New data reveals growing demand for HR leaders as shifting business needs reshape the profession. Here are three market insights that shed light on HR’s career and salary prospects in 2025.

The dual challenge of delivering long-term value and meeting immediate workforce challenges is driving a sharp rise in demand for experienced HR leaders. 

In fact, recent analysis by Indeed identifies ‘Director of People and Culture’ as Australia’s fastest growing well-paid role.  This is a sign of just how central HR has become to business strategy, says Sally McKibbin, career expert at Indeed.

“The global workforce has undergone significant transformations in the past five years, and things aren’t likely to slow down anytime soon,” she says.

“With workplaces navigating everything from AI, talent shortages and hybrid work to rising expectations around wellbeing, inclusion and ethical leadership, it’s not surprising that HR has taken centre stage.”

With that said, research also indicates sluggish salary growth and a rise in attrition among HR practitioners. 

So what’s driving this dynamic, and how is it impacting HR’s career and salary prospects?

Here are three market trends that shed light on how HR careers are evolving in 2025.

1. Demand for HR leaders soars

Demand for senior HR roles has climbed sharply in recent months, with ‘Director of People and Culture’ topping Indeed’s list of Australia’s fastest growing well-paid jobs (see below). 

One factor behind the spike in demand for HR leadership roles is the fact that businesses are increasingly prioritising workforce planning and optimising employee efficiency. 

This priority shift is also fundamentally altering the role of the HR leader, says McKibbin.

“As senior HR leadership becomes increasingly vital to business success, it’s common to see these roles being redefined to have broader, more strategic remits,” she says.

“No longer confined to traditional HR functions, these leaders are now in a position to shape culture, steer organisational change and influence business strategy alongside the CEO and board.”

2. Most HR practitioners are planning to change roles in the next year

Just over half of HR practitioners in Australia plan to change jobs in the coming 12 months, while around a fifth are actively looking for a new role now, found a recent report from HR executive search and recruitment consultancy Frazer Jones. 

The number-one motivator for practitioners to look for a new role was the prospect of a salary increase (29 per cent), followed by professional growth (27 per cent) and more challenging work (15 per cent).

The increasing demand for HR leaders means those in senior HR positions will likely have better leverage to negotiate higher salaries than their junior counterparts.

“As boards and CEOs increasingly see their people as a key asset, demand for strong, strategic HR leadership is only going to grow,” says McKibbin.

Hoping to climb the career ladder at your current organisation? Read HRM’s article on 7 tips to set yourself up for a promotion in 2025.

3. Salary increases remain fairly modest

Around two-thirds of HR practitioners are expecting a pay rise in the next 12 months, reports Frazer Jones. However, actual salary increases for practitioners have been modest, with the majority being under five per cent.

The graphs below show current minimum and maximum salaries across both generalist and specialist HR roles. Filter by location (Sydney, Melbourne, Brisbane) or average salary to determine how your pay stacks up. 

Discover average salaries for HR roles across other locations by using Employment Hero’s Salary Benchmark tool, covering Western Australia, South Australia, Northern Territory and more.

While salary growth remains sluggish, Frazer Jones’s data suggests employers are increasingly relying on benefits as a strategic tool to offset lower pay increases.

Among HR practitioners, the most popular benefits were extra leave, wellbeing support and flexible working arrangements. Hybrid working remains a key priority; in fact, over half of practitioners (52 per cent) said they would decline an offer if four days or more in the office were mandated.

What sets HR practitioners apart in this climate?

The current business environment is prompting many organisations to reconsider the mix of capabilities they need from HR leadership, says McKibbin.

“Given how drastically the workforce has changed over the past five years, what makes a great HR leader today are skills like empathy and emotional intelligence – but equally, strategic thinking and comfort with change,” she says.

“As senior HR leadership becomes increasingly vital to business success, it’s common to see these roles being redefined to have broader, more strategic remits.” – Sally McKibbin, career expert, Indeed

“These skills have always been important for HR, but they’re more necessary today than ever before.”

For the 51 per cent of practitioners who intend to change roles in the next year, standing out will mean demonstrating a deep understanding of how a business operates, drives profitability and takes care of its people. 

“As workplaces continue to evolve, the most effective HR leaders will also be those who are able to align employee priorities with business goals – those who can build inclusive and purpose-driven cultures.”

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