HR Directors Can Expect More Duties But Not More Pay

The uncertain economic climate has magnified several trends in recruitment. Employers are increasingly selective about candidates but individuals, too, are picky about the company's prospects.

Yury Dorfman,

Partner and Director of the Department
of Personnel Management, Cornerstone


Human capital is the heart of any organization. And the decisions of the human resources director can be crucial to a company's success.

Despite the rosy forecasts of a year ago, 2013 was not easy. Economic growth slowed, projects were frozen, providing little stimulus for the recruitment market.

Key points of the past year

There were increasing requirements for candidates: in 2013 the employer was extremely selective, with little organic growth. Most were looking to replace inefficient personnel.

Companies nurtured their own personnel. Modern employers prefer to invest in the development of loyal employees. Instead of repurchasing expensive specialists from the market, companies promoted effective employees. Strong candidates withdraw from the market and some were promoted to HR directors within their companies. This may not have resulted in a serious increase in the compensation package.

Candidates were increasingly keen on changing industries. This was primarily due to their desire to work in a stable industry — for example moving from banking to pharmaceutical and FMCG companies or Internet marketing.

Compensation and bonuses

Starting in 2013, there was much comment about the restriction of "golden parachutes" when leaving companies with state participation. Although the law applied only to state-owned companies, by the end of 2013 much of the market had abandoned golden parachute contracts, including those for HR directors.

The duties and responsibilities of the HR director vary depending upon:

• Stage of development of the company.

• Challenges facing the company and the director.

• Structure of the company̓s business.

• Complexity of the company.

• Size of the company.

• Company̓s brand name.

Among the basic requirements, which can be seen in most of the vacancies listed:

• Higher vocational education.

• Experience.

• In-depth knowledge of all personnel management functions.

• Knowledge of modern HR technologies.

• Manage motivational schemes and loyalty programs.

• Development and implementation of procedures: personnel selection, adaptation and commissioning post evaluation activities, professional development programs.

• Managing the staff: group selection and development, training management.

Key responsibilities influencing the HR director's performance:

• Recruiting and hiring.

• Personnel records.

• Motivation of staff.

• Training of personnel.

• Personnel Management: determining the development strategy of the organization.

• Supporting the corporate culture.

• Interaction with government agencies and labor unions.

Projections for the future

Due to the unstable economic situation, we do not expect an increase in demand for HR directors or for compensation to increase in 2014. At the same time, employers will try to retain valuable employees, so we expect an increase in the value of non-material compensation, which is often a more important factor when making a job offer than money.

We believe that in 2014 the main trump card will be performing new roles, a wider range of responsibilities, the possibility of maintaining a balance between work and personal life, stability, career growth within the company, the opportunity to study and the employer brand. One trend that began a few years ago will receive active promotion — the development of the HR brand. Companies with advanced HR brands have several advantages in the labor market, allowing management to select the best candidates from the market, reduce the cost of recruitment, reduce employee turnover and increase employee loyalty to the company.

Summing up, an HR director who successfully implements all the above functions should be not only a great professional in his field, but also one who loves and is able to work with people. It is hard to imagine a competent HR director who lacks great communication and negotiation skills, or who does not excel in seeking compromise and resolving conflicts.