Topping the charts, the position of top corporate security manager saw median total cash compensation soar 16.0% to $110,000. This is a direct result of the increased emphasis on corporate security over the past two years and the urgent demand for these types of skills. Reflecting the growing use of HR service centers, senior HR service center representatives saw pay jump 12.7% to $42,900. Several other positions experienced similar increases:
In general, pay movement for many HR positions was stronger in 2003 than it was in 2002, notes Joe Vocino, a senior compensation consultant with Mercer. Among 12 of the most highly populated positions in the survey, representing some of the most common positions in HR, pay in 2002 nudged up slightly for 11 of the 12 positions - typically less than 2.0% - and dropped slightly for the remaining position. The largest change among these 12 positions in 2002 was a 4.2% increase for senior compensation analyst and general recruiter.
However, in 2003, pay movement for this same set of positions was stronger. Of the 12 positions, only two saw pay increases of less than 2.0% and just one saw a drop in pay compared to 2002 levels. Three saw pay increases ranging from 2.0% to 4.0% and four saw pay increases ranging from 4.0% to 7.0%, while two positions experienced higher increases - 7.3% for senior human resource generalist and 7.0% for compensation manager. (See Table 1: Pay Levels for Common HR Positions.)
These numbers compare favorably to overall pay trends. Mercer´s 2003/2004 US Compensation Planning Survey shows that overall pay increase budgets have reached their lowest point since the 1980s, with average pay increases of about 3.6% in 2004.
"The increases in HR salaries this year, despite a challenging job climate, indicate the value placed on HR professionals," says Debra Cohen, PhD, SPHR, vice president of knowledge development for SHRM. "Increasingly, more business leaders look to HR to align an organization´s people strategies with its goals and objectives in order to improve productivity and the bottom line."
Functional pay differences
The study shows that pay levels within HR continue to correspond closely to functional areas (e.g., employee relations, benefits, training), particularly for professionals in middle and senior management. Among managers in HR, pay for executive compensation managers (median total cash compensation of $127,900) continues to outpace pay for all other managers. Also relatively high is pay for labor relations managers ($107,900) and organizational development/training managers ($102,800). (See Table 2: Pay Variations for Mid-Level HR Positions.)
Managers with total cash compensation in the range of $90,000 to $100,000 include compensation managers, EEO/diversity managers, human resource managers, and HRIS managers. The next tier (median total cash compensation of $80,000 to $90,000) includes employment and recruiting managers, compensation and benefits managers, benefits managers, employee communications managers, and employee relations managers. Managers with total cash compensation of less than $80,000 include training managers, relocation services managers, and payroll managers.
Another mid-level HR position - senior human resource generalist - also saw strong pay growth over the past year (up 7.3% to $71,800). In addition to being the most common position in HR (accounting for nearly 7% of the 46,750 incumbents represented in Mercer´s 2003 survey), it is taking on added significance as organizations rethink HR service delivery models.
"More often today, HR functions include decentralized HR generalists in business units, with these generalists reporting directly to corporate HR," says Mr. Vocino. "As HR advisors or business partners to the business units, generalists typically are expected to have expertise in many areas, including compensation, benefits, recruiting, training, labor relations, employee relations, and safety. That´s why their pay levels are equivalent to mid-level HR managers and are experiencing strong pay growth."
About the survey
These findings come from 2003 Human Resource Management Positions, a module of the Mercer Benchmark Database. This compensation survey is conducted annually by Mercer in conjunction with SHRM. The 2003 survey, considered the leading source of pay information for the HR profession, includes data provided by more than 1,300 US organizations that collectively have nearly 10 million employees. It covers 46,750 HR professionals in 110 HR positions, ranging from top management to clerical positions in HR. The survey findings are detailed in an article in the November 2003 issue of HR Magazine, published by SHRM.
The 2003 Human Resource Management Positions module of the Mercer Benchmark Database is available for purchase online at www.imercer.com or by calling Mercer at 800 333 3070.