Salary Comparison Analysis: HR and Finance Job Roles

Salary Differences Across Job Levels

As would be expected, the Director of Human Resources is the highest-paid position, with a median salary of $140,750. All comparisons in this analysis are based on U.S. national averages. The lowest-paid position is Financial Analyst I, with a median salary of $49,350. This is consistent with expectations, as any director-level role carries the highest salary due to its status as a senior management position with a correspondingly greater level of authority and responsibility. Director- and Vice President-level roles often require a minimum of ten years of experience, along with advanced degrees such as an MBA or a master's degree in Human Resources.

The higher the pay, the greater the experience, training, and expertise required. Senior roles also demand a higher degree of insight and strategic thinking — not only to complete core responsibilities, but to lead and develop others within the department. For more on how human resources managers are compensated relative to their responsibilities, the U.S. Bureau of Labor Statistics provides detailed occupational data.

For each position, the median salary compared to the low and high averages reveals notable variation. For the Financial Analyst I position, the median is $49,350, with a low of $43,998 and a high of $54,946. For the Human Resources Manager, the median is $86,974, with a low of $74,891 and a high of $100,982. For the Human Resources Director, the median is $140,750, with a low of $119,243 and a high of $168,775. For the Product Manager position, the median is $100,325, with a low of $86,575 and a high of $127,984. These variations are attributable to differences in experience levels, educational backgrounds, attainment of specialized industry certifications, and demonstrated skills within each respective profession.

Bonus Structures as a Percentage of Base Salary

Each position carries a significantly different bonus as a percentage of base salary. More junior positions receive 5% or less of their total compensation from bonuses. As with salaries, the greater the responsibility and requirements placed on a person, the higher the potential bonus. Across all four positions, the highest bonus was awarded to the Human Resources Director at $18,000. The lowest was for the Financial Analyst I — an entry-level position — with a bonus of less than $1,000. Notably, while the Product Manager position has a relatively high base salary of $100,000, its bonus is just $5,000, illustrating that base pay and bonus potential do not always scale proportionally.

Stock Options and Their Compensation Implications

None of the positions analyzed include stock options in their reported compensation data, as Salary.com does not report this component. However, the implications of stock options are significant. When stock is provided as part of compensation, it must be reported at its fair market value at the time of reporting (Pack, 2001). In most cases, stocks are included as options with a specific strike price defined by the company at the time they are granted to an employee.

Once an employee has been with a company for a specified tenure — often five years — they earn the right to sell the stock at or above the strike price (Pack, 2001). Theoretically, an employee can sell the stock at any time; however, only selling above the strike price will yield a profit. The mechanics of stock options as a compensation tool are an important consideration when evaluating total compensation packages, particularly at senior levels where equity participation is more common.

References

Melynda, D. W. (2000). Your big payoff. Kiplinger's Personal Finance, 54, 26–28.

Merritt, J., Bigda, C., & Rosato, D. (2007). Ready for a fresh start? Money, 36, 100–100.

Pack, T. (2001). Are you earning what you're worth? Link-Up, 18, 27–27.