Top 15+ HR Statistics to Guide Your Next Steps
Tawzef for Recruitment & HR Consultancy
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HR statistics offer valuable insights into the HR industry and the workforce. From health to employee engagement and retention to talent acquisition to a variety of aspects in the HR industry.
By understanding these trends, organizations and HR managers can make informed decisions to optimize HR strategies, boost employee retention, and drive business success.
In this article, we’ll be looking at important HR statistics across recruitment, retention, engagement, HR outsourcing, among others. The purpose is to understand the inner workings of the HR field to create better organizations along with employee and growth opportunities.
Top recruitment and talent acquisition statistics
When it comes to recruitment, the following are many important talent acquisition statistics that are worth pondering. Here are the must-know stats about hiring.
Over 80% of recruiters use AI
If it seems artificial intelligence (AI) is having a massive impact on all areas of business, then HR is no exception. In fact, research has found 86% of recruiters using AI as part of their recruitment process.
While different recruiters and hiring managers may use AI differently. The top areas where AI is having the most impact is screening CVs, interview scheduling, note-taking, and candidate assessments.
Some hiring managers are using AI to assess candidates and their behavior during interviews as some AI software can analyze body languages during video interviews.
98% of recruiters use social media for recruitment
Social media has proven to be a major opportunity for recruiters and candidates alike. Research by Content Stadium found 98% of recruiters using social media platforms to source candidates.
The top social platforms for recruitment are LinkedIn (78%) and Facebook (65%). Instagram, YouTube, and Twitter came in third, fourth, and fifth, respectively.
Furthermore, 67% of recruiters use their personal profiles, especially LinkedIn, “as a communication channel for recruitment and/or employer branding purposes.”
69% of US hiring executives focus on soft skills
LinkedIn’s Global Talent Trends report for October 2024 has found 69% of US executives saying they “plan to prioritize hiring candidates with soft skills.”
They particularly focus on transferable or employability skills that “allow candidates to move nimbly across roles.”
80% of global executives have hiring plans
In its October 2024 report, LinkedIn also found 8 out of 10 global executives saying they have hiring plans in 2025.
Top HR outsourcing statistics
One of the most in-demand HR services is HR outsourcing. Companies around the world turn to HR consultancies, like Tawzef, for their expertise and to save time, effort, and money.
Some companies choose to outsource their payroll, others outsource their HR strategy, while others may outsource their entire HR operations.
When it comes to statistics, here are some of the most notable HR outsourcing statistics that are worth keeping in mind.
Recruitment and payroll top outsourced functions
Despite the different HR functions and needs, recruitment and payroll remain the top functions organizations struggle with and, therefore, outsource.
Research shows 54% of businesses outsource their recruitment function, while 37% outsource payroll. Some studies show employee training to be among the top 5 most outsourced HR functions.
This shouldn’t come as a surprise seeing as how the recruitment process continues to be a long and time-consuming endeavor. And as companies’ needs grow, so do the number of interviews and requirements. Further elongating the dreaded hiring process.
80% of companies use outsource their HR
A vast majority of companies around the globe outsource one or more HR functions. Almost 80% of businesses report using HR outsourcing solutions.
While they don’t state their reasons, many companies turn to HR and recruitment agencies, like Tawzef, to ensure compliance, manage hybrid teams, benefit from recruitment services, among others.
For companies looking to expand globally, they use a slightly different form of HR agency, called an employer of record.
58% of companies save money by outsourcing HR
Roughly 58% of companies say the top reasons they outsource their HR needs is to “save money and reduce HR operating costs.”
In addition, businesses that outsource their HR operations say they save 20-40% compared to those with an in-house HR team.
Employee retention statistics
We’ve talked about how companies are trying to find and source talents. But what about retaining skilled talents?
There’s no doubt about the many benefits of employee retention. But what do the stats have to say?
99% of companies have ‘talent challenges’
Research by Mercer shows that 99% of organizations are “facing talent challenges.” These HR challenges vary from an increase in ‘quiet quitting,’ to ensuring a diversity in the workforce, to the rising use of automation.
In addition, the increase in remote working is also affecting businesses. More employees are looking for remote roles while companies are looking for on-site or hybrid hires.
“Pay/Benefits” most common reason employees leave jobs
In 2023, the single “most common reason” employees left their jobs was due to “pay [and/or] benefits,” according to Gallup.
The report also found pay/benefits “was identified only 16% of the time as the primary reason people left their job. Meaning organizations need to focus on a different set of employee needs to prevent the other 84% of departures.”
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The state of HR employees
Companies often forget that the human resources team is part of the company and that those team members struggle to.
80% of HR leaders say the job is getting harder
In the 2023 February Gartner survey, 55% of 217 HR leaders said they were “getting more requests on a wider variety of topics.”
In addition, 80% of those surveyed say their function was “facing different challenges” compared to those faced before the pandemic.
71% of HR employees struggle with burnout
Employee burnout can have massive ramifications on a company. From a high employee turnover to reduced productivity to lost sales, among other issues. It’s essential managers of any department help their team members avoid burnout.
According to the Gartner study, 71% of survey respondents reported burnout among HR staff. They added that the situation was “more challenging than before the pandemic.”
Over 50% of HR leaders struggle with HR recruitment
We all know the challenges of recruiting top talents. But what about the challenges of finding and hiring human resource team members and filling HR jobs?
According to Gartner, over half the HR leaders surveyed are struggling with “increased difficulty in both retaining and recruiting HR employees.”
Employee engagement statistics
Employee engagement remains a hazy task for organizations. However, over the past few years, employee engagement has proven to be an opportunity for employees, managers, and businesses alike.
Companies with positive work cultures are the best at engaging employees. Sometimes even remote employees.
Engaged employees are more likely to be productive, empowered, motivated, and satisfied with where they work and what they do.
Highly engaged employees can boost profitability by 23%
Companies are always wondering how to increase profitability. Surprisingly though, the answer is right in front of them. Their employees.
Research by Gallup has found “highly engaged employees” to be more productive, which can increase profits by up to 23%.
Engagement boosts productivity by 17%
Employee engagement offers many benefits to an organization. Separate Gallup research shows engaged employees are 17% more productive than their peers, show 41% less absenteeism, and 70% fewer job safety incidents.
56% achieve ROI from employee engagement
Research found 56% of survey respondents saying they have “achieved positive ROI” from investing in employee engagement.
To engage employees and reap the benefits, companies must first define what employee engagement means to them.
They need to incorporate their employee engagement into their broader HR strategy. In addition, they should track various employee engagement metrics and KPIs such as employee retention rate, cost of employee turnover, among others.
40% don’t know how to engage employees
Often, the biggest problem with employee engagement is the ‘how.’ How can managers engage their team members?
Research by the Harvard Business Review (HBR) and Quantum Workplace found 40% of managers saying they didn’t “have access to the data…to understand what motivates and engages their employees.”
81% say engagement affects performance
Roughly 81% of business leaders “strongly agree that highly engaged employees perform better and are more productive,” according to the HBR research.
Despite this strong correlation between engagement and performance management, “many engagement and performance strategies are often prioritized and executed in silos, disconnected from each other.”
Only 37% of companies focus on engagement
Despite the positive ROI and the 81% of business leaders seeing a link between employee engagement and productivity, few are focused on engagement strategies.
The HBR study found only 37% of respondents making employee engagement “a significant area of focus for their organization.”
65% of US employees aren’t engaged
Gallup's State of the Global Workplace: 2022 Report found “the majority” of the US workforce, 65%, “is not engaged.”
According to the report, these employees “are indifferent and neither like nor dislike their job,” which means they “represent a risk.” It may be good or bad.
Wrapping it up
Statistics are abundant in every field, HR or otherwise. That’s why it’s important to keep up with updated HR statistics and data, along with the latest HR industry trends.
You should also keep an eye on your different teams, employees, and managers, shielding them against burnout, engaging them, and contributing to improving team productivity.
We recommend you explore this list of articles to improve HR and managerial operations across your business.
Business Consultant @Tawzef for Recruitment & HR Consultancy / Your Partner 4 Remote IT & Software Talent / Wellbeing Mentoring 4 decision makers through transformative conversations
1wCongratulations on the 1st edition of the newsletter 🥳 Looking forward to insigts you will be sharing 🙌