Positive news for most in the second annual People Management salary survey
HR salaries rose by an average of around 3 per cent during 2014, according to the widest-ranging survey of its kind, with Scottish HR professionals among the biggest winners of the year.
The 2015 People Management HR & L&D Salary Survey, conducted in association with management consultancy Hay Group, found the function receiving pay rises broadly consistent with the wider economy. But Scottish HR professionals were particularly well-remunerated: all six job functions measured by the survey saw rises of 3 per cent or more north of the border, with Scottish HR business partners up 4.69 per cent year on year. All Scottish roles measured are within a couple of per cent of their London equivalents, and HR managers can now earn more than £3,000 more on average in Scotland than the capital.
More generally, Hay Group consultant David Smith says regional powerhouses – from Manchester and Birmingham to Newcastle and Aberdeen – are now becoming increasingly attractive options for professionals looking to build their careers: “You can be just as well paid in other major cities as you can in the south east of England, and if you strip out the cost of housing and travel you will feel richer. We’ll see that trend increase, and it’ll be interesting to see if companies begin to think about where they want their head office in future.
The survey uses Hay Group data of real base pay figures from more than 700 public and private sector organisations to provide the most accurate snapshot available of what HR and L&D professionals actually take home. And for the second year running, the widening gulf between public and private sector is a noteworthy finding.
“A few years ago we’d have said public and private sector pay was broadly similar up to higher professional levels, but in the last few years we’ve seen the gap widen to the point where it’s noticeable even at the lower levels of the profession,” says Smith. Average HR director salaries are 30 per cent higher in the private sector, at £127,920, though Charles Cotton, CIPD performance and reward adviser, says the proliferation of progression pay and benefits means the gap may not be quite as wide in terms of total reward.
View the results of the 2015 HR and L&D Salary Survey, including which country pays the biggest HR ‘premium’ and which HR or L&D specialism is the best rewarded.