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Careers in HREmployee relationsDispute resolutionHR specialismsLatest News

Pay up by two-thirds for ER managers

by Jo Faragher 6 Dec 2023
by Jo Faragher 6 Dec 2023 Employee relations issues have spiked since the pandemic, according to Wade Macdonald
Shutterstock
Employee relations issues have spiked since the pandemic, according to Wade Macdonald
Shutterstock

Employee relations managers have enjoyed a 66% rise in their salaries since 2019 – significantly higher than other HR roles – a HR recruiter has found.

Wade Macdonald’s analysis of HR salary data from the past four years also revealed that heads of ER experienced a solid rise in pay (up 42%), while HR directors’ pay rose by 46%.

Almost half (47%) of HR professionals surveyed by the company are spending more time on employee relations than ever before, reflected in the salary hike.

This is not surprising given that HR teams have spent months dealing with strike action, pay negotiations and, in some cases, investigations into bullying and harassment – fuelling the rise in ER issues.

The pandemic also likely played a role, the firm said.

Wade Macdonald’s analysis of pay since 2019 showed that between 2019 and 2020, ER managers took a 9% pay drop, but that quickly recovered with a 25% pay rise between 2020 and 2021, and a 31% pay rise between 2021 and 2022.

HR salaries

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The firm also found that issues with mental health and wellbeing were the top reason for increased grievances, cited by 39% of respondents. Mental health issues rose to around 48% of instances during the pandemic, it added.

Chris Goulding, managing director, said: “ER issues were exacerbated by hybrid working, which makes teams more difficult to manage and can leave grievances unchecked.

“And while there is a myriad of tools available to help facilitate this, it takes practice and training for managers to get the balance right.

“On top of this, some managers may be facing a backlog of existing unresolved problems from previous months and or even years that have yet to be dealt with.”

Goulding predicts demand for ER professionals will continue to be high in 2024, with salaries reflecting this.

“We are expecting employee relations to be one of the biggest focuses of HR in 2024, with more generalist HRs receiving training in employee relations specifically.

“Increasing numbers of grievance cases are going to tribunal, with employers now often on the losing side. The solution lies in training all HR professionals to effectively manage employee relations to help to resolve problems before they grow and help create more positive workplace cultures.

“The increased recognition of the value HR, and ER managers specifically, bring to an organisation likely means that pay will continue to rise as HR roles become more challenging.”

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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