When a business is successful, it can be credited to the incredible staff working behind the scenes 24/7. Human resources, no doubt, is the essence of any company – no matter how big or small.
Understanding current challenges and opportunities in the HR sector can help a manager take better decisions. Keep reading for some of the important statistics every HR manager should know.
Hiring and Recruitment Statistics
According to a research conducted by Glassdoor, a well-designed recruitment and hiring strategy can help a business find qualified workers quicker. These individuals are a better fit for the company and job(s).
- 51% of individuals would prefer searching for job opportunities via online listings. Many job seekers would rather ask for recommendations from their network of family, friends, and colleagues, but more than half of job hunters prefer scouring online job boards in order to find openings in companies.
- 53% of people search up company information and reviews on various job search websites such as Glassdoor, LinkedIn, and PayScale. These offer genuine insights on what’s like to work for a particular company. Similar to how you would check out reviews of a certain product before buying it, job seekers like to look into company reviews before trying out for it.
- Benefits (63% and salary (67%) are two of the most crucial factors for job hunters. Naturally, a “what’s-in-it-for-me” attitude is what fuels people to search for jobs in the first place.
- 55% of job hunters aged between 35 to 44 applied for a job with a mobile device. Many assume that only younger applications use phones to apply for a job but this proved that all ages have embraced the existence of technology in the job market.
Equity, Diversity, and Inclusion Statistics
Businesses that have strong diversity policies have outperformed those that did not. Representation matters, especially in the job industry.
- The global workforce comprises of 55.3% male and 44.7% female (reference: LinkedIn’s Workforce Diversity Report 2020). Although women have made remarkable strides in every sector they have joined, they still remain underrepresented in comparison to the opposite sex.
- Men hold 58% of leadership positions. In America, the approximate 60/40 split shows there’s a clean chance for further progress.
- Latino and Black workers only hold 5.8% of leadership roles in the LinkedIn survey.
- More gender diversity holds the potential to add $12 trillion in GDP.
- Companies with more gender diversity perform better than companies lacking gender diversity by 25%. If a company puts both women and men in leadership roles, the chances of them outperforming their peer group increases to 25%.
- Companies with ethnic diversity show 36% better performance than less diverse organizations.
A company must prepare its employee to handle their responsibilities efficiently. However, cutting corners can put a dent of performance and increase employee turnover.
BambooHR is a company that provides HR SaaS and it highlight that:
- About 25% of onboarding programs in companies don’t have any kind of training. Don’t simply hand your employee their computer, tools, and keys and expect them to give great results in one day. The majority of new hires want some form of formal training so they learn the ropes of the job quickly and effectively.
- 20% of staff turnover takes part within the first 45 days. If an employee leaves shortly after joining, perhaps it’s because the onboarding program missed out on a crucial detail for the employee’s success. Recruiting and training new employees can be costly, so it’s necessary to retain as well as hire talent.
- 72% of employees said that one-on-one time with their supervisor is an essential part of the onboarding process.
- 70% respondents feel that having a friend at work is key at keeping the work environment positive. Starting a new job can be overwhelming, not to mention lonely. A solid onboarding process could help employees form bonds. 50% of workers who had a best friend at their workplace reported experiencing a stronger connection with the company.
Employee Engagement Statistics
Strong employee engagement significantly improves productivity and loyalty. It might be challenging keeping the present employees engaged, but it’s well worth it.
- While 14% of managers are actively disengaged, a whopping 51% of them are not engaged. Managers have the biggest influence on employee engagement. If a manager isn’t engaged, it will directly affect their employees.
- Gallup’s Employee Engagement poll suggests that 30% of American workers are actively engaged in their organization.
- Companies boasting higher employee engagement rake in 21% more profits. Engaged employees tend to work harder to make sure the company achieves it goals and objectives.
- 33% of employees search for a new job as they’re bored with their current job. There’s an inherent need to explore new opportunities with talented individuals.
- 89% of employees believe that networking builds the foundation for a brighter future with more opportunities.
Employee Loyalty Statistics
Work Institute’s 2019 Retention Report vouches for increased employee retention and lower turnover costs when workers are loyal. The report claims that:
- About 50% of HR teams confess that employee turnover and retention is their biggest challenge. Corporate culture management and recruitment make up the top three.
- An estimated one third of workers will leave their jobs annually.
- 27% of employees leave their workplace voluntarily each year.
- Voluntary turnover cost is on the rise. In 2018, the cost was expected to have surpassed the $600 billion mark and it’s only growing.
- 80% of exit surveys follow a poor methodology.
- Work environment and job characteristics lead the way for employee turnover by 53% and 81% respectively.
Statistics are a great way to understand the market conditions. When it comes to HR, these numbers can help executive prepare better plans, implement important measure, identify opportunities as well as weaknesses to make their organization a better place.