Human resources and recruitment: Overview

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Human Resources (HR) and recruitment are increasingly viewed as distinct industries with related areas of work. Both are growing considerably and have seen significant changes over the past ten years. These changes have helped HR to shed its common previous image as a welfare or administrative role, and it is now widely recognised as a key function in driving business forward and influencing business strategy.

As companies become more aware of the value and importance of their HR functions and the need to recruit and retain the best workforce, more organisations are employing graduates with key skills into HR roles, although this remains a popular and competitive sector.

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Recruitment roles may be based either in-house, managing the recruitment needs of an organisation, or in a consultancy, handling recruitment for a range of different clients. Executive recruitment consultancies typically operate in specialist areas sourcing candidates for senior appointments.

They often approach individuals directly rather than advertising openly - hence the term ‘headhunting’, which is sometimes used to describe the role. Recruitment is a large and growing business and recruitment consultancies are becoming an increasingly significant source of graduate employment.

What kind of work can I do?

• Employee relations (handling employee rights, contracts and complaints)
• Employment legislation
• Recruitment and selection
• Performance appraisal
• Compensation, including pay and benefits
• Consultancy
• Health and safety
• Training and development

What’s it like working in this sector?

Human resources

Salaries vary considerably depending upon location, industry sector and level of seniority. Basic salary levels range from an average £22,000 for junior HR officers to £70,000 for HR directors. Pay may also be affected by your specialism; for example, compensation and benefits roles are the highest paid, with salaries as much as 20% above the average salary for a senior manager (Overview of CIPD surveys: a barometer of HR trends and prospects 2007).

Most HR professionals have contracted hours of 35-37.5, but only a third actually work as few hours as this, and half work up to eight hours more per week. Of HR directors, 90% typically work 40 hours a week or more.

Recruitment

On average, recruiters earn a basic salary of £26,000, but this is an industry where commission plays a big part in salary, raising the average on-target earnings (OTE) to £36,000 and, in some cases, leading to double the basic salary, or even more. As with HR, salaries in recruitment vary considerably according to your role and the sector in which you work.

Specialist headhunters in lucrative sectors can earn up to £70,000 OTE. Recruiters in the IT sector can expect to earn the highest total salaries and the finance sector pays the second highest. The lowest total salaries for recruiters are paid in the healthcare sector (figures obtained from the Recruitment and Employment Confederation (REC)).

Recruitment consultants often work long hours, contacting clients at the end of their working day.

How big is this sector?

HR and recruitment is a large sector that spans numerous industries. The Chartered Institute of Personnel and Development (CIPD) is the professional body for HR and their current membership stands at 127,000. Of these, 44% are employed in the private sector (services), 35% in the public sector, 13% in the private sector (manufacturing) and 6% in the voluntary/not-for-profit sector (Annual Report, CIPD 2007).

The professional body representing the recruitment industry, the Recruitment and Employment Confederation (REC), reports that over 97,000 individuals are employed in recruitment roles (Annual Turnover Survey, REC, 2006).

Where can I work?

Opportunities exist across the country. Executive search consultancies and graduate HR schemes tend to be based in London or other large cities where their clients or organisations operate, but generalist recruitment agencies are found across the UK. For more information about working internationally in HR and recruitment, see opportunities abroad.