HR pay: the effect of sector and location People Management

1. infographics
hr pay: The effecT of
uk HR directors looking for a salary
increase might want to think about a move to Average UK HR Annual changes to UK HR pay, by sector
Switzerland where, according to the map below,
total direct compensation is approximately
salaries, by sector 3.5% 3.5%
€90,000 (£78,000) higher. At the same time, of 33%
course it’s worth noting that Mercer’s 2010 Cost 2% 3%
secTor and locaTion
of Living survey shows that Geneva is the fifth PRIVATE
most expensive city in the world. 2% 5%
The map also shows the variations across
Europe in terms of bonuses and long-term VOLUNTARY PUBLIC
£36,280 60%
incentives, while on the facing page we look at
the impact of sector and job title on uk pay and 48% VOLUNTARY
bonuses. As expected, public and voluntary sec-
Seniority is the key deciding factor for salaries but where HR tor salaries are lower than in the private sector – 47%
41%
professionals work can also have a significant impact and it seems that gap is set to widen, as pay rises PRIVATE
are also more likely in the private sector. £50,778
52%
Pay rise Pay freeze Pay cut Don’t know
Infographic illustrations by: Studio Tonne
Total direct Base salary
€145,846
Source CIPD, HR Outlook, Autumn 2010
compensation, Base salary
Target bonus
€21,978
PUBLIC
£37,157
Reasons for annual UK HR pay increases
head of HR, large
nORwAy
€157,678 Incentives
Target bonus €30,600
multinationals
€48,035
Incentives
Total: €198,424
48%
€58,659 cOsT-Of-LivinG Rise
Total: €264,372
UK
46%
Base salary Source: CIPD, HR Outlook, Autumn 2010.
neTheRLAnds
€160,340
Target bonus individUAL PeRfORmAnce
Base salary
sweden
€48,000
Incentives
€166,908 UK HR salaries & bonuses
€59,319
Total: €267,659
Target bonus
€34,682 18%
Incentives ORGAnisATiOn PeRfORmAnce
€45,649 HR director
Total: €247,239 £105,500 Source CIPD, HR Outlook, Autumn 2010
Base salary Base salary
swiTzeRLAnd
€94,864 €210,361
Target bonus Target bonus
PORTUGAL
€21,470 €67,958 Salary Bonus payments as % of salary Source: IDS HR Study no. 928: The HR
Incentives Incentives function. Based on median midpoint
€3,899 salaries and average figures for on-target
€77,704
bonus payments as a percentage of salary
Total: €120,233 Total: €356,023 Head of HR
£68,109
Base salary
GeRmAny
€168,000
Target bonus
Base salary €56,976 HR manager
fRAnce
€153,205 Incentives £46,283
€54,212 Senior HR officer
Target bonus
Total: €279,188 £38,441
€39,900
Incentives HR officer
€43,728 £27,565
Total: €236,833 HR assistant
£20,700
Base salary
iTALy
€148,434
Target bonus
€38,500 31.9% 20.8% 13.3% 11.4% 8.3% 6.8%
Source: A selection of Western European Incentives
countries from the Mercer Executive
Remuneration Guide, 2010. Figures are for HR €53,137
director or equivalent in large multinationals. Total: €240,071
Note: in Switzerland, the UK and Italy, HR is
not frequently part of the executive board.
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PEOPLEMANAGEMENT.cO.uk
LINKS & NOTES • Mercer executive remuneration guides bit.ly/MercerExec
• CIPD cipd.co.uk/hr-resources/survey-reports
JUNE 2011
PEOPLEMANAGEMENT.cO.uk ⁄ 43
• Incomes Data Services incomesdata.co.uk