Recent analysis by Reed indicates a slowing growth in the HR sector, marked by a modest 2.8% salary increase over the past year.
- The salary growth rate has decreased compared to 2022, when it was 4.2%.
- Despite economic challenges, the HR sector remains resilient.
- Diversity and mental health initiatives continue to shape HR roles.
- Regional salary growth varies significantly, with some areas seeing no increase.
According to new research from Reed, the human resources sector has experienced only a 2.8% salary increase this year, indicating a deceleration compared to the previous year’s 4.2% increase. This data was extracted from an analysis of six million job postings on Reed.co.uk over three years, as part of Reed’s annual salary guides.
Despite the signs of slowing growth, the HR sector maintains its resilience amid a competitive economic environment. The hospitality industry registered the most substantial salary growth at 7.3%, recovering from last year’s salary decline, whereas the IT and cyber security sector showed just a 2.4% increase in 2023.
Bukola Odofin, a Human Resources Expert at Reed, remarked, “The HR sector has been undergoing a major transformation over the past 12 months, driven by a convergence of economic, technological and societal factors.” Companies are enhancing employee offerings, thereby elevating the importance of HR teams in improving business reputation and creating supportive workplaces.
In 2024, diversity and inclusion have become essential objectives for businesses, with HR teams implementing inclusive hiring practices to build diverse workplaces. Mental health also remains a major focus, with HR professionals playing a crucial role in supporting employees.
The demand for HR professionals is expected to rise, although roles will become more specialised, reflecting emerging workforce trends. There will be increased competition for top talent, with organisations seeking HR experts adept in attracting and retaining the best candidates.
Employer branding and employee value propositions are anticipated to be key emphasis points, maintaining their status as crucial elements for companies intent on preserving their reputation. Consequently, HR professionals skilled in these areas will be sought after.
Regionally, salary increases differ, with East Anglia and the South West experiencing the highest growth at 8.3% and 7.7%, respectively, while the West Midlands sees no change. Reed’s salary guides also provide insights into competitive regional markets, based on surveys of 5,000 UK workers assessing various employment factors.
The HR sector faces challenges yet remains a cornerstone for organisational growth and diversity.
