Whether you’re eyeing a position as a Head of HR, HR Business Partner, or HR Manager, chances are you’ve noticed that many of these roles are clustered around the £50,000 mark—a figure that has left many candidates scratching their heads.
Every day, I speak with candidates who are surprised—and frankly, disheartened—by this trend. They see strong opportunities that align perfectly with their skills and career goals, but the salary offered doesn’t meet their expectations. The question on everyone’s mind is the same: where has this problem come from, and how long is it going to last?
The Golden Halo Post-COVID
To understand the current salary stagnation, it’s essential to look back at the period following the 2020 COVID-19 outbreak. After the initial shock, many organisations experienced a “golden halo” of sales. Pent-up demand, combined with government support and a shift in consumer behaviour, led to soaring profits. Companies were hiring aggressively, dividends were flowing, and the outlook was bright. This period of abundance allowed for generous salaries and benefits, as companies competed for top talent in a booming market.
2023–2024: A Different Story
Fast forward to 2023 and 2024, and the landscape has changed dramatically. Economic pressures have mounted, and many organisations are now grappling with slower growth, increased costs, and tighter budgets. Hiring slowdowns, freezes, and even layoffs have become common as companies strive to consolidate their operations and save money.
This has had a direct impact on the recruitment market. While there are still good roles available, the budget for these positions has been slashed. Employers are cautious, often prioritising cost-saving measures over attracting talent with higher salaries. As a result, the £50,000 salary has become a common ceiling for many HR roles—regardless of the level of responsibility or experience required.
Green Shoots of Recovery?
Despite these challenges, there are signs that the market is beginning to stabilise. We’re starting to see the emergence of quality roles, which suggests that organisations are slowly regaining confidence in their ability to invest in talent. However, the salary issue remains a sticking point. Companies may be eager to bring on new HR leaders, but they are doing so with a limited budget, leading to a mismatch between expectations and reality.
The big question now is: when will things get better? History tells us that economic cycles do eventually turn around. We saw this after the financial crash and Brexit, where markets eventually bounced back. There’s cautious optimism that the same will happen as we move into 2025.
In fact, many candidates I’ve spoken to are holding onto their current roles, adopting a “survive ‘til 25” mentality. They’re hoping that by next year, the market will have recovered, and with it, the salary packages that reflect the true value of their skills and experience.
Navigating the current market
For HR professionals navigating this challenging landscape, the key is to stay informed and be flexible. While the salary ceiling is frustrating, it’s important to weigh other factors such as career growth, company culture, and long-term potential when considering new roles. And as we look ahead to 2025, there’s reason to believe that the market will rebound—bringing with it the salary increases that candidates deserve.
Until then, the challenge remains: finding the right balance between securing a great role and managing salary expectations in a market that’s still finding its footing.
Talk to Denholm
We’re problem-solvers. Whether it’s scarce skillsets, cost-effective solutions, or you just needed them to start yesterday… We are experts in hiring the talent you simply can’t find yourself. Contact Andy Brady on 07305 043 327 or andyb@denholmassociates.com for more details.
