New research highlights a noticeable slowdown in HR sector growth, with salaries increasing by only 2.8% over the past year. This is a stark contrast to the 4.2% increase seen in 2022.
- The HR sector’s average salary growth of 2.8% indicates potential economic strain, as revealed in Reed’s extensive job market analysis.
- Contrasting with HR, the hospitality sector experienced a substantial 7.3% salary increase, marking a recovery from previous declines.
- The IT and cyber security sectors showed the least salary growth, with only a 2.4% rise, falling behind other industries.
- Workplace trends emphasize diversity, inclusion, and mental health, highlighting HR’s pivotal role in modern business strategies.
New data showcases a slowing growth trend in the HR sector, with only a modest 2.8% increase in salaries over the past year compared to a more robust 4.2% rise in 2022. This analysis, based on six million jobs posted on Reed.co.uk, underscores the sector’s resilience in a competitive economic landscape, albeit with signs of deceleration.
While the average HR salary growth lags, the hospitality sector has rebounded impressively, registering a significant 7.3% increase in wages, reversing its previous year’s downturn. This upward trend in hospitality contrasts sharply with the HR sector’s subdued salary increments.
Conversely, the IT and cyber security sectors display the lowest growth in salary, managing only a 2.4% increase. This lackluster performance highlights distinct challenges within the industry, while the HR domain continues its transformation amidst evolving market dynamics.
HR expert Bukola Odofin notes, “The HR sector has undergone major transformations, driven by economic, technological, and societal changes. As organizations seek improved employee offerings, HR’s role is increasingly vital in enhancing company reputation and fostering supportive workplaces.”
Prioritizing diversity, inclusion, and mental health has become crucial for businesses entering 2024. HR teams are instrumental in implementing inclusive hiring practices and building diverse workplaces, while also addressing mental health on the business agenda.
Future job opportunities in HR will grow, yet become more specialized, reflecting current workforce trends. The competitive landscape for top talent will see organizations vying for HR professionals capable of attracting and retaining exemplary candidates.
According to Reed’s salary guide, regional salary variations exist, with East Anglia and the South West experiencing the most significant growth at 8.3% and 7.7%, respectively, while the West Midlands saw no increase.
Reed’s comprehensive salary guides provide insights into regional competitiveness, assessing worker perspectives on salaries, benefits, job security, and emerging recruitment trends, shaping the HR sector’s trajectory.
The HR sector remains resilient amid economic challenges, but its growth is clearly slowing, as evidenced by recent salary trends.
