Job Outlook for Human Resources (HR) in 2024
The job outlook for Human Resources is more exciting than ever. In previous years, the world faced unprecedented challenges like high employee turnover rates and evolving return-to-office policies, all while dealing with global inflation. According to Lattice, a striking 74% of US employees were actively seeking new job opportunities or open to these in the next six to twelve months.
Organizations are encountering significant obstacles as the world continues to navigate an economic downturn. How businesses adapt and respond will determine their status as top employers. And this is where your role in HR becomes crucial.
HR is evolving from administrative tasks to leading in strategic planning, supporting employee wellbeing, and enabling tech integration. It’s now more important than ever for current and aspiring HR professionals to stay well-informed about the field’s trajectory and emerging opportunities.
Contents
A brief introduction to human resources
Is HR a good career?
Job outlook for human resources
The current state of human resources jobs
Future job outlook for human resources
Starting your human resources career
A brief introduction to human resources
From the boardroom to the breakroom (yes, even virtually!), the pulse of any organization can be felt through its people. The collective drive, ambition, and culture shaped by its workforce can dictate the success and growth of a company. But who ensures that this pulse remains healthy, vibrant, and attuned to the company’s goals? You do – the Human Resources (HR) professional.
What does HR do?
At its core, HR is the guardian of the workplace ethos. It bridges the gap between management and employees, ensuring that communication lines remain open, transparent, and constructive. HR manages a spectrum of responsibilities, including recruitment, onboarding, training, employee relations, compensation, benefits administration, and compliance with labor laws. But to merely list these tasks would be a disservice to the real essence of HR.
With changing times, “HR teams”, often used interchangeably with “People teams”, have metamorphosed from just handling paperwork or resolving disputes to playing a strategic role in the organization. They’re the architects of a company’s culture, crafting policies and programs that drive innovation, foster a positive work environment, and promote professional development.
Why is human resources important for the organization?
Imagine an orchestra with all its talented musicians but without a conductor. It would probably be chaotic. In many ways, HR is the conductor of the organizational orchestra. They ensure that every department, and every employee, is aligned with the company’s vision and is working harmoniously towards shared goals.
In an era where talent is often cited as a primary differentiator between competing companies, attracting, retaining, and nurturing this talent becomes paramount. HR stands at the forefront of this mission, ensuring that the organization is not only an attractive destination for top talent but also a place where employees feel valued, engaged, and motivated to contribute to the company’s success.
What is human resource management?
Human Resource Management (HRM) focuses on managing people to enhance their performance. It’s about aligning individuals to the company’s culture for better productivity and engagement. The HR department encompasses various functions, including training, legal advice, and talent management, aiming to optimize company performance through the effective management of its human resources.
The main human resource management basics everyone should know about are:
- Recruitment and selection: This visible function of HR is responsible for attracting and selecting the right candidates for the organization.
- Performance management: Focuses on nurturing the best performance from employees through regular feedback, reviews, and evaluation tools.
- Learning and development: Ensures employees adapt to changing conditions, reskill, and upskill in line with organizational objectives.
- Succession planning: Prepares for contingencies by identifying and nurturing talent to fill key roles in the event of departures.
- Compensation and benefits: Ensures fair and motivating remuneration, balancing direct salary with non-monetary benefits.
- Human Resources Information System (HRIS): A digital suite of tools to streamline and support HR functions, ranging from recruitment to performance management.
- HR data and analytics: Utilizes data from HRIS to make informed decisions, predict trends, and support organizational objectives.
Is HR a good career?
Yes, it certainly is! While the global landscape has been ever-changing, so too has the world of HR, adapting to and navigating the waves of change. The past 3-5 years have been particularly transformative, not just reshaping the role of HR but also weaving a rich variety of opportunities and challenges for those in the profession. Let’s explore the pivotal shifts that have underscored this evolution:
- The COVID-19 catalyst: The pandemic highlighted HR’s indispensable role. From managing remote work dynamics to ensuring employee wellbeing and reimagining workplace policies, HR stood as the backbone of many organizations during these trying times.
- Improving work environment and wellbeing: Organizations and research acknowledging the relationship between a positive work environment, employee wellbeing, and productivity. And, HR’s role is to focus more on cultivating a great work atmosphere. Promoting work-life balance is no longer a luxury; it’s a necessity for attracting and retaining top talent.
- Increased adoption of technology: The adoption of technology in HR has been revolutionary. Tools and platforms have been developed to make HR processes more streamlined, efficient, and data-driven. This shift towards digital has increased efficiency and allowed HR professionals to engage in more strategic, high-impact tasks.
- Fostering diversity, inclusion, equity, and belonging (DEIB): The movement towards a diverse and inclusive workplace fosters innovation and reflects the diverse employees and clientele companies serve. HR professionals are at the forefront, crafting strategies to counter biases and sculpt more inclusive workspaces.
These changes have influenced the HR profession in a number of ways. Some of these include:
- Pivotal strategic partners: The recognition of HR’s role in cultivating talent, championing diversity and inclusion, and creating positive work cultures has positioned HR professionals as pivotal strategic partners. Their insights and initiatives directly correlate with employee engagement, productivity, and overall organizational success.
- Tech-savvy HR: The infusion of technology into HR has optimized processes and encouraged HR professionals to harness their creativity and innovation. They can focus more on strategic planning and less on repetitive tasks with tools to assist.
- Diverse roles and opportunities: The multifaceted nature of HR offers diverse roles and specializations. For example, roles like the ‘Chief Wellness Officer‘ or Head of Remote showcase the evolving priorities and the expansive canvas of opportunities within the HR domain.
Job outlook for human resources
Fast facts
| Aspect | Fast facts |
|---|---|
| Number of HR professionals | The United States boasted around 805,080 dedicated human resources professionals in 2021. |
| Gender distribution in HR roles | Among employee experience managers, 83% are women; 69% of DE&I managers are women; 75% of chief people officers are women. Data analytics managers are split 50-50 between men and women. Men top the total rewards field at 55%. |
| Emerging HR roles | Employee experience, Diversity and Inclusion Manager, HR Technology Specialist |
| HR tech market drivers | The aging of conventional HR tools and rapid technological innovations have propelled the HR software market. HR tech is seen as time and cost-effective and reduces systemic errors compared to traditional methods. |
The current state of human resources jobs
1. Recent trends in HR
As mentioned earlier, the HR sector has witnessed significant transformations and trends. These changes range from an increased focus on holistic employee well-being to integrating emerging technologies like the metaverse.
The modern HR landscape now emphasizes a harmonized workforce ecosystem, embracing remote and hybrid work strategies, and positions the Chief Human Resource Officer (CHRO) as a strategic partner in organizational decision-making.
The evolution also includes a deeper commitment to creating purpose-driven organizations, ensuring inclusion throughout an employee’s journey, and making informed decisions through algorithmic HR. Furthermore, HR departments are now proactively reshaping workplace learning, upskilling leaders, and making dedicated investments in deskless workers.
2. HR positions and job opportunities
HR has expanded considerably over the years, providing professionals with so many new tailored roles. Here’s an overview of some common HR positions:
- Human Resources Coordinator: Often the starting point in an HR career, they manage administrative tasks such as handling employee records, facilitating HR processes, and providing clerical support to the HR department.
- HR Generalist: With a broader role, they handle multiple HR functions, from recruiting to employee relations, training, and benefits administration.
- Talent Acquisition Specialist: Primarily responsible for sourcing, recruiting, and hiring professionals, they ensure that an organization has the required talent to meet its business objectives
- HR Manager: They oversee the HR department’s daily operations, implementing policies, and supervising HR staff to ensure smooth employee relations and adherence to legal regulations.
- HR Business Partner: As a bridge between the HR department and business units, they align business objectives with employees and management, offering tailored HR solutions.
- Compensation and Benefits Manager: Specialized in designing and implementing company compensation policies, they ensure that an organization’s pay and benefits packages are competitive and compliant.
- HR Analyst: Leveraging data-driven insights, they play an instrumental role in making informed HR decisions by analyzing workforce data, employee surveys, and other relevant metrics.
3. Salaries for HR positions
Salaries for HR and People roles vary based on the region, company size, and seniority leveling. Here’s a sample of the average salary for some of the listed HR positions, based on information from Glassdoor and Payscale:
Position Glassdoor(2023) Payscale (2023) Human Resources Coordinator $47,000-$60,000 $42,000-$59,000 HR Generalist $52,000-$75,000 $50,000-$75,000 Talent Acquisition Specialist $55,000-$80,000 $52,000-$78,000 HR Manager $65,000-$95,000 $60,000-$100,000 HR Business Partner $75,000-$120,000 $75,000-$110,000 Compensation and Benefits Manager $80,000-$120,000 $75,000-$120,000 HR Analyst $57,000-$80,000 $54,000-$85,000
Note: these salary ranges are rough estimates and vary across regions, this data is from the United States averages.
Future job outlook for human resources
1. Projected growth in the HR field
As organizations evolve and adapt to the changing landscapes, so does the field of Human Resources. With the accelerating pace of technological advancements, demographic shifts, and global challenges, HR continues to be vital in navigating these changes.
- Strategic HR evolution: The HR profession is anticipated to evolve from merely administrative to a more strategic role. As businesses recognize the value of people-centric strategies, HR professionals are expected to contribute more to executive decisions, ensuring alignment with organizational objectives.
- A flourishing demand: The demand for skilled HR professionals will increase. With workplaces undergoing significant transformations, organizations seek HR experts who can guide them through these transitions.
- Inclusion of HR technology: The integration of technology in HR processes is no longer optional. Automation, AI-driven analytics, and data-driven decision-making tools are being rapidly adopted. Such advancements streamline HR operations, facilitating a more efficient and effective workflow.
2. The importance of Digital HR in the HR career
Speaking of technology and AI, the digital revolution is not just a buzzword regarding HR. It’s a transformational shift that has been reshaping the sector for decades. As highlighted in our research on the state of Digital HR, technology is now ever-present, creating a new era of opportunities and challenges for HR professionals.
The AIHR research analyzed data from over 635 organizations worldwide and revealed that Digital HR has matured significantly, moving from mere automation to creating holistic digital employee experiences. For example, innovations like ChatGPT are already changing the next iteration of HR models.
Starting your human resources career
Diving into the world of human resources might seem daunting, but where exactly should you start? For those seeking direction, AIHR provides a compass to the vast terrain of HR.
Our HR Career Path can help you determine which career you want to set your sights on and what path to take to get there.
It’s also important to acknowledge that HR isn’t solely about recruitment. It covers a spectrum from talent management to organizational development and beyond. Building the right HR skills is important to help you advance in your chosen career. We’ve identified 18 skills every HR professional needs to develop, as well as steps you can take to improve these skills.
Key takeaways
Current landscape and role of HR:
- 2023 insights: High employee turnover and economic challenges; 74% of US employees considering job changes.
- Evolution: HR is shifting from administration to strategic planning, technology integration, and employee well-being.
- HR importance: Acts as the organizational ‘conductor’, ensuring alignment and harmony. Key to attracting and retaining talent.
Future outlook and opportunities in HR:
- Emerging roles: Employee experience, Diversity and Inclusion Manager, HR Technology Specialist.
- Technological advances: Increased tech adoption making HR more efficient and data-driven.
- Salaries: Vary based on region and seniority. For instance, HR Managers in the US earn between $65,000-$100,000 on average.
- Career path: HR encompasses diverse roles from talent management to organizational development. Continual learning and certification are crucial for advancement.
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