HR Directors ahead in the pay stakes

15 February 2001 - The CIPD's annual survey of pay and benefits for HR professionals reveals that average pay for Personnel Directors (sic) at £56,757 is 3.2% higher than the average for other functions. This reverses the trend of HR Directors being paid less than the market rate.

Nick Page, CIPD Adviser, Pay and Employment Conditions, commented: "These figures suggest that Personnel Directors are highly valued by their organisations, reflecting a change in views from one of personnel management as being mainly administrative to one of people management as a key strategic role in achieving business aims."

The survey was conducted by the Reward Group. It also shows that CIPD membership appears to confer a financial advantage (or is it the case that higher earners are more active) with senior managers who are fellows of the CIPD earning an additional £3,500. Similarly, middle managers average £2,250 more than non-member counterparts.

The male/female pay gap has almost disappeared for most personnel professionals. The exception is at director level. Having dropped from 30.2% difference between the sexes in 1992 to 2.5% in 1998, the trend has reversed: 12.1% in 1999 and 17.7% in 2000.

Steve Flather, Managing Director of the Reward Group added: "These results are disappointing, the personnel profession should be taking the lead in closing the equal pay gap at all levels. Unfortunately, this expanding gap is probably a result of more women reaching director level than ever before, but not being rewarded as a male counterpart may have been."

Intriguingly, compensation and benefits specialists get more than mainstream HR managers. They average £37,000 - 12% more than 'the average personnel manager at the same level.' This is up on last year's 11.4% differential.

Middle-ranking human resource managers are not doing so well with current average pay of £26,000. This is 7.9% below the average £28,217 earned by managers in other functions.

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