Compensation Study

Case Study: Getting and Using Compensation Information

HRM 598: Compensation
Dr. Kenney
Megan Purdy
Keller Graduate School of Management
mpurdy77@gmail.com
August 2, 2014

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The three jobs that I chose to look into and compare for this weeks case study are jobs
that are in the field of work in which I would like to find myself at the end of my studies. The
positions that I chose to compare include a Human Resources Manager, Human Resources
Generalist I and an Employee Relations Specialist I. In choosing these positions I wanted to be
able to see the difference within the field of Human Resources as I know that more than likely I
will need to gain experience before moving into a management position. This comparison will
help to see the different roles and responsibilities as well as comparing average salaries.
In comparing the position of Human Resources Manager, Human Resources Generalist
and Employee Relations Specialist, it was not surprising to find that the manager position was
paid significantly more than that of a generalist or employee relations specialist. The HR
Manager position average in St. Paul, MN was almost $60,000 more than the other two
positions.
One of the factors that can be attributed to the great difference in salary could be in
regards to the level of experience that each position requires. An HR Manager position typically
requires 5-10 years of prior experience in the field of Human Resources as well as experience in
management. The generalist and employee relations specialist positions are both considered to
be entry level jobs and on average require 2-5 years of experience. All three positions require a
Bachelors degree in a related field.

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The HR Manager position has a bonus that is included on top of the base salary of around
$5000 or 3.8% at the median range. The HR Generalist role has a bonus of around $1000 or
1.4% and the Employee Relations Specialist has a bonus average of around $1000 or 1.5% at the
median range. The amount of the bonuses for each position could be related to the level of the
position, the responsibility level, the job itself as well as the years of experience. I believe that
the higher one is in the rankings and level of management and responsibility they hold in a
position within a company can affect the bonus amount if it is offered for that company.
(www.salary.com)
In regards to stock options being included as part of the base salary and benefits package,
none of the three positions listed included specific stock options as an added benefit. I believe
that it is dependent on the company itself and the benefits plan and incentives that they offer to
their employees. This is not to say that the stock options arent offered in place of a monetary
bonus, but this was not made known in the collected data. In trying to retain employees and cut
down on turnover, one incentive that may help to entice employees to stay and make them feel
invested in the company would be in the form of stock options and other financial rewards.
In the job description for the HR Manager, it seems to be an accurate description of what
the responsibilities and requirements would be for a position at that level. An HR Manager is
responsible for designing, planning and implementing the HR programs and policies in all areas

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of the HR department for their company. This job description seems right on target since it is a
high level role within management. The HR Generalist and Employee Relations Specialist job
descriptions were very similar to each other and the responsibilities included administering HR
policies and procedures for two or more areas. It describes its functions as collecting and
analyzing data and supporting the HR team as well as working individually with employees
when necessary. (Welcome to Salary.com! (n.d.). Retrieved August 2014, from
http://www.salary.com)
Some Human Resources jobs are more difficult to find specifically, such as that of an HR
Strategist or and HRIS Strategist. These roles are not as common in organization at this time and
are more specialized in their responsibilities. Both roles could be classified as Specialists within
the field. As the Human Resources field begins to expand and develop further, these specialized
roles will become more common within organizations.
When I compared these positions to similar jobs on O*net, the tasks and responsibilities
were very similar as well as the education requirements. The salary amounts however differed
between the different sites with O*net giving wages that were slightly more.
I believe that with the accessibility of job descriptions and responsibilities laid out for
potential employees, they have the opportunity to see clearly what would be expected from them
for specific jobs they may be looking to apply for. The ability to view and compare salaries for
these jobs helps applicants and current employees to be more knowledgeable as to whether they
may or may not be paid fairly and competitively. An applicant has the right to try to negotiate

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their wages if they think they may be unfair when they are armed with the market averages for
similar positions. I think that having reliable resources on hand that support the market
compensation as well as education and experience and body of work could help to work in your
favor when vying for a higher salary.
The role of and HR Manager has a projected growth pattern for the future which is pretty
average for that market. The average amount of experience in that particular role ranges from as
little as 2 years to 15 plus years of experience. The market for this position varies with location,
with a great number being in larger cities. There is a need for HR Management in the healthcare
industry as well as the manufacturing industry. The HR Generalist role has a wide range of years
of experience and has an average projected growth rate in years to come. The most common
industry to find HR Generalists in is in Administration and Support Services as well as health
care and manufacturing. Employee Relations Specialists fall into the Human Resources category
and have a heavy presence in the health care industry as well as in government groups and nonprofit organizations. If looking at the role as a Labor Relations Specialist, the growth rate is
below average. (Build your future with O*NET OnLine. (n.d.). Retrieved August 2014, from
http://www.onetonline.org/ )
The differences in wages in these three positions are going to vary heavily due to the cost
of living. An HR Manager in Minnesota makes a median salary of $93,570, in Los Angeles they
average $98,032 and in New York the average is $105,426. An HR Generalist in Minnesota

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makes an average of $52,307, in Los Angeles its $55,115 and in New York the average is
$59,273. There is quite a difference that exists in the median salary because of the location,
especially when the education and experience are on par with other employees in those locations.
(Welcome to Salary.com! (n.d.). Retrieved August 2014, from http://www.salary.com)
When comparing the salaries for each of the three positions there is actually a significant
difference between the median, low and high averages. Using St. Paul, MN as my location, the
median salary for an HR Manager is $93,570, the low is $81,220 and the high is $108,133. That
is a difference between $12,000 and $14,000 dollars. The HR Generalist I median salary is
$52,607, the low is $46,143 and the high is $59,236, with a difference between $6,500 and
$6,600. The median salary of an Employee Relations Specialist I is $51,510, the low average is
$46, 560 and the high is $56,134. That means there is a difference of about $4,600 between the
high and median and $5,000 between the median and the low average. (Welcome to Salary.com!
(n.d.). Retrieved August 2014, from http://www.salary.com)
Some of the factors that may contribute to the differences could be the size of the
company itself and their budget and compensation plan. Another factor maybe the competitive
market and what the standard of pay seems to be.
When developing the median ranges of salary for this resource site, data is collected for
that specific market and is also based on employer reported information. It pulls information
from a large number of individuals and companies and requires there to be multiple sources
reporting to help be as accurate as possible. The information collected uses as national average

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and figures in a cost of living adjustment factor as well. Besides a national average, the salary
ranges can also be narrowed down to specific cities or areas. (Welcome to Salary.com! (n.d.).
Retrieved August 2014, from http://www.salary.com)
I think that generally speaking for an average person looking to gain information on a
specific job, this is a good source of information. It provides a good amount of knowledge to be
able to compare jobs and salaries based on national averages as well as specific geographic
locations. The information could become impaired as the market fluctuates, so it would be
important to consistently be updating the information that is shared. If wrong data is used, a
companys compensation plan and strategy could be affected, especially if they are using the data
to help determine market averages to help remain competitive.
I think that even with this information being accessible at no cost to employees and
employers, it would still be beneficial for companies to utilize a consultant if they are still unsure
or are questioning the data. It should be remembered that the information given is just an
average and a survey could be more exact and specific in the information they seek out. If
looking to be cost efficient, the free information could be an adequate resource, but if a company
has the resources to dig deeper and gain more information, it could be worth seeking outside
assistance.
When making the decision of whether or not to pay an employee higher or lower that the
median, one would need to take into consideration the location and the cost of living for that
area. Another factor would be the background of that specific employee and the experience that

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they have. I would also want to consider the past contributions and responsibility levels and
when their potential is for the future.
In looking back on the information gained throughout this case study, I was surprised at
the wealth of information that was so readily available. This will be a wonderful resource to use
when looking for a position in the Human Resources field in comparing different roles. It will
help me to feel better prepared in negotiating wages as well as knowing what to expect in each
position as well as what industries have the greatest potential for growth.

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9
References

Build your future with O*NET OnLine. (n.d.). Retrieved August 2014, from
http://www.onetonline.org/
Welcome to Salary.com! (n.d.). Retrieved August 2014, from http://www.salary.com