Why Do Manufacturing HR Salaries Lag Behind IT HR? Let's Discuss the Differences

Hi, generally, manufacturing HR personnel receive lower salaries than HR professionals in the IT sector. In my opinion, both groups perform similar activities. What factors differentiate the salaries between these two groups?

Thanks,
KUMAR

Yours is a very good and pertinent question. It is true that HR professionals in the IT sector are paid more than those in manufacturing. One reason is the general industry trends and compensation practices in the IT industry. People in IT sectors are better paid, and hence their HR professionals are too. However, in terms of occupational hazards and hardships, I tend to think that the work life of a Manufacturing HR is much more tedious and demanding. They have to deal with:

- Less educated employees
- Trade unions, some of whom can be extremely militant
- Rigorous compliance with labor laws
- Hazardous working environments
- Fewer "hygiene" factors at work and physical hardships, etc.

It would be interesting to know the opinions of HR professionals in both sectors.

Warm regards.

Raj Kumar ji has provided valuable insight by highlighting the differing roles of HR in manufacturing firms compared to those in the IT industry. Mr. Govind aptly identifies the key factor of the ability to pay.

Differences Between Manufacturing and IT HR Roles

Further differences between the two sectors include the emphasis on Industrial Relations (IR) in manufacturing, as explained by Raj Kumar ji. Dealing with labor, unions, communication, negotiation, and change management are crucial aspects unique to the manufacturing environment.

While MBA programs cover IR as a subject, the focus on HR is more extensive. IR involves understanding laws and managing blue-collar workers, emphasizing the importance of experience.

As pointed out by Mr. Govind, IT companies typically outperform manufacturing firms in profit generation and subsequent salary distribution.

Industry-Specific Salary Variances

This variance in pay scales is not exclusive to HR; it extends to executive positions like CEOs across industries. Industry-specific factors contribute to salary discrepancies.

Maintaining a balanced ratio among different designations within a firm is essential when determining pay scales. Discrepancies exist but should not be too pronounced, especially between roles like HR and Marketing heads.

I trust this information is beneficial.

The IT Industry and HR Practices

The IT industry believes in more HR theories and lots of jargon, many of which do not essentially satisfy the end employees. I think almost 99% of IT firms are "employee-friendly" on their websites but are not friendly at all. With the capacity to pay, IT companies tend to hire those who are flexible to the decisions of management.

In manufacturing companies that are more industrial relations (IR) focused, HR is not expected to be a mouthpiece of management but rather a link between employees and employers. In order to make things happen, HR has to align labor laws with management principles. Ironically, I would say that in IT companies, HR professionals receive higher pay mainly because they handle a lot of terminations rather than focusing on building employee relations.

Sorry if anybody is hurt.

Regards,
Madhu.T.K

Thanks to all.

Why Do Manufacturing Sectors Have More IR Issues Than IT Sectors?

Manufacturing sectors have more IR issues and handle ER activities more than IT sectors. Then... why?

Again, as I told you, the capacity to pay. Let's go back to basics. For an IT firm, not much investment is needed. They can start with basic things. All they need is an office, a few people who can code, and a few computers. Some resources can be shared, like routers, etc.

As opposed to investment in a manufacturing firm, which is more demanding—they need a bigger plot, huge manufacturing machines, raw materials (enough to keep the process going even if there's a shortage in the market), regular maintenance to prevent breakdowns, and purchasing new machines when the old ones wear out or for better efficiency available in newer versions in the market. Salary disbursement also depends on the kind of profit the firm makes. The income that an IT firm earns compared to what a manufacturing firm earns shows a significant difference.

I hope I was able to clarify the query.