According to the analysis of over 100,000 job ads, the salary range for HR directors working in large businesses (of 250 or more employees) in London is now between £95,000 and £165,000.
In 2022, it ranged between £90,000 and £150,000.
Pay in the UK:
Rising pay ranges are not equal across the UK, however.
In the North of England, for example, HRDs could be in for a cut as salaries are set to drop from between £85,000 and £125,000 to between £75,000 and £110,000 in 2023.
Speaking to HR magazine Andrew Moore, senior HR consultant at employment law and HR consultancy firm, WorkNest said: “Pay increases are wonderful and make a bold statement demonstrating the value a business places on its HR professionals.
"However, to retain and attract the best HR talent, businesses should also focus on non-financial investments such as career development, empowering HR to lead the company in people-oriented practices, authentic recognition and celebration of high-quality work.”
Demand for HR professionals was ranked very high in the report and HR assistants, talent coordinators and HR managers were the most sought after.
Over a quarter (28%) of the HR professionals asked also said they would be looking for new jobs in 2023, and most (70%) were confident about the opportunities open to them.
Moore added that leadership pay disparity should also be addressed if firms are to keep their top talent, in HR and elsewhere.
He added: “It’s been common practice to reward senior leaders disproportionately more than the rest of the workforce; however, businesses need to consider if this is in their best interest given the employment market remains with candidates.
“Retention of talent remains a focus for most businesses, and rewarding senior leaders more than other employees may come across as unjust and potentially cause employees to look for alternative employment.
“Talent at all levels needs to be nurtured and guarded, but higher awards for senior leadership demonstrate that those lower down aren’t as valued.”
Nearly half (48%) of HR professionals said they are expecting a pay rise this year.
Thankfully, most (75%) businesses said they will be giving pay rises in 2023.