Does HR Decide Salary? How Is Salary Determined in 2023? (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 2023? (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.

Does HR Decide Salary? How Is Salary Determined in 2023? (3)

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.

Does HR Decide Salary? How Is Salary Determined in 2023? (4)

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 2023? (2024)

FAQs

Does HR or hiring manager decide salary? ›

Yes, the hiring manager usually determines the salary of the new employee based on the available budget.

How does HR determine salary range? ›

Results from HR's market research will directly inform the salary range for jobs within an organization. Market leaders will pay toward the high end of the range, companies that match will follow the range, and those that lag will compensate near the low end.

Does HR know how much you make? ›

California's ban prohibits private and public employers from seeking a candidate's pay history.

Who decides salaries? ›

Who decides how much people earn? Employers decide how much they pay their employees by establishing a salary range. A salary range consists of a minimum pay rate, middle-range possibilities for pay increases and a maximum pay rate.

Can you ask HR manager for salary range? ›

Is it OK to ask for a salary range before an interview? Yes. It is perfectly reasonable to ask for the range for the role when you contact the company to make inquiries. Your time is valuable — It's a waste of time for both you and the interviewers if you're just going to decline due to compensation.

What to say when HR asks for salary range? ›

So for example, if you want to make $60,000 a year, don't say you're looking for a salary between $55,000 and $60,000. Instead, give a range of $60,000 to $65,000. For more tips for researching the market value of a role, be sure to check out this Career Guide article.

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.

Should I talk to HR about salary? ›

Whether you're a job candidate negotiating a salary or a manager being asked for a raise, talking about compensation can feel uncomfortable. But avoiding the subject and not negotiating salary means maintaining or increasing pay gaps and potentially unhappy employees.

How does HR calculate pay? ›

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.

What is a decent salary 2023? ›

As of 2023, the average salary in the USA varies largely across industries, job positions, age groups, levels of experience, and educational backgrounds. However, the average salary nationwide in the US, according to Forbes, is $59,428.

What is a typical salary increase for 2023? ›

Some or all studies may require download and/or purchase. U.S. respondents report, on average, a planned base salary increase of 3.8 percent in 2023. Among some industries, however, base salary increases reported by respondents may surpass 4.5 or even 5 percent for their employees.

Who makes the hiring decision HR or manager? ›

The hiring manager makes the final decision on who gets hired, while the recruiter manages the process, laying the foundation for hiring the right people. Both roles are crucial, and their collaboration ensures the efficiency and effectiveness of the hiring process.

Should I follow up with HR or hiring manager? ›

The hiring manager is most likely the person who will make the decision about who to hire, not human resources. Getting connected to HR through formal channels is good. Getting connected to the hiring manager directly is better. It shows that you're truly interested in the position.

Can hiring managers verify salary? ›

No. When you are applying for a job in California, employers cannot ask you about your salary history or the value of your benefits (such as health insurance policy limits). Nor can employers try to track down this information personally or through an agent or recruiter.

Can I negotiate my salary with HR? ›

Many employers can compromise on compensation, while others can't. Prepare to respond respectfully, even if it means trading a higher starting salary for a possible raise later or turning down this job for one that pays better.

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