Employers advised to communicate compensation frameworks
The majority of HR professionals across Australia are expecting a salary increase starting at five per cent, but less than a third of employers are willing to meet this expectation, according to a new report.
Findings from the FY25/26 Hays Salary Guide revealed that while 65% of HR employees are satisfied with their current salary, they are expecting more from their employers.
Some 41% of HR professionals said a five to 10% increase would reflect their individual performance and the demand for their skills.
A further 15% said they are expecting a 10 to 15% increase, while a similar proportion of HR professionals said they are expecting a 15 to 20% raise.
However, the report found that 60% of HR employers are planning an increase between 2.5 and five per cent.
Only 16% of employers are planning to offer a five to 10% increase, while only seven per cent are planning to offer a 10 to 15% increase to HR professionals.
"Review your salary bands regularly and communicate compensation frameworks transparently," Hays told employers in a media release.
More than just pay
William Prest, Associate Director at Hays, also advised employers that in addition to pay, clear pathways, supportive leadership, and aligned values are also essential to engagement.
In fact, the report found that HR employees see flexible work, psychological support, and additional annual leave as the most valuable benefits.
However, the report found that only 10% have a "significant scope" for progression, while 43% said there is little to no opportunity for advancement in their current role.
Prest said HR professionals are expecting employers to model the same values that they promote.
Employers are advised to prioritise benefits that support wellbeing and flexibility. They are also told to develop structured internal mobility programmes and upskilling opportunities.
"Wellbeing, transparency, and internal mobility are key drivers of satisfaction and retention in today's HR landscape," Prest said.
