Why Are HR Professionals Often Paid Less? Let's Discuss the Reasons and Realities

Discussion: Why Are HR Professionals Paid Less?

I thought of starting a discussion on why HR professionals are often paid less in companies. When a person joins a company, their package may be around 8k. After gaining 2 years of experience, the salary may increase to 12k, but it often does not go beyond that. Why does this happen?

Regards,
Sri

Hi Sridevi, please be clear about what you mean to ask. It should be, "Why are HR people getting paid less?" Your question seems to misunderstand people in another way.

Coming back to your question, I think it is all because of the market recession. The market is currently frozen with hiring. As you might have heard in the news, on-campus recruited candidates are being kept on hold due to limited projects coming in. They are almost on hold for a year. If these techies are not required to play a significant role in the IT industry, then what is the use of HR being there? Nowadays, everything has become so automated that there is no manual work for HR to do.

In big companies, they generate high revenues, so they are able to pay HRs in 4-5 digits. However, in smaller companies, especially growing companies, they are not able to do so.

This is my perception. Seniors, please guide me if I am wrong!

Thanks.

I am sorry, my question was: why are HR people paid less in companies with a basic salary range of 8k, 10k, or 15k, but not beyond that? I am asking in general as the minimum they are paid ranges from 8k to 15k.

I do agree with the point that you raised. Many organizations, whether mid-sized, small, or family-run, still feel that HR is not on the productive side. Only when this trend changes will HR personnel be treated on par with other staff.

Dear Jeevarathnam, you are absolutely right. HR is the person who struggles a lot to fetch and get candidates, but in the end, there is no job satisfaction for him/her in terms of salary. This happens in both small and large firms, as you said. People from other backgrounds who join as freshers will draw a starting salary of 10,000/- and they experience good growth in terms of salary. However, individuals with an HR background, even if they have an MBA, are paid very less.

I hope this helps clarify the challenges HR professionals face in terms of salary satisfaction.

Best regards

I would like to add to the discussion with this...

If the only concern is about lesser basic pay but having a good CTC, I think it's designed to save tax by routing your money under non-taxable allowances. However, if you mean to say lesser gross, there can be many reasons:

1. Start-ups or mid-developed firms don't understand the importance of HR.
2. It would also depend on the qualification. I have seen many B.Com graduates handling HR (no offense, but they can't expect to get paid at par with MBAs).
3. Skills that you bring onboard (Just having degrees doesn't help. Just scoring 90% marks doesn't help. I personally know of cases where, because of an exceptionally well-crafted CV and good marks, the person was hired at X CTC. However, upon joining, when the company realized the person lacks significant skills, the CTC was lowered to Y. And this is an MNC).

We do demand, we do compare the average salary, but we fail to compare the skills required for that position, the qualification, and the experience level of people in that position on average. We go on asking people what is your salary, failing to address other concerns.

I know MBAs being underpaid whereas plain graduates (who have just passed) being paid higher - and yes, there's a little tweak to it. Usually, private firms do have what most corporates practice - salary mapping where they have the same or similar salaries for people at similar positions.

Dear Members, even I am facing the same issue. In fact, I am so disheartened and often wonder why I have wasted lakhs of my parents' money on doing an MBA, which is really not worth it, at least for me. I am facing the same salary issues, and I believe the kind of salary offers I get today could be obtained even without an MBA. Sometimes, it's really very insulting and demotivating when it doesn't make any difference to the company whether you are an MBA or a graduate.

So, I really believe something should definitely be done in this case. I do agree that individual capability also matters for getting better pay, but it is also an accepted fact that the starting salary slab for HR is very low.

Regards,
Meenu

I am sorry, but I want to give this topic a different look. Well, I don't understand why you people are regretting doing an MBA and getting paid less. I mean, look at the knowledge level. Though the graduates are paid high, they cannot compete with the knowledge we—the MBAs have, I believe.

I don't know about the other streams, but in HR, I have learned so many things in college that I haven't learned in my graduation. Though I am paid less, I am very happy that I did my MBA and am able to learn and get tuned to things fast in the corporate world. I mean, look at the positive side of it. Today, I am identified as a learner in the Management's eyes, and I am. I will take advantage of it and learn to my best levels. Later, a few years down the line, I will just deliver and get paid very high.

"A person may die after 100 years, but the learning for him never ends even if he is 100+."

This is what I believe and always keep in my mind. Yes, I also agree everyone has their own value and importance for salary.

Thanks.

I was not aware that MBA graduates are getting paid less than a graduate. I think you are comparing a fresh MBA graduate with an experienced graduate.

Actually, doing an MBA course may not hold much value, especially if it is not from one of the Grade A colleges. Employers are aware that MBAs may lack practical knowledge and can be seen as ineffective when they start as freshers. The only thing they often come with is an inflated ego based on their degree. So, yes, they may not command a premium salary initially.

Furthermore, what is the utility of an MBA in an HR setting? What have you learned that a good graduate hasn't? Or what someone pursuing a diploma in HR hasn't? There are a few MBA courses in HR that provide valuable knowledge.

Conversely, Industrial Relations (IR) is an area with high demand where employers are actively seeking individuals with the right skill set to fill roles. However, I fail to see how an MBA would significantly contribute to IR, as they often do not learn how to manage the common workforce during their MBA studies.

In any case, one might have to start at a lower salary initially and then prove their worth to progress. There are companies that do value MBAs and are willing to offer competitive compensation if they believe the individual is the right fit. For instance, I know someone working for a large engineering firm who started fresh out of an MBA course with a salary of 2 lakhs per annum. This is a decent amount, especially if the individual did not attend a top-tier college.

I don't see why the basics would matter. Ultimately, what truly counts is the take-home salary or perhaps the CTC.

Dear Members, I am also facing a similar issue, and I often feel disheartened, questioning why my parents invested so much money in my MBA education. It seems like it may not have been worth it, at least for me. I am experiencing salary concerns as well. The salary offers I receive today are comparable to what I could potentially earn without an MBA.

At times, it is truly disheartening and demotivating when it seems like the company does not differentiate between an MBA graduate and a regular graduate. I strongly believe that something needs to be done in this regard.

While I acknowledge that individual capabilities play a role in securing better pay, it is also a fact that the initial salary range for HR positions is quite low.

Regards,
Meenu

I share your concern about the lower payment of salary to HR Executives. The HR position is non-technical and unproductive, and cannot be compared with techies. In order to aspire to higher remuneration, HR professionals have to improve their skills and acceptability of multi-task functions. In some companies, HR and Admin roles are combined, leading to higher pay.

HR professionals should focus on imparting training on soft skills programs and conducting regular training sessions for all employees by creating an annual calendar. HR professionals should also take responsibility for getting trained in ISO standards. If you are capable of fulfilling these functions, your employer will definitely consider increasing your salary. With a minimum of 3 to 5 years of experience in these areas, you will definitely secure a good package.

Regards,
D. SUBBA RAO

In an open job market, one gets what one deserves. This is applicable to all types of jobs, not merely HR jobs. There are organizations that are ready to pay Rs 25K per month for the same job for which someone else offers only Rs 8K. All shades of candidates appear for these jobs, and there are many who do not make the grade even with the company which offered Rs 8K per month.

Therefore, it is one's own merit, potential, and capability that determine what salary you get. To get onions at the same price as apples is not yet true in the Indian job market.

Others have given excellent explanations and advice. Hence, let me ask a few questions.

Market Survey Before Pursuing an MBA

Before embarking on the study for an MBA, did you conduct any market survey of the salary scales for different fields? Usually, people in Marketing and Sales receive higher wages, followed by those in finance, operations, and HR.

Background Before MBA with HR Specialization

What was your background before pursuing an MBA with HR specialization?

As I have mentioned in some other thread, in the 1960s, one could not enroll in a Management Diploma or a Master's Degree course without a basic degree and 2 years of work experience. Nowadays, the entry requirements have been relaxed to the extent that individuals with work experience but no formal qualifications can enroll in Executive MBA courses.

Importance of Applying Learned Knowledge

Simply possessing a qualification is not sufficient; one must apply what was learned. Once, a tutor informed us that a cleaner, despite being paid poorly, can recognize the significance of their role in the organization's success. I would like both of you to express why a cleaner is as crucial as a production manager, even though their compensation may be lower.

This discussion here has inspired me to add my views too. HR being paid less is not a surprising thing for me as I have come across many well-qualified HR Managers who don't even have a sense of speaking to people (EGO - A BIG EGO). Let me tell you, the corporate world has one and only one goal - and that is business and profit. What these corporates pay to their employees is their share of efforts, profit/earning against what these employees have contributed towards achieving the profit or making the business roll. As said by some posters, some companies do not value HR, TRUE. The value of HR will only increase when it has a direct impact on business growth or its improvement. I am sure if HR performs to such an extent and they are able to prove to management through their credentials that business has also grown due to their contribution, then the question of salary/growth will never arise.

Today, the market has become so flexible that people keep hopping jobs. In this scenario, employers do not even believe the genuine candidates; hence they start with a lower salary range and then slowly provide growth. It is something like employers not only look out for the best, skillful, and competent employees but they also urge for the most dedicated, loyal, and trustworthy candidates too. Unfortunately, many times HR himself is found unsuitable, no matter what qualifications he possesses. Apart from various points raised elsewhere in this post, I have only one point to add: HR Persons can do a lot more for the organizations and workforce for growth, and their growth will be automatic provided trust, patience, and real HR talent are delivered with full force and enthusiasm.

I am not HR qualified, but I feel the above is true as per my market experience.

Fact to share - Mother Teresa was not HR. Yet she has addressed conferences of HR experts because she herself displayed true HR expertise in her life. Love people, and people will shower love on you always.

Thanks,

Bijay

I appreciate your valuable suggestions and feedback. Yes, HR has to prove his/her talent to get a hike in salary, whatever it may be. Being an HR professional, I am doing the same. My concern is somewhat different from what you people have shared, and it's good that I got many useful pieces of information, though. Even technical people will get their salary when they are on the bench; it happens for everyone. It's not like they shouldn't get paid when they are idle and doing nothing. I don't agree with the point that HR is not a productive job. Being an HR professional, I can't accept this.

The Role of HR in Organizations

HR represents the company; without HR, there is no organization. In MNCs, if we go and see, there will be a separate team for HR who will handle many issues and tough cases too. In recruitment, he/she has to face many challenges to find the right candidate and make them fit for the organization. He/she has to satisfy both the organization and the employee.

I have heard many people saying that HR is an easy job. Yes, it is easy when everyone is satisfied with the environment, but it becomes crucial when things turn negative. Not only that, an HR person handles everything from payroll, leave management, retention, recruitment, formalities, and more functions. Someone raised a point that HR should multitask to get a hike or something. In small companies, HR is responsible for all activities with low pay. I think even a child can understand how to act according to the situations, so how come people with an MBA or any respective stream don't know how to handle the situation? Yes, there are people who work for nothing and still get paid. People with this kind of mentality exist everywhere, not only in HR.

Addressing Ego and Compensation

Regarding ego, not only the HR manager shows ego towards employees; it happens with everyone depending on the situation they are facing in the organization.

Finally, what I want to share is that HR professionals are paid less in organizations, even if they are graduates or undergraduates. I am not blaming all organizations, but from my practical experience, I have come to know that the salaries they offer are really low. Meenu has raised a good point that something needs to be done about it. I am not only focusing on the salary aspect; even people who join the company as freshers don't think about the salary because gaining experience is more important. After gaining experience, they should be paid higher.

Let's see how it goes, and once again, thanks for your valuable advice.

I would like to add a few more points to the discussion, guys. If you think HR is unproductive, then it's totally wrong. HR has to face lots of problems in the organization to help employees. He/she acts as a mentor between top management and employees. It's such a valuable and respectable job that should not end up in a mess.