Welcometothe Insights ThisisthesecondannualetonHRHRIndustryInsightssurvey.Thankyoutoeveryonewhosharedwhat theyareseeing,feelingandforecasting.Alongsidethesurveyfindings,wehaveinterpretedtheresults throughthousandsofHRconversations,hundredsofrecruitmentprocessesandourdailyworkwithHR leadersacrossAustralia
Ayearago,thestorywasHRrebuildingstrategicgroundafteryearsofcompliancegrind Thisyearitis morelayered HR'splaceattheleadershiptablelooksmoresecurethanithasinyearsandthepeople doingtheworkaremorestretchedthanever.ThestoryofHRin2026isnotasingletrendlineandwehave aimedtohonourthatcomplexityinthisreport.
Oneconclusionsitsbeneaththisyear'sfindings HR'sinfluencehasgrownfasterthantheinvestment behindit.Thefunctionisplayingamorestrategicrolethanever,yetthecapacity,capabilityandsupport neededtosustainthatinfluencehavenotkeptpace.Thattensionsitsbeneathalmosteveryfindingin thisreport
"HR's influence has grown faster than the investment behind it." 06 03 04 02 05 01
Morestrategicthaneverbefore
Acrossorganisations,HRisplayingamorestrategicrolethaneverbefore MoreseniorHRleadersnowreport directlytoCEOs,influenceoverbusinessdecisionshasincreasedandthefunctioncontinuestoabsorb responsibilitywellbeyondtraditionalpeoplemanagement
Theremithasgrown.Theresourceshavenot.
MorethanhalfofHRleadersdescribetheirworkloadasunsustainableoronlysomewhatsustainable.Nearlythreequartersreporttheirroleshaveexpandedtoabsorbworkfromelsewhere,whilemorethanoneinfivesaytheir teamreceivednomeaningfulinvestmentoverthepastyear Theworkhasgrownfasterthanthefunction deliveringit
AIadoptionaheadofcapability
AIadoptionhasacceleratedrapidly,yetcapabilityandgovernancelagbehind AlmostnineintenHRteamsare alreadyusing,exploringorpilotingAI,butonlyoneinfivehasreceivedformaltrainingandonequarteroperate withoutanAIpolicy HRisincreasinglyexpectedtoguideorganisationsthroughAItransformationwhilemany teamsarestillbuildingtheirowncapability.
Retentionismorethanpay
WhileremunerationisthesinglebiggestreasonHRprofessionalssaytheywouldleave,itisrarelytheonlyreason Careerprogression,meaningfulwork,leadershipandflexibilitycontinuetoshapewhetherHRtalentstays. Organisationsfocusedsolelyonremunerationrisksolvingonlypartoftheproblem
Anuncomfortableparadox
HRscoresitselfweakestintheverycapabilitiesitexiststobuildacrossthebusiness:careerdevelopment, successionandbenchstrength Asexpectationscontinuetorise,thefunctionresponsibleformanaging organisationaltalentriskisincreasinglyexposedtothosesamerisksitself.
Whatthe11%aredoingdifferently
Only11%ofHRprofessionalsdescribetheirworkloadascompletelysustainable FromourworkrecruitingHRteams acrossAustralia,we'veconsistentlyseenthesamepatternsemergeinorganisationsthatachieveitandweunpack thosepatternslaterinthisreport.
Salary&Bonus Benchmarks ThefollowingbenchmarksreflectcurrentremunerationacrossAustralia'sHRprofession,basedonsurvey responsesandmarketobservations Figuresrepresentindicativebasesalaryranges(excluding superannuation)andtypicalbonuseligibility.Asalways,industry,organisationalsize,geographyandrole scopeshouldbeconsideredalongsidethedata.
HeadofL&D/OD
L&D/ODManager
L&D/ODSpecialist
PayTrends& Headlinepayremainspositive,butmomentumhasslowed FewerHRprofessionalsreceivedanincrease, risesweresmaller,bonuseligibilitydeclinedandremunerationisnowtheleadingreasonpeoplewould considerleaving
citehigherremunerationasthedominantreason theywouldleavetheircurrentrole.
WHAT IT MEANS Themarketisstillmoving,butnotatthesamepace Organisationscontinuingtorelyonlastyear's assumptionsaboutsalarymovementriskfallingbehind Aspaytransparencybecomesmorevisible, employeesarecomparingsalary,wheretheysitwithinarangeandhowprogressiondecisionsaremade
WORTH CONSIDERING
Beforereviewingsalarybands,understandhowyourremunerationcompareswithtoday'smarket. Employeesareincreasinglycomparingfairnessasmuchassalaryitself,particularlyaspaytransparency becomesmorecommon Clearsalaryarchitectureandtransparentprogressioncriteriaarebecomingjust asimportantasthenumberitself
FOR THE CANDIDATE
Alowadvertisedbandisasignal Whenexploringanewrole,askwhereitfitsinthesalaryrangeandwhat specificallymovesyouupwithinthebracket Thatwilltellyouhowremunerationdecisionsareactually madewithintheteamandbusiness
Rewardbeyond Salary BONUS ELIGIBILITY BY HR EXPERIENCE THE INSIGHT Thecompositionofrewardchangesascareersprogress.EarlyinanHRcareer,theconversationislargely aboutbasesalaryand,whereavailable,anannualbonus.MorethanhalfofHRprofessionalswithfewerthan tenyears'experiencereceivenoadditionalincentive.Beyondtheten-yearmark,theconversationshifts.Longtermincentivesincrease,meaningrewardbecomesaboutmorethanannualcash.Thepackageisnolonger oneconversation,buttwo Earlier-careertalentcomparewhetherabonusexists MoreexperiencedHRleaders comparewhatvestsoverthenextthreeyears Therewardconversationchangeswithseniority,soensureyou matchtheconversationtothelevel
Themismatchisthestory Employerscontinuetoinvestinbenefitsthathavebecomeexpected,whilethe financialbenefitsHRprofessionalsvaluemostremainamongtheleastcommonlyoffered Apackage canlookgenerousonpaperandstillcompeteonverylittlethatinfluencesadecision.
Hybridhassettled. Theconversationhasshiftedfromwherepeopleworktohowtheywork.Hybridremainsimportant,but with95%wantingsomeworkfromhomeandmostorganisationsholdingtheirapproachsteady,ithas becomeanexpectationratherthanapointofdifference.Flexibilitywithinthedaycarriesgreaterweight, withtwo-thirdspreferringcontroloverstartandfinishtimesaheadofafixedwork-from-homepattern.
HR's Capacity. Thedatasuggestsworkloadislargelybecominganoperatingmodelissue Temporarypeaksare expectedinanyfunction.WhatstandsoutthisyearistheproportionofHRteamsdescribingsustained pressurewithoutacorrespondingincreaseinsupport,resourcesorinvestment
"The complexity and amount of legislation and mandatory reporting HR teams must navigate keeps growing but many organisations are not providing more resourcing or finding ways to take away other work." Senior People & Culture Lead InfluenceUp. HR'sinfluencehasgrown Investmenthasn'talwaysfollowed ThegapisclearestinwhatHRsaysitneeds versuswhatorganisationschosetofund.
"There is more reliance on HR in workplaces and there appears to be more professional respect of the provides." Senior HR Business Partner, Manufacturing NearlyhalfofHRnamestrongerleadershipsupportas whatwouldmosthelpthemcarrytheload.
AIadoptionhasacceleratedrapidlyacrossHR,butcapabilityandgovernancehavenotkeptpace Most teamsarealreadyusingAI,yetrelativelyfewhavereceivedformaltrainingorestablishedclearguardrails foritsuse
ThebarismovingfromwhetheryoucanuseAIto howyouhaveusedit BereadytoexplainwhereAI improvedyourwork,thejudgementyouapplied andtheoutcomeyouachieved,ratherthansimply listingthetoolsyou'vetried.
Governance Thedebatehasmovedaheadofthedata WhileAIiswidelyexpectedtoreduceHRheadcountover time,mostorganisationshavenotreachedthatpoint Thisyear,moreHRteamsgrewthanshrank,even asexpectationsoffuturereductionsremainhigh.Growingteamsandconstrainedcapacityarenot contradictory;muchofthatgrowthhasbeenabsorbedbyexpandingscoperatherthanreducing pressure.
36%
HR FTE increased in the last 12 months
Only 23% saw a decrease
70%
expectAItoreduceHRheadcountover thenext2to3years
"The most significant shift has been the acceleration of AI adoption and the way it is reshaping work, capability requirements and organisational design HR is now expected to lead the integration of AI into workforce strategy, uplift digital capability, and help organisations navigate the cultural and ethical implications of AI adoption " Global HR Director
Career Careerpathwayshavebarelymovedoverthepast12months Withoutvisibleopportunitiestogrow,career progressionremainsoneofthestrongestdriversofattrition.
Careerpathwayclarityimprovedbyjustonepercentagepoint, from28%in2025.
"There is greater expectation to demonstrate commercial value, yet fewer opportunities to step into broader leadership roles " Head of People, Professional Services
THEINSIGHT Careerprogressiondependsonvisibilityasmuchasopportunity Manyorganisationshavecapable peoplereadyforbroaderroles,yetlittlesharedunderstandingofwhatthenextsteplookslikeorhowitis reached Whenprogressionreliesontimingratherthanavisiblepathway,retentionbecomesmuch hardertoinfluence.
WhenweaskedHRtalenttopickasinglebiggestreasontoleave,paydominates Actualexitstella broaderstory Whileremunerationremainsimportant,it’salsoculture,restructureandleadership featuringjustasprominentlyinwhypeopleultimatelyleaveorganisations.
4of5
Payleadsbothviews.ButfourofthetopfivereasonsHRtalentwould movearenotfinancial.
HR TALENT’S REASON TO LEAVE
THEINSIGHT
Paydominatestheconversation,butitdoesn'talwaysexplaintheoutcome WhenHRprofessionals considerleaving,remunerationtopsthelist YetwhenHRleadersreflectonwhypeopleactuallyleft overthepast12months,cultureandrestructurerankaheadofpay,withleadershipalongsideit At thesametime,43%oforganisationsreportednoturnoverthisyear,upfrom35%in2025,makingthe exitsthatdooccurevenmorevaluabletounderstand Focusstayconversationsonthenon-financial driversofretention,becausethey'rewhereorganisationshavethegreatestopportunitytointervene beforeacounterofferiseverneeded.
TheHRFlightRisk Two-thirdsofHRprofessionalsareopentoamove.Mostaren'tactivelylooking-they'rewaitingforthe rightopportunity.
Only4%callthemarketstrong Themoodiscautious,whichisexactlywhyopen-tomovedoesnotconvertintoapplications.
"Candidates are taking longer to move because they want confidence they're moving into something better People & Culture Manager, Retail THEINSIGHT Theflight-riskgapisvisibility.Acautiousmarkethasnotremovedtheappetitetomove;ithaschanged howmovementhappens HRprofessionalsarelesslikelytoapplybroadlyandmorelikelytowaitforthe rightopportunitytofindthem Thatmakesretentionriskhardertosee,notlessimportant
RetentionRiskby ThefivereasonsHRpeoplearemostlikelytoleave,byindustry EachcellistheshareofHRinthatsector whonamedthatdriver Readacrossarowtoseewhatpushespeopleoutanddownacolumntosee whichindustriesaremostexposed
Manufacturing Healthcare Pay+Progression Themostexposedsector,running hotoneveryoneofthefive driversatonce
Themostsettled,sittinglow acrosstheboard,nodriverabove 40%
Thetwodriversthatrunhighin almosteverysector,thebaseline retentionlevers
"Working in different sectors over the past few years has reinforced that the challenges facing HR aren't always universal Priorities, expectations and pressure points vary enormously depending on the industry and maturity of the organisation " General Manager People & Culture, Healthcare
Knowingwhichskillsmatterisonlypartofthepicture.WeaskedHRprofessionalswhichcapabilitieswill mattermostoverthenexttwoyears,hiringleaderswhicharehardesttofind,andwhatultimatelytipsthe balancewhenchoosingbetweentwocapablecandidates
"AI literacy is requiring HR professionals to stay current and be active learners who can adapt This is shaking up the 'comfortable expert' trap that many had fallen into Influence is exponentially more valuable than knowledge now " Director, Leadership and Learning Stakeholderinfluence(10%want,40%scarce). Rarelynamedasapriorityyetgenuinelyhardto hire,soitbecomesthebottleneckonseniorroles
Psychosocialsafety(41%want,13%scarce) In demandbutnotscarce,sothisoneyoucanhirefor ratherthanbuild
Beyondtheheadlineset,HRnamedorgdesign (16%),workforceplanning(13%)andcoachingand facilitation(5%)asskillsthatwillmattermore
What's HRisbeingaskedtodeliverthroughongoingchange,tighterbudgetsandbroaderexpectations.These findingsshowwhichpressuresHRleaderssayareplacingthegreateststrainonthefunctionintoday's market.
Thepressuresatthetopofthelistareconnected Budgetandheadcountconstraints,burnoutand organisationalchangereinforceoneanotherbecausetheteamexpectedtoleadchangeisoftenthe sameteamwiththeleastcapacitytoabsorbit Bycontrast,AIintegrationsitsnearthebottomat7%, suggestingtoday'spressureisstillcapacityratherthantechnology Protectcapacitybeforeadding scope,becausethestrongestpressurepointsallstemfromthesameissue:toomuchworklanding withoutenoughcapacitybehindit THEINSIGHT
"Higher rates of burnout, greater expectations and expanding role, constant change fatigue " Head of People, Insurance
WhenHRratesitsownorganisationacrosssixdimensions,twostandoutassystemicallyweak.The uncomfortablepartisthatHRratesitselfweakestinexactlytheareasitisexpectedtobuildforthe business
HOW THE HR COMMUNITY RANKED THEIR TEAMS "The expectations and true understanding of HR The role keeps evolving based on each individual company, and capability of the leader and team " Head of People & Culture, Logistics THEINSIGHT HRratesitsownorganisationweakestonbenchstrengthandsuccession-theverycapabilitiesitis expectedtobuildacrossthewiderbusiness Thefunctionismostcriticalofitselfintheareaswhereits influenceisgreatest.Applythesamesix-dimensionscorecardtoyourownteamandstartwithbench strength,wherethegapbetweenexpectationandconfidenceiswidest
FORTHECANDIDATE
Recognitionandcareerdevelopmentscoreworst If youarejoininganHRteam,askhowthefunction developsandrecognisesitsownpeople,notjust howitadvisesthebusiness
What's WeaskedHRtalentwhichtrendstheyexpecttodefinethefunctionoverthenextfewyearsandseparately, whathasactuallyshiftedmostinthelasttwotothree.
THE BIGGEST TRENDS NAMED, IN THEIR OWN WORDS ThetrendsthatfillHRmediasitatthebottomofwhatHRtalentexpecttoshapetheirworkandDE&I hasfallenfurthest,fromtop-threetobarelyregisteringintwoyears Lookatwhathasactuallyshifted andAIleadsbyaclearmargin,namedinroughlyathirdofresponses,withabroaderemployee relationsremitandamorecommercialmindsetclosebehind.Theforward-lookingtrendsandtheshifts alreadyunderwaypointinthesamedirection.Themovementistowardawider,morecommercialand morecapablefunction.
Whatthe11%Are Acrosstheorganisationsweworkwith,themostsustainableHRfunctionsshareacommonsetof behaviours Theyaren'tdeterminedbysectororteamsize,butbyhowthefunctionisstructured, prioritisedandled 11%
describetheirworkloadascompletelysustainable.Thispagestudiesthatband,the teamsholdinginfluenceandsustainabilityatonceratherthantradingonefortheother.
PATTERN 01 : SCOPE
HRscopeisexplicit Whoownswhatisdocumented atfunctionandrolelevel,andwhenworkmovesit isreassignedformallyratherthanabsorbedby default
PATTERN 02 : MANAGERS
Leadershipcapabilitysitswithleaders Line managershandletheeverydaypeople conversations,whichfreesHRforthecomplexand strategicwork
PATTERN 03 : BUDGET
TheCPOholdsadedicatedbudgetforbuildingHR capability,coveringleadershipdevelopment,AI trainingandcoachingfortheteam.
PATTERN 04 : PACE
Changecyclesincludeapause Thesefunctions runfewersimultaneousinitiativesandscopenew programsagainstexistingcapacitybeforeadding them
PATTERN 05 : MEASUREMENT
Successismeasuredonoutcomesthebusinesscanfeelratherthanonactivityorvolume,whichletstheteam droplow-valueworkwhilestillshowingitsworth.
"The biggest shift has been HR evolving from a transactional support function into a strategic, data-driven partner that directly influences business performance and decision-making " People & Culture Partner, Legal
"Organisations that do it well have HR at the strategy and planning table, not just to fix things retrospectively. There is strategic partnering and HR considers operational impact, not just people impacts " Organisational Development Business Partner, Professional Services
ReadingThisasa
Whentwocapablecandidatesareinfrontofahiringmanager,judgementandorganisationalfitoftentip thedecision.Thesameprincipleappliesinreverse.Asacandidate,thequestionsyouaskrevealhowan organisationthinksaboutleadership,growthandtheroleHRplaysinthebusiness.
01 WherewouldIsitinthebandondayone,andwhatmovesmeupwithinit?
64%ofHRtalentsaypayisthetopreasontheywouldleave,butonly13%calltheiremployerverytransparent aboutit Soaskwhereyoulandinthebandandwhatspecificallymovesyouup Iftheycan'tanswerthesecond part,progressionhererunsontiming,notaframework Alowbandisasignal Avagueansweronhowyou climbitisabiggerone.
02 Whatscopehasthisroleabsorbed,andwhathasbeenformallyhandedback?
Nearlythree-quartersofHRroleshavegrowntotakeonworkfromelsewhere,and56%ofteamsarenowator pastasustainableworkload Askwhetherthatscopewasdesignedorjustpiledup Ifworkgotformally reassignedwhenitmoved,thejobwasthoughtthrough Ifitwasabsorbedbydefault,youareinheriting overload.
03 CanIshowoneconcreteexampleofhowIhaveusedAI,andtheresult?
89%ofHRteamsalreadyuseAI,sohavingusedatoolprovesnothing 86%ratethemselvesconfident,only21% havehadanytraining,sothegaptheyaretestingforisjudgement Onerealexample,whatyoudecidedand whathappened,isworthmorethanalistoftools Andwhenitcomesdowntotwocandidates,AIskillisnearthe bottomofwhatdecidesit,soleadwiththeoutcome
04
Whatdoesthepathpastthisrolelooklike,andwhoownsmydevelopment?
HalfofHRtalentsaythereisnoclearpathwaywheretheyare,andthathasbarelymovedinayear Career progressionisthesecondmostcommonreasonpeopleleave,at58% Askthemtonamesomeonepromoted outofthisrole,when,andwhatmadeitpossible Iftheycan't,ornobodyownsyourdevelopment,thatistherisk
05 Isthisteamholdinginfluenceandsustainabilityatonce,oronlyinfluence?
62%ofHRsaytheirinfluencehasgrown,butonly11%calltheirworkloadcompletelysustainable Theteamsthat managebothdidfivethings:madescopeexplicit,pushedeverydaypeopleconversationsbacktomanagers, heldacapabilitybudget,pausedbetweenchangecyclesandmeasuredonoutcomes Askhowmanythis teamactuallydoes Fewerthanacouple,andtheinfluenceisrunningonsomeoneburningout
INSHORT Everyfindinginthisreportcanbetestedinaninterview Thequestionsabovehelpyoumovebeyond theroleitselfandunderstandhowanorganisationinvestsinitspeople,developscapability,manages workloadandsupportscareergrowth.Thoseanswersareoftenafarbetterpredictorofyour experiencethanthejobdescriptionitself
Applythe insights Thisreportsharestheheadlines.Thefulldatasetgoesdeeper,andwecantakeyouintothecutsthat matterforbenchmarkingpay,reshapingateamorplanningHRcapabilityinyourorganisation.
Sectorbreakdownofpay,flex,burnoutandAI adoption.HowdoesBankingcomparetoTech?
KaylaHoye kayla@etonhrcomau 0434039406
EdGreenwood ed@etonhrcomau 0431390055
