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When you look at the Top 100 Salaries table it seems most managers are afraid of using the HR Department due the one way thing - once you enabled the HR Department you can't switch back to Skill driven salaries.
So let's have a closer look at the HR Departments, the benefits, disadvantages and so on. First of all, the HR Department itself costs NO money. It is more just a switch - away from skill driven salaries.
Skill driven salaries are raising the player wages on each Season end, based on their training progress. This means your roster becomes more and more expensive when your players are getting better. If you refuse to use the HR Department there is nothing you could do against the raising wages, except firing expensive guys.
By using the HR Department you will have to negotiate a contract for each single player of your roster - except the youngsters in your Youth Academy. Of course this means some additional work each season, but it pays off! You could bind Drafts or Youngsters out of your Academy by offering them long term contracts - so called Franchise contracts. Those contracts are valid for 4 or 5 seasons. The number of Franchise contracts is limited to 5 per team, be careful who you offer one...
The regular contract offers periods of 1 or 2 seasons, + the actual one.
But what's the benefit?
Those contracts are cheaper than skill driven salaries. If you plan to develop a team of Superstars there is no way without having contracts! Simply, you can't afford it, even if your stadium is sized to the max, and no PR manager could do anything against it.
Once you decided to use the HR Department you will see a list of players, and some additional information like "Contracts expires in season X". And there is a Negotiate-Button. Hit it, and you will enter the negotiation chat with your player. Be careful, the player will have expectations about his contract, and he will try to get out the most of his contract. And now you can show what you are made of...are you a silly douche, paying millions to the waterboy? Or are you a badass, negotiating as the devil himself? But keep an eye on your Forecast!
Is there any backside? Yes! You have exactly 5 tries per season and player to get the contract signed. If you miss your 5 chances, the player will leave your team on next season end. So be careful not to miss the chance for the contract. And there is another thing you should keep in mind. If you plan to fire a contracted guy, he will ask you for some compensation, the amount is depending on the contract period and the money he got weekly.
Any other things you should know? If you are using the HR Department you might have a benefit on the Transfer market. If there is no bid on a Free Agent, you can negotiate with him during the last 24 hours of his transfer period. If the negotiation is successful, he enters your team immediately, without waiting for the transfer deadline.
Tags: Howtos
