According to studies conducted over the past three years, a clear upward trend can be observed in the compensation levels of HR executives.
With a progression of +2 points compared to previous generations, the median gross annual salary – taking into account both the fixed and variable components – now reaches €48K.
The weight of the variable component in compensation:
The increase in HR executive compensation is largely due to the growth of the variable component, which now benefits 55% of HR administration executives and 63% of HR development executives (compared to 48% and 61% previously). This component, primarily consisting of performance-based bonuses, also includes profit-sharing (33%), employee participation (28%), company savings plans (PEE) (25%), and collective retirement savings plans (PERCO) (15%).
Influencing factors:
As in most professions, HR executive compensation evolves over time. An average salary of €40K is observed at the beginning of a career, rising to €55K from age 50 onwards, where the salary range is widest.
Indeed, while only 10% of HR administration executives earn more than €80K, another 10% earn €38K.
This gap, illustrating a disparity in professional situations, is explained by several significant factors taken into account in the establishment and progression of said salary:
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Age, seniority, hierarchical position and related responsibilities.
As mentioned above, hierarchical level plays a decisive role in executive salaries. Indeed, a higher hierarchical position entails greater responsibilities, such as managing a team and/or a budget, and therefore provides access to higher compensation.
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Industry sector, company size and geographical location.
In the HR sector, as in any other sector, company size also plays a determining role in the compensation level of employees and executives. The larger the company, the better the salaries. The same applies to geographical location. For example, while the median salary of an HR administration executive in a company based in the Île-de-France region is €52K, that of an executive holding the same position but in a company located in the provinces is €46K. In HR management, the gap widens further with €85K in Île-de-France versus €70K in the provinces.
This difference is explained by the fact that the capital concentrates a large number of major companies and corporate headquarters. High value-added activities such as consulting, engineering, R&D, and finance are also more represented there than in smaller cities.
It should also be noted that the industry sector is another variable to consider: the 20% of HR executives working in the industrial sector would have a higher salary than those working in the services sector, which nonetheless accounts for 68% of all HR executives.
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Compensation of female HR executives:
Despite advocating for pay equity, a difference between the compensation of men and women remains a current reality.
While only 36% of executives (across all professions) are women, the HR management function counts 64%. This figure even exceeds 77% when considering all HR administration and HR development executives. Although overrepresented, women are not spared from a certain form of salary-related discrimination.
Indeed, the salary gap between women and their male counterparts stands at 13% in HR administration and 12% in HR development.
When looking at HR management, this gap is even more striking, reaching 20% in favor of men. It should be noted that this gap also increases with age.
A notable and regrettable fact: significant disparities are observed within HR departments themselves, despite being the very guardians of equal treatment between men and women. As discussed in our article on the HR barometer, gender equality in the workplace is one of the key challenges in diversity and inclusion.
