Maintaining regulatory compliance is just as important for companies as sustaining operations. It's a complex job that requires a thorough understanding of regulations and applicable laws, as well as the company's ability to abide by them. That's just one of the reasons why the modern compliance analyst salary is as rewarding as it is.
The compliance analyst job title is becoming more popular in the United States as regulations increase in complexity and the job description becomes more diversified.
In case you're looking for a compliance officer job and wondering what a compliance analyst makes in a year, keep reading. This article brings an in-depth look at the average salary range of an entry-level and senior compliance analyst, while also providing a full breakdown of their responsibilities and job scope.
Let's dive right in.
What is a Compliance Analyst? [Job Overview]
A compliance analyst is someone who researches local, state, and federal regulations and juxtaposes them with a company's operational procedures, recruitment policies, expansion objectives, etc.
Also called compliance managers, senior compliance specialists, or risk analysts, these professionals communicate any and all applicable compliance requirements to the senior management.
Regulatory compliance analysts have several direct responsibilities, including:
- Researching compliance policies and requirements
- Assessing procedural and operational compliance
- Analyzing existing compliance policies and updating them according to current standards
- Discussing compliance requirements with company management and concerned department heads
- Creating and implementing compliance policies and procedures as needed
- Communicating with outside compliance officers on new regulations and legal developments
Additionally, some professionals operate in a more legal capacity, either alongside the general counsel or within the company's legal framework.
What Does a Compliance Analyst Do? [Duties and Responsibilities]
Depending on their host company and the industry in which it is operating, compliance analysts could have various direct and indirect responsibilities.
Some could be functioning as a data analyst, which would require them to simply research policies and cross-reference them with existing procedures.
Others could be working as de-facto business analysts - looking for better business opportunities in regions with regulations that suit the company's current operational framework.
They could even be working as financial analysts - developing transaction and merger procedures that are not only within defined regulations but can be undertaken with minimal financial or legal risk.
Regardless of their actual function within a company, here are some of their constant job duties.
Regulatory policies and laws can sometimes change on the state or federal level and it's the company's responsibility to cater to the change.
A compliance analyst is responsible for studying all aspects of the changed policy and come up with ways to modify company operations in order to comply.
In case the change is not major, the analyst will collaborate with management to implement practices that will cater to the present and future changes.
Communication with Regulators
The compliance analyst is usually the point person for all communications with external regulators and government bodies regarding policy matters.
While the compliance manager may work in a decision-making capacity, the analyst is often the primary communicator between compliance auditors and the company.
Compliance analysts receive all the regulatory data that's needed by the company and help the management develop new safeguards against noncompliance, while also acting as a liaison with auditors.
Regulatory Policy Development
When it comes to developing pro-compliance policies within a company, the compliance analyst is usually at the center of it.
This is because they accumulate and analyze all the data pertaining to corporate compliance, and are therefore better equipped to create operational policies that will help avoid legal trouble.
Depending on the company, the size of the workforce, and scope of operations, the analyst may also be required to develop implementation plans for the new policies.
Compliance Certificate Application
Since compliance analysts are the ones developing internal compliance policies, they also ascertain whether the company can effectively apply for an audit, as well as a compliance certification.
They do this after a thorough internal audit and data accumulation, which helps them generate audit reports.
These audit reports help them determine whether the company is ready to apply for compliance certifications, or whether there are still some legal risks that could result in noncompliance.
Compliance Analyst Salary Average in the United States
The Bureau of Labor Statistics puts the position under the umbrella of 'Compliance Officers' and states their national average base salary as $72,850 (USD).
Since it's already a senior position, there is major growth associated with the job, but only one step up to either a senior analyst or chief compliance officer.
However, the total compensation range depends on several factors, such as where the job is located (analysts in Washington, DC, and New York are bound to find jobs in bigger firms, therefore get higher salaries).
The salary also depends on whether it's a private organization or a government entity, as well as the candidate's years of experience in the industry.
Please note that the average given above is a general average and all candidates should examine multiple job aggregator sites to confirm the actual salary average.
Here are some compliance salary averages from the top job sites.
According to Glassdoor, the average compliance analyst salary is $55,229 a year.
Glassdoor is one of the biggest professional portals and job review aggregators in the world and has multiple related jobs. The platform features some of the most in-demand job postings for compliance analysts, from the top global corporate employers.
In terms of the salary range, compliance analysts can earn from $38k to $79k.
This depends on multiple factors, such as the specific host company, the package on which the candidate is coming in, their on-ground responsibilities, and growth prospects.
On the personal front, the candidate's qualifications and years of experience come into play.
According to Indeed, a compliance analyst makes $94,653 yearly.
Indeed is another major job portal that gives extensive details about the jobs on the platform. Candidates can find analyst jobs all over the world, and see the details for each job, including the typical benefits, incentives, and the average salary range.
As per Indeed, compliance analysts can expect benefits such as employee stock purchase plans, health, and wellness plans, and commute assistance, on top of the usual health and life insurance.
What's best about Indeed is that it hosts some of the best-paying job postings for corporate compliance analysts. The large number of the jobs posted on Indeed exceed the $100k mark.
PayScale puts the average salary for a compliance analyst at $58,376 a year.
The platform is another major job postings board, with hundreds of compliance analyst jobs, as well as job descriptions, career maps, and popular skills for candidates in this and similar positions.
According to PayScale, the salary for corporate compliance analysts ranges from $43k on the low end, with the median salary being $58k, and high-end jobs paying around $81k.
Furthermore, candidates in San Francisco, Los Angeles, and New York City can potentially get better-paying compliance analyst jobs, as compared to other cities.
Required Qualifications for Compliance Analysts
Since it's a quasi-leadership position, compliance analysts need at least a bachelor's degree or higher to attain the job.
The basic qualifications required for the job are:
- Bachelor's degree in an industry-relevant field
- Master's degree in a relevant faculty
- High-level accredited certification in relevant areas such as regulatory compliance management or anti-money laundering (AML)
- Experience using compliance management and analysis software
- Vocational certification in regulatory compliance of legal counsel
On top of the qualifications, candidates can benefit from having acute analytical skills, excellent written and verbal communication ability, as well as professional networking and research skills.
Working as a full-time compliance analyst can be quite rewarding for anyone who enjoys corporate legal management and research.
Plus, the position comes with a salary that can more than cover the cost of living in a big city.
However, in order to be successful, candidates need to diversify their skills and become more well-rounded analysts.
In conclusion, make sure to attain as many independent certifications as you can, along with the requisite qualifications. These will not only upskill them for current positions but prepare them for industry challenges in the future.