Human Resources, Training, and Labor Relations Managers

Significant Points

Nature of Work

Every organization wants to attract the most qualified employees and match them to jobs for which they are best suited. However, many enterprises are too large to permit close contact between top management and employees. Human resources, training, and labor relations managers and specialists provide this connection. In the past, these workers performed the administrative function of an organization, such as handling employee benefits questions or recruiting, interviewing, and hiring new staff in accordance with policies established by top management. Today’s human resources workers manage these tasks, but, increasingly, they also consult with top executives regarding strategic planning. They have moved from behind-the-scenes staff work to leading the company in suggesting and changing policies.

In an effort to enhance morale and productivity, limit job turnover, and help organizations increase performance and improve business results, these workers also help their firms effectively use employee skills, provide training and development opportunities to improve those skills, and increase employees’ satisfaction with their jobs and working conditions. Although some jobs in the human resources field require only limited contact with people outside the human resources office, dealing with people is an important part of the job.

There are many types of human resources, training, and labor relations managers and specialists. In a small organization, a human resources generalist may handle all aspects of human resources work, and thus require an extensive range of knowledge. The responsibilities of human resources generalists can vary widely, depending on their employer’s needs.

In a large corporation, the director of human resources may supervise several departments, each headed by an experienced manager who most likely specializes in one human resources activity, such as employment and placement; compensation, and benefits; training and development; or labor relations. The director may report to a top human resources executive. (Executives are included in the Handbook statement on top executives.)

Employment and placement. Employment and placement managers supervise the hiring and separation of employees. They also supervise employment, recruitment, and placement specialists, including recruitment specialists and employment interviewers. Employment, recruitment, and placement specialists recruit and place workers.

Recruiters maintain contacts within the community and may travel considerably, often to college campuses, to search for promising job applicants. Recruiters screen, interview, and occasionally test applicants. They also may check references and extend job offers. These workers must be thoroughly familiar with the organization and its human resources policies in order to discuss wages, working conditions, and promotional opportunities with prospective employees. They also must stay informed about equal employment opportunity (EEO) and affirmative action guidelines and laws, such as the Americans with Disabilities Act.

Employment interviewers—whose many job titles include human resources consultants, human resources development specialists, and human resources coordinators—help to match employers with qualified jobseekers. Similarly, employer relations representatives, who usually work in government agencies, maintain working relationships with local employers and promote the use of public employment programs and services.

Compensation, benefits, and job analysis. Compensation, benefits, and job analysis specialists conduct compensation programs for employers and may specialize in specific areas such as pensions or position classifications. For example, job analysts, occasionally called position classifiers, collect and examine detailed information about job duties in order to prepare job descriptions. These descriptions explain the duties, training, and skills that each job requires. Whenever a large organization introduces a new job or reviews existing jobs, it calls upon the expert knowledge of the job analyst.

Occupational analysts conduct research, usually in large firms. They are concerned with occupational classification systems and study the effects of industry and occupational trends on worker relationships. They may serve as technical liaison between the firm and other firms, government, and labor unions.

Establishing and maintaining a firm’s pay system is the principal job of the compensation manager. Assisted by staff specialists, compensation managers devise ways to ensure fair and equitable pay rates. They may conduct surveys to see how their firm’s rates compare with others, and they ensure that the firm’s pay scale complies with changing laws and regulations. In addition, compensation managers often manage their firm’s performance evaluation system, and they may design reward systems such as pay-for-performance plans.

Employee benefits managers and specialists manage the company’s employee benefits program, notably its health insurance and pension plans. Expertise in designing and administering benefits programs continues to take on importance as employer-provided benefits account for a growing proportion of overall compensation costs, and as benefit plans increase in number and complexity. For example, pension benefits might include a 401K or thrift savings, profit-sharing, and stock ownership plans; health benefits might include long-term catastrophic illness insurance and dental insurance. Familiarity with health benefits is a top priority for employee benefits managers and specialists, as more firms struggle to cope with the rising cost of health care for employees and retirees. In addition to health insurance and pension coverage, some firms offer employees life and accidental death and dismemberment insurance, disability insurance, and relatively new benefits designed to meet the needs of a changing workforce, such as parental leave, child and elder care, long-term nursing home care insurance, employee assistance and wellness programs, and flexible benefits plans. Benefits managers must keep abreast of changing Federal and State regulations and legislation that may affect employee benefits.

Employee assistance plan managers, also called employee welfare managers, are responsible for a wide array of programs. These include occupational safety and health standards and practices; health promotion and physical fitness, medical examinations, and minor health treatment, such as first aid; plant security; publications; food service and recreation activities; carpooling and transportation programs, such as transit subsidies; employee suggestion systems; child care and elder care; and counseling services. Child care and elder care are increasingly significant because of growth in the number of dual-income households and the elderly population. Counseling may help employees deal with emotional disorders, alcoholism, or marital, family, consumer, legal, and financial problems. Some employers offer career counseling as well. In large firms, certain programs, such as those dealing with security and safety, may be in separate departments headed by other managers.

Training and development. Training and development managers and specialists conduct and supervise training and development programs for employees. Increasingly, management recognizes that training offers a way of developing skills, enhancing productivity and quality of work, and building worker loyalty to the firm, and most importantly, increasing individual and organizational performance to achieve business results. Training is widely accepted as an employee benefit and a method of improving employee morale, and enhancing employee skills has become a business imperative. Increasingly, managers and leaders realize that the key to business growth and success is through developing the skills and knowledge of its workforce.

Other factors involved in determining whether training is needed include the complexity of the work environment, the rapid pace of organizational and technological change, and the growing number of jobs in fields that constantly generate new knowledge, and thus, require new skills. In addition, advances in learning theory have provided insights into how adults learn, and how training can be organized most effectively for them.

Training managers provide worker training either in the classroom or onsite. This includes setting up teaching materials prior to the class, involving the class, and issuing completion certificates at the end of the class. They have the responsibility for the entire learning process, and its environment, to ensure that the course meets its objectives and is measured and evaluated to understand how learning impacts business results.

Training specialists plan, organize, and direct a wide range of training activities. Trainers respond to corporate and worker service requests. They consult with onsite supervisors regarding available performance improvement services and conduct orientation sessions and arrange on-the-job training for new employees. They help all employees maintain and improve their job skills, and possibly prepare for jobs requiring greater skill. They help supervisors improve their interpersonal skills in order to deal effectively with employees. They may set up individualized training plans to strengthen an employee’s existing skills or teach new ones. Training specialists in some companies set up leadership or executive development programs among employees in lower level positions. These programs are designed to develop leaders, or ?groom? them, to replace those leaving the organization and as part of a succession plan. Trainers also lead programs to assist employees with job transitions as a result of mergers and acquisitions, as well as technological changes. In government-supported training programs, training specialists function as case managers. They first assess the training needs of clients and then guide them through the most appropriate training method. After training, clients may either be referred to employer relations representatives or receive job placement assistance.

Planning and program development is an essential part of the training specialist’s job. In order to identify and assess training needs within the firm, trainers may confer with managers and supervisors or conduct surveys. They also evaluate training effectiveness to ensure that the training employees receive helps the organization meet its strategic business goals and achieve results.

Depending on the size, goals, and nature of the organization, trainers may differ considerably in their responsibilities and in the methods they use. Training methods include on-the-job training; operating schools that duplicate shop conditions for trainees prior to putting them on the shop floor; apprenticeship training; classroom training; and electronic learning, which may involve interactive Internet-based training, multimedia programs, distance learning, satellite training, other computer-aided instructional technologies, videos, simulators, conferences, and workshops.

Employee relations. An organization’s director of industrial relations forms labor policy, oversees industrial labor relations, negotiates collective bargaining agreements, and coordinates grievance procedures to handle complaints resulting from management disputes with unionized employees. The director of industrial relations also advises and collaborates with the director of human resources, other managers, and members of their staff, because all aspects of human resources policy—such as wages, benefits, pensions, and work practices—may be involved in drawing up a new or revised union contract.

Labor relations managers and their staffs implement industrial labor relations programs. Labor relations specialists prepare information for management to use during collective bargaining agreement negotiations, a process that requires the specialist to be familiar with economic and wage data and to have extensive knowledge of labor law and collective bargaining trends. The labor relations staff interprets and administers the contract with respect to grievances, wages and salaries, employee welfare, health care, pensions, union and management practices, and other contractual stipulations. As union membership continues to decline in most industries, industrial relations personnel are working more often with employees who are not members of a labor union.

Dispute resolution—attaining tacit or contractual agreements—has become increasingly significant as parties to a dispute attempt to avoid costly litigation, strikes, or other disruptions. Dispute resolution also has become more complex, involving employees, management, unions, other firms, and government agencies. Specialists involved in dispute resolution must be highly knowledgeable and experienced, and often report to the director of industrial relations. Conciliators, or mediators, advise and counsel labor and management to prevent and, when necessary, resolve disputes over labor agreements or other labor relations issues. Arbitrators, occasionally called umpires or referees, decide disputes that bind both labor and management to specific terms and conditions of labor contracts. Labor relations specialists who work for unions perform many of the same functions on behalf of the union and its members.

EEO officers, representatives, or affirmative action coordinators handle EEO matters in large organizations. They investigate and resolve EEO grievances, examine corporate practices for possible violations, and compile and submit EEO statistical reports.

Other emerging specialties in human resources include international human resources managers, who handle human resources issues related to a company’s foreign operations; and human resources information system specialists, who develop and apply computer programs to process human resources information, match job seekers with job openings, and handle other human resources matters.

Work environment. Human resources work usually takes place in clean, pleasant, and comfortable office settings. Arbitrators and mediators may work out of their homes.

Although most human resources, training, and labor relations managers and specialists work in the office, some travel extensively. For example, recruiters regularly attend professional meetings and visit college campuses to interview prospective employees; arbitrators and mediators often must travel to the site chosen for negotiations.

Many human resources, training, and labor relations managers and specialists work a standard 35- to 40-hour week. However, longer hours might be necessary for some workers—for example, labor relations managers and specialists, arbitrators, and mediators—when contract agreements are being prepared and negotiated.

Qualifications

The educational backgrounds of human resources, training, and labor relations managers and specialists vary considerably, reflecting the diversity of duties and levels of responsibility. In filling entry-level jobs, many employers seek college graduates who have majored in human resources, human resources administration, or industrial and labor relations. Other employers look for college graduates with a technical or business background or a well-rounded liberal arts education.

Education and training. Many colleges and universities have programs leading to a degree in personnel, human resources, or labor relations. Some offer degree programs in human resources administration or human resources management, training and development, or compensation and benefits. Depending on the school, courses leading to a career in human resources management may be found in departments of business administration, education, instructional technology, organizational development, human services, communication, or public administration, or within a separate human resources institution or department.

Because an interdisciplinary background is appropriate in this field, a combination of courses in the social sciences, business, and behavioral sciences is useful. Some jobs may require a more technical or specialized background in engineering, science, finance, or law, for example. Most prospective human resources specialists should take courses in compensation, recruitment, training and development, and performance appraisal, as well as courses in principles of management, organizational structure, and industrial psychology. Other relevant courses include business administration, public administration, psychology, sociology, political science, economics, and statistics. Courses in labor law, collective bargaining, labor economics, labor history, and industrial psychology also provide a valuable background for the prospective labor relations specialist. As in many other fields, knowledge of computers and information systems also is useful.

An advanced degree is increasingly important for some jobs. Many labor relations jobs require graduate study in industrial or labor relations. A strong background in industrial relations and law is highly desirable for contract negotiators, mediators, and arbitrators; in fact, many people in these specialties are lawyers. A background in law also is desirable for employee benefits managers and others who must interpret the growing number of laws and regulations. A master’s degree in human resources, labor relations, or in business administration with a concentration in human resources management is highly recommended for those seeking general and top management positions.

The duties given to entry-level workers will vary, depending on whether the new workers have a degree in human resource management, have completed an internship, or have some other type of human resources-related experience. Entry-level employees commonly learn the profession by performing administrative duties—helping to enter data into computer systems, compiling employee handbooks, researching information for a supervisor, or answering the phone and handling routine questions. Entry-level workers often enter formal or on-the-job training programs in which they learn how to classify jobs, interview applicants, or administer employee benefits. They then are assigned to specific areas in the human resources department to gain experience. Later, they may advance to a managerial position, supervising a major element of the human resources program—compensation or training, for example.

Other qualifications. Previous experience is an asset for many specialties in the human resources field, and is essential for more advanced positions, including managers, arbitrators, and mediators. Many employers prefer entry-level workers who have gained some experience through an internship or work-study program while in school. Human resources administration and human resources development require the ability to work with individuals as well as a commitment to organizational goals. This field also demands other skills that people may develop elsewhere—using computers, selling, teaching, supervising, and volunteering, among others. The field offers clerical workers opportunities for advancement to professional positions. Responsible positions occasionally are filled by experienced individuals from other fields, including business, government, education, social services administration, and the military.

The human resources field demands a range of personal qualities and skills. Human resources, training, and labor relations managers and specialists must speak and write effectively. The growing diversity of the workforce requires that they work with or supervise people with various cultural backgrounds, levels of education, and experience. They must be able to cope with conflicting points of view, function under pressure, and demonstrate discretion, integrity, fair-mindedness, and a persuasive, congenial personality.

Certification and advancement. Most organizations specializing in human resources offer classes intended to enhance the skills of their members. Some organizations offer certification programs, which are signs of competence and credibility and can enhance one’s advancement opportunities. For example, the International Foundation of Employee Benefit Plans confers a designation in three distinct areas of specialization—group benefit, retirement, and compensation—to persons who complete a series of college-level courses and pass exams. Candidates can earn a designation in each of the specialty tracks and, simultaneously, receive credit toward becoming a Certified Employee Benefits Specialist (CEBS). The American Society for Training and Development (ASTD) Certification Institute offers professional certification in the learning and performance field. Addressing nine areas of expertise, it requires passing a knowledge-based exam and successful work experience. In addition, ASTD offers 16 short-term certificate and workshop programs covering a broad range of professional training and development topics. The Society for Human Resource Management offers two levels of certification, including the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR). Additionally, the organization offers the Global Professional in Human Resources for those with international and cross-border responsibilities and the California Certification in Human Resources for those who plan to work in the State and are unfamiliar with California’s labor and human resource laws. All designations require experience and a passing score on a comprehensive exam. World at Work Society of Certified Professionals offers four levels of designations in the areas of compensation, benefits, work life, and total rewards management practices. Through the Society, candidates can obtain the designation of Certified Compensation Professional (CCP), Certified Benefits Professional (CBP), Global Remuneration Professional (GRP), and Work-Life Certified Professional (WLCP).

Exceptional human resources workers may be promoted to director of human resources or industrial relations, which can eventually lead to a top managerial or executive position. Others may join a consulting or outsourcing firm or open their own business. A Ph.D. is an asset for teaching, writing, or consulting work.

Employment

Human resources, training, and labor relations managers and specialists held about 868,000 jobs in 2006. The following tabulation shows the distribution of jobs by occupational specialty:

Job Outlook

Employment of human resources, training, and labor relations managers and specialists is expected to grow faster than the average for all occupations. College graduates who have earned certification should have the best job opportunities.

Employment change. Overall employment is projected to grow by 17 percent between 2006 and 2016, faster than the average for all occupations. Legislation and court rulings setting standards in various areas—occupational safety and health, equal employment opportunity, wages, health care, pensions, and family leave, among others—will increase demand for human resources, training, and labor relations experts. Rising health care costs should continue to spur demand for specialists to develop creative compensation and benefits packages that firms can offer prospective employees.

Employment of labor relations staff, including arbitrators and mediators, should grow as firms become more involved in labor relations and attempt to resolve potentially costly labor-management disputes out of court. Additional job growth may stem from increasing demand for specialists in international human resources management and human resources information systems.

Job growth could be limited by the widespread use of computerized human resources information systems that make workers more productive. Like other workers, employment of human resources, training, and labor relations managers and specialists, particularly in larger firms, may be adversely affected by corporate downsizing, restructuring, and mergers and acquisitions.

Demand may be particularly strong for certain specialists. For example, employers are expected to devote greater resources to job-specific training programs in response to the increasing complexity of many jobs and technological advances that can leave employees with obsolete skills. Additionally, as highly trained and skilled baby boomers retire, there should be strong demand for training and development specialists to impart needed skills to their replacements. In addition, increasing efforts throughout industry to recruit and retain quality employees should create many jobs for employment, recruitment, and placement specialists.

Among industries, firms involved in management, consulting, and employment services should offer many job opportunities, as businesses increasingly contract out human resources functions or hire human resources specialists on a temporary basis in order to deal with the increasing cost and complexity of training and development programs. Demand for specialists also should increase in outsourcing firms that develop and administer complex employee benefits and compensation packages for other organizations.

Job prospects. College graduates who have earned certification should have the best job opportunities. Graduates with a bachelor’s degree in human resources, human resources administration, or industrial and labor relations should be in demand; those with a technical or business background or a well-rounded liberal arts education also should find opportunities. Demand for human resources, training, and labor relations managers and specialists is governed by the staffing needs of the firms for which they work. A rapidly expanding business is likely to hire additional human resources workers—either as permanent employees or consultants—while a business that has experienced a merger or a reduction in its workforce will require fewer of these workers. Also, as human resources management becomes increasingly important to the success of an organization, some small and medium-size businesses that do not have a human resources department may assign employees various human resources duties together with other unrelated responsibilities.

In addition to human resources management and specialist jobs created over the 2006-2016 projection period, many job openings will arise from the need to replace workers who transfer to other occupations, retire, or leave the labor force for other reasons.

Projections Data

Earnings

Annual salary rates for human resources workers vary according to occupation, level of experience, training, location, and firm size.

Median annual earnings of compensation and benefits managers were $74,750 in May 2006. The middle 50 percent earned between $55,370 and $99,690. The lowest 10 percent earned less than $42,750, and the highest 10 percent earned more than $132,820. In 2006, median annual earnings were $85,330 in the management of companies and enterprises industry.

Median annual earnings of training and development managers were $80,250 in May 2006. The middle 50 percent earned between $58,770 and $107,450. The lowest 10 percent earned less than $43,530, and the highest 10 percent earned more than $141,140.

Median annual earnings of human resources managers, all other were $88,510 in May 2006. The middle 50 percent earned between $67,710 and $114,860. The lowest 10 percent earned less than $51,810, and the highest 10 percent earned more than $145,600. In May 2006, median annual earnings were $98,400 in the management of companies and enterprises industry.

Median annual earnings of employment, recruitment, and placement specialists were $42,420 in May 2006. The middle 50 percent earned between $32,770 and $58,320. The lowest 10 percent earned less than $26,590, and the highest 10 percent earned more than $81,680. Median annual earnings in the industries employing the largest numbers of employment, recruitment, and placement specialists were:

Median annual earnings of compensation, benefits, and job analysis specialists were $50,230 in May 2006. The middle 50 percent earned between $39,400 and $63,800. The lowest 10 percent earned less than $32,180, and the highest 10 percent earned more than $80,150. Median annual earnings in the industries employing the largest numbers of compensation, benefits, and job analysis specialists were:

Median annual earnings of training and development specialists were $47,830 in May 2006. The middle 50 percent earned between $35,980 and $63,200. The lowest 10 percent earned less than $27,450, and the highest 10 percent earned more than $80,630. Median annual earnings in the industries employing the largest numbers of training and development specialists were:

The average salary for human resources managers employed by the Federal Government was $76,503 in 2007; for labor-management relations examiners, $94,927; and for manpower development specialists, $86,071. Salaries were slightly higher in areas where the prevailing local pay level was higher. There are no formal entry-level requirements for managerial positions. Applicants must possess a suitable combination of educational attainment, experience, and record of accomplishment.

According to a July 2007 salary survey conducted by the National Association of Colleges and Employers, bachelor’s degree candidates majoring in human resources, including labor and industrial relations, received starting offers averaging $41,680 a year.

Related Occupations

All human resources occupations are closely related. Other workers with skills and expertise in interpersonal relations include counselors, education administrators, public relations specialists, lawyers, psychologists, social and human service assistants, and social workers.

Sources of Additional Information

Source: Bureau of Labor Statistics Occupational Outlook Handbook