HR vs. Finance: Which Career Path Offers Better Salary, Growth, and CEO Potential?

I have completed my MBA in HR and Finance. My query is: which of these fields is considered the best in terms of salary and scope? Which field offers better earning potential and opportunities for growth? Additionally, which roles are typically deemed most crucial within these industries? Who is more likely to ascend to the position of CEO - individuals with a background in HR or Finance?

Please provide me with your insights on these questions. Thank you.

Didn't you get time to think about this before you finished your MBA?

1) The entry-level salary opportunity would be higher in Finance. For example, Investment Banks pay the highest packages across all domains.

2) Scope-wise, you really cannot compare; they are an equally important part of any company.

3) You should be choosing based on your interest and aptitude.

As an HR professional, your entry-level salary could be relatively lower. However, since you mentioned that your primary interest lies in HR, I recommend pursuing a career in HR. As you progress in the HR field, your salary will also increase. Roles such as Organizational Development (OD) specialists often receive attractive compensation packages.

Being a person specialized in HR as well as Finance, you were supposed to have knowledge of both these areas. In my opinion, people specializing in HR can excel in dealing with humans. Salary-wise, they may not have much scope initially, but in the long run, they tend to have the power to negotiate depending on their expertise. On the other hand, finance professionals have the advantage of understanding financial elements, and with their people skills, they can be as effective as HR professionals in a company. It is not uncommon to see many senior officers with technical backgrounds successfully managing this dual role. Additionally, finance professionals often enjoy better salaries right from the beginning of their careers.

Regarding your question about who can become a CEO—anyone who has learned how to effectively utilize their experience within an organization over time can emerge victorious in the race.

- Nisha

I think an HR person gets a higher salary, and HR professionals also have a good understanding of how to lead a team or organization. Therefore, there is a greater chance that an HR person can become a CEO.

Thank you.

I'm a student of MBA, and it seems I'm also following the same path as the guy who started this topic. Currently, I'm doing my MBA in Finance, and after finishing it, I'll do another MBA in HR. The reason for entering into HR is not that I'm weak in finance (as most people do). My finance is good, but I think the level of interest I've got in HR, no one else can have! I believe both subjects are very essential in running any organization. To me, HR is more of a LINE FUNCTION than a SUPPORT FUNCTION. Finance is about running your company, and HR is about getting the most out of your partners, peers, and subordinates. I think one should enter the Finance department and have good involvement in the HR department too!

Hi dear. It was shocking when I read this from you. Remember one thing: big organizations will never select their CEO based on the candidates' qualifications or experience. The basic thing they see before the selection of a CEO is the attitude and the person as a human being, and this is seen especially in organizations like TATA.

So what I would tell you is to try and identify your strengths and go into a related field where you can excel in that particular role, which can lead to your desired CEO position. As someone said, "Finance people become CEOs," I would add that most of the CEOs who failed in their careers are from an MBA finance background.

Hope this could be of some use to you.

Hi,

HR or Finance, both have their own values and importance. In my view, HR is the best choice. But, let me clarify that the choice entirely depends on you. You have to evaluate yourself and choose a field based on your interest where you feel that you are the best, can contribute well, and generate good results.

Ravi

Hi friend, thanks a lot because I'm really concerned about my career. I think I'll do great in HR. Is it possible to work in a combination of HR and Finance?

Both are challenging and very important in any kind of industry. It depends on your interest. A capable person can become a CEO regardless of the area you are from.

Hello!

You can choose finance. Whether scope is there or not, you will have a bright future in this.

March

Hi,

I first would like to know which is your priority: salary or job satisfaction? If you are looking for a good salary, it will help for a very short time. But if you select a field of your interest, then your job will become a passion to you, and automatically, all your dreams will come your way - salary and CEO. Now it is up to you to make a decision between finance or HR according to your interest.

Bindu

In any organization, Human Resources and the Finance department are supportive functions unlike the Operations department. In the software industry, the Operations department is revenue-oriented, generating earnings for the organization. The CEO is responsible for marketing, sales, and project execution. He is supported by the HR and Finance Managers. Consequently, individuals from the HR or Finance departments are unlikely to become CEOs, as the chances are extremely remote.

I hope you will be a successful, happy worker today. I will be even more glad to hear that you have reached the CEO level.

Observing Interests and Expertise Before Entering Professional Life

For others who have related confusion and queries, let me say that before entering professional life, you need to observe your interests and expertise. If there is still indecision, you can try doing an internship; this will make things clearer. Passion towards a job truly adds to one's growth and that of the organization.

The Importance of Researching Pay Scales

If money is your priority, then different jobs come with varying pay scales depending on the organization's budget and how much they are willing to invest in a resource. The same job posts in different organizations may have different pay scales, so you need to research within your targeted area.

Pathways to Becoming a CEO

Regarding becoming a CEO, if you have investment and intelligence, you can start a startup and become the boss of that startup. This is the easiest shortcut to the CEO post; otherwise, it will undoubtedly require a lot of effort and, of course, luck :)