As the economy improved and employers began to focus on growing business and
investing in employees, many human resource (HR) positions commanded strong
increases in pay levels this year. Salaries for HR roles in areas of rising
importance -- specifically, compensation experts, recruiters, and trainers --
advanced significantly. These are the findings of a new survey conducted by
Mercer Human Resource Consulting in conjunction with the Society for Human Resource
Management (SHRM).
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2005? You
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Leading the way, median total cash compensation (base pay and annual incentive)
for the position of top compensation and benefits executive escalated 16.0%
to $176,200. Other positions showing sizeable pay increases over the past year
include:
Human resource specialist (up 15.1% to $51,800)
Top organization development executive (up 13.1% to $174,100)
Top HR management executive (based in a parent organization) with industrial
relations responsibilities (up 12.1% to $240,000)
Compensation and benefit analyst (up 9.3% to $55,700); and
Trainer (up 9.0% to $51,100).
Overall, salaries for HR professionals are progressively improving along with
annual bonuses and eligibility for incentive pay, including stock options. Among
10 of the most highly populated positions in the survey, representing some of
the most common positions in HR, five showed pay increases greater than 5.0%
and only two had increases of less than 3.0%. The two largest increases for
this group were 9.0% for the position of trainer and 7.5% for top HR management
executive.
These pay gains compare favorably to overall pay trends. According to Mercer,
employers plan to grant average pay increases of 3.3% this year, the same as
they gave in 2003.
Increases in HR salaries are in alignment with top HR challenges of managing
benefit costs, attracting and retaining employees, and ensuring competitive
reward programs. Solid increases in pay for positions in the areas of compensation,
training, and recruiting reflect these top HR concerns. Some of the jobs within
these functions showing large percentage increases in median cash compensation
include compensation and benefits manager (up 5.8% to $90,500), training manager
(up 6.1% to $83,000), and managerial/professional recruiter (up 10.4% to $65,900).