Three quarters (78%) of senior HR specialists see artificial Intelligence (AI) and people metrics as central to a more data-driven future for the HR profession, but admit to significant gaps in digital adoption, technology, people analytics and data analysis skills.

According to the findings of the new 2023 HR Insights Survey*, the legal, FMCG, transport and logistics, and insurance sectors are the top sectors for remuneration and pay rises for in-house HR roles, followed by property and real estate, and the third sector. Retail and consumer sectors are the worst, with just 27% receiving a pay rise at their latest pay review.

The study involved HR professionals in permanent full-time and part-time, contract and interim HR positions, in 22 industry sectors including IT, financial, legal and professional services, education, and retail, with the majority (70%) of participants at ‘Business Partner’ level or above.

The ‘2023 HR Insights: A focus on the future’ reports on the findings of the research, and reveals that only a third (33%) of HR professionals feel more valued post-Covid, despite HR playing a pivotal role in businesses during the pandemic.

Just 41% of respondents are satisfied with their remuneration, but a positive and dynamic company and HR team culture are seen as critical and the reason for remaining in a current role, reinforcing their value and importance to maximising staff retention.

The study also finds that only 17% of HR professionals see a career in HR as giving them a clear route to becoming CEO or MD of a business.

The survey also explored the seismic shift in the workplace since 2019. Flexibility is the top motivator in the world of work for HR professionals, being voted the top benefit by 66%. Despite this, there are a below average number of part-time roles within the HR function. Hybrid working ranked second in the top five benefits with 65% of HR professionals wanting a hybrid working pattern. The 4-Day Working Week, and only working two days a week in the office, are favoured options for HR specialists to best achieve a good work:life balance.

At a time when the country faces its greatest-ever skills and talent shortage, the research confirms that talent attraction and retention are the biggest ‘time stealer’ for HR professionals.

Indeed, HR professionals feel talent acquisition and retention, diversity, equality and inclusion, and HR and people strategy, will continue to be the biggest issues they face until 2025/26, closely followed by organisational design and change management, HR and people strategy, culture, and pay and reward strategies.

The survey tackles the myth that HR professionals only work in an interim role as a ‘stop gap’ head-on, and proves this misconception is flawed – the study establishes that the average tenure of HR interims ranges from a few months up to eight years.

Commenting on the HR Insights Report and the survey’s findings, Darren Hayman (pictured), Managing Director of Macmillan Davies, says: “In recent years, the HR function has strengthened and reinforced its importance. To be able to continue to make a strategic contribution to the business alongside offering valuable insights, it is clear its essential for HR skills and actions to focus on embracing technological developments, with workforce data and analytics especially critical.

“To adapt to the future needs of our customers and people, businesses need a strong focus on the future of work, change management, data and analytics. Our research confirms the majority of HR professionals agree, and that AI and people metrics are highly important to the future of HR. However, work needs to be done to support HR professionals to develop and improve their technology skills, so that businesses can take full advantage of the understandings possible from people analytics and data analysis. These can help reduce human bias, improve efficiency, increase predictive data decision-making, drive results, as well as being a tactical and strategic asset to allow more ‘people time’ for HR.”

He adds: “The HR Insights survey also found a positive shift in how HR specialisms are perceived and valued, which is good news for the future of the HR profession. There has been a significant shift in the last three years by C-suite and HR professionals themselves in identifying skills such as employee relations, change and transformation, talent acquisition and development as ‘HR specialisms’ and not merely the tasks of a ‘HR Generalist’.

“Also interesting is the growing value placed on interim HR roles,” says Darren. “HR professionals have a high number of projects on which to deliver, but don’t always have the time or internal expertise for them. This is where interims are the perfect solution. They have the capability to parachute into an organisation and deliver solely on these specific projects. This is why there is a need for mindsets to shift from a traditional role / job-based approach to structuring people, to a more skills- and capabilities-based approach in order to create fluid, lateral role changes, particularly for internal mobility and career enhancement.”

*Macmillan Davies 2023 HR Insights: 2023 HR Insights: A focus on the future (mdh.co.uk)