Salary Growth Has Its Limits

What is the salary growth outlook for the future? Will salaries rise in accordance with the rise in cost of living?

This is one of the questions on salary and benefits coming from many quarters. Employers and employees - especially employees - are particularly interested in this matter.

According to Robert Half Internationals research, none of the ten (10) positions that will see salary growth in 2010 is a position in human resource or HR. What does the future hold for HR?

The position that you can consider as closest to HR is that of Executive Assistant who will serve several managers. This is one of the positions that will see salary growth in 2010.

This is one of the issues that an HR Manager needs to look into.

Going back to the missing HR positions in the survey, you may ask, "What does this seemingly lack of salary growth for HR people in 2010 indicate with regard to HR in general?"

It would appear that HR has a long way to go when compared to the positions mentioned which include tax accountant, compliance director, systems engineer, and medical records clerk.

Further, it shows that the HR openings may not attract the right talent. This does not paint a good picture in the future development of human resource management.

Another question arises as to whether or not institutions of higher learning will cease offering diploma and degree courses in human resource management.

With the numerous written works on HR, with the countless proposals on the importance of human resource management, and with the many HR models and principles propounded by HR experts, you may feel that HR is not making much headway. Many organizations simply consider HR as an expense, as a cost centre.

Is there another way, a yet-to-be discovered HR model that is more effective and that motivates corporate leaders to accept and implement in their organizations? Is there anyone who knows how to better implement HR strategies that will convince every party concerned on the important role of HR?

Low salary growth may not attract competent people

The poor salary growth will not prompt more students to seek qualification in human resource management. They will look somewhere else.

Look into the important issue of increasing the value of HR contribution to the bottom-line of organizations. This is not going to happen any time soon if corporate entities continue to see little need for or consider HR as important.

Strive for value-added HR in the light of the HR "cost." HR value is not easy to quantify. People are not convinced unless they see the positive effects in black and white. This is where HR performance metrics come into play.

Let the experts come up with the most effective method that will truly demonstrate the real value of HR to organizations. When HR people makes valuable contribution as they are required and expected to, this may indicate that it is time to review their compensation.

Failure to make HR relevant to organizations' success will contribute further to the downward trend how corporate leaders consider human resource management. Total HR outsourcing may become more common, resulting in organizations losing control of their people and their future direction.

A time may come when organizations will have no choice but to outsource practically every aspect of HR. Many companies may want to concentrate on running activities that have direct connection to revenue generation.

Does this spell the demise of the HR Department in every organization? The unattractiveness of minimal or non-existent salary growth will add to the seriousness of the matter.

If organizations start to recruit people into HR at higher starting salaries and there is a corresponding positive response from among HR talented people, you may never see the occurrence of such thing ever happening.

The more serious challenge now may come from the fact that many corporate leaders are slow to respond to issues negatively affecting HR. If this happens, HR is going uphill all the way.

So you may ask, "Whither HR?"

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