50+ Key HR Statistics and Trends to Watch in 2024

We are already a couple of months into the new year, and as HR leaders, you certainly have a lot of crucial decisions to make for the year.

Who do I hire? Who do I fire? How do I retain top talent? How is the performance of the employees? – Just thinking about these questions can stress you out.

To help you figure out the answers to some of these questions, we have curated a list of the most crucial HR statistics and trends for 2023.

Understanding what's trending can not only help you figure out how things might be going forward but also assist you in making key decisions when it comes to solving various problems in hiring, employee retention, compensation, employee performance, etc.

Let's dive right in!

Top HR trends in 2023

Hopping on the bandwagon might be frowned upon in the world of sports, but here in the HR marketplace, following the top trends makes your problems disappear. For example, consider this statistic from GrandViewResearch:

• Global HR market is expected to be worth $56.15 Billion by 2030.

The HR market is growing exponentially, which means that more companies are adopting HR tech and software into their hiring and employee management operations. If you are part of an organization that is on the fence about whether or not to use HR tech, it's time to jump on the bandwagon and make your life easier.

As you can see, keeping yourself up to date about the latest trends in your industry can help you in solving problems for your organizations and make better data-driven decisions.

Here are few other top HR trends for the coming years to help you with your decision making:

• Companies with diverse teams are 35% more likely to outperform their competitors.
• Upto 80% of companies reported that their employees do not read or open the benefits package and only 23% of employees say they fully understand their company's benefits package.
• 65 percent of Gen Z employees are likely to stay at their jobs for less than a year and are more than twice as likely to leave their jobs in the next month.
• Companies that offer e-learning and on-the-job training generate 26% more revenue per employee.

To help you understand the trends and aid you in data-driven decision making, we have divided the statistics into groups such as retention, diversity and inclusion and so on.

HR statistics for retention

• Employee turnover costs US companies $680 billion annually.

• Employees who are engaged are 87% less likely to leave their company than those who are not.
• A majority of employees (69%) are more likely to stay at a job for 3 years or more if they have a positive onboarding experience.
• The cost of replacing a single employee can range from 50% to 200% of their annual salary.
• Six in ten employees say employee well-being will be a top priority when applying for a new job.

HR statistics for diversity and inclusion

• Companies with diverse teams are 35% more likely to outperform their competitors.
• 78% of job seekers consider a company's commitment to diversity and inclusion before applying for a job.
• Companies in the top quartile for gender diversity are 15% more likely to have financial returns that are above their respective national industry medians.
• 67% of job seekers say a diverse workforce is an important factor when considering job offers.
• Employees who feel that their company is committed to diversity are 80% more likely to say they work for a high-performing organization.

HR statistics for employee engagement

• Only 15% of employees worldwide are engaged at work.
• 69% of employees would work harder if they felt their efforts were better recognized.
• Companies with highly engaged employees outperform their competitors by 147%.
• Teams with high levels of employee engagement have 41% lower absenteeism.
• Highly engaged employees are 87% less likely to leave their company than their disengaged counterparts.

HR statistics for recruiting

• It takes an average of 36 days to fill an open position.
• Job seekers who had a negative experience during the interview process are twice as likely to share their experience on social media as opposed to those who had a positive experience.
• 75% of job seekers say that applying for a job feels like sending their resume into a black hole.
• The average job posting receives 250 applications.
• A majority of job seekers (64%) say that they use social media to research potential employers.

HR statistics for compensation and benefits

• 58% of employees say that they would be willing to take a job with a lower salary if it offered better benefits.
• The average employee spends 30 minutes per week managing their benefits.
• Upto 80% of companies reported that their employees do not read or open the benefits package and only 23% of employees say they fully understand their company's benefits package.
• Employees who are given ample flexibility are 4 times less likely to become a retention risk.
• 88% of employees said that their employer’s benefit offerings were important to their overall job satisfaction.

HR statistics for training and development

• The global e-learning market size is projected to reach $840.1 billion.
• 68% of employees say that training and development is the most important workplace policy.
• 40% of employees who receive poor job training leave their positions within the first year.
• Companies that offer e-learning and on-the-job training generate 26% more revenue per employee.
• Organizations with a strong learning culture are 46% more likely to be leaders in their industry.

HR statistics for workplace culture

• 66% of employees believe that their company's culture is the most important factor in their job satisfaction.
• 77% of adults in the United States would consider a company's culture before applying for a job there.
• 47% of employees say that workplace stress has a negative impact on their work.
• Companies that prioritize employee well-being have a 40% lower turnover rate.
• Employees who feel included in the workplace are 2.7 times more likely to feel proud of their organization.

HR statistics for performance management

• 58% of organizations say that their current performance management approach is not an effective use of time.
• Only 19% of employees say that they receive feedback on their job performance on a routine basis.
• Teams that receive regular feedback show 14.9% greater profitability than teams that don't.
• Companies that set goals have a 50% higher chance of success than those that don't.
• 43% of highly engaged employees receive feedback at least once a week.

HR statistics for remote work

• 8 in 10 people are working hybrid or remote.
• 86% of employees say that working remotely reduces their stress levels.
• Nearly 80 per cent of corporate employees want to work from home at least once a week.
• Survey of 800,000 employees revealed that their productivity stays the same or even increases when they work remotely.
• 82% of remote workers report lower stress levels when working from home.

HR statistics for HR technology

• The global HR software market size is projected to reach $33.57 billion by 2028.
• 71% of organizations say that HR technology has improved their overall efficiency.

• 90% of HR leaders say that predictive analytics can help them make better talent management decisions.
• 83% of HR professionals believe that HR analytics will become more important over the next three to five years.
• 58% of companies depend on HR technologies for talent recruitment and retention.

On a Final Note

As you skimmed through the above HR statistics, you would have closely related to many of them, while some might have taken you by surprise.

The fact that predictive analytics can help you make better decisions might seem obvious to you. But the fact that 66% of employees believe that their company's culture is the most important factor in their job satisfaction might come as a surprise.

Understanding these statistics is key. They help you make data-driven insights and can help in better decision making, be it in hiring, retention or various other problems that HR leaders look to solve on a daily basis.

References

• LinkedIn - Workplace Learning Report
• SHRM - Talent Acquisition Benchmarking Report
• Quantum Workplace - Employee Engagement Trends Report
• Deloitte - Global Human Capital Trends
• Glassdoor - Recruiting Stats that Make You Think
• SHRM - 2021 Recruiting Trends Shaped by Covid-19
• Gallup - Benefits of Employee Engagement
• Forbes - Future of Work
• Aflac - Small Company Business Trends
• McKinsey and Company - Diversity Wins
• PwC - HR Tech Survey
• IFEBP
• Inc - What You Risk by Forgetting Employee Engagement
• Officevibe - Statistics on the Importance of Employee Feedback
• Lever - 2022 Great Resignation
• Manifest - Employer Branding Strategy
• Winfort - Diversity Hiring
• FlexJobs - Remote Work Increases Productivity
• Shift - Value of Employee Training and Development
• GMI - E-learning Market Size
• Zenefits - Everything You Need to Know About Employee Benefits
• CareerArc - Candidate Experience Study