HR Pay Varies by Specialization and Job Level
February 2008

Technology and life science organizations are increasingly recognizing the value of human resources and its strategic role in helping recruit, develop, and reward talent. In turn, salaries and the opportunity to earn incentives have increased for HR professionals. Cash compensation for human resource positions varies considerably by specialization and job level. To highlight these differences, we examine U.S. data from the Culpepper Operations Compensation Survey across four common HR job families:

• Recruiting (Culpepper Job Codes OP20-30-15x)

• Compensation & Benefits Analysis (OP20-05-25x)

• Employee Training & Development (OP20-20-05x)

• HR Generalists (OP20-35-05x)

Within each job family, we provide breakouts for the following combination of non-executive job levels:

• Director Levels (Sr. Director and Director levels)

• Manager Levels (Sr. Manager and Manager levels)

• Advisory Levels (Sr. Advisory and Advisory levels)

• Individual Contributor Levels (Senior, Intermediate, and Associate levels)

Total Targeted Cash Compensation
For director and manager levels, recruiting leads the way with the highest total targeted cash compensation (Figure 1). Median total targeted cash compensation for directors and managers in specialized HR jobs averages 7% to 30% higher than directors and managers in general HR jobs. Differences between HR job families for non-management positions are less pronounced.

As you go up the range of job levels from individual contributors to director level, you will not always see a consistent increase in compensation.

For example, pay levels for advisory level positions will often stick out like a sore thumb. Advisory level employees typically have over ten years of experience and are considered skilled experts in their field. In critical job functions, companies will often pay advisory level employees at market rates close to or above manager level positions. This is the case for advisory level HR Generalists and Managers (OP20-35-05x). The median total targeted cash compensation for advisory level HR Managers is $94,000, while HR Advisors earn $95,000.

The recruiting job family (OP20-30-15x) highlighted in this article encompasses recruiting of all types of job positions including operations, sales, technical, and executive employees. Pay levels for recruiters that focus on filling technical positions (OP20-30-10x) and executive positions can vary considerably from general recruiters. Technical and executive recruiters are more likely to receive bonuses than recruiters filling other types of positions.

For example, the median total targeted cash compensation for incentive eligible individual contributor level technical recruiters is $80,900. In comparison, the median total targeted cash compensation for individual contributor level general recruiters not eligible for incentives is $55,400. This emphasizes how important it is to not only consider the specificity of job responsibilities but to also consider whether or not a position is eligible to receive incentives.

Targeted Short-Term Cash Incentives
Historically, HR employees were less likely to be eligible for short-term cash incentives than employees in other job functions. However, in recent years, as HR has expanded its role beyond administrative duties to become more of a strategic player in organizations, we have seen an increase in both the percent of HR employees eligible for short-term cash incentives and the amounts targeted.

Figure 2 shows the percent of HR employees eligible to receive short-term cash incentives. For most job levels, employees in general HR jobs are less likely to receive short-term cash incentives than employees specializing in recruiting, compensation, and benefits.

Targeted short-term cash incentives include the sum total of all forms of variable cash compensation including bonuses, commissions, cash profit sharing, and other forms of variable cash payments targeted to be paid to an employee for performing 100% of expected results. Short-term cash incentives are typically earned within a 12-month period and may vary by employee and/or corporate objectives.

Targeted Short-Term Cash Incentives as Percent of Base Salary
Figure 3 shows the average amount of short-term cash incentives as a percent of base salary. Across most job levels, recruiters typically receive the highest mix of short-term cash incentives (Figure 3).

Other Factors to Consider
In addition to considering the job responsibilities, experience, and incentive eligibility, it is critical to consider the impact of geographic location when market pricing cash compensation for HR jobs. Company size can also influence HR pay, particularly for manager and director level positions.

The purpose of this article was to highlight differences in cash compensation between different types of HR jobs and job levels. In a future issue of the Culpepper eBulletin, we will examine how companies are using long-term incentives, including stock options and stock awards, to reward HR employees.

- W. Leigh Culpepper