HR Pay Varies by Specialization and Job Level

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. Compensation for human resource positions varies considerably by specialization and job level.

In this report on HR pay, we examine total targeted cash compensation and short-term incentive eligibility across four common HR job functions and families from the Culpepper Operations Compensation Survey U.S. database:

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

• Compensation & Benefits Analysts (OP20-05-20x)

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

• HR Generalists (OP20-35-05x)

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

• Director Levels (Director and Senior Director Levels)

• Manager Levels (Manager and Senior Manager Levels)

• Advisory Levels (Advisory and Senior Advisory Levels)

• Individual Contributor Levels (Associate/Entry, Intermediate, and Senior Levels)

Total Targeted Cash Compensation
For director and manager levels, recruiting has the highest total targeted cash compensation (Figure 1). Median total targeted cash compensation for directors and managers in specialized HR jobs averages 8% to 20% higher than directors and managers in general HR jobs. Differences between HR job families for non-management positions are less pronounced.

In general, there is a strong correlation between job levels and compensation. However, as job levels increase from associate level to senior directors, compensation does not always increase in a consistent and predictable pattern.

For example, it is not uncommon for pay levels of advisory level positions to equal or exceed pay levels of manager level positions. 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 HR Generalist jobs (OP20-35-05x). The median total targeted cash compensation for HR Managers is $99,500, while HR Advisors earn $104,400.

Differences Between Compensation and Benefits Specialties
When you examine compensation and benefits jobs closer, there is a clear difference in pay levels between these specialties. Total targeted cash compensation for individual contributor level compensation analysts is 17% higher than individual contributor level benefits analysts (Table 1).

As job levels increase, differences in pay between compensation and benefits jobs are less pronounced. However, even at the director level, the total targeted cash compensation for directors of compensation is 7% higher than directors of benefits.

Differences between Recruiting Specialties
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 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 individual contributor level general recruiters (OP20-30-15x) eligible for incentives is $70,900. In comparison, the median total targeted cash compensation for individual contributor level technical recruiters (OP20-30-10x) eligible for incentives is $82,100. In both cases, both base pay and total targeted cash compensation is significantly higher than recruiters not receiving incentives.

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.

Eligibility for Short-Term Incentives (STIs)
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 partner with top management, 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.

Other Factors to Consider
In addition to considering 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 executive, director, and management level positions.

 W. Leigh Culpepper, CCP, GRP, CBP