2023 HR Statistics Trends & Data: Ultimate List

1/19/2023

Another year, another set of decisions to make when it comes to all of the things under the umbrella topic of HR—employee engagement, job satisfaction, and employee and performance management, to name just a few.

You don’t want to make those decisions blindly, given that any one decision affects your whole company. Looking to HR statistics, even if the HR role doesn’t directly apply to you, can give you some indication of what’s working—and what’s not—for other HR and non-HR personal.

In this post, we’ve rounded up some insightful HR statistics to help both HR and non-HR professionals alike make those hard decisions and have a positive impact on your employees and your company.

Recruitment Statistics

In recent years, finding and hiring the right candidate for a position has become more difficult, so you really need to stand out to attract candidates and seek to get referrals from current or former employees.

Keep up with hiring and recruitment trends to decide what works for you and your potential employees.

86% of HR professionals surveyed indicated recruitment is becoming more like marketing. (Glassdoor, 2021)
70 percent of employees said that their sense of purpose is defined by their work. So, like it or not, as a company leader you play an important part in helping your employees find their purpose and live it. (McKinsey & Company).
LinkedIn remains the best recruiting platform for professional roles in 2023. (Forbes)
67% of HR professionals believe that AI will benefit and have a positive impact on the recruitment process, while 35% believe AI could lead to overlooking unique and unconventional talents. (Tidio)
86% of employees and job seekers research company reviews and ratings to decide on where to apply for a job. (Glassdoor, 2021)
97% of companies are planning bigger investments in recruitment technologies in the coming 2023 year, with 47% investing in AI technologies. (Zippia)
67% of GenZ feel that it’s important to work for a company that shares their values. (CareerPlug)
In 2021, over 70% of job applications were completed on a mobile device. (CareerPlug)

Takeaways: recruitment is a fast-moving game but, from the above stats, it appears that recruitment marketing and new technologies are starting to take increased prevalence.

Related reads:

Employee Onboarding Statistics

Employee onboarding is crucial to ensuring new employees are motivated and productive. Bad onboarding experiences can set back employee development or increase turnover, so companies are putting more resources into the process.

Some stats to help you fine-tune your onboarding process.

Implementing a formal onboarding program can result in 50% higher employee retention and 62% productivity increase within the same group. (Harvard Business Review)
69% of employees are likely to stay with a company for 3 years if they experience great onboarding. (Clickboarding)
Receiving company swag helps create a welcoming feeling, 91% of those who received swag felt effectively welcomed to their new company. (InfoQ)
At Microsoft, new hires with assigned onboarding buddies were 23% more satisfied with their onboarding experience. (Microsoft)
The onboarding process should last for about 3 months, although in some cases it can last up to a year (general consensus).

Hopefully you’re now convinced of the importance of onboarding and have some idea of how to approach it. Some further resources:

Employee Retention Statistics

We all know an important part of HR is keeping great employees once you’ve hired them. An employee might quit for a variety of reasons, some of which, admittedly, are out of your control.

Put time and resources into the reasons you can control, like fostering an engaging and healthy office culture, providing growth opportunities, and making employees feel valued.

A study showed that lack of opportunities for growth was the number one reason employees wanted to leave their job, followed by better work-life balance. (CareerPlug)
Employee retention tops the list at 20% for priorities for businesses in 2023, followed by recruiting at 14% and company culture at 12%. (HRReporter)
As of December 2022, 46.6 million Americans have quit their jobs vs. 47 million in 2021. (Statista).
The average tenure in 2022 is 4.1 years, with the longest industry-specific tenure being 6.8 years at government jobs. (BLS)
95% of HR managers believe that burnout has the most serious consequences on employee retention. (Forbes)
More Baby Boomers (46%) reported that flexibility in work hours or schedule would make them stay long-term at their organization than Gen X (38%), Millennials (31%), and Gen Z (24%). (Paychex)
58% respondents said lack of appreciation was a reason for leaving their jobs (People Managing People).

Takeaways: people value flexibility! They also appreciate feedback and recognition (more on this later).

Employee Engagement Statistics

As you probably know, one of the HR department’s hardest tasks is helping to keep employees engaged in their work and the company.

Use the below stats to guide your employee engagement efforts:

70% of employees report that the quality of the team leader creates more engaged employees and work relationships. (Gallup)

In early 2022, a Gallup study was released that showed 32% of full-time and part-time employees are currently engaged in their jobs, while 17% are disengaged. (Gallup)
45% of employees feel emotionally drained from their work and, the younger the employee, the more likely they are to report these sentiments. (SHRM)
Executives are 8 times more likely than other employees to say that their purpose is fulfilled at work, while the group who are most reliant on purpose-driven work are parents. (McKinsey&Company)
Gallup’s chief scientist for workplace and wellbeing research, Jim Harter, stated that quiet quitting aligns with employees being unengaged and especially affects employees born after 1989. (CareerPlug)

Takeaways: Managers have a significant impact on employee engagement, and it’s HR’s job to support them.

Related reads:

Job Satisfaction Statistics

If you’re passionate about HR, you probably care about whether your employees are satisfied with their roles.

A few stand-out employee satisfaction statistics to keep in mind:

Only 20% people are passionate about their jobs (Zappia).
74% of employees in the U.S believe that company culture is the biggest reason for job satisfaction. (ApolloTechnical)
The two main factors for high job satisfaction are “high meaning” and income (Zappia).
64% of employees believe that celebrating employees’ milestones and life events creates positive work relationships and job satisfaction. (Globoforce)

Takeaways: there are a lot of factors that go into employee satisfaction, but we can see that culture, income and meaning/purpose are three strong proponents.

Related reads:

Performance Management Statistics

Keeping track of employee performance can be tough at the best of times—and it gets tougher as your company grows.

On top of that, a recent trend has been an increase in performance reviews and feedback. Use the below stats to help you refine your performance management.

75% Senior HR Managers agree that collaboration, constant communication and a mentorship culture between managers and teams will become the future mandate of a high-performing workplace. (Cision)
22% of organisations are asking managers to focus more on behaviours than outcomes when assessing performance this year, and 12% are asking managers to focus more on outcomes than behaviours. (HRD, 2021)
80% of employees prefer to get immediate feedback (weekly, monthly, quarterly) rather than wait for performance reviews. (EmploySure)
In terms of performance management, more companies (48%) were focused on productivity and engagement than on development (31%) in 2022. (ClearReview)

Takeaways: It’s clear that performance management needs to change from the annual performance review to a more continuous process of regular feedback and mentorship.

What’s also interesting is that there’s a shift in focus to productivity and engagement than development, which indicates these as more prevalent issues to address (more on this later).

Related reads:

Employee Recognition Statistics

Year in, year out, HR statistics show that employees want to be recognized. But what’s the best way to recognize them?

The 6 most “memorable” types of recognition are public recognition and getting a promotion or more responsibilities. (Gallup)
64% of employees say employee recognition and appreciation is more important while working from home. (Human Resource Executive)
37% of employees say that personal recognition would encourage them to produce better work. (Fortune)
82% of employed Americans don’t feel that their supervisors recognize them enough for their contributions. (Harvard Business Review/OGO).
There is an increase of 83% engagement when companies adopt the practice of recognizing small wins at work. (OCTanner)

Takeaways: people like to receive recognition in different ways, and not always in the way you expect. The statistics show a preference towards regular praise and public recognition, so keep this in mind when creating your employee recognition program for the coming year.

Diversity and Inclusion Statistics

Having a diverse workforce is important for a number of reasons. You want to ensure your company reflects the demographics of your customers, and it promotes a range of opinions and ideas, which is great for choosing the right path for your company.

Diversity is a hot topic among HR professionals, and the HR statistics show it will continue to be. Take note when planning upcoming HR initiatives.

By 2044, minority groups will reach majority status. (U.S. Census Bureau)
48% of GenZ are ethnically diverse, and most identiy as being non-white minorities. (Forbes)
1 in 4 Black, Hispanic, or Latinx employees has experienced discrimination at work. (Gallup)
According to a study, blind applications increased the likelihood of a woman getting hired from 25-46%. (Harvard University)
According to Forbes, 90% of Fortune 500 companies are already utilizing employee resource groups to help with DEI efforts. (Forbes)
58% of employees who say they’ve experienced pay discrimination are women. (Talent.com)
Women are less likely to negotiate their salary because of gender bias; research proves that women are often perceived to be greedy, or not a team player, upon asking for a pay raise. (Talent.com)

Takeaways: As GenZ enters the workforce companies will come under increasing scrutiny regarding their diversity and inclusion efforts.

There are many ways to increase DEI initiatives in the workplace such as promoting employee resource groups, using accessible language in job descriptions, highlighting DEI values and goals within the company, and allowing for salary transparency.

Related reads:

Employee Burnout Statistics

Another hot topic is employee burnout. High-stress levels, long working hours, and little time off contribute to this phenomenon. It’s costing companies money and employees unless they prevent it.

The HR statistics show who’s most vulnerable and some pointers for how to mitigate against it.

Nearly 3 in 5 employees reported negative impacts of work-related stress, including lack of interest, motivation, or energy (26%) and lack of effort at work (19%). Meanwhile, 36% reported cognitive weariness, 32% reported emotional exhaustion, and an astounding 44% reported physical fatigue—a 38% increase since 2019.(American Psychological Association)

Middle managers are the employee group that experiences the most burnout at 43%. (Forbes)
75% of managers report that receiving more guidance from employers would help them better prioritize their work and manage stress. (CNBC)
Female workers experience burnout 32% more than male workers. (Forbes)

Takeaways: It’s evident that chronic stress is an issue, which will eventually result in burnout, and that managers, especially female, are most susceptible to burnout.

Related reads:

Employee Wellness Statistics

One way to prevent burnout is to promote employee wellness. Reducing stress and anxiety and encouraging workplace wellness will keep your employees happy and motivated.

Use these statistics to keep your company trending in the right direction when it comes to mental health.

68% of leaders are ranking mental health and well-being as the top priority going into 2023. (Forbes)
Meditation app Headspace reported that interest from companies has increased by more than 500%. (MITSloan)
Recent research found that companies that adopted five of these wellness initiatives—active listening, revisiting values, modeling wellness, addressing wellness in reviews, and introducing “bookends” to the workday—were able to improve employee loyalty by 79%, helping retain top talent while saving the time, money, and resources needed for new hires. (MITSloan)
In a study, 33% of workers said that flexibility is the most important action taken by their employer in supporting their mental health. (BenefitsCanada)

Takeaways: Ensuring workers’ mental well-being is taking priority as we continue to navigate a turbulent world.

Organizations can help by offering access to mental health services, as well as providing flexibility and ensuring work-life balance.

Hybrid and Remote Working

The stigma of flexible work that was prevalent before the pandemic has decreased, but not everyone’s convinced yet. So, let’s dive into some stats.

75% of managers believe that remote working improves productivity and 62.5% believe that it boosts motivation. (The Guardian)
A survey found that 1 in 5 employees want to be in the office 2-3 days per week. (Gallup)
43% of employees report that the hardest part about working remotely is not feeling included in meetings. (Statista)
Flexible scheduling, like remote or hybrid work settings, improve factors like productivity, connection and company culture. (Forbes)
46% of employers see decreases in office space in 2023 and 59% are already planning to reduce their space by half. (Vistech)

Takeaways: Remote working or flexible working is the preference for the vast majority of workers and further research confirms a positive impact on motivation and productivity.

The switch to remote working is also impacting organizations plans for the office and what they should be used for.

What’s Next In HR?

Stay up to date with HR statistics, trends, and data to make the best possible decisions for your employees.

We’ve collected some of the most useful human resource statistics to make your job a bit easier and to help you avoid making hard decisions alone.

Subscribe to our newsletter for regular articles on industry trends and other content to help you be a more effective HR leader.

The post 2023 HR Statistics, Trends & Data: Ultimate List appeared first on People Managing People.

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