As businesses continue to evolve and grow, the importance of HR statistics cannot be understated. HR plays an integral role in managing the needs of employees, from recruitment to performance evaluation and beyond. With the right set of HR statistics, companies can gain valuable insights into their workforce and make informed decisions about their employees and operations.
In this article, we will explore the most important HR statistics and how they can be used to improve the effectiveness of any organization. Read on to learn more about the power of HR statistics and how to use them to the fullest!
HR: The Most Important Statistics
43% of HR professionals cite competition from other employers as the top reason they are struggling to hire the right employees.
By 2025, millennials will make up 75% of the global workforce.
General HR statistics
70% of the global workforce are passive job seekers, while 30% are actively seeking new job opportunities.
Companies can expand their talent pool by 10x by recruiting through their employees’ networks.
90% of job searchers think that a company’s workplace culture is important when determining whether to join it.
70% of HR professionals have adopted recognition programs based on company values.
72% of hiring managers claim they provide clear job descriptions, but just 36% of candidates agree.
49% of companies invested in improving HR management.
The HR software market is worth over 13.8 billion USD.
20% of HR executives see well-being as a priority of work transformation.
98% of HR staff report feeling burned out, and 88% say they dread work. 97% of HR professionals say their work has caused them to feel emotionally fatigued, and only 29% feel that their work is valued by their company.
83% of executives support employee learning. Companies that encourage curiosity see employees engage more deeply in their work, with 73% generating and sharing new ideas.
30% of new employees leave within 3 months. 3 million people quit their jobs every month. It costs 33% of an employee’s annual wage to replace them.
58% of recent hires say their latest job search lasted 2 months or less.
HR hiring statistics
The average job opening attracts 250 resumes.
77% of hiring managers disqualify resumes with typos or bad grammar, 35% will reject a resume if it has an unprofessional email address.
39% of HR managers spend less than a minute initially looking at a resume, while 19% spend less than 30 seconds. Only 26% of recruiters read cover letters and consider them an essential part of decision-making when hiring a candidate.
If employers can’t find a candidate online, 41% would not call them in for an interview.
The majority of people are currently working at companies where they had a positive candidate experience during the hiring process, with 81% of job seekers reporting that it influenced their decision to accept the offer.
48% of job seekers have had at least one negative experience in the hiring process in the past 12 months. And 49% of job seekers had declined a job offer due to poor experience.
The top two reasons candidates turn down job offers are “the compensation and benefits not meeting expectations” (22%) and “a negative experience with people in the interview process” (22%).
48% of businesses claim that their best hires come from employee referrals, according to Zippia.
Most recruiters (75%) use applicant tracking software to find potential employees, while 79% use social media.
Employee onboarding statistics
88% of employees suggest that their companies don’t provide a good onboarding program. 58% of organizations focus their onboarding program on processes and paperwork.
53% of HR professionals believe employee engagement increases when onboarding is improved.
Negative onboarding experiences make new hires 2x as likely to look for other opportunities.
72% of employees name one-on-one time with their direct manager as the most important part of any onboarding process.
A positive onboarding experience increases retention by 82%.
Check out our latest Employee Onboarding Statistics
Employee retention and recognition statistics
84% of HR professionals agree that recognizing employees increases engagement, and 82% agree that it boosts employee happiness and staff availability.
89% of HR leaders agree that ongoing peer feedback and check-ins have a positive impact on their organizations.
83% of employees would prefer to be recognized with praise over a present.
A new Ey survey found, that attitudes to job retention differ by age, with millennials twice as likely as baby boomers to quit.
LinkedIn reported, that employees at companies with internal mobility stay almost 2x longer. Employees who move into new jobs internally are 3.5x more likely to be engaged than those who stay in their current jobs.
Employee recognition is critical for retention. People are 5 times more likely to stay if their manager provides consistent feedback. Engaged employees are 87% more likely to stay.
Mentorship programs increase retention by 50%.
25% of employees dread going to work, don’t feel safe voicing their opinions about work-related issues, and don’t feel respected and valued at work.
89% of HR professionals agree that conducting performance management on an ongoing basis is more effective than yearly or twice-yearly reviews.
HR statistics: the main challenges
43% of HR professionals cite competition from other employers as the top reason they are struggling to hire the right employees.
According to PWC research, the top 5 HR challenges today are HR insights/data analytics (39%), recruiting/hiring (39%), cloud transformation/modernization of HR systems (36%), learning and development/employee upskilling (28%), and retention of key talent (27%).
25% of US jobs are currently under threat from AI and automation. A total of 36 million current American jobs are listed as “highly exposed” to automation.
54% of companies using HR automation for hiring have faced challenges with using the tools, including the algorithms mistakenly excluding qualified candidates.
The top reasons given by employees for leaving their jobs include lack of career development (22%), lack of support with work-life balance (12%), and their manager’s behavior (11%), among others.
HR technology statistics
More than half of companies now use specific tools to help with recruitment. 36% of HR professionals would like to use special programs and tools for recruitment.
6% of companies use AI for recruiting to a high degree, while 24% say that they would likely be using AI for recruitment to a high degree within the next 2 years.
57% of companies use a specific performance management technology, such as Kissflow, HR Cloud or BambooHR, among others.
According to Capterra, 80% of US small businesses now use HR software or plan to use it in the next 1-2 years.
The vast majority of employers (97%) plan to increase their investments in recruiting technology, as stated by Zippia. During the next few years, 60% of HR departments are expected to invest in predictive analysis, 53% in process automation, and 47% in artificial intelligence.
25% of companies report using HR automation, mainly for recruitment and hiring. 69% of HR professionals who use automation in hiring reported that it significantly decreased the time spent on this process.
58% of companies depend on HR technologies for talent recruitment and retention, while 36% of HR professionals don’t have the proper technology.
Smart AI mechanisms can eliminate 75% of applicants from the recruiting process.
Read more about HR Technology Trends
Workplace developing trends
By 2025, millennials will make up 75% of the global workforce.
74% of companies plan on increasing spending on HR technology.
66% of world business leaders and analysts agree AI will drive most innovation in almost every industry over the next 1-5 years.
By 2030, the HR market will be worth over 30 billion USD, according to TeamStage.
According to Statista, 47% of jobs in the US are at risk of automation by 2030. In the United Kingdom, it’s 35% while in Germany it is at 35%.
As reported by FinancesOnline, the HR tech market size will reach 90 billion USD by 2025, which is an 89.87% jump from 47.4 billion USD.
Mobile workforce management software continues to grow, from 6.05 billion USD worth in 2022 to 7.15 billion USD in 2023, an 18.19% increase.
The largest segment in the HR tech market, personnel management and payroll is dominated by incumbents. But from a 95.3% share in 2019, their share will slide to 92.4% in 2025.
Just 34% of HR leaders invest in workforce learning and reskilling as part of their future work strategy.
40% of HR leaders are not aware of the skills their workforce possesses.
Supplementary Statistics
57% of companies plan to make major new investments in HR technology by 2025,
This is a clear indication that companies are recognizing the importance of HR technology and are willing to invest in it. It shows that companies are taking steps to ensure that their HR departments are equipped with the latest technology to help them manage their workforce more efficiently. This is an important development as it will help companies to stay competitive in the ever-changing business landscape.
90% of workers think that working remotely would improve work-life balance,
The majority of workers believe that working remotely would be beneficial in helping them achieve a better balance between their work and personal lives. This is an important insight for HR professionals, as it suggests that providing employees with the option to work remotely could be a valuable tool in improving employee satisfaction and productivity.
On average, it takes 24 days to fill an open position within HR,
It highlights the importance of having a well-structured recruitment process in place to ensure that the right candidate is found in a timely manner. This statistic is a valuable insight into the HR industry and can be used to inform decisions about how to best manage the recruitment process.
47% of HR leaders state that employee retention and turnover is the top challenge in their organization,
This spotlights the fact that HR leaders recognize the need to keep their employees engaged and motivated in order to ensure the success of their organization. It also serves as a reminder that HR departments must be proactive in addressing this issue in order to ensure that their organization remains competitive.
60% of companies believe that upskilling and reskilling employees will be essential in the next three years,
This statistic is a clear indication that companies are recognizing the importance of investing in their employees’ development. It shows that they understand the need to stay ahead of the curve and equip their workforce with the skills necessary to remain competitive in the ever-changing business landscape. This is an important insight for HR professionals, as it highlights the need to prioritize upskilling and reskilling initiatives in the coming years.
72% of HR professionals rate their company’s talent management strategy as fair or poor,
Thus, the majority of HR professionals are not satisfied with the strategies in place to manage their talent, indicating that there may be room for improvement.
At the end of 2020, 78% of organizations were using HR software, with that number projected to increase by 2021,
Organizations are increasingly recognizing the value of HR software in streamlining their HR processes and improving their overall efficiency. This trend is likely to continue in 2021, as more organizations look to capitalize on the benefits of HR software.
75% of employees consider salary to be the most important factor in job satisfaction,
There is a need for employers to ensure that their employees are adequately compensated for their work, as it is a key factor in employee satisfaction. This is especially pertinent in a blog post about HR statistics, as it provides insight into the importance of salary in the workplace and how it can affect employee morale and productivity.
Only 49% of HR leaders believe that their HR analytics initiative delivers actionable insights for the business,
HR leaders should therefore ensure that their analytics initiatives are properly planned and implemented in order to maximize their effectiveness. Without actionable insights, businesses may be missing out on opportunities to improve their operations and make better decisions.
83% of employees want feedback on their performance, but only 58% receive it.
This is a glaring indication of a disconnect between what employees want and what they are getting. It highlights the need for HR departments to take a closer look at how they are providing feedback to their employees and ensure that they are meeting their expectations.
A 1% improvement in employee engagement can lead to a 0.6% increase in revenue per employee,
Thus, there is a direct correlation between employee engagement and increased revenue, demonstrating that even a small improvement in engagement can have a significant impact on a company’s bottom line. This makes it an invaluable statistic for HR professionals to consider when making decisions about how to best motivate and engage their employees.
The average turnover rate for HR professionals is 17.8%,
It speaks to the level of job satisfaction and stability that HR professionals experience, as well as the rate at which they are leaving their positions. This statistic is a valuable insight into the current state of HR professionals and can be used to inform decisions about hiring, training, and retention.
65% of employees would prefer more feedback to receiving a pay raise,
Employees value feedback more than a pay raise, which speaks to the importance of creating an environment where employees feel heard and appreciated. This statistic is a reminder that HR departments should prioritize providing feedback to employees in order to create a positive work environment and foster employee engagement.
HR professionals list training and development as one of the top five factors affecting employee engagement,
Hence, HR professionals need to prioritize training and development initiatives in order to ensure that employees are engaged and motivated to perform at their best. By investing in training and development, HR professionals can create an environment where employees feel valued and appreciated, leading to higher levels of engagement and productivity.
Conclusion
As you can see now, a well-structured HR system is essential for any organization to remain competitive and successful. It is clear that HR practices play a vital role in taking the necessary steps to ensure that the HR system is strong and efficient is essential. By investing in the right resources, training, and technology, organizations can ensure that their HR system is up to the task of meeting their goals and helping the company to succeed.
FAQ
What is HR?
Human Resources is a department within a company or organization that is responsible for managing personnel, employee benefits, and labor laws. It is typically responsible for recruiting and hiring new employees, managing payroll, benefits, and training, and overseeing employee relations.
What are some common HR functions?
Common HR functions include recruiting and hiring, payroll, benefits administration, employee relations, training and development, performance management, and compliance with labor laws.
What is the difference between Human Resources and Personnel Management?
The terms Human Resources and Personnel Management are often used interchangeably, but there are some differences. Human Resources is a broader term that encompasses all the activities related to managing personnel, while Personnel Management refers to more traditional, administrative functions such as payroll and benefits administration.
What is the role of Human Resources in an organization?
The role of Human Resources in an organization is to ensure that the organization is staffed with the right people and to ensure that those people are managed effectively. Human Resources also serves as a link between the organization and its employees, providing support and guidance
What are the challenges faced by HR professionals?
Some of the challenges faced by Human Resources professionals include recruiting and retaining talent, managing employee relations, ensuring compliance with labor laws, and staying up-to-date on the latest trends in the industry. Additionally, Human Resources professionals must be adept at communication, negotiation, and problem-solving.
Resources
Capterra: “Is Your Business Ready for an HR Digital Transformation?”, cited February 2023. (Source)
CareerPlug: “2023 Candidate Experience Report”, cited February 2023. (Source)
Ey: “More than half of employees globally would quit their jobs if not provided post-pandemic flexibility”, cited February 2023. (Source)
FinancesOnline: “90 HR Software Statistics You Must See: 2023 Market Share Analysis & Data”, cited February 2023. (Source)
Fringe: “21 Must-Know Employee Retention Stats to Keep Your Team Together”, cited February 2023. (Source)
HRForecast: “HR tech solutions in 2023”, cited February 2023. (Source)
Human Resource Executive: “The ‘Great Burnout’: Tackling the crisis among HR professionals”, cited February 2023. (Source)
LinkedIn: “Workplace Learning Report”, cited February 2023. (Source)
NetSuite: “50 HR Statistics You Need to Know for 2021”, cited February 2023. (Source)
PWC: “PwC HR Tech Survey 2022”, cited February 2023. (Source)
ResumeLab: “HR Statistics: Job Search, Hiring & Recruiting Data 2020”, cited February 2023. (Source)
Soocial: “19 Impressive AI In HR Statistics That You Should Know”, cited February 2023. (Source)
Statista: “Share of jobs at high risk of automation by early 2030 in select countries worldwide, by study, as of 2017”, cited February 2023. (Source)
TalentLMS: “Satisfaction with Onboarding: What New Hires Want”, cited February 2023. (Source)
TeamStage: “Human Resources Stats: The Processes in 2022”, cited February 2023. (Source)
Techjury: “21 Crucial HR Statistics You Need To Know in 2023”, cited February 2023. (Source)
Workhuman: “SHRM/Globoforce Survey Reveals Human-Centered Approaches in the Workplace Help Organizations Better Recruit and Retain Employees”, cited February 2023. (Source)
Zavvy: “30 HR Automation Statistics To Know in 2022”, cited February 2023. (Source)
Zippia: “75+ ESSENTIAL HUMAN RESOURCES STATISTICS [2023]: FIGURES, SALARIES, AND STATS”, cited February 2023. (Source)
ZoomShift: “50 HR Statistics to Boost Hiring and Retention in 2023”, cited February 2023. (Source)
ZipDo, cited June 2023: Hr Statistics
