HR professionals have faced a real-terms pay cut of as much as 8% since 2021 due to the cost of inflation, analysis by HR software provider Ciphr has revealed.<\/p>\n
The Ciphr team analysed earnings data from the Office for National Statistics (ONS) and found that the cost of inflation had outgrown HR professionals\u2019 salary growth.<\/p>\n
From 2021 to 2023, HR managers and directors (including the job titles HR director, head of recruitment, and head of learning and development, among others) received a 9.7% pay rise, to \u00a351,617 a year, on average.<\/p>\n
But when adjusted for inflation this amounted to a real-terms pay\u00a0cut<\/a>\u00a0of 6.5%.<\/p>\n Meanwhile, HR and industrial relations officers (which includes job titles such as HR specialist, HR consultant, diversity and equality adviser, recruiter, and personnel officer) received an average pay increase of 8.2%, or \u00a32,262 extra a year.<\/p>\n This was a real-terms pay cut of 8% when adjusted for inflation.<\/p>\n Ian Moore, managing director of HR consultancy Lodge Court, explained that there is a discrepancy between HR professionals’ work and their\u00a0salaries<\/a>.<\/p>\n Speaking to\u00a0HR\u00a0<\/em>magazine, he said: \u201cThe discrepancy in pay, especially when considering the increasing demands placed on HR functions, suggests a misalignment between compensation and the significant value HR professionals bring to businesses.<\/p>\n \u201cThese professionals not only help shape the culture and morale of an organisation but also ensure compliance with employment laws, enhance employee performance, and contribute to strategic planning.\u201d<\/p>\n A recent survey by recruitment company Michael Page (25 March) showed that 15% of HR professionals have taken on more responsibilities than their predecessors.<\/p>\n Moore noted that HR professionals should be paid in line with inflation and the complexity of their work.<\/p>\n He commented: \u201cGiven the critical nature of their contributions, it’s essential to re-evaluate how HR professionals are\u00a0compensated<\/a>.<\/p>\n