HR sector witnesses 2019 below average salary increase

Salary levels across the HR sector grew last year, as the industry witnessed salary increases across a variety of job roles, according to new data released by Reed HR today (Thursday 30 January 2020).  

From analysis of 7.5 million jobs posted since the start of 2016, the Reed HR Salary Guide 2020 – part of the company’s annual suite of salary guides – found that salaries in the HR sector grew by an average of 1.9 per cent going into 2020, despite a downturn in the number of roles advertised. This growth has resulted in an average salary across the sector of £45,400, compared to the 2018 figure of £44,600.

Businesses recruiting to adapt to changing business climate

Despite tough trading conditions reinforced by business and consumer uncertainty caused by Brexit, the sector has been able to largely maintain salary levels since 2017, and is now experiencing a period when salaries across the board are on the rise again. 

Of the salary increases identified, some roles have benefitted more than others in the last year. And, the biggest percentage of wage increases can be seen above the £40,000 mark, including rewards managers (7 per cent) and HR directors (4.8 per cent)

For salaries below £40,000, roles with the highest salary increases include HR administrators (5.6 per cent) and recruitment co-ordinators (2.5 per cent).

Bukola Odofin, Reed HR expert, said: “Like many others, the HR sector will have been affected in recent times by the economic and political uncertainty generated by the Brexit fall out.

“Despite this, it appears that the sector continues to perform consistently and has been able to maintain solid salary level growth for its employees. The good news for the sector is that the past 12 months have seen an upward turn in salary which we predict will continue into 2020. This is a welcome trend for existing staff and those looking to move into the industry. As the industry evolves, there are  exciting new areas of HR that are expanding, talented analysts are able to define and shape new HR practices. Overall, HR has the power to shape the company culture, and that is absolutely integral to a successful recruitment strategy and business growth.”

HR not the only sector showing growth

In addition to the reported leading salary growth witnessed in the HR sector over the past 12 months, this was not the fastest growing sector. The technology sector experienced 13.8 per cent growth in advertised roles and engineering saw an increase of 0.9 per cent.

The highest rate of average salary increase was for hospitality and leisure workers at 6.1 per cent. This was followed by procurement roles (5.2 per cent). However, the HR sector holds a much higher average salary for its executive roles of £45,400 vs £31,000 for hospitality.

Odofin continued: “While HR departments are so often the creators of a great place to work, employers need to consider that HR workers also need to be attracted with important facets such as working environment, culture, flexibility, additional benefits and exciting projects. Getting the right pay rates is always a vital element. Our annual salary guides will help employers to understand the changing climate so that they can compete effectively in a talent-short market. 

“The Reed HR salary guide also shows how the sector across the UK is responding to a changing political and commercial climate. Employing the right people and capturing the best talent will be crucial to helping businesses stay strong and plan in the coming months – our salary guide will help towards this by giving an indication of where the competition is and where it is going to be in 2020.”

Download REED’s salary guides for more information here

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