The song was written by members of the pop/R&B production team Stargate, and was produced by Nathan Chapman and Lady Antebellum.

[1][2] After the May 2013 release of Golden, Lady A took a short break before returning to the studio to continue working on new music, rather than immediately going on tour to promote the album.

"From the minute we first heard it," group member Hillary Scott explained to Billboard, "we believed in the message and the overall feel of the song.

"[2] Scott also elaborated on the sonic departure of the song from the group's previous recordings, stating that the prevalent banjo and fiddle in "Compass" were missing from their repertoire and country music as a whole,[2] and credited the song with "reinvigorating" the band creatively and inspiring them to pursue new musical directions.

[5] Taste of Country compared the bluegrass-inspired sound of the song to the music of Mumford and Sons, while praising "Compass" for being a "burst of positive energy... that relies on traditional country instruments" and suggested that the song could pave the way for bluegrass music's acceptance into the mainstream.