Executive Compensation Analyst Responsibilities
Executive compensation analysts are involved in calculating the salaries and benefits offered by the company to its employees. They estimate the exact compensation to be rewarded to the employees by conducting salary analysis data, job evaluations, and conducting / participating in compensation surveys.
Key Responsibilities of Executive Compensation Analyst
Executive compensation analysts are responsible for evaluating the existing job profiles with respect to the company's requirements, proposing new job profiles, and classifying them in terms of compensation value and responsibilities. They are involved in evaluation and analysis of the salary data, determining the variation in payscale grades, and preparing estimation reports as per the analysis. They usually work with the information and guidelines provided by the managers and reports directly to them.
The key responsibilities of an executive compensation analyst comprise:
- Preparing the required plans and commissions of payscale data in compliance with Securities and Exchange Commission (SEC) and Internal Revenue Service (IRS) regulations, preparing and developing the executive packages for entire data analysis accordingly
- Updating the compensation committee list, coordinating with the vendors associated with supplying the communication materials, and providing assistance in distribution and administration of long term compensation programs
- Carrying out the evaluation and analysis of all job positions acquired by the company, evaluating all management and subordinate positions for competitive salary analysis, and formulating the complete structure of salary and benefits appropriate for the position
- Classifying various job positions according to the level of responsibilities involved in it, categorizing it accordingly as per the employer's requirement for hiring candidates into that position, conducting market research for obtaining current statistics of that profile by comparing to the compensation offered by other companies for formulating a package that attracts the prospective candidate to offer long term commitment to the organization
- Coordinating with other compensation analysts for formulating an accurate compensation program that covers all legal and regulatory guidelines and focuses on talent acquisition for long term programs
- Collaborating with business partners / management authorities and designing the program that affirms to business progression, analyzing all benchmark observations with compensation analysis tools and processes for designing accurate compensation packages
- Analyzing the economical and financial impact of compensation packages on tax and payroll systems, managing the expenses involved with compensation, and coordinating with tax and payroll officers for managing all compensation related expenses
- Analyzing financial performance of the organization and managing all accounts and taxation related reports for reducing the overall cost involved in administering the compensation program
- Monitoring all new and existing compensation programs for implementing the incentive plan design and other compensation benefits, preparing all the analysis data required for deciding the compensation factors, and submitting the same to the compensation committee for accurate evaluation of the new job requirement
- Performing market surveys for in-depth analysis on the compensation offered by competitors, interpreting the market change in salary ranges, and monitoring all the salary ranges offered by external competitors for providing accurate financial analysis required for making changes in existing compensation program
- Analyzing the process, tools, and systems involved in formulating the compensation program, recommending solution to increase the performance, and providing assistance in determining equity award for the managers
- Calculating the finance involved in annual incentive bonuses, coordinating with finance departments for preparing accurate bonus increment, and monitoring all the executive packages accordingly
- Monitoring equity plan maintenance programs and conducting research on it for accurate compensation analysis
Required Qualifications and Skills
The minimum qualification required for obtaining a position as an executive compensation analysis is a bachelor's degree in business administration, business management, human resource management, or in a related field of management. He can also be eligible if he possesses a graduate degree in accounting, e-commerce, or a related field. More than the educational qualifications, one needs to have a relevant experience in compensation analysis for obtaining better job opportunities in this field. Many of the candidates also take up an exam on the practice and theory of compensation for obtaining the designation of Certified Compensation Professional which provides better job opportunities in this field.
Apart from the educational qualifications, one also needs to acquire certain skills required for this job. Skills requirement for being a successful executive compensation analyst comprise:
- Strong organizational and leadership skills
- Familiarity with the laws and regulations related to affirmative action, fair labor standards, preference of the employer and salary fluctuation
- Strong analytical skills
- Strong oral, verbal, and written communication skills
- Understanding of organizational functionalities
- Knowledge of survey methodology and even point-factor job evaluation systems
- Ability to work individually or in team
The average salary of an executive compensation analyst falls in the range of $50,000 to $80,000 per annum, though it mostly depends on the job location, industrial requirements, and work experience of the professional.
Compensation analyst plays an important role in the human resources team in any organization. They ensure that the salary offered to an employee is both competitive and reasonable. Executive compensation analysts are likely to gain lots of career advancement in the near future. So if you wish to start a career in this field, it beneficial for you to be well-versed with the roles and responsibilities of an executive compensation analyst.