Interview Questions to Hire Compensation Analyst

Compensation Analysts work with companies, often corporations. Federal or local authority to assess and implement fair and proper salary brackets for specific roles within the organization. They often use a multitude of data to arrive at their decision. Through careful review and research, they identify fair pay scales for the location the company is in, taking into consideration various factors such as market trends and competitor salaries, and the local cost of living in the region.

When interviewing a candidate for a Compensation Analyst, you should be looking for candidates with a strong educational background in either finance or human resources or business. They should have demonstrated experience in a company like yours and have proven research abilities combined with strong analytical skills.

Role Specific Questions

• How do you ascertain salary information for specific roles?
• What factors do you consider when deciding salary brackets/scales?
• What method do you use to gather outside data and identify trends from it?
• What software or databases have you had previous experience with using?
• How often should an organization review their salaries, and why is it important to review them?
• Do you think that salaries should be fixed, or have room for growth?
• How does the local cost of living affect the salaries of a company?
• You have been asked to review ten salaries in a business. You have identified through research and analysis that these ten roles require a large increase. How would you put this to management or executives?
• How would you present research and findings to a non-analytical audience?

Behavioral Questions

• How do you keep up to date with industry trends and initiatives?
• How do you effectively communicate with shareholders and stakeholders?
• Tell me about a project you worked on that was successful. What did you enjoy about it?

Conclusion

Most Compensation Analysts will be able to provide comprehensive answers and demonstrate in-depth knowledge of these subject matter questions. Look for answers using the star method and identify where persons are using specific examples from their previous roles/experience to demonstrate their working knowledge.

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