HR Slows Down

HR sector shows signs of slowing growth, with only 2.8 per cent increase in salaries

New research from Reed has revealed that the human resources (HR) sector is showing signs of slowing growth, due to there being only an average of 2.8 per cent increase in salaries over the past year, in comparison to 2022 where the industry experienced an average 4.2 per cent increase.

From analysis of six million jobs posted on Reed.co.uk over the last three years, as part of Reed’s suite of annual salary guides, it’s clear that the HR sector continues to be resilient during a competitive economic climate, but is starting to show signs of slowing growth.

The data also reveals how the HR sector is doing against other industries. The hospitality sector has seen the biggest pay increase in the past year (7.3 per cent) and has bounced back from its previous year’s salary decrease. The IT and cyber security sector has had the least growth, with an average of 2.4 per cent increase in 2023.

Bukola Odofin, Human Resources expert at Reed, commented: “The HR sector has been undergoing a major transformation over the past 12 months, driven by a convergence of economic, technological and societal factors. As companies look to improve their employee offerings, the role of HR teams becomes even more valuable – helping businesses enhance their reputation and provide supportive workplaces.

“Diversity and inclusion have become key priorities for businesses in 2024, with HR teams now at the forefront of implementing inclusive hiring practices and building diverse workplaces. Additionally, over the last few years, mental health has been high on the business agenda, and HR professionals continue to play a pivotal role in supporting employees going into 2024.

“Job opportunities in HR will continue to grow, but the roles will be more specialised to mirror the trends we’re seeing across the workforce. The competition for top talent will intensify, and organisations seek HR professionals who can identify, attract and retain the best candidates.

“Employer branding and a compelling employee value proposition will also remain key factors as companies value their reputation, meaning that professionals well versed in these areas will be in high demand.”

Reed’s human resources salary guide also gives insights into the regions that are most competitive within this industry. Areas such as East Anglia (8.3 per cent) and the South West (7.7 per cent) have seen the biggest increase in wages, with the West Midlands being the only region not experiencing any increase at all.

Reed has produced a suite of 16 sector-specific salary guides, which include an in-depth analysis of a survey with 5,000 UK workers, assessing their current and preferred salaries and benefits, their organisation’s performance and priorities, how they rated their job security and the future of their sector, and the key recruitment and skills trends they’re witnessing.

You can download the HR salary guide here.

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