The Cost of a Global HR Function: Factors Influencing Salary
The question of what the salary is for a global HR function is not as straightforward as it might seem. There are numerous factors that come into play, including the size of your organization, the number of countries it operates in, and the scope of the HR function itself. Whether your organization is a small 100-person business with six countries or a large 200,000-employee company spread across six nations, the compensation for your HR team can vary widely.
Factors Affecting the Salary of a Global HR Function
The real question, then, is not what the salary is for a global HR function, but what you can get for the money you are willing to spend. When you have an HR department with eight people and a rapidly growing company, the leadership and expertise required can justify a salary of $200,000 or more per year. On the other hand, if you have one person running HR with the assistance of an HR assistant, and you operate in three countries, the salary could be around $80,000 a year.
Complexity and Legal Knowledge
Managing a global HR function is significantly more complex than handling HR within a single jurisdiction like the United States. It demands a comprehensive understanding of labor laws and regulations across multiple countries. Therefore, it is challenging to find a single person who is knowledgeable about the intricacies of every country's legal framework. Generally, you know one country very well and have enough understanding in other areas to provide valuable input, but you also need to know when to seek localized legal assistance.
Geographical Variations in Cost
The cost of resources and expertise can also vary significantly based on geographic location. For example, if you are operating in metropolitan areas such as New York or San Francisco, the cost of human resources and legal services can be significantly higher compared to regions such as Kansas. The cost of living and the availability of qualified professionals are important considerations in these scenarios.
Conclusion
The salary for a global HR function is not as much about pulling numbers out of thin air as it is about understanding the diverse needs and requirements of a multinational organization. By carefully considering the size of your company, the number of countries it operates in, the specific roles and responsibilities within your HR function, and the geographical location, you can better determine the appropriate salary.