HR managers enjoyed the highest pay increase of all sectors in 2006, despite an increase in resignation rates, research has found.
The Chartered Management Institute (CMI) surveyed 5,452 HR professionals and found an increase in earnings of 5% for directors, 6.2% among managers, and 5.3% for professional staff.
This translated into average annual earnings of £150,421 for HR directors, £47,674 for managers and £22,475 for other professional staff.
The average bonus in the HR sector was £4,075. However, bonuses featured less prominently than in previous years, with the annual percentage of executives rewarded down 3% to 75%.
The survey also revealed that resignations in the HR sector have increased to 5.3% compared with 4.5% last year. In industry terms, the HR sector did not suffer resignations as much as retail (11%) or insurance (8.2%), but it fared worse than the pharmaceutical industry (4.4%) and the food and drink sector (3.8%).
The research also showed that recruitment problems had quadrupled over a five- year period. Three-quarters of respondents blamed a lack of qualified candidates, while half admitted they provided little training or career development, up from 37% the previous year.
In a sign that employers are becoming increasingly desperate to find high-calibre staff, one-third now offered ‘golden hellos’, compared with just 16% in 2006.
Jo Causon, director, marketing and corporate affairs at the CMI, warned employers to be cautious.
“The steep climb in organisations reporting recruitment difficulties, mixed with an increasing number of resignations should be ringing alarm bells for employers,” she said.