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AI reshaping HR roles, as employers strive for human/tech balance

Written by Hubspot Author | Jul 7, 2025 5:00:00 AM

Source: HR Daily (subscription service) - Friday, 4 July 2025

Artificial intelligence is reshaping the HR jobs market, as organisations seek HR practitioners who can "bridge the gap" between people and technology, specialist recruiters say.

"It's something every HR leader is talking about – how to use AI in their own teams for administrative and repetitive tasks like policy writing, position descriptions and reporting," says The Next Step director Lisa Hammond, who is based in Melbourne.

"While most organisations are still experimenting with AI tools, the leaders have moved beyond basic automation to create integrated strategies that enhance rather than replace human capability," she tells HR Daily.

These professionals take complex workforce data and turn it into actionable insights that drive business outcomes and move the needle with leadership.

Lisa Hammond, The Next Step

"Companies want people who can work with AI tools to analyse deeper pools of workplace data, identify hidden talent within their organisations and use these insights to improve performance and employee experience. Understanding data is becoming essential – whether that's making informed HR decisions, identifying training needs, managing workforce mobility, or predicting turnover patterns."

However, she notes, "it's early days", and most employers aren't yet hiring for AI-specific roles; rather, new role categories are emerging, such as internal mobility specialists, workforce analytics positions and others that combine traditional HR with data science capabilities.

Brisbane-based Christine Iannarella, associate director of professional services at Robert Walters, is also observing growing demand for HR professionals who can leverage data for decision-making, lead cultural transformation in hybrid workplaces, and implement AI-driven tools for recruitment and workforce management.

Among candidates, she says, "AI fluency and the ability to navigate digital HR platforms are now key differentiators".

Iannarella notes that while AI tools are becoming essential, they don't replace human judgement. Therefore, "there's growing demand for HR professionals who not only understand how to use AI tools effectively, but also know how to balance automation with a human-centred approach".

Meanwhile Sydney-based HR Partners by Randstad managing director, David Owens, adds: "Where I'm seeing the most investment is in roles in the HR data and analytics space as organisations adapt to the increased use of technology and data to guide workforce management and decision making.

"What I would love to see is the savings achieved through tech implementation converted into boosting the closer support of business units and management teams, through HR business partners."

Below, HR recruitment specialists describe the jobs market more broadly in five capital cities.

Sydney

Of Sydney, Owens says, "HR budgets only stretch so far" and employers have been dealing with this challenge via a dual focus on humans and tech/data.

Organisations are maintaining HR business partnering advice, and talent acquisition and development capacity, while building capability in data analytics, compliance, governance and reporting, he says.

Top roles and skills in demand: Some organisations are seeking HR people with tech and data skills to build and implement this capability; others are utilising HR professionals to provide HR shared services, HR operations, HR analytics and HR coordination of initiatives and policies. The past 12 months has seen steady demand for HR business partnering, employment relations, talent management and development, and HR advice.

HR salaries in Sydney have been growing modestly (2–3% – read more in HR Partners' recent salary intelligence report). "Bonuses are harder to come by and essentially it's a more constrained pay environment," Owens says.

Melbourne

In Melbourne, against a backdrop of rising mental health claims, changing psychosocial regulations, and greater focus at the executive level on wellbeing, Hammond says she's recruiting for roles that didn't exist five years ago, such as psychosocial risk managers – "hybrid positions that blend employee relations with safety remits".

More broadly, business acumen is what distinguishes the best candidates, she says. "The HR professionals landing the best roles can articulate how their people strategies translate to business outcomes – particularly important when every budget line is being scrutinised."

The Next Step HR Job Opportunities Index has been declining since March 2023, "but this correction represents natural rebalancing following that huge post-COVID surge", she adds. "Employers continue to hire but have become much more discerning."

Top roles and skills in demand: Psychosocial risk managers; workplace relations capabilities; and HR generalist positions requiring strong ER case management experience. "Interestingly, we're also seeing an uptick in senior leadership and executive roles – which is a positive sign for the market."

Salaries in Melbourne are holding steady, but employers are much more selective about the value they're getting, which Hammond says wasn't happening during the post-COVID hiring boom. "They're being prescriptive about the skills and depth of experience required that justifies candidates' salary expectations."

Brisbane

"Over the past year, the HR job market in Brisbane has evolved significantly, shifting away from traditional administrative roles toward more strategic, tech-enabled positions," Iannarella says.

"At the same time, there's been an increase in available senior and specialist HR talent, largely due to corporate restructures across Brisbane's larger organisations. This influx, combined with candidate expectations for flexibility, is reshaping how companies hire and retain top HR professionals."

"Employers are becoming increasingly specific and selective in their hiring, with a strong focus on finding candidates whose experience closely aligns with particular industries and role requirements. There's less flexibility for hiring those who don't meet all the criteria, making industry alignment and role-fit more critical than ever."

Top roles and skills in demand: Digital HR systems expertise; data analytics for workforce insights; and change management experience. Also: skills in diversity and inclusion, mental health support, and remote workforce management. Specialist experience in ER/IR is particularly valued due to a shortage of candidates in these areas.

HR salaries in Brisbane have "remained relatively stable, with typical year-on-year increases in line with broader market trends", Iannarella says. Some highly specialised roles, such as those in ER/IR or with advanced tech skills, continue to command higher salaries due to limited talent supply.

Adelaide

In Adelaide, says Hays regional director, Nicola Hurran, senior HR leadership roles such as people and culture directors are in high demand, "driven by organisations seeking strategic guidance to navigate cultural transformations and align workforce strategies with business objectives".

"The role of the chief people officer has changed significantly post-pandemic, with a seat at the board becoming more common. This is something we have also seen with Adelaide-owned and operated businesses, where people and culture is essential in steering the strategic direction of the organisation."

In contrast, demand for talent acquisition professionals has stabilised, with roles remaining steady in sectors facing talent shortages, including healthcare, construction, and renewable energy. This indicates a shift towards more targeted recruitment efforts in high-demand industries, she says.

Top roles and skills in demand: Strong strategic thinking and business acumen; analytical and data-driven skills, particularly for HR analytics; and workforce forecasting and performance measurement. L&D expertise is a priority as businesses focus on upskilling; employers also want HR professionals with employee relations and wellbeing management skills, particularly those experienced in conflict resolution, performance issues, and legal compliance.

HR salaries in Adelaide are "generally modestly rising, but growth remains steady rather than explosive", Hurran says. "Employers are continuing to offer merit increases and bonuses, maintaining stability and competitiveness."

Perth

The HR jobs market in Perth is active, seeing shifts in demand driven by economic pressures and significant legislative changes, says Robert Half director Richard Sinden. HR departments have been exceptionally busy managing a rise in redundancies as companies restructure, and sustained activity on the recruitment side to fill critical gaps.

"We're seeing HR departments absorbing more responsibilities that were previously specialised," he adds. "For instance, in sectors like mining, where dedicated recruitment teams may have faced redundancies, HR is now often picking up the recruitment responsibilities to compensate. Additionally, with many organisations planning HRIS implementations, there's a growing need for HR professionals who can manage these systems and take on the operational workload to ensure smooth transitions."

But given that the majority of Perth businesses are SMEs outside of the mining sector, there's "significant demand for all-rounders who can seamlessly handle diverse HR functions like recruitment, contract variations, and performance management".

Top roles and skills in demand: Junior-to-mid-level roles, specifically HR administrators and advisors. Also: HR professionals with compliance expertise. "For administrative and advisor-level positions, maturity, confidence, and strong soft skills are in demand, so much so that employers are willing to pay for individuals who possess a natural intuition and the drive for continuous self-directed learning."

HR salaries in Perth are generally staying consistent rather than moving significantly up or down, Sinden says. "However, there's a clear willingness from companies to pay a premium for the 'right' person, especially those who possess critical soft skills such as strong communication, empathy, strategic thinking, and change management capabilities."

Some quotes have been edited or condensed for clarity.