Setting up your HR department is vital to get your company up and running, especially in the current labor market conditions. It would be crazy to try and make all the decisions about employee engagement, their satisfaction, or performance management all by yourself. Still, all these aspects affect your company’s performance, which is why we’ve gathered some essential HR statistics to help you tackle the current challenges and take advantage of the opportunities in this field.
HR Statistics (Editor’s Choice)
- For 83% of companies, attracting and retaining talent presents a challenge in their recruitment strategies. (Kenjo)
- Organizations that register high employee engagement levels are 21% more profitable. (NetSuite)
- Globally, the human resource management market is worth $17.56 billion. (Grand View Research)
- 75% of HR professionals believe there is a serious skills shortage on the market. (SHRM)
- More gender diversity in the workforce could add $12 trillion in GDP. (NetSuite)
- The HR software market is set to grow by 9.4% between 2017 and 2025. (Finances Online)
- Two out of three HR managers admit their sector is going through digital transformation. (Kenjo)
- Hiring is 10% more expensive if the company has a bad reputation. (PeopleHR)
Some Essential Employment and HR Stats
1. 60% of people have referred a friend to a company they’ve worked for.
Although people can look for a job the regular way, through ads and job boards, word-of-mouth can often be a good opportunity for potential job seekers. Friends and professional connections are other resources for many who seek to change their jobs. In fact, 35% of people obtained their current jobs through these channels, employee referral statistics indicate.
2. 49% of people find jobs through friends.
Friends and professional connections are important in the business world. So other than friends, 35% of people found jobs through professional contacts. Community forums helped 19% of people, while 11% of employees found a job through alumni networks, human resources stats confirm.
3. Most job ads result in 250 resumes on average.
According to Glassdoor data, most job postings receive about 250 CVs. For recruiters, it’s sufficient to spend five to seven seconds on each. Since there is not much time to shine, applicants need a stellar resume that stands out. Usually, out of 250 resumes, only four to six people get interviews, while a limited number of applicants pass the first application stage.
4. 89% of HR leaders encourage continuous peer feedback.
Approximately nine in 10 leaders agree that ongoing peer feedback has a positive impact on the entire organization, according to human resource statistics. Therefore, many companies turn to different pulse surveys to understand their workforce better. Also, many others turn to performance management software. This system measures performance by 360-degree peer feedback that helps improve your organization.
5. Highly engaged employees reduce their absence from work by 41%.
The organization has to keep their workers engaged to see a rise in productivity and less absence. Employee engagement statistics show that highly engaged organizations witness a 41% reduction in absence from work and a 17% rise in productivity. Moreover, human resources statistics show that these companies register a 24% less employee turnover.
6. A top obstacle for hiring suitable candidates is competition, at 43%.
Besides facing strong competition, organizations face many other challenges, employee retention statistics show. Candidates' lack of required experience is the second problem employers deal with (36%). Next is candidates' lack of technical skills (35%), accompanied by a low number and lack of applicants’ interest (33%). Another critical hurdle is noncompetitive salaries compared to the market standard (32%). Finally, candidates might not possess soft skills (30%).
7. 83% of companies think that attracting and retaining talent is a big challenge in recruitment.
Human resources management statistics reveal the most common reasons employees leave their jobs. For instance, the lack of professional development is the reason for 22% of those surveyed. Disturbed work-life balance is the case for 12%, followed by disagreeing with the organization’s administrative behavior (11%). For 9%, compensation and benefits led to quitting. Ultimately, 9% left because they didn’t feel at ease in the company.
8. 83% of job seekers will probably research company reviews before applying for a job.
Good employer branding is vital if the company wants to attract talent, as companies with bad HR practices are bound to fail in doing so. Nowadays, there are many resources and information at the disposal of any job seeker interested in learning more about the company, sometimes even salary data. Having that in mind, organizations need to follow the information posted about them and consider working on their employer branding.
9. Companies with good employer branding register a 50% cost-per-hire reduction.
The most recent facts about HR and employer branding show that it’s easier to recruit if you have a good reputation. On top of that, there may be many benefits for the company, such as faster hiring and up to 50% more talented applicants. Moreover, it results in a 28% reduction of the organization’s turnover and decreased costs.
10. Potential candidates trust the company’s employees three times more than the company’s info about the work environment.
Another important reason you need to emit good employer vibes and invest in HR management is because most candidates will seek out your current employees and trust them more about the company’s info. But, aside from that, 52% of potential applicants will search the company’s site or social media to learn more about it, HR statistics reveal.
11. 71% of employees who went through onboarding had a clearer understanding of their role.
Employee onboarding plays an important role in ensuring the newly hired employees are motivated and efficient. In case an onboarding is handled poorly, employee turnover risk increases. Among the biggest challenges for employees during onboarding is feeling out the manager’s expectations while learning new tasks.
12. 27% of companies deliver online onboarding.
Based on the HR stats, companies handle onboarding differently. For instance, 40% are still doing the traditional offline onboarding. Other than online and offline methods, 33% of organizations create a blended approach, combining both, while some use onboarding software.
13. 54% of surveyed employees claim they had hands-on training during their onboarding.
Although paper-based onboarding is long out of fashion, surprisingly, a significant number of respondents claim their onboarding was delivered through manuals (35%). After hands-on training, most had computer-based programs (40%), followed by videos-based ones (38%). Field training was part of onboarding for 35% of the surveyed, while mentoring came close at 32%, as evidenced by human resource facts.
14. 23% of employees who quit after joining said more explicit guidelines and onboarding could have swayed them to stay.
Besides clear onboarding instructions, 21% wanted more effective training to do their duties. Moreover, 17% said that helpful coworkers or friendly faces could have helped them cope with the first month’s surge of information.
15. Nearly 30% of candidates resign from their jobs in the first three months.
There are many reasons why a significant portion of job seekers quit only 90 days after starting. HR statistics show that 43% realized their role was not what they expected. For 34%, an incident at work drove them away. Next was the company's culture for a larger number of people (32%). Finally, 11% of them changed their mind after signing the offer.
16. 13% of younger workers will leave a job if they don’t have enough growth opportunities.
Despite the common fact that money makes the world go round, it’s not the only motivation for younger workers. Career growth is one of the reasons behind employee productivity and motivation. For female workers, it’s also more about work-life balance, compared to men (10% vs. 6%). Alternatively, more men than women would leave their jobs because of compensation (21% vs. 17%).
17. 46% of employees feel their HR supports them regarding an issue or opportunity in the company.
According to the human resources statistics, the challenging task of keeping employees engaged falls upon the HR department. Fulfilling their work-related goals is vital to employees as well; they just need the right motivation induced by HR. Furthermore, 89% of surveyed employees claim they were confident about accomplishing their goals, while 86% were determined to do so.
18. The majority of employees (67%) consider respectful treatment the number one reason for job satisfaction.
In line with the recent survey, 67% of employees marked respectful treatment as very important. It’s even higher on the scale than compensation (63%). Other reasons that affect job satisfaction include benefits (60%), job security (58%), trust between employees and senior management (55%). Among the rest, the opportunity to use their skills at work (55%) and the organization's financial stability (53%) also play an important role.
19. 89% of HR specialists agree that ongoing performance management is more effective than annual performance reviews.
Based on human resources stats, it’s always more effective to evaluate your employees regularly and invest in their upskilling. Otherwise, the process of hiring new employees is much more expensive.
20. 83% of employees would rather get praise than a gift from their manager.
Managers most commonly expect their employees to prefer awards instead of words of support. However, good news comes from research conducted among employees, which shows that most of them would rather have praise than a gift, human resources management statistics say.
21. 70% of employees expect their companies to stop or lessen their burnout.
Lack of communication and clear objectives lead to employee burnout. It seems that only 60% of employees have a solid understanding of what their boss expects. Those who are confident in their relationship with the manager are 70% less likely to feel burnout. Still, 23% experience it all the time, while 44% go through it less frequently.
22. 87% of HR experts said their organizations offer wellness programs and benefits to their employees.
The employer wellness programs contribute a great deal to an organization. According to the latest statistics on HR, productivity and engagement are some of the benefits organizations reap thanks to them. Namely, 63% of HR professionals agree that these programs drive employee engagement, while 46% think they help companies recruit skilled individuals. Ultimately, 57% claim they lead to employee retention.
23. Organizations that register high engagement levels are 21% more profitable.
Employee engagement levels correspond to profitability and many other aspects that make a company successful. Engaged workers are willing to go that extra mile for the company. Also, engaged workers are healthier, resulting in fewer employees absent from work.
24. 55% of executives expect workers to spend at least one day a week working from home after COVID-19 ends.
Currently, executives expect workers to spend a minimum of one day a week working remotely, HR stats show. Before the pandemic, only 39% wanted their workers to spend one day working from home. As opposed to that, one-third (32%) of workers like to work remotely five days a week. Further, 9% like to work four days from home. Around 17% want to work three days remotely, while 14% want to work two days per week from home. Finally, 11% would like to spend one day per week working from home. Alternatively, 17% want to work in the office full time.
Human Resources Industry Statistics
25. Globally, the human resource management market is worth $17.56 billion.
Thanks to the continuous digitization of the field, HR operations are expected to grow even further in the following years. For reference, the market is projected to rise at a 12.2% CAGR between 2021 and 2028. Aside from automation technologies, enterprises' efforts to retain human capital and attract proper candidates are also driving the market.
(Grand View Research)
26. 75% of HR professionals believe there is a serious skill shortage on the market.
According to human resources labor statistics, one of the most common difficulties recruiters face is finding certain skills among candidates. Usually, respondents lack technical skills that require specific training and knowledge. Although these skills are most needed, soft skills are also necessary, regardless of the industry.
27. The number one missing technical skill are trades at 31%.
Most HR professionals feel that trade skills are among the most commonly missing ones on the labor market. These include carpentry, plumbing, welding, and similar. Other than that, human resource facts show that companies lack skilled people in data analysis/data science (20%) and sciences/engineering/medical professions (18%).
28. The top soft skills missing the most are problem-solving, critical thinking, and innovation, at 37%.
Besides lacking technical skills, employees also miss soft skills, such as problem-solving. The ability to deal with complex or less known tasks is second (32%), followed by communication (31%).
29. 50% of respondents feel that skill shortages are getting worse.
Despite the continuous efforts of companies to fill the skills gap, it’s still not looking good. Half of the respondents of a recent survey don’t feel optimistic about the situation, while only 10% report that skills shortages have improved.
30. Over 56% of executives believe their organization isn’t ready to meet leadership needs.
Looking at the statistics on HR productivity, we notice that only 7% of companies have accelerated their leadership programs for Millennials. However, 44% are marking progress, which is a significant increase compared to the previous years. Yet, the improvement is still uneven because more than one in five companies still do not have any leadership programs.
31. 51% of respondents say education systems have done very few things to help with talent shortage challenges.
HR stats show that shortages in the labor force are hitting many industries. Over half of the HR professionals surveyed feel that the US education system fails to address this issue. The educational institutions need to do more to get the workforce ready and cover the skill gaps.
32. 51% of HR specialists think that their workforce reflects the demographic of the marketplace.
Around 53% of HR professionals agree that the workforce is more diverse than it used to be, human resources industry statistics suggest. That said, 16% disagree with this statement. Moreover, organizations have fared poorly to reflect the marketplace in their ranks and develop enough diversion and inclusion initiatives.
33. The US corporate wellness market is set to grow to $87 billion by 2027.
With the apparent benefits wellness programs provide to companies and motivate employee engagement, no wonder the market is bound to grow. It might reach 67% growth compared to 2020 ($52 billion). In addition, research has shown that each dollar spent on a wellness program saves $3.27 in healthcare costs or $2.73 in employee absence costs.
34. More diversity in the workforce could add $12 trillion in GDP.
The narrowed gender gap could lead to a much higher global GDP, the most recent HR statistics confirm. Companies with higher gender diversity outperform others by 25%. They beat their competition by the same percentage when both women and men are in leadership roles. The same goes for ethnically diverse organizations — they outperform their peers by 36%.
35. 55.3% of the global workforce is male.
Based on the stats from LinkedIn’s Workforce Diversity Report, men comprise a higher percentage of the global workforce; women make up 44.7%. HR statistics show that although women have made significant progress in the workplace, 58% of the leadership positions are still held mainly by men.
36. The HR software market is set to grow 9.4% between 2017 and 2025.
At that rate, the market is bound to reach $30 billion by 2025. Moreover, the projected value for hosted HR software is $13.8 billion.
37. Employers in North America and Europe were expected to miss up to 18 million college-educated workers in 2020.
One of the staggering facts about HR shows that the Western world is already missing a high number of educated workforce. As a result, companies can’t fill in one in ten positions, especially with top talent. Also, up to 95 million workers in the developed economies still lack the required skills for employment. On the other hand, the developing economies face shortages of about 45 million workers with vocational and secondary school.
Human Resources Labor Statistics
38. The median annual salary for HR specialists in 2020 was $63,490.
The human resources salary in the US varies. So the top-earning 10% in 2020 earned a median salary of $109,350. By contrast, the lowest 10% earned around $37,710. The top-paying fields were professional, scientific, and technical services with a median salary of $71,960. Following this category, the government also paid high wages ($70,410), along with manufacturing ($66,980); next were employment services ($54,920) and healthcare and social services ($54,170).
39. In the US, human resources specialists held over 647,800 jobs in 2020.
Although many organizations turn to practices involving HR outsourcing, statistics show that this profession is on the rise. In 2020, the largest number of HR specialists worked in employment services (14%) and professional, scientific, and technical services (14%). In addition, the government employed 11%, while healthcare and social assistance was the workplace for another 11%. Finally, another significant HR specialist employer was manufacturing with 8%.
40. Over 30% of HR professionals received a minimum of one certification from HRCI.
HRCI is short for the HR Certification Institute, a 40 years old institution offering certifications in the field for over 500,000 professionals in over 100 countries. According to human resources job statistics, the most popular credential is Professional in Human Resources (PHR), with around 16.9% of respondents stating they have it.
41. Between 2020 and 2030, the employment of HR professionals in the US is set to grow 10%.
This is the same pace as the average growth in other occupations. Translated into figures, it means the number of current employees (674,800) will grow by approximately 73,200 new positions each year.
Tech and HR Automation Statistics
42. 79% of HR leaders in the US consider their companies ready to navigate the changing work environment.
Remote work has become an everyday routine amid the pandemic, while many companies started investing in collaboration tech. In the UK, HR professionals said they were planning to invest more in these tools to reduce office attendance in the years to come. Many are investing in employee engagement tools as well.
43. Only 10% of the respondents to a survey use AI in talent acquisition.
New technologies shaping the world are also shaping the HR field. So, we have more and more companies reporting the use of artificial intelligence in their talent acquisition processes. Albeit low, this figure is much higher than a couple of years ago. Moreover, around 36% of HR professionals expect AI utilization for these purposes to increase, HR automation statistics show.
44. Budget is the obstacle for 68% of HR professionals to expedite the process of AI adoption in talent acquisition.
Over two-thirds of professionals from the field named budget restrictions the number one hurdle. However, it’s not the only one. Not having enough HR professionals skilled in this area is the second challenge (43%). For some, the lack of belief that AI is making a change in this area remains a strong impediment (34%). For 31%, there is an absence of interest among the company’s leaders. Finally, 20% don’t feel there is a real need for it in their company, HR technology statistics show.
45. Two out of three HR managers state that their sector is going through digital transformation.
Despite the acknowledgment from most HR leaders that the transformation is happening, only 40% have developed a roadmap to go through this phase. At the same time, 70% agree this new step needs to be tackled.
46. 80% of small businesses utilize HR software.
In the US, most small businesses manage their staff with the help of different HR software. Those that don’t use it now plan to introduce it in the next two years. This is a tremendous revolution in small business HR, statistics confirm, as most are leaving behind the traditional spreadsheets to speed up their business growth.
47. So far, 49% of organizations have invested in human capital management programs.
Out of the total number of companies investing in HR management programs, 32% invested in cloud space as well. Other than that, more companies are planning to invest in other areas in the future. One of the most relevant ones is predictive analysis (60%), process automation (53%), and AI (47%), as reported by HR statistics. Admittedly, only 14% of HR departments have invested in AI recently. Many companies have also invested in good payroll software.
48. 57% of organizations use performance management technology today.
Today, SaaS solutions for HR are flourishing. Over 63% of companies with more than 100 workers in various industries utilize performance management systems. This percentage goes up to 75% of organizations with over 1,000 and more employees and 82% of those with 10,000+ employees.
49. About 80% of major organizations monitor their employees’ emails, phone usage, and internet activity.
In a survey among employees, 49% said that their companies do not use employee monitoring software for work tracking. HR technology statistics suggest that only 21% of employees said otherwise. However, most major companies track their employees’ activities online and on their phones. As a result, the trust and morale of workers are lost. Only 10% of employees would trust their employers more if they tracked them via software.
50. Ove 21% of HR leaders dubbed security of critical data to be the top challenge for adopting cloud.
Despite that, HR leaders believe that cloud-based systems strengthen the operations of the company. That isn’t without challenges. Namely, 44% of CHROs cited attracting cloud talent to be one of the obstacles for this. Following that, 42% claim that retaining this talent is also important. Finally, 40% believe that they have issues with upskilling existing employees.
Human Resource Statistics from Around the World
51. The sickness leave rates in the UK dwindled to 1.8% in 2020.
Based on the most recent stats, this trend has been tracked since 1995. One of the main reasons lies in the coronavirus pandemic's effects. Although the virus led to additional sickness leave in some ways, social distancing, furloughing, and the increase of remote work impacted the downward trend.
52. Nearly 80% of the UK workers over 50 wanted more flexible hours.
Over 10.2 million workers in the UK are over 50 years in employment status. In line with the latest HR statistics, the UK workers over 50 mostly want more flexible hours and more part-time positions (73%). Further, 63% of them wished to be trained in schemes to help them gain new skills and deal with technology.
53. The average human resources salary in Canada is $59,696.
Data from the job search site Neuvoo indicates that Canadian HR specialists have a higher-than-average salary ($55,806). Considering how vital the HR department in the company is, it’s only expected. In Canada, many people are eager to pursue human resources as a vocation.
54. 60% of Canadian employees aren’t engaged.
According to the HR statistics, Canada doesn’t boast much engagement in the workplace environment. The Employee Engagement Index confirms that 60% of the surveyed employees aren’t engaged, while 15% are actively disengaged. Alternatively, only 25% of workers confirmed they felt engaged at work. The impact of this is more costs to the company. The unhappy workers cost the North American economy over $350 billion annually in productivity loss.
(Canada HR Centre)
55. 31.3% of all successful job recruitments in Germany originate from online job boards.
There are many recruiting channels through which big companies in Germany hire talent, human resources statistics show. The largest one is online job platforms. Next on the list is the company website (28.9%), then employee referrals (10.2%), employment agency (4.6%), and career network (4%). Finally, print and social media participate in the overall share with only 2.9% and 1%, respectively.
56. Only 55% of the respondents of the Australian HR field claimed their organizations have a clear people strategy.
That makes nearly half of organizations devoid of a clear HR strategy in place. It is a serious issue since, nowadays, most organizations need to leverage the maximum value from the HR functions. But, according to HR statistics, Australia has another instrument. Namely, 42% of the respondents claimed they have a Data & Analytics team in their HR departments. That means HR uses data to drive the best decisions that will impact the business.
Companies With Bad HR Practices
57. Hiring is 10% more expensive if a company has a bad reputation.
If an organization doesn’t invest in a strong employer brand, it might be costly to attract its workforce. Data from the BLS shows that employers with bad reputation need to offer 10% higher salaries than other companies. Only then might they be able to fill in a position. But, even then, human resources facts show that half of the candidates refuse to consider a job in such a company.
58. Dan Price, CEO of Gravity Payments, tried to implement a minimum salary of $70,000 but lost customers and faced a lawsuit.
Changing company culture, despite good intentions, is impossible without thorough analysis and stakeholder consensus, something Dan Price had to learn the hard way. Although he tried to make every employee have a guaranteed salary of $70,000 or more, his company lost its customers and employees. Then, according to human resources facts, his brother, the co-founder, filed a suit against him as the cherry on top.
59. Conde Nast settled for a $5.8 million suit brought against them by an intern.
Interns are the most common source of the workforce that companies often fail to compensate. But, these companies run the risk of being involved in million-dollar suits, as Conde Nast learned facing his former intern Lauren Ballinger.
Human resources are a vital part of any company, evident from the above HR statistics. Therefore, leaders in this field should adopt the best practices and implement proper strategies if they want their organizations to make progress. Hopefully, these stats helped you gain more insights into what needs to be done to achieve this.
- Grand View Research
- Finances Online
- CPE Group
- HR Solutions
- Canada HR Centre
- Tandem Partners