Compensation Consultant Job Facts

A compensation consultant, also called a compensation analyst or compensation specialist, fills a range of roles in relation to employee pay. Because of the complex nature of the job, a compensation consultant may need an extensive range of skills.

The Work Environment

This job involves all aspects of remuneration at all levels. The job naturally interfaces with human resources and payroll departments to a large degree, and many positions work directly within these areas of an organization. The typical baseline compensation consultant position requires a minimum undergraduate degree and certification in compensation management and human resources.

The work may include these issues:

  • Pension elements
  • Retirement benefits
  • Incentive schemes
  • Payroll surveys
  • Executive remuneration
  • Restructuring projects
  • Statutory reporting functions
  • Finance and accounting data management and reports
  • Insurance
  • Bonus management
  • Labor regulation
  • Liaison with statutory authorities.

As you can see, the dual HR/finance basis of the work is present throughout all aspects of the compensation consultant's job. The position acts as a natural statistical and reporting base. In larger organizations, a compensation consultant may cover the large amounts of information involved.

The analytical aspects of the work also provide working figures for the organization. These analyses directly impact the budget, and sometimes the business model, of employers. For many organizations, compensation is a primary cost issue, and the compensation consultant's work relates to major policy issues.

The work may be sensitive within the organization because these considerations can lead to major restructurings. Compensation studies also form part of the basis of job design, working on a cost-efficiency basis.

Salary for a Compensation Consultant

The salary may range from $40,000 to $80,000. depending on years of experience, qualifications and job status.

Working Hours

The working hours for a compensation consultant usually fall within typical business hours, but they may include project work on studies and other extra time in preparation of reports and other special projects.

The Career Environment

The compensation consultant role fits into various areas of business administration, which is one of the main qualification streams for work in this area. Working in this field may produce an area of career specialization for business administrators and managers, but it's also very necessary in long-term career expertise.

The basic career track for compensation experts is linear to a point. However, because of the level of overlap with both HR and finance, the job also operates as a natural career asset in these fields. Any business, HR or finance manager can use experience in compensation as a value-adding part of their career credentials.

Business analysis is another good career track for previous compensation consultants, as their job experience is a major component of analysis methods.