Many factors influence the success of businesses, but few do it to the extent of human resources. To manage people, companies need to keep pace with current trends and find modern solutions for HR challenges. To help you with that, we prepared this list of the latest HR statistics. The information and the numbers presented here will aid you in the process of hiring and retention of talented and skilled employees.
Almost half of HR leaders see the retention of workers as their top challenge. Recruitment meanwhile has emerged as the second-biggest challenge for HR professionals, with just over a third (34%) citing it as a problem.
Companies with bad HR practices find it difficult to retain their employees. When outfits struggle to keep a full staff frequently, they need to think twice about their HR policy. Also, the constant hiring and recruiting puts additional financial pressure on the business and reduces productivity, according to HR stats.
HR takes burnout seriously in recent times. In fact, 95% of HR managers see burnout as sabotaging the workforce, according to a study by Kronos Incorporated. Unfair pay (41%), excessive workload (32%), and after-work hours (32%) are cited as the main reasons for burnout. To that end, flexible scheduling is one of the tools companies can use to handle burnout, according to employee retention stats and facts.
Programs where employees are recognized for showing values that exemplify the essence of the company are very popular among HR managers. These programs are more likely to aim at strengthening business goals.
Human resources statistics confirm that recognition programs should be considered an important management practice. Most HR managers working for companies that have recognition programs confirm it helps with employee experience, their relationships, organizational culture, employee engagement, and organizational values.
HR teams which carry out performance reviews more frequently are 1.5 times more likely to believe that they have an accurate appraisal process compared to those who do it annually. Human resources stats further show that 51% of HR managers believe that their performance appraisal is reliable.
64% of employees are satisfied with their company if their life events are marked in the workplace. Then, 35% don’t think that the company is a good place to work because they are dissatisfied with the celebration of life events.
Almost 40% of companies that do frequent performance reviews rely on ongoing peer feedback, whereas 27% use intermittent peer feedback. As much as 89% of HR managers believe that ongoing peer feedback brings helpful outcomes, human resource facts indicate.
Bad reputation can have a high cost for brands, not only in terms of customers but in terms of talent as well. When hiring new employees they have to think about their reputation and compensate for it. Still, a 10% higher pay for new employees can only convince 28% of them to start a career at companies that are not respectable.
(Harvard Business Review)
The ratio between input and output is defined as productivity. However, companies face the challenge of managing the human, cultural, moral, and other aspects in the effort of achieving the target productivity, as confirmed by statistics on HR productivity.
(People Development Magazine)
The data regarding performance management foresees that numeric and qualitative labels will soon be forgotten by some HR managers. Others think about eliminating the idea of grading and ranking employees; wondering if that will bring better performance results for both the employees and the company.
Almost 60% of HR teams state that finding, attracting, and retaining talent is the main reason for using HR technologies. For 43%, one of the biggest issues for making HR technology decisions is allowing employees to reach their full potential.
According to HR automation statistics, the implementation of modern technology has resulted in the disappearance of 800,000 jobs for untrained workers. However, it has also brought the creation of 3,5 million posts for high-skilled workers.
The top three future priorities for human resources technology include tools for acquiring talent (49%), employee experience (48%), and skills mapping and career pathing (46%). Also, following closely behind are intelligent recruiting (45%) and intelligent automation (45%).
Among small businesses in the US, 15% are planning to use HR software in the next one to two years and 65% have already taken that road. Facts about HR indicate that only 8% of small US businesses are without any intention to use the software and have no plans to evaluate.
It has been calculated that the companies’ budget for each user of the HRIS software is $12,625. It’s worth mentioning that as a result of economies of scale, larger companies have smaller budgets for employees compared to smaller companies.
According to human resources management statistics, 47% of large organizations possess a human resources management system. Also, businesses in Europe, the Middle East and Africa use nearly four communications methods in their organizations, on average.
In the near future, it is expected that 60%, 53%, and 47% of employers will invest in predictive analysis, process automation, and artificial intelligence, respectively. HR stats unveil that 6% of HR departments already use AI and 24% are planning to use it in the future.
Although virtual recruitment may be the most used routine when hiring an employee, just 16% of HR departments are confident about their adaptation to this process. Also, about 40% of HR managers feel they are ready to face new challenges and start using AI and other modern technologies.
The statistics on human resources salary show that the pay for HR managers averaged $121,220 in 2020, whereas human resources specialists made $63,490 the same year. Also, 86% of recruiters claim that now the market is candidate-driven.
According to HR stats, almost 70% of human resources managers believe that their most important objective is building critical skills and competencies. Other top priorities include organizational design and change management.
Since HRCI has been around for more than 40 years, it is not surprising to know that about 30% of professionals hold at least one HRCI certification. Stats on certified HR professionals show that 16.9% of them have the Professional in Human Resources credential which makes it a quite popular HRCI certification.
HR specialists’ employment is expected to grow by 10% in the period from 2020 to 2030 in the US. In 2020, the number of jobs occupied by human resources professionals was almost 675,000.
(U.S. Bureau of Statistics)
Human resources labor statistics confirm that the level of education that is necessary to be considered for an HR position is a Bachelor’s degree, preferably in HR, business, communication, or a related field. Some employers further require experience in positions such as HR assistants and customer service representatives. The job description includes recruiting, screening, and interviewing people as well as handling compensation and benefits, training, and employee relations.
(U.S. Bureau of Statistics)
Employee engagement stats reveal the level of engagement of workers in the US. before the pandemic was 35%. Recent measurements have confirmed that the level has gone back to normal or just a bit higher — 36%.
COVID-19 hit the Canadian economy hard by forcing the closure of non-essential services. That had a serious impact on the labor market and unemployment rates, as evidenced by HR statistics for Canada. What’s more, the pandemic emphasized the already existing inequalities in the country, leaving younger, less educated, and unmarried workers most affected by the situation.
Compared to the numbers before the pandemic, the employment rate in the UK has gone down by 0.7 percentage points but is up by 0.7 percentage points compared to the first quarter of 2022. HR statistics for the UK further reveal that the unemployment rate is 0.2 percentage points lower than the pre-pandemic percentage.
(Office for National Statistics)
As many as 55% of companies Down Under have defined their HR policy, according to a recent study covering 1,000 local HR professionals. However, that leaves the rest without any precise plan for the people working for them. These HR statistics from Australia are worrying because businesses have great expectations from their HR functions.
Highly engaged teams boast over a 40% reduction in absenteeism and their productivity boosts by 17%. Also, teams with a high degree of engagement see growth in their customer ratings and sales by 10% and 20%, respectively.
HR outsourcing statistics confirm that HR consulting is on the top of the list of services offered by outsourcing organizations. The least popular services, on the other hand, are insurance – 19% and performance management — 10%.
Surprisingly, people working in offices are productive for only two hours and 23 minutes, which means the rest of the eight-hour workday is wasted, human resources facts show. However, freelancers boast an amazing seven hours of daily productivity, or 36 hours/week, according to employee productivity statistics.
Employee referral statistics reveal that 82% of business owners are satisfied with employee referrals because of the high level of ROI they generate. Also, almost half of workers who have been employed as referrals stay in the company for more than four years.
When the onboarding is effective, employees form relations in the company at a faster rate and the company is off to long-term success. The commitment level of employees increases with the level of effectiveness of the onboarding process, as evidenced by onboarding statistics.
Human resource statistics suggest that the majority of employees are disappointed in the onboarding processes of companies. They don’t keep the promises they make while recruiting new employees which affects their relationship with the company and makes employee retention harder.
From the HR statistics we’ve compiled, it can be concluded that human resources leaders are constantly looking for ways to increase the efficiency of employees, and they also deal with recruiting and keeping experienced employees. Many take advantage of all available resources including HR tools while others are still to utilize the benefits of technology.
Sources: Globoforce, SHRM, Forbes, Harvard Business Review, People Development Magazine, Gartner, PwC, Deloitte, Capterra, Softwarepath, Statista, Zippia, Gartner, Pay Scale, U.S. Bureau of Statistics, Gallup, The Conversation, Office for National Statistics, Tandem Partners, Gallup, Extensis Hr, Apollo Technical, Erin App, BambooHR, Gallup