Salaries for HR leaders stall as cost of living bites

Salaries of HR professionals have started to plateau, new research has suggested.

Analysis of HR salaries by Cendex, part of XpertHR has shown that wages for HR staff have increased by just 0.3% since 2019.

This is despite HR’s vital involvement in setting organisational strategy which increased since the pandemic, however the latest HR and Reward Trends from XpertHR indicates that HR pay growth has stalled.

The data revealed that this was the case in 50% of the organisations sampled.

According to the figures, the median basic salary for HR professionals has risen slightly from £34,973 in 2019 to £35,086 in 2022. However, this is below expected if inflation is to continue to increase.

This contrasts greatly when compared with salaries in other industries. For example, over the same period wages in general management have risen by 19.7% and in administration by 10.4%.

But businesses this year are reportedly making pay increases in the region of 3.8%, while inflation is set to reach 13% later this year.

Reflecting on the findings, Ed Cronin, head of data research and operations at XpertHR, noted that if HR team members aren’t rewarded properly for their efforts, particularly seen during the pandemic, then employers may lose out on vital talent.

“HR professionals really stepped up to the plate during the pandemic. Faced with unprecedented changes to the workplace overnight, HR teams adapted accordingly and enabled businesses to continue to operate in spite of global tumult,” Cronin explained.

“Today, HR teams remain critical to business success and if they are not rewarded fairly, employers may see crucial and experienced individuals leave. The pandemic may feel like it’s over, but the challenges of high inflation, constrained labour markets, and pay fairness remain.

“Businesses should be using rewards data and salary benchmarking to ensure they remain competitive in the market and continue to attract top talent in an ever-changing workplace.”

If you missed Global Payroll Question Time, where the cost of living’s impact on wages was discussed, you can catch up on demand here.