What Education and Training Is Required to Become Compensation Analyst?
Compensation Analysts are tasked with the responsibility of developing equitable yet competitive compensation and benefit plans for employees. They ensure a fair pay structure matching with the current industry standard, and talented workers stay with the organization for long. If this job role interests you, get an overview of education and training details required to become a compensation analyst, but first, lets discuss their main responsibilities and duties.
What Compensation Analysts do?
Compensation analysts play an important role in HR field by performing a wide range of compensation related functions. They design, analyze, and administer various compensation and benefits programs in sync with the business goals. They collect salary data of employees from the HR as well as the similar industry to set a benchmark for salary. After comparing the salary structure, reviewing roles and responsibilities of job profiles, these compensations analysts then draft reports for the management to re-structure the salary. They are required to conduct various surveys to collect salary data based on the latest trends. They then have to perform interpretation and extensive analysis on these data and prepare reports using various tools to make it easily understandable.
Education and Training Requirements
•Most employers prefer bachelor's degree for a compensation analyst position. A candidate needs to have a college degree in Human Resources, Business Management, Finance, Business Administration or a related field to qualify. These courses also include topics such as compensation, management, benefits, communication, economics, ethics, etc. that help in providing good knowledge of the business and its hierarchy. Background in other disciplines like sociology, can also help for compensation analyst position.
•Although master's degree is not required, some employers prefer it. Especially, Masters of Science in Employment Law can prove beneficial for this career.
•As a fresher with a bachelor's degree, you can go for entry-level HR jobs or HR internship first since it will be counted as your experience. This will help in developing your skills and knowledge that will further help in dealing with the administrative side of the compensation work, including benefits administration, job descriptions, etc. Once you have gained experience in these, you can then apply for compensation analysts position in the same or different organization. You can also advance your career in this field by doing master's degree after these internships or entry-level jobs.
•Another way to help in getting a compensation analyst job is by doing a certification program. Although, becoming certified is not a requirement by most of the employers, but still it will demonstrate your professional expertise and credibility. Additionally, it will help you gain an advantage since competition for the position is high. Various associations such as International Foundation of Employee Benefit Plans, WorldatWork and HR Certification Institute offer Certified Compensation Analyst or Professional, Certified Benefits Analyst or Professional programs. They usually require candidates with some years of experience and also you have to clear various exams to earn these certifications. These exams cover topics such as compensation basics, job analysis and classifications, job evaluation, salary surveys, compensating employees globally, sales compensation design, stock option based plans, etc.
These professionals work nearly in every industry, and usually earn an hourly salary of $34.54, and monthly $5,527, which varies according to experience, education, and location. Their average annual salary is estimated to be between $46,285 to $81,957.
After learning the above requirements, if you find this career right for you, then you will be happy to know that 4% employment growth in the next 5-6 years is estimated for this career, which will definitely help in offering many opportunities to boost your career prospects.
What Compensation Analysts do?
Compensation analysts play an important role in HR field by performing a wide range of compensation related functions. They design, analyze, and administer various compensation and benefits programs in sync with the business goals. They collect salary data of employees from the HR as well as the similar industry to set a benchmark for salary. After comparing the salary structure, reviewing roles and responsibilities of job profiles, these compensations analysts then draft reports for the management to re-structure the salary. They are required to conduct various surveys to collect salary data based on the latest trends. They then have to perform interpretation and extensive analysis on these data and prepare reports using various tools to make it easily understandable.
Education and Training Requirements
•Most employers prefer bachelor's degree for a compensation analyst position. A candidate needs to have a college degree in Human Resources, Business Management, Finance, Business Administration or a related field to qualify. These courses also include topics such as compensation, management, benefits, communication, economics, ethics, etc. that help in providing good knowledge of the business and its hierarchy. Background in other disciplines like sociology, can also help for compensation analyst position.
•Although master's degree is not required, some employers prefer it. Especially, Masters of Science in Employment Law can prove beneficial for this career.
•As a fresher with a bachelor's degree, you can go for entry-level HR jobs or HR internship first since it will be counted as your experience. This will help in developing your skills and knowledge that will further help in dealing with the administrative side of the compensation work, including benefits administration, job descriptions, etc. Once you have gained experience in these, you can then apply for compensation analysts position in the same or different organization. You can also advance your career in this field by doing master's degree after these internships or entry-level jobs.
•Another way to help in getting a compensation analyst job is by doing a certification program. Although, becoming certified is not a requirement by most of the employers, but still it will demonstrate your professional expertise and credibility. Additionally, it will help you gain an advantage since competition for the position is high. Various associations such as International Foundation of Employee Benefit Plans, WorldatWork and HR Certification Institute offer Certified Compensation Analyst or Professional, Certified Benefits Analyst or Professional programs. They usually require candidates with some years of experience and also you have to clear various exams to earn these certifications. These exams cover topics such as compensation basics, job analysis and classifications, job evaluation, salary surveys, compensating employees globally, sales compensation design, stock option based plans, etc.
These professionals work nearly in every industry, and usually earn an hourly salary of $34.54, and monthly $5,527, which varies according to experience, education, and location. Their average annual salary is estimated to be between $46,285 to $81,957.
After learning the above requirements, if you find this career right for you, then you will be happy to know that 4% employment growth in the next 5-6 years is estimated for this career, which will definitely help in offering many opportunities to boost your career prospects.
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