compensation Professional. At a very senior level, these professionals almost resemble actuaries, as their models include complex variables such as time, future value, and risk.