Does HR Decide Salary? How Is Salary Determined in 2024? (2024)

If you are in the process of being hired, you may be wondering if HR is responsible for deciding your salary. Human resources tend to get a lot of flack when it comes to employees not being happy with their job.

Many people hold HR responsible for low salaries, bad working conditions, or other negative things about their job. But in most cases, the HRT may not be responsible for these things that you are unhappy with.

So if you are not necessarily pleased with the salary that you have at your job, you may be wondering if HR is responsible for this. After all, the human resources team handles a lot of different parts of different companies and businesses.

Keep reading to find out whether or not HR decides the salaries for employees as well as other jobs that it does.

Does HR Decide Salary? How Is Salary Determined in 2024? (1)

Learn more about the average salary of teachers in Oregon.

Does HR Create Salaries?

If you have started a new job, you may be wondering if HR is responsible for creating salaries. In many cases, HR is not the one that is creating the salaries for the employees, though it can negotiate the rate that you get.

In most cases, it is the employer that is going to be creating the salaries for all employees that they are hiring. Employers have the freedom to decide what kind of salary they want to offer depending on the position, the person, and their financial position.

So, it is usually not the HR team that is actually creating the salaries unless the employer has specifically allowed that to happen. In most cases, employers want to be able to control the salary themselves so that they can provide the lowest salary options.

Though HR has many tasks that it performs, some may apply while others don’t depend on the company that we are talking about. The HR team is responsible for things, such as:

  • Determines salaries
  • Administers benefits
  • Handles staffing

So, if you are not happy with your salary, you should not blame the HR team as it is most likely not their fault. The employer is usually responsible for salaries as they are far more motivated to offer a lower salary than the HR team would.

This is why it is so important to never settle for a salary but to try to negotiate to see how much better an offer you can get.

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Can HR Change Your Salary?

When it comes to getting your salary changed, HR is usually not involved with this process for the most part. HR does have the ability to change an employee’s salary if it has the discretion to do so from the employer.

The HR team may also be able to give you advice on the kind of salary that you could potentially ask for. After all, they have much more information than you do and have a better estimate of how much you could end up earning.

For the most part, you can only change your salary if you ask your employer about this yourself. You are usually the only one responsible for getting a higher-paying salary so you have to initiate the conversation yourself.

The HR team is often in charge of giving people raises as well as bonuses, but these are in special instances. If you simply want to start earning more and believe that you are worth more, you will need to instigate this request yourself.

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Many times, an employer will respect your initiative if you bring up this request to them yourself. After all, the longer you are with a company, the more likely you are to move up the ladder as you gain more experience and become more valuable.

Though it is always better to negotiate your salary before you are officially hired. This is the best time to do this as you are not roped into a set salary just yet and can request a better rate.

HR specifically recommends that employees never settle for the first salary that they are offered. Instead, requesting a higher paying salary right off the bat to challenge the employer to see if they are willing to raise the rate.

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Who Raises Your Salary?

Usually, it is going to be your employer who raises your salary. Your employer is going to typically be in charge of all of the salaries as they are the ones with the most motivation to save money.

There are instances where HR may initiate raises or bonuses to employees if they have reached a certain level within the company. Though this is not extremely common, and many people end up having to request a raise themselves.

If your employer decides to give you the raise that you asked for, the HR team most likely will handle the logistics side of doing this. Though it is most likely going to be up to the employer whether or not this will happen in the first place.

Does HR Decide on Salaries That Employees Get?

If you are unhappy with your salary at your job, you may be wondering if the HR team is to be held responsible for this. Many people believe that HR creates salaries, but in most cases, this is not true.

While HR has the ability to create salaries as well as raise them, this is usually left to the employer. Employers typically prefer to handle salaries, as they are more motivated to restrict the funds that are going out of their company.

Because of this, HR is rarely to be held responsible if you are unhappy with your salary. HR also recommends that all potential employees negotiate their salary before ever agreeing to work at that company.

This allows you the opportunity to get a better salary if you are good at negotiating.

  • Does HR Create Salaries?
  • Can HR Change Your Salary?
  • Who Raises Your Salary?
  • Does HR Decide on Salaries That Employees Get?
Does HR Decide Salary? How Is Salary Determined in 2024? (2024)

FAQs

Does HR determine your salary? ›

In most companies, the process of determining an employee's salary is typically a collaborative effort between the employee's manager and the human resources (HR) department.

How does HR calculate your salary? ›

Calculating salaries is simple. Most employers set an annual rate (because the numbers are bigger and, therefore, more attractive when trying to recruit) and then divide it by the number of pay periods (either monthly, weekly, or biweekly) in a contract of employment.

Can HR change your salary? ›

Employers can change your pay rate if the nature of your job duties has been changed. Whether you have been voluntarily or involuntarily demoted or switched jobs for personal reasons, employers cannot be sued for paying you less for doing a different job.

Who decides wages? ›

According to most economics textbooks, our wages are determined just like any other price: by supply and demand. People supply their labor, and companies demand it, creating a market for labor.

Is salary decided by HR or manager? ›

Pay bands are segmented by internal levels – which are generally set by HR and hiring team leadership across the employer. This also includes internal career ladders identifying what is needed to move from one level to the next. It is based on hitting specific milestones in each discipline.

Does HR control payroll? ›

Payroll processing is one of many responsibilities your HR department may take on. Many business owners and HR leaders choose this option because HR does have expertise in handling employees with a very people-first mindset. This can lead to better employee experiences than finance's financial data handling expertise.

How do I find out if my salary is competitive? ›

5 factors that determine competitive pay
  1. Job title. When you're trying to determine a competitive salary, the role itself will often have a baseline for market rates. ...
  2. Experience level. ...
  3. Industry. ...
  4. Geography. ...
  5. Job availability. ...
  6. Paid time off. ...
  7. Health insurance. ...
  8. Retirement options.
Feb 23, 2024

Who approves a salary negotiation? ›

The hiring manager should be aware of what you are worth to fill the role and whether or not they are willing to go higher. If the company allows it at all, it is the hiring manager who is quite likely the person who can approve or initiate a higher salary offer.

How do you argue salary with HR? ›

Here are a few tips to help you prepare for salary negotiation:
  1. Start by evaluating what you have to offer. ...
  2. Research the market average. ...
  3. Prepare your talking points. ...
  4. Schedule a time to discuss. ...
  5. Rehearse with a trusted friend. ...
  6. Be confident. ...
  7. Lead with gratitude. ...
  8. Ask for the top of your range.
Mar 31, 2024

Can HR tell you not to talk about salary? ›

In California, it is actually illegal for employers to prohibit employees from discussing their wages or salary with one another.

How to negotiate with HR to increase salary? ›

Here are a few things to keep in mind when asking for higher starting pay:
  1. Assess your value. ...
  2. Aim slightly higher. ...
  3. Put it in writing. ...
  4. Consolidate your counteroffer. ...
  5. Be professional. ...
  6. Prepare for all outcomes.
Mar 28, 2024

What is the difference between wage and salary? ›

A salary is when you pay employees the same amount each pay period regardless of how much they work. In contrast, a wage is an hourly rate you pay employees based on how much time they put in during a pay period.

How to negotiate salary? ›

Here are eight tips for how to negotiate a salary that can help you tactfully and confidently ask for what you want.
  1. Become familiar with industry salary trends. ...
  2. Build your case. ...
  3. Tell the truth. ...
  4. Factor in perks and benefits. ...
  5. Practice your delivery. ...
  6. Know when to wrap it up. ...
  7. Get everything in writing. ...
  8. Stay positive.
Dec 4, 2023

What factors does the HR department consider during salary administration? ›

Factors influencing salary levels include job demands, minimum wage regulations, cost of living, prevailing market rates, employee's experience, skills, and education level as well as legal requirements and competitive pressures in the job market.

Should I talk to HR about salary? ›

When you're interviewing for a specific role, it's best to discuss salary when you're offered the position. In some cases, the employer may bring it up in advance to determine whether the salary you want is within the range for the position.

Is it okay to ask HR about salary? ›

Don't bring it up during your first interview, either. Use these opportunities instead to show your suitability for the role and let the employer get to know you. By the second interview, it's usually acceptable to ask about compensation, but tact is key.

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