With the concept of an employee being seen as an asset the gamut of focus for HR, has enlarged from mere salary administration to more concrete activities like employees empowerment and change management. The paradigm shift of HR is being perceived as much as a line function has brought a huge change in how HR professionals are remunerated. HR plays a critical role, in the retail industry particularly in areas of sourcing and deployment. The industry therefore is trying to adequately compensate HR, in comparison to other sunrise industries. HR salaries in the retail industry have gone up, considerably in the last five years. The skills required to perform a HR manager’s role has changed and hence what was applicable a few years ago today stands redundant. And these competencies today are not easily available in the industry and hence, there is a huge supply demand pushback and his conditions poses a great challenges for recruiters seeking quality HR talent. And what more the industry is also showing its gratitude onwards HR with social incentives, ESOPs and bonuses a trend that was non-existent years ago.
Although the job requirements for an HR manager have increased the compensation levels have continued to grow at a slower pace, vis-à-vis the technical positions. The IT industry is one of the best paymasters for the HR function. Though HR has evolved the disparity in compensation patterns still exists. HR is an underpaid function if you compare it with the other departments. However, that gap today has significantly narrowed. Today, several companies are finding ways in which they could link HR’s performance to HR compensation. And when a HR manager shifts industries the salary hike depends on which industry the person shifts from. HR professionals generally prefer a job in the similar industry where the raises for the HR function in the IT industry are being more realistic today in comparison to the past where skills and accomplishments took a backseat.
Unlike their software industry counterpart, the IT enabled services (ITES) HR manager is required to fulfill the responsibility of meeting the huge demand for manpower requirements and to also find the right kind of people who can keep pace with the unique work patterns in the BPO industry. Several ITES companies are looking to recruit people who can emulate these qualities. And hence, there is a shift from the traditional experience based compensation to being role specific. Also, today there is a continuous focus on alignment of compensation philosophy with the company’s business objectives to ensure that compensation for HR in ITES plays the role of a strategic tool and is not just being viewed as an expense. However HR, today, is not necessarily an underpaid function and their compensation in addition to the monetary benefit is also based on eternal factors like market dynamics.
The hospitality industry by itself has evolved and HR is no exception. The changes in the outlook expectations from the function and the overall economic buoyancy have enabled HR professionals to experience an upward trend in their compensation patterns like their other counterparts in other functions. With the increasing demand and dearth in the availability of quality HR professionals, it would be imperative for companies to constantly assess their compensation strategies, with a view to attract the best of the talent. The significance of this function has compelled paymasters to compensate them against current market trends. But there still exists a scope to bridge the gap in comparison to the other so called revenue generating functions.
The HR function is now at par with any other function in an organization. This has automatically led to huge demand of HR talent and led to realignment of remuneration structures. In the BFSI sector Management of talent has become an important domain across all industries and functions and this includes HR too.