HR Industry Trends in Q2: Key insights for HR professionals

The HR landscape in the UK is shifting in Q2. With more advancements in technology, a focus on employee wellbeing, and a talent shortage, the role of HR is becoming more dynamic. Here’s an overview of the key trends HR professionals can expect in the coming year.

Rising salaries and HR demand

The demand for HR professionals continues to grow. This is driven by the need for businesses to manage talent and improve employee experiences. Salaries are rising, with a median salary for HR professionals now at £37,300, a 14.9% increase from 2023. In London, this rises to £43,700.

Key roles such as HR business partners (£50,300 to £54,200) and HR managers (£44,700 to £49,500) command competitive pay, making HR a lucrative career choice. According to salary information on TotalJobs, HR assistants and administrators also see salaries ranging from £26,300 to £37,200.

Emphasis on digital transformation

Technology continues to reshape HR roles. AI, automation, and data analytics are today integral parts of HR strategy. AI and automation are changing how we work, and HR is no different. These tools help streamline recruitment, performance management, and employee development. Four in five (81%) UK HR experts are open to integrating artificial intelligence into their workplace functions.  According to WorkBuzz’s State of Employee Engagement Report, HR teams use technology to ease their workload and enhance efficiency. From hiring to employee support, companies use AI tools to scan CVs, reduce admin tasks, and speed up workflows. The main uses of AI are in hiring, learning and development.

Yet, despite these advancements, many employers still do not fully utilise their HR systems. The good news is that HR professionals who blend traditional skills with digital capabilities will be sought after in the coming years. People with skills in HR tech, data, AI ethics, and the law will also be in high demand. As businesses upgrade how they manage talent, they’ll need experts who can help them stay smart and stay compliant.

Employee wellbeing and flexible work

Employee wellbeing remains a priority in 2025. As workers seek better work-life balance, flexible work arrangements, particularly remote work, are becoming a must-have. According to Buffer’s State of Remote Work report, 98% of employees desire remote work options, as many employers are now offering hybrid work models to HR professionals. In addition, wellness programmes are growing in popularity. Offering mental health support and fitness programmes helps businesses retain talent and improve employee engagement, particularly in competitive sectors.

The most in-demand HR roles

As HR priorities shift, certain roles are becoming more critical:

• Human Resources Director: Key decision-makers in shaping an organisation’s culture and people strategy. They oversee hiring, retention, compliance, and HR policies.
• Chief People Officer: Collaborates with other C-suite execs to develop initiatives to support employee growth, wellbeing, and job satisfaction.
• Talent acquisition specialists: Sourcing, attracting, and hiring talent, these professionals ensure organisations have the people they need.
• Compensation and benefits managers: Responsible for managing competitive pay and benefits structures.
• HR business partners (HRBPs): Are responsible for aligning HR strategy with the organization's business goals and culture.
• HR analysts: Use data to inform recruitment, retention, and compliance strategies. Key skills include: HR data analytics, HRIS systems, and reporting.
• Learning and development managers: These roles focus on upskilling employees to keep businesses competitive.
  

As companies navigate changing labour laws and workforce expectations, experienced HR leaders are critical to success. The increasing focus on employee experience and digital tools means these roles will continue to grow in importance.

Talent acquisition and retention challenges

Attracting and retaining talent remains one of the biggest challenges for employers in the UK. Despite a stabilising labour market post-Great Resignation, many companies still face delays in filling open positions, with 40% taking between four and eight weeks to recruit the right candidate. According to The Recruitment & Employment Confederation, businesses are failing to hire the right person for 40% of roles.

Employee referral programmes remain an effective tool for recruiting talent, with 70% of employers using them. Yet, retention is still a major concern.  According to the Resourcing and Talent Planning Report 2024, 56% of organisations are experiencing retention challenges.  More organisations are taking steps to counter this, from 29% in 2021 to 42% in 2024. This highlights the importance of effective retention strategies, including career development and employee engagement programmes.

Opportunities: Q2 and beyond

The HR industry is full of opportunities. With a focus on digital tools, employee wellbeing, and talent retention, HR professionals are shaping the future of work. As Tracy Freeman, HR director at Meraki Talent says: “HR professionals must navigate ever-changing policies, technologies, and workforce dynamics. Success in HR today demands adaptability and agility, empathy, emotional intelligence, strategic thinking, tech-savviness, ethical decision-making, effective communication skills, and cultural competence, promoting inclusivity and equal opportunities for all.”

For HR professionals to succeed, it’s essential to stay ahead of technology and understand shifting employee needs. This is not just a time of change; it's a chance to lead it. View our latest HR roles here: https://merakitalent.com/vacancies/?page=1&sectors=667