HR Statistics: 35+ Insights into the Latest Human Resources Trends

Human resource is a critical part of any business. The right people in the right roles can make or break a company. That’s why it’s important to stay up-to-date on the latest HR trends. In this article, we will discuss some of the most important HR trends for 2023. Let’s get started.

Editor’s picks

• Almost 7 out of every 10 employees will stay with a company for 3 years if they have a good experience with onboarding. [1]
• The American Psychological Association reports that almost 3 out of 5 employees suffer from the repercussions of work-related stress, including lack of motivation or energy (26%), lack of effort (19%), cognitive weariness (36%), emotional exhaustion (32%) and physical fatigue (44%). This is a staggering 38% increase since 2019. [2]

• 50% of employers do not use applicant tracking software (ATS). [3]
• Hiring for culture fit is becoming increasingly important to recruiters, with 84% reporting it as an essential factor in their decisions. [4]
• The median pay for human resource managers is $126,230 per year. [5]

Job seekers statistics

Job seekers are looking for a number of factors during their job search. They are interested in making quick decisions when recruiters contact them and the average time to find a job is projected at five months.

• Almost 9 out of 10 people say they decide to take a job faster when a recruiter contacts them. [5]

• The average time to find a job in 2023 is five months. [5]
• 80% of Millennial candidates want to work overseas.
• 84% of respondents are actively seeking new employment opportunities in the upcoming half-year period. [6]
• 70% of people don’t want to fill out a job application if it takes more than 15 minutes. [7]
• Over 60% of job seekers said that if they received feedback during the interview process, even if they do not get a job offer, they would be more likely to apply for future roles at the same company. [7]
• 86% of employees and job seekers research company reviews and ratings to decide on where to apply for a job. [8]
• Gen Z strongly believes that it is important to work for a company that matches their values – 67% of Gen Zers voiced this opinion. [9]
• 40% of job seekers find lack of communication from recruiters during or after the hiring process to be a major issue.
• Job seekers expressed that waiting to hear back from employers is ‘highly frustrating’ – 48% of them reported having this sentiment.
• 79% of job seekers use social media in their search for employment. [4]
• 41% of LGBTQ+ job seekers have refrained from applying to a company because they perceive a lack of diversity in its workforce. 8]
• 35% of job seekers have said they would decline a job offer if an employer does not provide a remote work option (Career Builder, 2020).
• 55% of job seekers use career sites while 39% of job seekers use job boards. [3]

Job seekers prefer not to spend more than 15 minutes filling out an application, desire feedback during their interviews, and use company reviews and ratings when selecting employers. Gen Zers prioritize matching their values to those of prospective employers while Millennial applicants are more likely to pursue overseas opportunities.

Job seekers also express frustration over the lack of communication from recruiters as well as diversity concerns when applying to companies. Remote work options have also become increasingly desired by applicants.

Employee retention statistics

Employee retention and turnover is a major challenge for HR leaders, with lack of appreciation, lack of opportunities for growth, and better work-life balance being key reasons for leaving. Good onboarding processes can increase employee retention and productivity significantly, but many workers believe organizations do not have adequate employee retention infrastructure in place yet.

• 47% of HR teams report that employee retention and turnover is their biggest challenge. [4]
• 57% of individuals are willing to look for a new job within the following year. [7]
• 24% of HR professionals say that retention rate improvement is a priority for them. [3]
• Onboarding programs have been linked to significantly higher employee retention and improved productivity in the same groups – with increases of 50% for the former and 62% for the latter. [10]
• Great onboarding processes can improve new hire retention by 82% and productivity by over 70%. [4]
• Employees in their first job have a turnover rate of 33%. [7]
• Employees prioritized the lack of opportunities for growth as the number one reason to leave their job, followed by a desire for better work-life balance. [9]

• 95% of HR managers believe that burnout has the most serious consequences on employee retention. [11]
• By 2022, the average tenure was 4.1 years, with government positions leading at a 6.8 year expectancy rate across all industries. [5]
• 36% of workers say that organizations have no employee retention infrastructure in place. [7]
• 58% of respondents said lack of appreciation was a reason for leaving their jobs. [12]

Employee engagement statistics

Employee engagement is strongly impacted by the team leader’s quality, and recognition for their efforts. Younger workers may be particularly at risk of feeling emotionally exhausted, while onboarding processes and recognition can have a positive impact on engagement levels.

• A significant majority of employees (70%) have reported that the quality of their team leader is the key factor in creating a more engaged workforce and strong working relationships. [13]
• 45% of employees feel emotionally exhausted by their job, and this feeling is more pronounced amongst younger workers. [14]
• 54% of organizations with onboarding processes saw increased employee engagement.  [7]
• Just one in five employees is actively engaged at their job, while 13% of American workers are fully disengaged.
• A majority of Human Resources professionals (84%) agree that recognizing engaged employees, while 82% believe it promotes employee satisfaction and increases staff availability. [4]
• 84% of those employees who are actively engaged in their work receive recognition for taking extra measures. [15]
• According to G2, there are over 525 employee engagement tools and HR software. [7]

How to improve human resource management?

The traditional role of HR, which is hiring and retaining new talent, now includes more diverse workforce management. HR can’t apply the same old strategies to manage diversity in the workforce. Here are some ways to ensure that the approach is modern, relevant, and effective.

1. Improving the Quality of Hires

The first step towards building a successful workforce is to make hires with a high level of skill and experience. One mistake many companies make is to rush through the hiring process in order to fill a vacancy quickly. Instead, they should focus on attracting the right candidates to the job. This can be achieved by creating a comprehensive job description, knowing what skills the candidate must possess, and setting clear hiring benchmarks.

Moreover, it’s essential to distribute the job listing on websites that cater to the right audience. For instance, it must be posted on LinkedIn, Glassdoor, or other social media channels where qualified candidates could interact together. Screening resumes thoroughly and checking references can help teams hire effectively.

2. Increasing Employee Retention Rates

Once you’ve hired and onboarded new employees, retaining them can be tough. To increase retention rates, HR professionals must establish feedback channels between HR and employees. Identify the reasons by which employees may resign, such as poor communication, inadequate supervision, or poor work-life balance, and work to address those issues.

Encourage and provide opportunities for professional development and promotion from within. Offer health benefits, bonuses, or pay raises after a certain amount of time or performance. Regular employee recognition for their hard work is also critical.

3. Decreasing Hiring Time

While hiring can take a long time, accelerating the process can be dangerous to identify top talent. However, when companies move too slowly, they can lose candidates who obtain employment elsewhere.

One way to speed up the hiring process is to remove unnecessary steps. It’s essential to focus on the candidate’s qualifications, experience, and personality in the first screening stages. Additionally, small tweaks in the job listing could make a massive difference. For instance, simplifying the application process or including information on any useful information that might appeal to employees.

4. Growing Talent Pipelines

Growing talent pipelines for candidates is essential. One way to do this is to create an internship or apprenticeship program. Doing so helps young professionals gain necessary experience while giving companies flexibility in assessing potential new hires. Establishing mentoring opportunities that connect experienced professionals with junior employees also helps foster leadership skills and develop new talent internally.

5. Diversity Hiring

Diversity in the workforce can encourage creativity, bring in different perspectives, and provides economic benefits. However, diversity recruiting must be done responsibly by looking beyond the minimum requirements of diversity legislation.

To initiate a proper approach, human resources managers should gather data on current diversity referrals and current management styles and hiring practices. They should also avoid falling into the “like-me” trap; that is, hiring people whose background is similar.

Human resource statistics conclusion

HR has a critical role in shaping the workforce of the future. Maintaining a diverse talent pool, retaining employees while providing opportunities for growth, and improving the quality of hires is crucial. It’s crucial to identify where improvements can be made to sustain and improve employee engagement and increase the company’s profile. By providing support and creating a better work environment, HR can help employees reach their potential and maintain a cohesive, competitive company.

Sources

• [1] Clickboarding
• [2] The American Psychological Association
• [3] Jobtip
• [4] Zippia
• [5] BLS
• [6] Greenhouse
• [7] G2
• [8] Glassdoor
• [9] CareerPlug
• [10] Harvard Business Review
• [11] Forbes
• [12] People Managing People
• [13] Gallup
• [14] SHRM
• [15] HR Cloud