As a new compensation analyst, you are excited about your new role and ready to succeed. You will be part of determining competitive compensation for numerous roles in your organization, while keeping in mind the compensation philosophy. It is a very critical role in the organization and can feel like a lot of pressure. With solid research, good analytical skills and the right tools you will be well on your way to succeeding in this new role.

Here are some of the best tips to help you succeed as a compensation analyst.

What should you do to be successful in a new compensation role?

To set yourself up for success, there are several areas of focus you should examine. Consider these recommendations:

• Learn the Basics: You need a strong foundation in compensation management to start. You should familiarize yourself with compensation components, including base salary, incentives, benefits, and bonuses. Get to know industry best practices, relevant laws and regulations, and industry standards.
• Build Relationships: Start getting to know key stakeholders in your business, such as hiring managers, HR partners, and finance teams. They will be your partners in success and will help you align your responsibilities with their needs and goals.
• Analyze Data: You will need strong analytical skills to evaluate the compensation data. A variety of software and other tools are available to help you gather, organize and analyze the data you need. Focus on data surrounding market trends, employee compensation and benchmarking.
• Stay Updated: Compensation trends are always changing, which is why you need to stay on top of the latest trends and developments in your field. The best way to do this is by attending conferences, workshops and webinars. You can also subscribe to relevant publications and professional networks.
• Learn Continually: Just like other professions, compensation analysis requires investing in your professional development. Certifications are available in the field, including Certified Compensation Professional (CCP) and WorldatWork Certified Compensation Analyst (CCA). Ongoing learning opportunities like these help you improve your skills and stay ahead in the field.

Resources for you to use

Numerous resources are available to help you develop your compensation acumen.

• Mercer: That’s us! We are a global consulting firm that offers insights and solutions in the areas of compensation, HR strategy and benefits as well as many other services. We provide thought leadership, research reports, and white papers on the latest compensation trends and industry best practices.
• WorldatWork: WorldatWork is a professional association for total rewards and compensation professionals. They offer networking opportunities, educational resources, and certifications.
• Compensation and Benefits Review: The Compensation and Benefits Review is a peer-reviewed journal with articles on benefits and compensation practices. You can read articles on a variety of topics, including pay equity, compensation strategy, and incentive programs. This journal is available with a subscription or through academic databases.
• Bureau of Labor Statistics (BLS): The BLS is an official government organization that offers compensation data on many types of professions in the United States. You can find information on occupational earnings, benefits, and wage trends.
• Society for Human Resource Management (SHRM): The SHRM is a global HR professional society that offers certifications, networking opportunities, and resources for HR professionals, including compensation analysts.

The 3 most useful skills for compensation analysis

Your role as a compensation analyst requires a wide range of skills; however, 3 critical skills will greatly contribute to your success.

1. Analytical

Strong analytical skills are essential for compensation analysis. This includes being able to gather and interpret data, analyze compensation trends, make data-driven recommendations and conduct market research. You should also increase your proficiency in using analytical tools and software to help you analyze compensation data.

2. Communication and interpersonal

Because compensation analysts need to continually collaborate with key stakeholders, effective communication is one of the most important skills you need. Practice delivering clear, concise communication when sharing findings and compensation strategies and when addressing any questions or concerns. You also need strong interpersonal skills, including active listening and relationship-building. These skills will help you build trust and rapport with your clients and colleagues.

3. Knowledge of compensation principles and practices

You need a solid understanding of compensation principles, regulations and practices. This includes a foundation of incentive programs, base pay structures, pay equity, benefits administration and compliance with relevant regulations and laws.

While these skills are crucial, it’s important to note that success as a compensation analyst also requires other skills, such as adaptability, a commitment to continuous learning, attention to detail and problem-solving.

Let Mercer be your ally

It is an exciting time to be a compensation analyst. We have seen a lot of change in the working world in recent years, which means there is always something new happening. Staying on top of the latest industry news, compensation trends, and pay data is crucial if you want to succeed in your new role.

Here at Mercer, we are ready to help. We offer an extensive lineup of resources, tools, and data you can use to deliver relevant and data-backed recommendations, giving you an edge in your new role.

Explore our latest insights and library of solutions, including prevailing wage data and industry surveys. We release new data and research every year, which your company can be a part of.

Interested in learning more about how Mercer can help you advance in your new role? Give us a call today and speak with one of our knowledgeable consultants.