Recent research conducted by Reed indicates that the human resources (HR) sector is experiencing a deceleration in growth, with an average increase in salaries of only 2.8% over the past year. This marks a noticeable dip compared to 2022 when the industry enjoyed an average 4.2% increase.
The data not only sheds light on the HR sector’s performance but also compares it with other industries. The hospitality sector emerges as a leader, boasting the most substantial pay increase of 7.3% in the past year, rebounding from a previous year’s salary decrease. On the other hand, the IT and cybersecurity sector exhibits the least growth, with an average increase of 2.4% in 2023.
In response to these trends, experts suggest that diversity and inclusion have become paramount priorities for businesses in 2024. HR teams are now taking the lead in implementing inclusive hiring practices and fostering diverse workplaces. Mental health remains a focal point on the business agenda, with HR professionals continuing to play a pivotal role in supporting employees as they enter 2024.
Despite the slowdown in salary growth, job opportunities in HR are anticipated to persist. However, there is a noticeable shift towards more specialized roles in alignment with evolving workforce trends. The competition for top talent is expected to intensify, prompting organizations to seek HR professionals capable of identifying, attracting, and retaining the best candidates.
Moreover, employer branding and a compelling employee value proposition are set to remain crucial factors for companies as they value their reputation. Professionals well-versed in these areas are likely to be in high demand as organizations strive to enhance their image and attract top talent.
As the HR sector adapts to these shifts, the industry remains dynamic, navigating challenges, and embracing new priorities to foster a resilient and inclusive workforce in 2024.