Salaries for reward managers outstrip other HR specialisms

PAY DATA

Reward managers remain the highest paid specialism within the personnel profession. But the gap between their pay and other specialisms has closed -- senior reward managers earn 21% above the average for a senior manager in comparison to 32% in 2004, according to the latest salary survey of personnel professionals from the Chartered Institute of Personnel and Development in association with Croner Reward.

Almost a quarter (23%) of personnel professionals are seeking to move jobs, and 13% have changed job within the last 12 months. The offer of an interesting, challenging and responsible role was the main attraction to their new role, the survey says.

The survey, based on nearly 8,000 HR professionals in over 1,400 organisations, finds the main reason for seeking to move jobs is lack of promotion prospects (28%).

Salary variations by organisation size

Almost two-fifths (39%) of employees who now work for small organisations moved for a better work-life balance.
Personnel directors in larger organisations (4,001 to 10,000 employees) earn 50% more than their counterparts in organisations of fewer than 100 employees.
A head of personnel in a large company earns almost £27,000 more than one working in a small organisation.

Earnings by job sector

Personnel directors earn in the:

private sector -- average of £65,000
public sector -- average of £59,500
voluntary sector -- average of £53,000
manufacturing sector -- average of £67,500.

Other key survey results

Senior HR professionals can expect to earn up to £4,000 more a year in recognition of their CIPD qualification and membership.
Senior personnel professionals with responsibility outside the UK can earn a premium of up to 32%.
Overall bonuses received last year by personnel professionals averaged 7% with a range of 3% to 14%.
Over a quarter (28%) of personnel directors in the private sector are eligible for an incentive plan.
Generally, the higher the job level, the higher the bonus, with personnel directors receiving, on average, £9,600 (14% of their basic salary) as a bonus. Bonuses are slightly higher in the private sector at £10,000.
While the majority of organisations (97%) offer a pension scheme, only 61% of these are now defined benefit schemes, compared with 90% in 1994.
82% of personnel professionals have contracted hours of 35 to 37.5 hours, but 46% of professionals work more than these hours (34% work 40-45 hours and 11% work up to 60 hours a week).

A final word

"The survey results indicate quite wide variations in how personnel professionals are valued and rewarded across different sectors, regions and types of organisations. With the level of labour turnover in the profession, employers need to be well informed in all aspects of pay and recognition in order to recruit and retain the right people for their business." -- Vivienne Copeland, director of client services at Croner Reward.

Want to know more?

Title: Personnel Rewards 2005, Chartered Institute of Personnel and Development in association with Croner Reward.

Availability: A full copy of the survey (price £395 for non-members £310 for CIPD members) is available from Croner Reward, tel: 01785 813566.

The Chartered Institute of Personnel and Development has more than 124,500 members and is the "leading professional institute for those involved in the management and development of people".

Croner Reward are "researchers, publishers and advisers on reward management and practice", publishing 60 pay and benefits surveys a year across a range of sectors, regions and professions. Visit www.croner-reward.co.uk

Posted 11 November 2005

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Salaries for reward managers outstrip other HR specialisms