The Demand for Human Resource Managers: An Occupational Perspective

This research investigates and finds support for the hypothesis that the demand for human resource managers is largely derived from the relative demand for professional, managerial, and technical employees with high levels of occupationally specific human capital. Strong demand for these employees significantly increases both employment and earnings of human resource managers, reflecting the growing importance of occupational specific capital to firm performance and the practice of human resources. Using data from the Occupational Employment Statistics and the Current Population Survey March Supplement the research analysis finds that the employment of approximately 11% of the labor force is strongly associated with greater employment and higher compensation of human resource managers, and the employment of another 9% of the labor force is more weakly associated with the employment of human resource management (HRM). However, the employment of approximately 40% of the labor force is associated with the relative decrease in employment and compensation of HRM.