If you’ve worked for a bit, you’ll know that when the HR Manager sets up a meeting with you, your heart beats a little faster. Are you in trouble? Did you do something wrong?! And you’ll also know that 99 times out of 100, the HR is just getting in touch to ask how things are going! That sums up both the importance of, as well as the misconceptions surrounding the HR department in general. Another impression about the HR Management profession is that their salaries are low, and the growth prospects are poor. Which, as you’ll see, is absolutely false.
So read on, as we bust myths, and give you a holistic picture of what HR Management professionals do, their roles, their career path, what their salaries are like, and the future potential of the industry in India.
What’s the Typical Career Progression in HRM Domain
Depending on your education and previous experience, you might start your career in HR as an Assistant HR Manager, or HR Manager. Typically, fresh graduates / post graduates start at the assistant level while they learn the ropes. On the other hand, an HRM graduate from a Tier-1 management institute like an IIM could start as an HR Manager, after a short dial-in period. Plus, people with experience, such as an experienced software engineer who’s transitioning to HR could also start as an HR Managers.
- Assistant HR Manager
- HR Manager
- Senior HR Manager
- HR Director / Chief Human Resources Officer (CHRO)
So, How Much Do HR Managers Earn?
According to LinkedIn data, the median salary of an HR Manager is
Rs. 6 Lakhs per annum (LPA), while it can hit a high of Rs. 15.8 LPA.
But how much can you really earn in the HR domain? Here are the salary stats in terms of maximum salaries correlated to position and years of experience.
View From the Top: HR Directors Vs Other Directors
There remains a perception that HRM careers don’t pay as much as other ‘glamorous’ domains. But, the fact is that when you reach the top, an HRM career pays back as much as, if not more than other professions. After all, HR Directors can get as much as Rs. 80 LPA.
Data reveals that when it comes to median salaries, only financial directors earn more than HR directors overall. And it’s the same with both 15- and 15+ years of experience. An interesting insight revealed by the data is that while at the 6 -14 years level financial directors earn nearly 50% more than their HR counterparts, beyond 15+ years they just earn 1% more. The lesson here is that you can earn as much in HR as in any other career stream as long as you hit the top!
So what’s the maximum earning potential at the Director level? The answers are below:
Sales superstars have relegated HR directors to 3rd place overall, even bossing financial directors at the 15+ years level. The top salary of a sales director is staggering Rs. 1 crore per annum. But here’s the interesting part - HR directors turn the tables on financial directors, with a potential maximum salary of Rs. 91 LPA, as opposed to Rs. 86.7 LPA.
The margins are thin, but it only goes on to prove that the HR profession is as lucrative as any other!
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Are HR Management Professionals In Demand?
Yes! As the workforce grows, and India’s knowledge economy picks up pace, highly skilled HRM professionals will be in increasing demand. But, does the data reflect the same? See for yourself! Here’s how demand for HRM professionals stacks up against other popular job roles. NOTE: Data across all industries, departments, experience & CTC | Source: naukri.com
The conclusion? HR professionals are both in demand and earn well - even better than the ones you thought were in a different league altogether. You just need to be extremely well-skilled and up-to-date with the trends, have a unique vision, and develop an innate understanding of how to make people tick.
Which Sectors Need the Most HR Managers?
One major reason for the high demand for HR Managers, is that every company, in every sector, needs one. But how do the sectors stack up? Let’s find out!
Which Sectors Pay HR Managers Best?
It’s a no-brainer that sectors, where the impact of human knowledge/skill is high, require extremely skilled HR Managers to run the show - and therefore, pay more. So, as you’d have guessed, HRM professionals in new-age sectors will earn more than their counterparts in traditional ones. As is obvious, the former is where you need to go to maximize your growth as well as earning potential. As for banking, do note that the sector has diversified immensely, and is no longer simply a place to park your money, or borrow some.
Foreign MNCs pay better than their Indian counterparts.
And startups & Unicorns are good places to be.
How Bright is the Future Outlook for HRM Careers in India?
The standout stat in this regard is that nearly 1 lakh HR Management jobs are expected to be added in 2022. Plus, there’s the growth of the corporate sector, with hiring expected to go up by 31% this year, with the IT & BPO sector expected to double its employees from 2021 to 2023, touching the 1 crore mark.
Considering that India is home to the world’s largest youth workforce, the future prospects are spotlight-bright!
But, the key to any successful career is to rise to the top - and this is particularly true in HR Management. Get stuck in the middle rungs, and you might just end up being a paper pusher. But, if you can develop in-demand skills like analytics, and outperform your peers, the sky's the limit.
So What do HR Managers Really Do?
The #1 misconception aopund HR roles is that the main job is hiring-firing and fixing the salaries! An HR Manager’s tasks can be divided into 2 - administrative, and leadership & organizational. Or, at least, that’s how it should be, according to Harvard Business Review. Unfortunately, most HR courses, as well as companies, focus on the administrative roles more than anything else, which is mostly to blame for the perceptions that prevail.
Administrative Tasks
While mundane, these tasks are the lifeblood of the company, and ensure that it functions smoothly. The administrative tasks include hiring people, managing payroll & benefits, compliance with labour laws & regulations, ensuring adequate infrastructure for work, performance appraisals & promotions, etc.
Leadership & Organizational Tasks
In the knowledge economy, employees are the most critical asset of a company. Therefore, keeping them happily engaged in their roles has a direct bearing on an organization’s performance - increasing profitability by as much as 21%! Organizational culture also makes a big difference to turnovers, with companies boasting top-class culture generating 400% more revenue than those without a remarkable culture.
Then there’s the leadership aspect of HR, especially when it comes to business performance. Aligning employees with the business goals, and revamping the employee structure to reflect changes in strategy are all part of the job, and being good in this aspect will help you reach top leadership roles faster.
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Antara Chatterjee
- Strategic Workforce Planning at UNICEF, ex-Hindustan Unilever Ltd., ex-Reckitt
- SCMHRD & LSR Alum
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