Unlike other teams, the HR department works behind the scenes, providing a solid support system in the background.
The unique skillset needed for this role must be why jobs are growing. HR statistics projected that jobs for HR managers would grow 6% over a decade. That’s about 13,300 job openings every year.
The role of HR is crucial because it pieces together every division within the company, from the C-level suite members to new employees. It keeps everything together by building systems and policies that benefit employees and the company.
That’s why it’s the pillar of every organization.
Let’s learn more about our HR team through these statistics.
Fascinating HR Statistics (Editor’s Choice)
- 83% of HR managers find retaining employees more challenging than hiring them.
- 80% of HR leaders believe that remote work stimulates e-Presenteeism.
- 95% of HR managers believe burnout has the most severe consequences for employee retention.
- This year, 59% of HR leaders will prioritize upskilling and reskilling.
- 92% of HR professionals plan to use people analytics in 2023.
- 68% of HR managers lack the budget to adopt AI.
- LinkedIn remains the best recruiting platform for professional roles in 2023.
- 67% of HR professionals believe that AI will benefit and have a positive impact on the recruitment process.
General HR Stats
To be part of the HR team means to be a problem-solver. Various problems face HR leaders, such as high turnover, disengaged employees, and outdated HR solutions. Let’s examine how HR leaders resolve these issues and some recent exciting stats.
1. The median salary for HR managers was $154,549 as of February 2023.
The job of HR professionals is taxing. However, they’re also well compensated. As of February 2023, the average annual salary of a human resources manager salary is $80.11 per hour or $154,549 yearly. HR managers in the top industries, such as technical service industries, earned up to $205,720 annually.
Now that organizations are starting to pick up from the throes of the pandemic, many will hire new employees. Therefore, job opportunities will open. According to the BLS, the demand for HR managers will increase by 6% from 2019 to 2029.
2. Based on 2022 human resources industry statistics, 47% of HR functions would focus on employee experience.
The year 2020 was transformational. Moving to remote work wasn't the only drastic thing. HR’s focus changed. A survey shared that 48% of HR leaders would focus on enhancing the employee experience.
Meanwhile, 41% of HR functions would center on workplace technology development, like deploying AI and automation, 35% on performance management, and 38% on applying people analytics.
3. 47% of HR would prioritize employee experience as their top agenda should their HR budgets double.
HR statistics 2022 highlighted how vital employee experience is for HR leaders. When asked about their future visions under the condition that their budgets were doubled, 47% of HR leaders responded that employee experience would be their top priority.
It's followed by leadership development (35%), learning transformation (34%), and next-generation leadership development (31%). All of these HR objectives point toward developing employees. That said, organizations are seriously considering providing the best experience to their workers.
4. 42% of HR leaders want to prioritize their future workplace strategy in 2023.
One of the notable human resources trends is the adoption of AI and automation. As the current trend suggests, technology will shape the future of workplaces. Hence, 42% of HR leaders want to concentrate on preparing companies for the future of work, which includes more technological integrations. Despite several companies deploying automation and AI, 62% don’t have a clear strategy for modernizing their workforce systems.
5. 59% of HR leaders prioritized building critical skills and competencies for the company in 2022.
HR statistics in 2021 have uncovered that 36% of HR leaders need to learn the skills gap with their current talents. This is why 59% of HR professionals prioritize building critical skills and competencies.
According to 40% of hr leaders, they need help to quickly build skills development solutions to satisfy the changing talent requirements. Since 2018, the skills required for finance, sales, and information technology have increased by 6.3% annually.
6. 58% of HR leaders consider finding, attracting, and retaining talents their biggest challenge.
Human resources stats exposed the array of challenges HR leaders face to ramp up their organization’s overall condition. Approximately 58% find talent acquisition and retention the most challenging HR tasks. Some 43% find developing people's full potential a significant concern.
Other equally challenging concerns are enhancing employee experience (47%), creating collaborative work environments (40%), workforce planning (42%), and ensuring diversity, inclusivity, and well-being (34%).
7. Employee retention statistics indicate that 63.3% of HR leaders find retaining employees more challenging than recruiting them.
Retention is a perpetual concern of the recruitment team. Despite the tight competition in the job market, employees are fearless in leaving a job when they see fit. Many HR leaders and companies have built a solid strategy around retention.
Organizations offer incentives, promotions, increased wages, and personal growth benefits to keep employees from resigning. While this may attract older workers who want career stability, companies may need to develop a different strategy to retain younger workers.
8. Human resources facts share that 80% of HR leaders think that the extended period of home-based work has encouraged e-Presenteeism.
E-Presenteeism refers to a culture where remote workers feel they should always be available, even if it's out of hours or they don't feel well. This work culture has adversely impacted mental health, leading to burnout, stress, and anxiety.
Most HR leaders think that remote work has spurred e-Presenteeism, which is the need for employees to be online all the time. Working from home may have compromised productivity. However, organizations should distinguish between work and personal time and honor their employees’ out-of-work interests.
9. 58% of HR leaders fear COVID-19's impact on employees' mental health will lead to burnout.
(The Undercover Recruiter)
Some statistics for HR professionals spotlighted the impact of COVID-19 on employees' mental health. Nearly three in five HR managers think the pandemic would increase turnover as burnout could affect employees. Approximately 54% of HR professionals believe that anxiety, burnout, loneliness, isolation, and other mental health concerns have become during the pandemic.
10. Leader and manager effectiveness is the top priority of 60% of HR leaders this 2023.
Employee development statistics share that L&D programs this year will center on leadership and management.
A top priority for 60% of HR leaders says their leadership development approach needs to prepare leaders for the future of work. They stated that leaders must be more understanding, approachable, empathetic, and adaptive to succeed in today’s work environment.
Recruiting Industry Statistics
Through recruitment, the HR teams can influence the organization’s future, either in a good or a wrong way. So what’s happening in the industry? Here are the latest stats to keep you updated.
11. As of 2020, only 49% of employees say their promotion and career routes are clear.
Career pathing is one of the integral human resources benchmarks. It may be meaningless for employees who only treat their job as a means of living. However, for those looking to build a career, a clear career path is a crucial variable that keeps them happy and motivated in their jobs.
A survey revealed that only nearly 5 in 10 workers see and understand the next level of promotion and career paths in their companies.
12. One in every two applicants has had negative experiences while applying for jobs as of 2023.
Hiring stats shared that half of the jobseekers had poor experiences during the hiring process. As a result, 50% also declined a job. Contrary to what many people envision, negative experiences during hiring don’t only include discrimination or bias.
Other cited bad experiences by applicants include unexpectedly low compensation and benefits (24%), negative experience with interviewers (22%), roles and responsibilities that were out of expectations (22%), and dissatisfaction with the work environment (16%).
13. As of 75% of job seekers, in 2022, stated that a positive candidate experience made them accept a job offer.
( Career Plug)
Job search statistics shared that three out of four applicants would accept a job offer if, during the hiring process, they have a pleasing experience.
One of the priorities of HR is providing a positive candidate experience. They invest in HR tech because automation and AI can simplify HR functions like recruitment and onboarding. HR leaders can provide a positive experience by writing clear job descriptions, making applications accessible, and allowing candidates to leave feedback.
14. The US has between 708 to 908 active PEOs operating as of 2023.
But what is PEO? In short, it stands for Professional Employer Organization.
They help small businesses develop 7 to 9% faster and provide services to about 156,000 to 180,000 SMBs.
Firms that utilize a PEO have 40% better revenue growth, 14-16% lower turnover rates, and are 50% less likely to go out of business than enterprises that do not employ a PEO.
Overseas businesses use International PEO to quickly employ staff overseas and in new territories.
15. HR facts cite that 30% of candidates consider responsiveness essential to candidate experience as of 2023.
Not getting any response after applying for a job can be depressing. Therefore, keeping an active line and being responsive are both helpful in creating a positive hiring experience. Other dynamics that influence a candidate's decision to accept a job offer are the hiring process transparency (21%), interviewer experience (16%), and work atmosphere (16%).
16. 61% of employees consider diversity and inclusion tactics helpful and vital.
Recent diversity and inclusion statistics suggest that most workers feel strongly optimistic about having diversity and inclusion strategies in the workplace. It's a known fact that a diverse and inclusive workplace is more productive and engaged. Apart from this, as high as 75% of employees are adamant that diversity and inclusion are equally significant. So, there’s no reason why HR leaders shouldn’t have diversity and inclusion strategies.
17. Employees receiving recognition are nearly twice as likely to trust their HR department as of 2022.
Human resources statistics enumerate the various benefits of giving recognition, and one of these is building trust.
A survey report on employee retention stated that 68% of organizations with employee recognition reported a direct positive impact on retention.
If employees get recognized for their contributions at work, they're twice as likely to develop confidence in their HR team. They're also 89% happier, 96% safer, and 81% more likely to trust their executive leaders to make the right decisions. Employees place high importance on recognition because it keeps them motivated to do their best.
18. On a scale of 1 to 10, small companies were rated over 5 points by their employees when it came to giving recognition.
Small business HR statistics concluded that employees in small companies, with only up to 10 workers, were happier because their managers were more appreciative of them. In a survey, employers with this workforce size received 5.6 points out of 10.
The same can be said for working in organizations with only 11 to 50 workers. Employers with this size received 5.7 points out from their employees. In comparison, workers in large enterprises with over 1,000 workers hardly get recognized for their efforts. It’s not surprising that companies of this size only got 2.7 points.
19. Based on employee loyalty statistics, more than 50% of workers say that wage/salary is the most influential factor for their loyalty to the company in 2022.
A survey pointed out that half of the employees consider salary and other benefits an essential yardstick for loyalty. For some 55% of workers, it's the work that they do that influences their loyalty. Various factors drive employees' loyalty. HR leaders must improve workplace aspects, including wages, benefits, culture, and strategies to increase retention and loyalty.
20. Performance management statistics determined that annual reviews didn't improve the performance of 55% of employees in 2022.
(What To Become)
The number of companies conducting annual performance reviews dropped from 82% to 54% in 2019. Annual reviews have been an essential barometer for many HR professionals to evaluate work performance. But that is changing due to how employees perceive it.
More than half of the workers mentioned that reviews were only indicative of some of the tasks that they do in the workplace. Moreover, 55% said that they didn't boost their work performance.
21. 56% of employees have witnessed or experienced sexual harassment, and 39% mistrust their HR staff.
Some human resource problems in companies still need to be solved because employees need more trust to confide in their HR managers. This is apparent in the number of workers who report harassment issues.
56% of employees have witnessed or experienced sexual harassment in the workplace, while 50% are harassed based on gender, with a higher percentage of women affected.
Over 70% of women and two-thirds of LGBT individuals who experience sexual harassment do not report it due to fear of job or career harm.
Looking at the figures, it's clear that not all reported cases were investigated. So, it's no wonder many employees lose confidence in their HR leaders to solve workplace issues.
HR Technology Statistics 2023
HR teams use AI technology to streamline their tasks from recruitment to onboarding. Let’s see what else is there in HR tech.
22. 92% of HR professionals plan to use people analytics in 2023.
Data is now deemed more expensive than the most lucrative resource in the world: oil. Nowadays, people exploit data and analytics to create well-designed business strategies, and it’s happening in the human resource field.
According to HR professional statistics, leaders use people analytics for various benefits, such as identifying high potential employees (34%), analyzing benefits (32%), achieving fair pay and incentives (26%), and projecting future talent needs (25%).
23. 94% of companies are either already using cloud-based HR systems or in the process of applying them as of 2023.
HR statistics specified that the deployment of cloud-based applications could be very beneficial. Cloud users shared that it has boosted productivity by 44% compared to only an 18% increase without using the cloud. Furthermore, it has also helped reduce costs by 35%, in contrast to only 14% cost reduction without it. Other benefits of using the cloud entail better employee experience (40%) and an increase in the effectiveness of attracting and retaining workers (34%).
24. 68% of HR staff consider budget a fundamental barrier to adopting AI.
The use of AI has a lot of benefits; however, approximately two-thirds of HR professionals need help with their budget. Due to this, many can only partially implement AI in their process.
Furthermore, based on HR department statistics, only 12% consider themselves enormously knowledgeable about AI in improving their talent acquisition strategies. It can be expensive and hard to find appropriately educated or skilled people. That said, we can see where the bottleneck of deploying AI appears.
25. As of 2023, 82% of HR leaders believe personalizing employee learning is the best way to deploy AI.
Over the years, technology has impacted HR practices, from simple fax machines to integrating AI. Indeed, HR trends have evolved significantly. HR leaders are now keen to personalize employee learning (43%) and enhance employee self-service (42%) through artificial intelligence. Moreover, other HR objectives where the use of AI is seen as beneficial are recruiting new hires (36%), enhancing onboarding processes (34%), and giving career path recommendations (27%).
26. Based on human resource technology trends, 74% of companies had planned to increase HR tech spending in 2023.
A recent survey revealed that most companies were pumped to invest in HR tech by increasing their spending. This was apart from the already $310 per employee annual spend on the such initiative.
With the entire hiring process moving over virtually, companies should spend a decent portion of their budget on technological advancements to improve their operations.
27. HR automation statistics specify that by 2023, another 47% of organizations will use AI-based solutions.
In 2022, 30% of organizations already used AI-based solutions. It's predicted that in 2023, another 47% will upgrade their existing systems to integrate AI. The most cited reasons for the revamp are cost savings, better data-based decisions, and enhanced employee experience. With the pandemic still going on, HR leaders may accelerate their technological upgrade to catch up on the trend.
How Can These HR Statistics Improve Your Organization?
As part of the HR team, these latest statistics can give you ideas on the current trend. It comes down to whether you will apply the concepts presented by these statistics or ignore them.
These days, the world is moving in a fast-paced rhythm. Therefore, even if your company is in a good state today, you’ll be run over if you don’t keep innovating your strategies. Who will spearhead these innovations? It’s no other than the HR team. More than the marketing or the R&D team, HR understands your company’s goals and challenges above others. Your HR professionals may be working in the background, but they can reshape the company’s future through their strategies.