The field of human resources (HR) plays a critical role in organizations of all sizes and across all industries. HR professionals handle a wide range of responsibilities related to managing people, including recruitment, onboarding, training, compensation and benefits, performance management, and more. For those interested in a career in HR, an important consideration is understanding the current and future job outlook for the field.
Some quick answers related to the HR job outlook:
– HR roles are expected to grow over the next decade, though at a slower rate than previous years. The Bureau of Labor Statistics projects HR jobs to grow by 7% between 2020-2030.
– Changing workplace demographics, technology, and an increased focus on talent acquisition and retention are key factors influencing HR job growth.
– Most job opportunities are expected in services industries with large workforces like healthcare, government, professional services, and manufacturing.
– The most in-demand HR roles will be in recruiting, training, HR analysis, and benefits coordination. Experience with HR information systems and advanced technologies will also be valued.
– A bachelor’s degree and HR certification are usually required for entry-level jobs and preferred for higher level roles. Ongoing skills training is important for advancement.
– Salaries can vary significantly based on position, industry, and location. The median annual wage for HR specialists was $63,490 in 2021.
This article will provide a more in-depth look at the factors impacting the HR job outlook and the most promising career paths and opportunities in the field.
HR Job Growth Projections
According to the latest data from the U.S. Bureau of Labor Statistics (BLS), employment for human resources occupations is projected to grow by 7% between 2020-2030. This compares to an average projected growth rate of 8% for all occupations during the same period.
The 7% increase in HR jobs translates to approximately 90,700 new jobs being added over the decade. Here is a breakdown of the expected growth for some of the top HR roles:
HR Occupation | Projected Job Growth (2020-2030) |
---|---|
HR specialists | 6% (52,100 new jobs) |
HR managers | 8% (23,000 new jobs) |
Recruiters | 12% (13,800 new jobs) |
Training and development specialists | 10% (16,600 new jobs) |
While still positive, the projected HR job growth rate is slower compared to previous decades. For example, from 2010-2020, HR jobs increased by 10% compared to 7% for the 2020-2030 period.
There are several reasons for the slowing job growth:
– HR departments are relying more on technology tools and automation, reducing the need for expanding HR staff in some operational areas.
– Organizations are increasingly outsourcing certain HR functions like payroll, benefits management, and recruiting to save on costs.
– Declining fertility rates and an aging workforce mean slower labor force growth, reducing hiring and talent acquisition needs.
However, employment in HR occupations is still expected to increase at a steady pace due to an expanding economy, customer needs, and evolving workplace trends that necessitate HR expertise. The highest demand will continue to be in service-providing industries that employ large workforces.
Key Factors Driving Growth
Several important factors are expected to contribute to job growth for HR professionals over the next decade:
Workforce Demographic Shifts
The composition of the labor force in the U.S. is undergoing major changes that will drive HR job growth well into the future. Key trends include:
– Aging workforce: As Baby Boomers reach retirement age, the workforce is becoming older on average. HR professionals will be needed to manage age-diverse staff, ensure knowledge transfer, and develop retirement and succession plans.
– Increased diversity: Racial and ethnic diversity is increasing as immigration expands the talent pool. Adaptability in areas like recruitment, cultural awareness training, and building inclusion will be prioritized.
– Focus on generational differences: With up to four generations now in the workplace, understanding generational perspectives on work-life balance, advancement, recognition and other aspects will help attract and retain talent.
Technological Advances
The growth of digital platforms, data analytics, artificial intelligence (AI), and automation is changing how HR functions are performed. While reducing the need for HR staff in some operational areas, technology is increasing demand for HR professionals skilled in:
– Using HR information systems to collect and analyze workforce data to guide strategy and decision-making.
– Implementing AI and automation tools to streamline HR processes like screening applicants and administering benefits.
– Overseeing new technologies for recruitment, training, performance management, and other HR activities.
– Ensuring ethical and responsible use of technologies to avoid issues like algorithmic bias.
Competitive Talent Market
With talent shortages in many industries, the need to attract, retain, and develop workers is greater than ever. HR expertise is required to:
– Source and recruit skilled candidates, especially for jobs in high demand fields like technology, healthcare, and manufacturing.
– Create employee-centered work cultures that engage and satisfy today’s workforce.
– Develop effective learning programs, career paths, and succession plans to build talent from within.
– Design competitive compensation and benefits packages to recruit and retain top performers.
– Use workforce analytics to identify flight risks and take proactive retention measures.
Compliance Complexity
HR teams help organizations comply with an evolving array of employment laws and regulations related to pay equity, healthcare, family leave, retirement plans, discrimination, and more. Keeping up-to-date and administering programs to meet requirements will continue driving HR jobs.
Globalization
As more businesses operate globally, HR must adapt to manage culturally diverse, dispersed workforces. Demand is growing for HR professionals with knowledge of other countries’ cultures, laws, and HR best practices to support expansion.
Most Promising HR Career Paths
While all HR occupations are slated for steady growth, some roles are expected to have the highest demand and best outlook.
Recruiters
Talent acquisition is a top priority, with the BLS projecting recruiting jobs to grow much faster than average at 12% over the next 10 years. Recruiters use tools like social media, AI, and professional networks to source, attract, and assess qualified candidates. Specialties like technical recruiting and executive search should see robust opportunities.
HR Analysts
These professionals will be in demand to compile, analyze, and interpret HR metrics to help leaders with strategic planning and decision making. Experience with technologies like HR information systems, analytics, and data visualization will be highly valued. According to Payscale, HR analysts earn a median salary of $63,205.
Training and Development Specialists
Growth is expected to reach 10% for these HR pros who design, deliver, and evaluate employee training programs, leadership development, onboarding, and career advancement initiatives. Online, mobile, and blended learning expertise will be in high demand.
Benefits Specialists
Providing competitive and tailored benefits packages is key for recruitment and retention. Benefits specialists should see 8% growth as they manage company healthcare plans, retirement programs, paid leave, and other offerings. Expertise in benefits technologies and data analysis will be advantageous.
HR Generalists
While automation may decrease hiring for some operational HR roles, demand should remain strong for HR generalists who handle a wide range of people-management duties within smaller companies or specific business units. Problem-solving skills and business acumen are essential for success.
Education and Salary Overview
A bachelor’s degree is typically required for entry-level and professional HR positions. Common majors include human resources, business administration, psychology, communications, and labor relations. Many employers prefer to hire those with a master’s degree in human resources management (MHRM).
Relevant HR certifications, such as Professional in Human Resources (PHR) or Senior Professional in Human Resources (SPHR) offered by the HR Certification Institute, can boost one’s expertise and career advancement prospects.
According to the BLS, the median annual wage for human resources specialists and labor relations specialists was $63,490 in 2021. The lowest 10% earned less than $38,160, and the highest 10% earned more than $111,340.
Factors impacting HR salaries include:
– Industry – HR pay tends to be higher in technology, professional services, finance, and pharmaceuticals. Government and non-profit roles tend to pay less.
– Experience level – More experienced HR managers and directors earn $116,720 on average.
– Location – Salaries are typically highest in large metropolitan centers.
– Certifications – Getting certified can increase pay, especially for HR generalists.
– Continuing education – A master’s degree provides an average salary premium of nearly $12,000.
Conclusion
While job growth is slowing from prior decades, human resources remains an essential function with steady demand for qualified professionals. Opportunities should remain strongest in recruiting, training, HR analysis, and benefits administration roles across service industry sectors.
By pursuing formal education, certifications, and skills development in areas like technology, data analytics, and business operations, HR professionals can build expertise that will be valued by employers looking to adapt to changing demographics, compete for talent, and optimize the workplace of the future. With their insights into people and culture, HR leaders help drive organizational success.