If you are new to the workforce or just looking for a better understanding of your current salary so you can network and negotiate more effectively, this article will help. It’s easy to get lost in all that jargon about company perks and job requirements, but here we have explained it all in plain English. “Human resources” is a broad phrase encompassing a wide range of functions, implying several positions within the human resources department. There are many various options and levels within this sector, ranging from HR director to recruiter and all in between. You’ll want to know the pay associated with positions in HR before deciding whether it’s the perfect sector for you. They differ significantly based on the role and your background. This article will teach you all you need to know about HR wages so you can evaluate whether or not a career in HR is suited for you.
What Should I Expect When It Comes to Human Resource Management Salaries?
Because the human resources department keeps an eye on employee compensation, those who work in this sector or want to work in it need to know how to bargain for a fair wage. As a result, you’ll need a decent notion of what someone in your desired job earns to make use of that knowledge. Keep in mind that your pay as a human resources professional is highly dependent on the position you occupy inside HR. According to the Bureau of Labor Statistics, HR specialists earn an average of $59,000 per year, while HR managers make an average of $107,000 per year. That’s a significant distinction. So not only does your position in the HR hierarchy have a part in your income as an HR professional, but so do other factors.
Salaries in Human Resources: The Fundamentals
Salaries in human resources vary from low to high. While the HR position you select impacts your income, the size of the firm and the job function are also factors.
Size of the Business
It should come as no surprise that organizations in their early phases may not be able to provide wages as competitive as those that are more established. According to a recent BLS research, an hourly employee working for a firm with 500 or more workers earns almost twice as much as an employee working for a company with 50 or fewer employees. That’s a significant difference. Those figures, however, do not pertain to specific employment in a given sector; instead, they are generic labor statistics. Human resources, on the other hand, is a different issue. Small businesses follow the same trend as bigger businesses in terms of spending less on HR. However, the salary disparity between HR positions in smaller and bigger enterprises is not nearly as significant as the overall labor statistics. In a firm with less than 100 workers, the typical yearly income for HR experts is about $90,000. The HR professional pay rises to roughly $100,000 when the firm size increases by one level to between 101 and 300 people. With that trend, you’d expect an HR professional’s compensation in a big business with 301 to 500 people to rise another $10,000, but it falls to roughly $98,000. Then, after the firm reaches 500-750 people, you should expect to earn approximately $102,000 per year. Any firm with more than 750 people makes about one with 0-50 employees. These are merely averages, but for the best pay, HR professionals should look at organizations with less than 50 workers or those with more than 750 people. If you want to be an HR manager or director, though, you will earn more as the firm grows. So, if that’s the job you want, look for it at more prominent organizations.
Position
It should come as no surprise that your HR position has a significant impact on your salary–this is true in every sector—the higher your position and title, the more responsibilities you have and earn more money.
The 2019 HR Careers Report from Namely looked at salary trends in HR and identified the most popular HR career positions. Here are the average incomes they discovered for each of those positions.
- Coordinator of Recruiting. Only one to three years of experience are required for this role. You discover, screen, and employ new personnel for the organization as a coordinator. A recruitment coordinator’s average annual pay is $60,158.
- Assistant in Human Resources. This job necessitates two years of experience and needs participation in all HR activities. As an assistant, you ensure that objectives are fulfilled, and administrative duties are completed. An HR assistant’s average income is $40,853.
- Coordinator of Human Resources. With two to three years of experience and the capacity to work with workers and the HR staff on the ground, you can get this position. Your responsibilities include answering employee queries, facilitating orientations, and understanding HR regulations and procedures. An HR coordinator’s average income is $49,579.
- HR professional. This role needs at least three years of experience and requires you to specialize in a particular aspect of HR, such as payroll or onboarding. An HR specialist’s average income is $52,760.
- Generalist in human resources. This job needs three to five years of experience and is the person to contact if you have any HR-related inquiries or complaints. An HR generalist earns an average of $64,790 per year.
- Manager of Human Resources This role requires five or more years of experience, manages direct reports, maintains cross-departmental connections, and executes the business strategy, among other things. An HR manager’s average compensation is $81,762.
- Manager of Recruiting. This role needs five to seven years of experience and supervises the recruitment staff. Managers set recruiting objectives and assess the team’s performance. A recruitment manager’s average income is $109,627.
- Director of Human Resources This job, which needs at least seven years of experience and is in charge of the HR staff, requires seven years of experience. The director is in order of strategy, initiatives, and all elements of human resources. An HR director’s typical pay ranges from $109,181 to $138,929.
- Vice President of Human Resources. This role demands a minimum of ten years of experience and is either the first or second from the top of a big HR team. They ensure that the HR department is on track and consistent with its objectives. A vice president of human resources earns an average of $149,472.
- Officer in Charge of Human Resources (CHRO). Because they are the face of the HR team when it comes to executives and stakeholders, this role demands at least 15 years of experience. They assist the HR department as well as top management. A CHRO’s average compensation is at least $195,000.
As you can see, the higher you climb the ladder, the more money you earn. However, the researchers discovered that HR coordinators earn less money than recruitment coordinators, although HR coordinators have more than twice the experience. It might be because recruitment is a high-demand, fast-paced job, and the more excellent compensation reflects that need.
How to Raise Your Human Resources Salary in 3 Easy Steps
Though the information above is a good beginning point for determining what various HR professions will pay you on average, it doesn’t imply you won’t be able to earn more. There are several strategies to boost your current or prospective HR income. Here are three methods to put yourself in a better position to make more money.
1. Certifications
Obtaining a certification is one of the most effective strategies to increase your pay for your HR career. The HR Certification Institute is the best place to earn the qualifications you need to further your career. With an HRCI certification in hand, you can demonstrate to your employer that you’ve made measures to improve your HR knowledge and ability, and you can show your coworkers that they can trust you to perform the best job possible. Whether you’re new to HR and want to acquire a certification, or you’re a seasoned professional trying to boost your pay and maybe your job title, HRCI has a certificate for you. The following are the several certifications they provide:
- Human Resources Associate Professional. This course is designed for HR professionals who are fresh to the field and want to acquire a leg up.
- International Associate Professional in Human Resources. This is for HR professionals new to the scene outside the United States who want to acquire a head start.
- Human Resources professional. This is for establishing oneself in the sector of human resources. Human Resources Professional – California This certification demonstrates that you are familiar with California-specific laws, regulations, and HR practices.
- International Human Resources Professional. This demonstrates that you have a basic understanding of technical and operational HR concepts regardless of where you are global.
- Human Resources Senior Professional. This will help you position yourself as a thought leader in human resources.
- International Senior Human Resources Professional. This is to promote oneself as a global HR leader, regardless of your location.
- Professional in Human Resources from across the world. This is for anybody with HR duties anywhere in the globe. This credential demonstrates that you are well-versed in international human resources.
2. Degrees
Though no particular degree is necessary to work as an HR manager, it is recommended that you get a specialist HR degree to make yourself more competitive. Degrees in the following areas may help you earn more money:
- Human Resources
- Administration of Business
- Management
- Economics
- Finance
- Marketing
A degree will not only improve your chances of landing a career in HR, but it will also improve your chances of earning better pay. Though a master’s degree in human resources is uncommon, you should consider pursuing one of the more advanced positions in the area. In addition, a master’s degree in HR will set you apart from other applicants and provide you with the skills you’ll need to climb the HR ladder.
3. Industries
If you want to increase your HR compensation, you may want to examine the sector in which you work or desire to work. Although every industry has an HR department with various HR jobs, there are typically differences in compensation across industries.
According to the Bureau of Labor Statistics, central banking is the highest-paying business for HR managers in the United States. They earn roughly $185,000 each year on average. However, employment opportunities in that field are few. Only 50 HR managers work at central banks, according to BLS figures. So you may either set your eyes high and work hard to achieve them, or you can look into other high-paying fields.
Look for employment openings at small financial institutions and investment banks in the finance business, which pays highly for HR managers. HR managers in the banking business earn an average yearly compensation of roughly $170,000. Another industry to explore is cable telecommunications and computer equipment manufacturing. These are well-known for paying well and providing a more significant number of career options.
3 Salary Strategies for Human Resources
Here are a few more pointers to help you grow and earn more money without going back to school or changing sectors.
1. Ask.
Do you want to earn more money in your HR job? Request for it. You may be shocked at how few individuals consider just asking for a raise and demonstrating why they deserve one. In any sector or employment, this is one of the most successful strategies to earn a raise. You must research and gather facts before setting a meeting with your supervisor and making your request. Create a case study for your boss that includes accurate data on the job you’ve done, your successes, and other details. For example, you should be able to demonstrate that you’ve met or exceeded quotas, achieved targets, or optimized procedures. You may also be able to show that you are underpaid compared to the market. This will demonstrate to the management that you are worth more money and will benefit from paying you more.
2. Assume more responsibilities.
Perhaps you’ve been playing it safe at work, and it’s time to take a risk. You can’t expect your firm to pay you more if you don’t offer them a reason to. Take on a larger project, have greater responsibilities, and simply do more. Don’t merely make anything up. Ask your boss for suggestions or tasks if you’re unsure where to begin. This demonstrates that you want to take on more significant duties and can do so.
3. Consider the Advantages.
People often evaluate the monetary value of their income solely and ignore other non-monetary rewards of their profession. Looking at these perks may make you feel better about your present wage.
These are some of the advantages:
- Contributions to a 401(k) plan that are matched
- Hours of employment are flexible.
- Enhancement of abilities
- Employee organizations
- Discounts on a gym membership
- Health insurance that is fully sponsored
- Assistance with childcare expenses
- Costs of certification or training are covered.
- The prices of the meeting are covered.
- Assistance with transportation expenses
- Vacation
- Other paid vacations
- Food that has been subsidized
- Opportunities for work from home
Suppose your employer offers considerable non-salary perks that save you a lot of money. In that case, you may lose money if you take a position with more excellent pay but lousy benefits at another company. For example, perhaps your current job pays for child care and greatly subsidizes your health insurance. Maybe you change jobs, and your new boss offers you a $10,000 increase but doesn’t pay for those expenses. If you do the arithmetic and wind up paying more than $10,000 per year for childcare and insurance, your total salary and available funds will have decreased. This is simply one more piece of the jigsaw to think about.
Conclusion
It would be best if you answered several questions about yourself to receive the most significant HR compensation possible.
- What is the extent of my earning potential? Learn about the many options accessible with your current or intended employment, as well as your education and experience.
- Is there a market for this position? HR specialists, in general, are in more demand than any other career. As a result, there’s a decent probability your work is in great need, but you should double-check.
- Who am I up against? Know what you’re up against for the job you desire in terms of education, qualification, experience, and other factors. You can identify strategies to boost your chances by understanding the competitors.
You can better assess what pay you should be pursuing after knowing the answers to these questions. Whether you’re contemplating a career in HR or already work in the area, you always want to make sure you’re earning the best pay possible. Make sure you don’t forget about your team when you increase your compensation. It’s critical to keep your staff pleased if you want to earn a better income. Check out these strategies for pushing your team to its limits while also keeping everyone happy to help guarantee your team is working hard and happy. Consider using staff monitoring software to keep track of their time and productivity to assist you with this.
Frequently Asked Questions
How much do you make starting in HR?
A: It depends on your experience, how much the company you are trying to get a job at is willing to pay, and what position or area of business they’re in. I have seen starting salaries for HR positions go as low as $28K per year.
What is a good HR salary?
A: A good HR salary allows you to live comfortably and pay rent and afford some fun things on the side.
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