A Compensation Analyst is a professional who specializes in evaluating and designing compensation packages for employees within an organization. They play a critical role in ensuring fair and competitive pay practices to attract, retain, and motivate talent. In this blog post, we describe the primary responsibilities and the most in-demand hard and soft skills for Compensation Analysts.

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Main Responsibilities of a Compensation Analyst

The following list describes the typical responsibilities of a Compensation Analyst:

Administer

• Administer bonus amounts for several sales incentives (bonus) plans.

• Administer compensation programs, including salary increases and bonuses.

• Administer Employee Share Purchase Plan program and assist with maintenance of the equity platform.

• Administer MarketPay market pricing portal.

• Administer multiple plans for participants globally with equity in publicly-traded securities.

• Administer pay related benefits such as vacation, holiday, sick and personal time, etc..

• Administer sales compensation plan and enforces compliance.

• Administer the annual bonus planning process.

• Administer the final payout process.

Advise

• Advise, educate and coach Human Resources and management on compensation programs and systems.

• Advise managers and HR Business Partners on writing job descriptions.

• Advise on best practices throughout the organization.

Aid in

Aid in the improvement and enhancement of payroll processes.

Analyze

• Analyze compensation data to identify trends and insights.

• Analyze competitive pay practices to inform compensation strategies.

• Analyze results of surveys to determine their impact.

• Analyze the effectiveness of programs and recommend changes when necessary.

• Analyze the impact of compensation on employee engagement and retention.

Apply

Apply comprehensive knowledge of market-based compensation programs and practices.

Assess

Assess jobs and their respective duties to ensure alignment with salary scales and market realities.

Assist in

• Assist and collaborate in the planning, coordination, and reporting of the annual compensation cycle.

• Assist and support in researching customer activity to clarify complex transactions and processes.

• Assist Finance and HR Manager with compensation-related issues.

• Assist in designing and administering executive compensation programs.

• Assist in designing incentive and bonus programs.

• Assist in developing compensation budgets.

• Assist in planning, data modeling, creation, and evaluation of Sales Compensation Plans.

• Assist in researching customer activity to clarify complex transactions and processes.

• Assist in SAP SuccessFactors system set-up and scenario testing.

• Assist in the administration of the annual review cycles.

• Assist in the design process for new or existing programs.

• Assist in the development, implementation and administration of compensation policies and programs.

• Assist in the development of bonus plan documentation and quarterly updates.

• Assist in the develop of and produce monthly people metric dashboards.

• Assist in updating salary ranges where appropriate in bench-marking tool.

• Assist with any payroll and benefits issues and inquiries.

• Assist with evaluating and recommending the FLSA status of Company jobs.

• Assist with HR projects and initiatives.

• Assist with stock grants issuance and maintenance of records in the equity awards management system.

Audit

• Audit and maintain business listings and location directories across the web.

• Audit customer survey participation files.

Balance

Balance demands of a variety of customers with potentially conflicting goals.

Build

• Build financial models on cost modeling of compensation plans.

• Build market-pricing composites for jobs in different industries, company sizes, and geographies.

• Build quantitative models in Excel, including data gathering, data modelling and analysis.

Collaborate with

• Collaborate with assigned client group on job analysis and recommendations.

• Collaborate with Comp Finance to provide accurate and timely payments to field employees.

• Collaborate with HR Business Partners on the administration of the job architecture.

• Collaborate with HR partners to address compensation-related issues.

• Collaborate with Manager, Total Rewards to review and update existing processes and resources.

• Collaborate with our finance partners to provide accurate and timely payments to field employees.

• Collaborate with Sales Operations and Sales Leadership to improve compensation plan design.

Collect

Collect, analyze, validate and audit data for inclusion in the annual proxy statement.

Communicate

• Communicate compensation policies and changes to employees.

• Communicate effectively with diverse audiences at all levels in verbal and written form.

Complete

• Complete ad hoc compensation analysis and reporting.

• Complete and prioritize work as required.

• Complete and submit compensation surveys, dashboards and other ad-hoc analyses.

• Complete audits for data validity / governance purposes.

Conduct

• Conduct audits of compensation data to ensure accuracy and compliance.

• Conduct audits to ensure accuracy and consistency.

• Conduct benchmark analysis and analyze salaries for different business units.

• Conduct compensation surveys and other market studies.

• Conduct cost analysis of compensation programs.

• Conduct equity analyses to ensure pay fairness.

• Conduct job evaluations and makes leveling recommendations for existing new or changed jobs.

• Conduct job evaluations and market assessment using market data and internal evaluations.

• Conduct job evaluations, to determine proper job grade levels.

• Conduct market pricing on a project basis or as needed.

• Conduct market research for regulatory compliance items and bench marking.

• Conduct market research to benchmark compensation levels.

• Conduct training sessions on compensation-related topics.

Contribute to

Contribute to the development of Global Pay Structures.

Coordinate

• Coordinate compensation activities during mergers and acquisitions.

• Coordinate executive incentive payout and grant process and reporting.

• Coordinate the executive annual salary administration process and reporting.

Create

• Create and drive value-add analytics on ad hoc requests from the business and key stakeholders.

• Create and present reports.

• Create, review and edit job descriptions.

• Create, update, and delimit job elements within the HR Information System.

Deploy

Deploy effective communication strategies and success metrics surrounding compensation.

Design

Design recognition messages to be disseminated by leadership.

Develop

• Develop and conducts routine and ad-hoc audits and analyses utilizing multiple systems' data sets.

• Develop and implement compensation policies and procedures.

• Develop and maintain databases and reports.

• Develop and manage compensation communication materials.

• Develop and present business insights to Sales Compensation leadership.

• Develop attainment, productivity reports for performance management and cost analysis.

• Develop tools and resources for managers to make informed compensation decisions.

Distribute

Distribute incentive compensation reports to the sales force.

Document

Document business processes for data production.

Drive

Drive process improvements and efficiencies while being able to meet monthly close schedules.

Ensure

• Ensure all positions have a description.

• Ensure commissions and bonus calculations are done accurately and in a timely manner.

• Ensure commissions calculations comply with the plan.

• Ensure compensation practices align with organizational goals and objectives.

• Ensure compliance with internal and external policies and procedures.

• Ensure programs and practices remain compliant with legislative requirements.

• Ensure that internal equity and compensation philosophies are maintained.

• Ensure Time Management and Execution Excellence.

Establish

Establish, maintain and continuously build credibility and knowledge of people analytics.

Evaluate

• Evaluate job positions to determine appropriate salary ranges.

• Evaluate the effectiveness of compensation programs.

Execute

Execute job evaluation, job description and job code processes and controls.

Finance

Finance to ensure accurate accrual and payment of compensation programs.

Formulate

Formulate recommendations regarding FLSA exemptions, job revisions and organizational structures.

Gather

Gather, analyze, prepare and summarize appropriate recommendations to solve operational issues.

Guide

Guide others in their work as needed.

Handle

• Handle Benefits and Wellness queries from Employees.

• Handle commission results autonomously and continuously seek to improve existing processes.

Help

Help innovate and improve sales compensation systems and reports.

Identify

Identify Gaps and opportunities for Standardization and Improvement.

Improve

Improve star ratings and search result rankings.

Incentive

Incentive Payment Administration.

Interact with

Interact with the stakeholders / vendors and escalate issues as needed.

Interview

Interview managers and incumbents to obtain position information.

Lead

• Lead assigned workstreams for design and operations of specific programs.

• Lead multidisciplinary project teams, working groups and resources.

• Lead quota and territory assignment and ongoing alignment.

• Lead the annual Total Rewards Statement initiative.

• Lead with Integrity and Respect.

Maintain

• Maintain all approved plan documents.

• Maintain and help run the sales incentive compensation processes.

• Maintain controls required for accurate payout of commissions.

• Maintain integrity of all aspects of job evaluation program.

• Maintain job classifications and salary scales.

• Maintain job codes and job profiles.

• Maintain knowledge of any global legislative and tax related changes regarding payroll and benefits.

• Maintain monthly attainment and costing analysis using CaptivateIQ.

• Maintain pay equity programs.

• Maintain required level of knowledge of HRSS product & service offerings.

Make

• Make operational changes to improve customer experience.

• Make recommendations as necessary.

Manage

• Manage, direct and nurture a team.

• Manage Key Benefit and Wellness Events.

• Manage multiple analytical projects at the same time, prioritizing and adjusting to meet deadlines.

• Manage semi-annual enrollment process for the ICF ESPP program.

• Manage the budget and administration of the company-wide employee recognition program.

• Manage the monthly commission process for our sales teams and other commissionable employees.

• Manage the process for existing and newly created positions and conduct job audits as appropriate.

• Manage the quarterly sales bonus program.

Minimize

Minimize business disruption.

Monitor

• Monitor and analyze turnover rates related to compensation.

• Monitor, request and respond to online reviews.

Operate

Operate with minimal supervision on projects with significant interface across functions and groups.

Organize

Organize jobs into respective families / categories and create logical job codes.

Overlook

Overlook and support account reconciliations, JEs, analysis and payroll audits.

Oversee

Oversee and prepare communications with employees through participant-wide reminder emails.

Participate in

• Participate in annual review of salaries and incentive plans.

• Participate in compensation surveys.

• Participate in different ongoing compensation projects.

• Participate in job evaluation committee meetings.

• Participate in market-based compensation surveys.

• Participate in multiple salary surveys.

• Participate in salary surveys and / or industry surveys, ensuring accuracy and timely completion.

• Participate in salary surveys to gather benchmarking data.

• Participate in the invention of new compensation solutions.

• Participate in the job rating process.

• Participate in the monthly commission process for our Sales teams.

Partner

Partner with HR Business Partners and HRIS to ensure employee data is accurate and up to date.

Perform

• Perform ad hoc financial / business analysis.

• Perform compensation analysis, support compensation administration and position maintenance.

• Perform market pricing analyses.

• Perform ongoing data quality audits.

• Perform testing to ensure new plan and / or system enhancements are producing desired results.

Prepare

• Prepare and present summary reports of job analysis and compensation analysis information.

• Prepare and studies salary analysis for determination of employee compensation.

• Prepare base and incentive program compensation forecasts for financial and workforce planning needs.

• Prepare charts graphs and dashboards for presentations regarding compensation initiatives.

• Prepare compensation recommendations for all potential promotions.

• Prepare data, evaluate and participate in salary / benefit surveys.

• Prepare program materials for leadership reviews.

• Prepare quarterly Executive Summary for ORC.

• Prepare reports and presentations on compensation trends and recommendations.

• Prepare various monthly reports for the Finance teams as requested.

Prioritize

Prioritize process improvement consistently.

Process

• Process corrections and adjustments as they arise.

• Process owner for job description housing, version control, and job code creation.

Propose

Propose salary grade placements.

Provide

• Provide additional, relevant information than may not have been part of the original ask.

• Provide ad-hoc analytical and logistical support through quarterly performance review cycle.

• Provide assistance with key initiatives within the Worldwide Field Incentives Team.

• Provide consultative solutions to our customers by leveraging our analysis software and data.

• Provide credible, thoughtful and data-driven compensation advice to HR Partners.

• Provide critical thinking and problem solving, working with limited direction.

• Provide guidance and expertise to other Compensation Analysts in the team.

• Provide guidance on compliance with labor laws and regulations.

• Provide insights on sales and performance.

• Provide quantitative and qualitative analytical support to senior consultants and project teams.

• Provide recommendations for improvements to compensation structures.

• Provide reporting and analysis of complex sales transactions and orders.

• Provide sign-off on completion of review process on a monthly and quarterly basis.

• Provide specialized support to internal and external audits as situations require.

• Provide Support and Lead Optimization on Compensation Processes.

• Provide support for the design and administration of Board of Directors compensation program.

• Provide support in compensation-related negotiations.

• Provide various sales reports and training to sales and sales management.

Recommend

• Recommend appropriate action to HRBP / department head on salary grade assignment.

• Recommend improvements to existing programs and processes and spearhead new analyses.

• Recommend salary adjustments based on internal and external factors.

Reconcile

• Reconcile remittances in accordance with local government laws and standards and external providers.

• Reconcile sales compensation payments.

Research

• Research and coordinate resolution of system issues with vendor.

• Research and establish accurate wage ranges for locations around the US and Canada.

• Research and respond to internal stakeholder inquiries regarding Incentive plans.

• Research of compensation trends and compensation data.

Resolve

Resolve complex inquiries in respects to variable compensation.

Respond to

• Respond to inquiries, analyze compensation issues, and prepare spreadsheets with data for resolution.

• Respond to questions and provides guidance throughout the process, where required.

Review

• Review all requests for job changes (promotions, equity, demotions).

• Review and approve compensation changes and one-time payments in the HR system.

• Review and approve salary adjustments and promotions.

• Review and update job descriptions to ensure accuracy.

• Review and validate quotas and compensation data.

• Review job descriptions and assess appropriate compensation levels.

• Review proposed promotions for conformance to established guidelines, policies and practices.

• Review requests for new or revised classifications to determine appropriate salary grade assignment.

Seek

Seek guidance and deliver proposed solutions on issues outside of normal scope.

Set

Set appropriate ranges for reward decisions (merit increase, salary ranges, one-time

Study

Study market compensation surveys to understand the market ranges of pay for a job.

Support

• Support administration of recognition programs including tracking, reporting, and analytics.

• Support administrative processes with the 'Common Review' base salary merit program.

• Support annual merit cycle including system preparation, manager planning, and final processing.

• Support leaders in aligning and integrating staff into existing compensation programs.

• Support simple to complex compensation projects.

• Support the annual compensation planning process.

• Support the team of Advisors with professional business-related research and analysis.

• Support the team with ad-hoc data analysis and audits.

Take

• Take initiative beyond the established scope of responsibilities.

• Take ownership of assigned projects and see them through with attention to detail and timelines.

Understand

• Understand BU and HR strategy and the alignment with compensation.

• Understand plan impact while communicating compensation results to sales.

• Understand the global and in-country implications of executive compensation.

Use

Use survey analysis and modelling to evaluate competitiveness of the company's compensation programs.

Utilize

Utilize problem-solving skills in a well-considered manner to identify and resolve issues.

Work with

• Work closely with Finance professionals to manage compensation budgets throughout the year.

• Work on compensation projects as needed in a face-paced environment.

• Work with management to write and update job descriptions for new and existing positions.

• Work with our third-party vendor on LTI plan administration and support.

• Work with survey customers to resolve issues with their participation files.

Write

Write and edit benchmark job descriptions.

Most In-demand Hard Skills

The following list describes the most required technical skills of a Compensation Analyst:

1. Proficiency in compensation benchmarking methodologies.

2. Advanced Excel skills for data analysis and modeling.

3. Knowledge of compensation survey tools and databases.

4. Understanding of statistical analysis techniques.

5. Familiarity with compensation management software.

6. Ability to interpret compensation surveys and market data.

7. Skill in developing compensation structures and salary bands.

8. Knowledge of regulatory requirements related to compensation.

9. Proficiency in using HRIS (Human Resources Information Systems).

10. Understanding of pay equity principles and analysis.

11. Skill in conducting job evaluations and salary reviews.

12. Ability to perform cost-benefit analysis of compensation programs.

13. Knowledge of incentive plan design and administration.

14. Familiarity with compensation analytics and reporting.

15. Understanding of tax implications related to compensation.

16. Skill in developing compensation communication materials.

17. Proficiency in using compensation planning tools.

18. Knowledge of global compensation practices and regulations.

19. Ability to conduct total rewards analysis.

20. Understanding of executive compensation governance and regulations.

Most In-demand Soft Skills

The following list describes the most required soft skills of a Compensation Analyst:

1. Strong analytical skills.

2. Excellent attention to detail.

3. Effective communication skills, both verbal and written.

4. Ability to work collaboratively in a team environment.

5. Critical thinking and problem-solving abilities.

6. Adaptability to changing priorities and deadlines.

7. Integrity and ethical conduct.

8. Relationship-building and influencing skills.

9. Time management and organization.

10. Proactive approach to learning and staying updated on industry trends.

Conclusion

Compensation Analysts play a crucial role in designing and managing compensation programs that attract, retain, and motivate employees. By mastering the essential hard and soft skills outlined in this post, professionals can excel in this dynamic field, contributing to the success and growth of their organizations.