HR director pay surges by almost 21% over the past year, finds latest study

HR director pay has surged by 20.9% over the past year - far outpacing both the rest of the HR function and the wider economy - according to Incomes Data Research.
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HR director pay has surged by 20.9% over the past year – far outpacing both the rest of the HR function and the wider economy – bringing the median salary to £135,381 in 2025, data has revealed.

According to the latest study by Incomes Data Research (IDR), this compares to a median of £111,982 in 2024.

Pay for HR function heads has also increased, though less steeply, with a rise of 8.7% taking the median from £73,246 last year to £79,600 in 2025.

In contrast, the latest median pay rise across the whole economy is 3.2%, as observed by IDR.

Pay growth for less senior HR roles has been much lower.

The median salary for HR advisors has increased by just 1.5%, rising from £40,303 in 2024 to £40,902 in 2025.

Pay for HR assistants has remained flat, with the median staying at £25,000.

The substantial increase in pay for HR directors has widened the gap between these roles and the next level down.

In 2024, the difference between the median salaries of HR directors and HR function heads was £38,736.

This gap has now widened by 44% to £55,781.

IDR also surveyed employers on the state of recruitment and retention in HR.

Most are not currently facing significant challenges in this area.

However, 17% of respondents described recruitment of HR directors as ‘very difficult’.

Retention of HR directors appears to be less of a concern, with 94% reporting it as ‘not a problem’.

The challenges in recruitment may partly explain the sharp rise in HR director pay, as higher salaries may be needed to attract candidates.

Retention issues for HR function heads are also minimal, with nine out of ten respondents saying it is ‘not a problem’.

Zarah Choudhary

Zarah Choudhary is a Reporter for Workplace Journal and The Intermediary

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