Today’s post is all about human resource trends and data that’ll shine a light on many things throughout businesses and corporations around the world. We’ve scoured the web for the best HR statistics.
Let’s dive in!
HR Stats 2023
Before you take a deeper look at all the data, here’s an overview of the most interesting HR facts we managed to dig out:
- 58% of companies depend on HR technologies for talent recruitment and retention
- 30% of new hires leave the company within three months of being recruited
- Lack of career growth opportunities leads to 13% of younger employees leaving jobs
- Over one-third of HR professionals admit they lack the proper onboarding technology
- If a company addresses its concerns, 75% of employees will stay there for longer
- Just under 50% of businesses actively invest in HR management
- The HR software hosting market is worth over $13.8 billion
General HR Statistics 2023
We’ll kick things off with some fun HR facts that look at the general scope of the industry. We’ve tried to cover some current trends and a lot more:
1. 36% of HR professionals don’t have the proper technology.
Around a third of HR professionals blame a lack of technology for their onboarding issues. They claim that there isn’t enough tech in their business to help them develop more effective onboarding programs.
2. A mere 49% of companies invested in improving HR management.
A study of over 1,000 HR professionals revealed that just under half of them actively invest in improving HR management. One of the key facts about HR is that there’s been little investment in it in the past. However, times are changing, and it’s hoped that more and more companies will begin improving on this issue.
3. The HR software market is worth over $13.8 billion.
This is the total projected value of the market for Hosted HR software. Forecasts also predict that there will be a compound annual growth rate of 10.4% in the market.
4. The HR software market is predicted to reach $30 billion by 2025.
The next few years are expected to be massive in the world of HR. All current human resource data points to the prospect of massive growth in the hosted HR software market. By 2025, it could rise as high as $30 billion, suggesting that technology is certainly one of the biggest HR trends.
5. Only 18% of employees believe they derive as much purpose from their work as they’d like to.
This is a critical stat as companies with highly engaged employees are more productive than those without them. That’s one crucial aspect, emphasizing the importance of excellent employee management and onboarding.
Recruiting Statistics 2023
Recruitment forms a critical element of HR, which is why we’re dedicating a section entirely to the human resources stats relating to recruitment processes:
6. 86% of HR professionals believe recruitment is more like marketing.
Thousands of HR professionals were surveyed and asked about different recruitment trends. It led to the astounding fact that nearly 90% of people working in HR believe recruitment focuses more on marketing the business than anything else.
7. The majority of men and women won’t work for companies with a poor reputation.
Jobseekers and currently employed individuals were both asked whether they would join a company with a bad public reputation. 86% of women said no, as did 67% of men. It’s further evidence that companies need to focus on marketing and branding when trying to recruit new talent.
8. 20% of HR executives saw well-being as a priority of work transformation.
This was compared to 15% of non-HR executives that took part in the same survey. It’s one of those interesting HR stats that shows a key industry trend. Recruiters are now focusing on showing job seekers the health benefits of working for their company as a way of encouraging them to join.
9. 86% of people research reviews and ratings before applying for a new job.
Current HR trends show that a core part of every recruitment strategy must revolve around generating a host of positive reviews from current and previous employees. Otherwise, businesses could be missing out on 86% of the talent pool!
10. 70% of employees depend on businesses to provide a sense of purpose.
Nearly three-quarters of employees will turn to their place of work for a sense of purpose. HR managers and executives must now adapt their recruitment and management policies to convince job searchers that their company will give them the fulfillment they’re looking for.
11. 90% of job seekers believe workplace atmosphere is a crucial factor when deciding to join a company.
This was the most important factor for most job searchers, with the interview experience coming in a close second. It highlights the importance of creating a good experience for candidates when they visit the business before deciding if they should join.
12. Competition from rival businesses is the top reason HR professionals struggle to hire the right employees.
Hiring statistics show that many businesses struggle to recruit the right talent for their organization, and 49% state that competition from other employers is the biggest issue.
13. Applicants are highly likely to stop filling out applications if they’re too complicated.
This aspect tells a lot about the struggles many HR professionals face when recruiting. If an application is too long and includes too many complicated questions, 92% of applicants are likely to stop filling it out. This means employers may very well be missing out on some of the best talents.
14. Only 36% of candidates believe job descriptions are clear.
We’re presented with some excellent HR facts, but this one is brilliant as there’s a second part to it that demonstrates the disconnect between HR professionals and candidates. While a mere 36% of candidates thought job descriptions were clear, 72% of HR professionals said they believed they created understandable descriptions. Evidently, there’s a big difference between what candidates and recruiters deem “clear”.
Hiring and Retention Stats 2023
This next selection looks at some hiring statistics, along with some key data on employee retention.
15. 88% of employees believe they aren’t given a good onboarding program.
This mind-boggling figure explains a key issue many companies have when hiring new employees. Most new workers don’t think the onboarding process is good enough, which could mean they struggle to fit in and hit the ground running, possibly affecting retention rates.
16. 71% of employees feel more prepared to do their job after a good onboarding program.
TalentLMS ran a survey that discovered interesting details on the hiring process many companies use. It found that more than 71% of employees feel prepared to do their job after a lengthy onboarding program that helps them learn the ropes.
17. 30% of new hires leave within three months.
There are plenty of unbelievable stats in the field, but this is one of the most eye-opening. Shockingly, nearly one-third of new hires will leave a job within the first 90 days.
18. 43% of new hires leave because their role wasn’t as expected.
This links perfectly to one of the previous stats about job descriptions being unclear. Of the 30% of new hires that leave within three months of signing on, 43% stated they left because their daily activities weren’t as described during the hiring process.
19. 13% of younger employees leave jobs because they don’t foresee any growth.
(People Managing People)
Career growth is a key factor in hiring and retention these days – particularly amongst the younger generation. If they can’t foresee growth, younger workers are likely to leave.
20. 75% of employees stay at a company that addresses employee concerns.
It’s believed that this leads to a more positive employee experience as they feel more valued at work. Job satisfaction increases, meaning the company’s retention rate also rises.
21. 58% of businesses use HR software to find and retain talent.
We can learn two things from this. First, the human resources statistics clearly indicate a shift towards using software as a method of hiring and onboarding employees. Second, the software could also hold the key to improving employee retention.
We hope you’ve enjoyed these HR statistics and found them valuable. The industry is definitely going through transitional phases, and more and more professionals have started implementing HR software into their onboarding and hiring processes. We also discovered that job applications and the recruitment process are critical in helping companies find the right talent. Working on job satisfaction with a focus on well-being and career growth will also improve retention for many businesses.