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Top Human Resources Income Exceeds $200,000Compensation in the Human Resources Field, 22nd EditionPUBLISHED: February 2002 Summary of the 741-page Compensation in the Human Resources Field, 23rd Edition survey report of 92 benchmark jobs from Abbott, Langer & Associates, Inc. The following describes the highest and lowest paid job characteristics, the national median total cash compensation for 24 benchmark jobs, and the factors affecting salary (Geographic Location, Type of Employer, Number of Employees, Type & Size of Employer Simultaneously, Fiscal Size, Level of Education, Length of Experience, Supervisory Responsibility).
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The composite human resources practitioner with the highest annual income (salary plus cash bonus and/or cash profit sharing) is a Human Resources Director (whose responsibilities include industrial relations responsibilities). He or she is probably located in New York City, San Francisco, San Jose, Detroit, Oakland/East Bay, Nassau/Suffolk Counties (NY), Newark/Jersey City, or Boston; frequently holds a graduate degree; has 10 or more years of experience; and directs the activities of 10 or more employees in the human resources field. This individual holds a position with a financial organization, a research organization or laboratory, a merchandising firm, or a manufacturer of chemical/pharmaceutical/plastic/rubber products with 1,000-plus employees. While Human Resources Directors have a median income of $80,000 per year, the highest-paid individuals in this group make well over $200,000 annually.
Far toward the other end of the income spectrum are Human Resources Records Clerks with a median annual income of $29,660; however, the lowest-paid individuals in this group earn less than $19,000 per year. The composite Records Clerk with the lowest income works for a health care organization, a manufacturer of food/beverage/tobacco products a financial organization, a state or local government, a fabricated metals products manufacturer, or a nonprofit organization headquartered in or near Milwaukee, Phoenix, Sacramento, Hartford, Providence, Chicago, or Salt Lake City/Ogden/Provo, of outside the metropolitan areas studied in Florida, Minnesota, or Alabama. He or she probably has little or no college education and little or no prior experience. These composites represent the briefest possible "boil-down" of the voluminous data provided by 650 organizations regarding the current salaries, salary ranges, cash bonuses & profit-sharing, and numerous demographic variables of almost 3,000 managerial, supervisory, and non-supervisory professional-level H.R. practitioners and support staff. The end results of the survey, the most intensive conducted in this field, appear in Compensation in the Human Resources Field, 23rd Edition, a 741-page statistical analysis of compensation of 92 jobs in the human resources field. Copies of the report are available for for $995.00 through our On-Line Order Form or from Abbott, Langer & Associates, Inc., Dept. NET, 548 First St., Crete, IL 60417; telephone 708/672-4200; fax 708/672-4674. Also available is a companion report: Compensation in the Human Resources Field in Northern California ($350.00). One of the most pressing questions about human resource jobs is the relationship of income to type of job. In addition to the incomes of the two jobs already discussed, the median total cash compensation of some of the other jobs included in the survey report are:
Naturally, these nation-wide rates vary by type & size (number of employees and fiscal size) of organization; education, experience, and supervisory responsibility of incumbents; and geographic location. The apparent anomalies in the list above tend to "wash out" when consideration is given to the effect of the various demographic variables for which pay data are presented in the complete report.
Geographic Location Overall, supervisory and managerial HR employees are paid highest in the Pacific and northeasters states and least well in the Rocky Mountain and north central states, with the midwestern, southern, and southwestern states between those groups. Non- supervisory HR professionals are paid the most in the Pacific and Rocky Mountains and the lowest in the southwestern and north central states; the midwestern, northeastern, and southern states fall in the middle. The highest pay for clerical HR personnel is found in the Pacific and northeastern states; the lowest is in the Rocky Mountain and southern states, with pay in the north central, southwestern, and midwestern states falling in the middle. Supervisory and managerial HR employees have the highest median incomes in Richmond; Stamford/Norwalk/Bridgeport (CT); New York City; Kansas City; Los Angeles; Newark/Jersey City; Nassau/Suffolk Counties (NY); Tampa/St. Petersburg; San Francisco; and San Jose. Non-supervisory HR professionals have the highest median incomes in Nashville; Richmond; New York City; Los Angeles; Cincinnati; San Francisco; Nassau/Suffolk Counties; Atlanta; and Detroit. Clerical employees in the HR field have the highest median incomes in New York City; Richmond; Oakland/East Bay; San Francisco; Orange County (CA); San Jose; and Providence. Supervisory and managerial HR employees tend to do least well in Mississippi; North Dakota; Memphis; Arkansas; Louisville; Montana; and Jacksonville. Non-supervisory HR professionals are paid least well in North Dakota; Pittsburgh; St. Louis; Nevada; Portland (OR); Iowa; Greensboro/Winston-Salem; Tulsa; and Alabama. Clerical employees are paid least well in Nevada; Memphis; Mississippi; Gary/Hammond/East Chicago; Alabama; Greensboro/Winston-Salem; Birmingham; and Kentucky. Type of Employer Overall, manufacturing & extractive firms continue to provide higher compensation for most human resources jobs than do non- manufacturing firms. The highest-paying employers for supervisory and managerial human resources positions tend to be research organizations & laboratories; transportation services; manufacturers of electrical & electronic products, engineering/medical/scientific equipment, and food/beverage/tobacco products; and communication services. The lowest-paying industries for this group tend to be nonprofit organizations; manufacturers of apparel/textile/textile mill products; transportation equipment manufacturers; hospitality organizations; educational institutions; manufacturers of aerospace/aircraft products; and health care organizations. Non-supervisory professionals tend to do best with transportation services; the primary metal industries; communication services; insurance companies; and utility companies. They do least well with hospitality organizations; manufacturers of aerospace & aircraft products; educational institutions; nonprofit organizations; health care organizations; and state & local governments. Clerical employees fare best with primary metal industries; research organizations & laboratories; communication services; manufacturers of aerospace & aircraft products; insurance companies; transportation services; and state & local governments. They are paid least well by manufacturers of apparel/textile/textile mill products; nonprofit organizations; educational institutions; and manufacturers of transportation equipment. Number of Employees Overall, the median incomes of HR practitioners rise quite regularly with the size of the organization. For example, Corporate Human Resources Directors (with industrial relations responsibilities) of organizations with 2,500-4,999 employees have a median income of $175,500, 134% higher than that of those in organizations with under 250 employees ($75,000). However, the compensation of others in the human resources function do not always increase regularly with the size of the organization. Type & Size of Employer Simultaneously The effect upon income of these two variables simultaneously was also studied and reported. Regretfully, no commentary on the effects of these two variables considered simultaneously can be made in a reasonable amount of space. Fiscal Size Overall, this variable correlates fairly well with the income of employees in the human resources field at all levels, for annual sales of manufacturing firms, annual sales/budgets of non- manufacturing organizations, total assets of financial organizations, and net annual premiums of insurance companies. For example, Corporate Human Resources Managers (with industrial relations responsibility) in manufacturing/extractive firms with annual sales of $100 million or more have a median annual income of $101,400, 60% higher than do those in companies with annual sales of under $100 million. Level of Education Almost invariably, college degrees are rewarded by higher incomes in the human resources field. For example, the median income of all supervisory/managerial human resources practitioners is 37% higher with a BA/BS/BBA degree than without any college education; 64% higher with a doctorate than with a BA/BS/BBA degree. A similar but less pronounced pattern was found for non- supervisory HR professionals and even for clerical employees. Length of Experience As expected, length of experience was found to correlate quite well with the income of all levels of human resources practitioners. For example, Corporate Human Resources Directors (with industrial relations responsibility) with 20 or more years of experience have a median income of $86,008, 63% higher than that of those with one or two years of experience ($52,825). The income curves for individual benchmark jobs show considerably less regularity, although they do have a strong tendency to rise with increased length of experience. Supervisory Responsibility This factor is an excellent predictor of compensation in the HR field, with a high correlation between the two variables. On an overall basis, the median compensation of managerial & supervisory HR practitioners who supervise or direct the work of 10 or more professional-level subordinates is 69% higher than that of those who supervise only one or two such employees. Those who supervise or direct the activities of ten or more employees, some of whom are professionals and some sub- professionals, are compensated 59% higher than those with only one or two such subordinates.
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