Drop in application numbers cause HR salaries to rise

HR salaries have increased considerably over the last few months due to a drop in the number of people applying for roles.

New research suggests that employers are increasing salaries in order to attract new talent and are likely offering current staff pay raises to retain them.

The Association of Professional Staffing Companies (APSCo) report found that HR salaries increased by 5% year-on-year in July and by 6% over the last three months.

Applications for both contract and permanent roles have declined significantly – down 24% and 11% respectively over the last month alone.

Ann Swain, Global CEO at APSCo, said, “We have seen a significant fall in both permanent and contract HR job numbers over the last year. However, what is more concerning is the drop noted in application numbers.

“Employers are attempting to tackle this skills deficit by boosting salaries to not only attract more talent but also help their existing staff manage inflationary and other financial pressures driven by the cost-of-living crisis.

“Employers will certainly be hoping that the new government may signal a change in fortunes for what has been a relatively beleaguered sector.”

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