Are HR Professionals Really Underpaid Compared to Other Roles? Let's Discuss Why and What We Can Do About It

Dear Friends,

I would like to put on record my thanks to the topic 'HR People are Boring'. At least the author had the courage to speak out about his general perception, which we could discuss a lot!

I would request you all to kindly provide feedback on: Are HR People Underpaid? In my candid opinion - Yes. This may be due to the fact that HR is not given much importance in the organization, which otherwise could create magic! Or top management often perceives HR only as a support function, which is not 'streamlined', or probably the generally given logic, 'Marketing and Operations are driving the Corporation, and HR is a Burden.'

I request your frank assessment on it.

Can I politely suggest a theme for discussion...

:arrow:

Phase 1. Do YOU think you are Underpaid? When compared with other Functional Practitioners of the same designation.

Phase 2. Is it Okay/Acceptable? Can we do something if it's not Ok? Do we accept it as our 'Destiny'?

Phase 3. We often talk about 'Business Acumen'... does HR Lack that? Do you tend to accept it? How do we streamline with Core Business (if we don't have it at all)?

Eagerly waiting for responses from HR Friends. All feedback is most welcome.

Regards,

Thesysthink

Hi all,

This is quite an interesting topic to get views on. The views will vary across industries and across all experiences. Are HR people underpaid? In general, yes. But if you want me to answer the questions jotted by you, then:

Phase 1: I am paid at par with my counterparts in other functions. However, I think it might just vary at the senior management level.

Phase 2: We choose our profession of being and growing in HR. Destiny and choice don't go together.

Phase 3: I also believe that anybody working towards a vision cannot lack business acumen, whether they are from Materials, Marketing, or Human Resources. Additionally, many strategies like the Balanced Scorecard have been developed to link to business objectives.

What do you say?

As far as basic and normal perks are concerned, HR people are generally paid on par with other functional employees. It is in the rewards section that HR people are generally not given any rewards. A salesperson would be rewarded based on the sales they generate. A brand manager gets rewarded for the brand's success. A production person gets rewarded based on the level/quality of production.

I don't know of any company that gives rewards to its HR people based on the list could be much bigger:

- Lesser Labor Turnover
- Number of Training Sessions Conducted, etc.

However, I am aware that some HR people are paid some ex gratia if they have successfully implemented ISO standards or PCMM in the company.

Dear Oindrilla and Ajmal,

Thank you for your reply, and sorry for the delay in my response.

I have heard many times from my friends and counterparts that HR people don't really have the business acumen. It might be a joke, but it hurts. Though I don't accept it, I wanted to know what my HR friends say.

I once had the opportunity to hear Prof. Preetam Singh speak at a symposium on 'Building Business Capability - Perform or Perish,' which was absolutely filled with HR-centric wisdom. The point he raised was that "Corporates don't need HR Managers, Marketing Managers, Finance Managers... what the future corporation requires is Wealth Creators."

In the concluding session, Prof. Singh addressed the HR practitioners, saying, "Ae Mauze bala de inko bhi do char thapede halke se, Kuch log abhi bhi saahil se toofan e nazara karte hain." I am trying to translate the theme for friends who might have difficulty understanding it. It means, "If you don't align yourselves with the real business, you will perish."

This thought still resonates with me today. Are we lacking business sense?

Dear friends, I request feedback on this as well.

Dear Ajmal, what I believe is - we don't have a truly 'measurable' instrument like Sales or Marketing functions through which we can 'show' the process improvement we have made for the organization.

I request frank and candid responses from my HR friends.

Thanks once again for your reply.

Regards,

Thesysthink

Yes, HR people are underpaid due to various reasons, particularly in the manufacturing sector. However, now entrepreneurs are recognizing the importance of HR and are encouraging HR professionals.

Mostly yes. The HR department is often understaffed and employees are frequently overworked. This is mainly because many staff members do not speak the language of Finance and Metrics, which are essential for effective communication with the board and executive management.

When HR professionals start incorporating terms like ROI (Return on Investment), the value the organization is receiving, and the cost savings achieved through HR processes, they will attract the attention of top executives. By speaking the language of numbers and demonstrating the impact of HR initiatives, HR professionals can capture the interest of senior leadership, gain visibility in the boardroom, and potentially negotiate for better compensation.

Dear Friends,

Thank you for your time reading the post and reply. After we hear from the community about this, probably we can proceed forward to discuss:

1. In case we are underpaid, how can we improve the situation?
2. How can we develop the missing skill sets, if any?

Thank you for your feedback.

Regards,
Thesysthink

Hello Team,

I think this is a pretty interesting and thought-provoking topic. The salary of an HR professional will depend mainly on the industry to which he belongs. In production and manufacturing, HR people are underpaid, but the service industry typically offers better pay. In general, when comparing with our other functional practitioners, the answer is YES, HR professionals are underpaid.

To answer your first question: Yes, I am underpaid compared to other Functional Practitioners of the same designation.

I have always wanted to work in HR, and I am highly satisfied with my job profile. Therefore, I believe destiny doesn't play a significant role in my case.

I don't believe HR professionals lack business acumen. HR practitioners are usually well-versed and integrated into the core business functions.

Criticism is welcome.

Regards,
Sree

Dear Thesysthink.... 8)

I AM THE ONE WHO STARTED "DO YOU THINK H.R PEOPLE ARE BORING"......AT LEAST SOMEBODY APPRECIATES MY COURAGE...IT WAS JUST AN EXPRESSION.... COMING TO YOUR TOPIC, I VERY MUCH AGREE H.R PEOPLE ARE HIGHLY UNDERPAID.....I DON'T KNOW ABOUT THE REASONS BUT... WE ARE THE PEOPLE WHO GET CRUSHED BETWEEN TOP MANAGEMENT & OPERATIONS.....WE ARE THE PEOPLE WHO GET BLAMED IF THE SELECTED CROWD DOESN'T PERFORM.....WE HAVE TO FULFILL THE UNREALISTIC REQUIREMENTS LIKE... 300 PEOPLE A MONTH AND STILL WE ARE UNDERPAID......REASONS I WILL NOT KNOW.....THOUGH WE ARE NOT DIRECTLY RESPONSIBLE FOR REVENUE GENERATION...BUT WE DO IT INDIRECTLY....I WILL TELL YOU HOW... H.R >> SELECTS RIGHT PEOPLE >> RIGHT PEOPLE PERFORM >> INFLOW OF REVENUE >> RIGHT PEOPLE GET INCENTIVES...SO WE DO INDIRECT REVENUE GENERATION, BUT MANAGEMENT WILL NOT UNDERSTAND THIS FUNDAMENTAL....THEY WILL NOT GIVE US CREDIT FOR SUCCESS....BUT THEY DEFINITELY BLAME US FOR FAILURES.....

I AM SORRY FOR NOT FOLLOWING A FORMAT DUE TO TIME CONSTRAINTS

REGARDS

VISHAL 😂

Managerhr has highlighted things quite nicely. The results that HR brings are not really quantifiable - or so most people feel. Hence, it's hard to say that a certain result happened because of HR, hence the lower pay. Of course, things are changing, and with more organizations becoming people-centric (read service sector, BPO's, IT firms), HR functions will become more important, and naturally, pay will also increase. Till now, manufacturing was always higher on the industries list, but with the service sector catching up, there will be more opportunities for HR to perform.