HR is often considered the most crucial aspect of any business. Like Richard Branson once said, "if you look after your talent, they’ll look after your customers".
Yet, many companies fail to prioritise their employees, leading to high turnover, low productivity, internal dissatisfaction, and declining revenue over time. Worse, the leaders responsible face reputational damage that is difficult to undo.
Overall, overlooking HR is a huge risk to long-term success.
To illustrate why in further detail, we’ve compiled 39 key statistics you should read before building your internal HR teams or opting to outsource. They might determine whether you fail or succeed.
Research shows that strong HR teams boost revenue by x4 on average.
Because of demand, the number of HR professionals operating within the market has grown by 42% in the past decade, compared to just 10% for the general workforce.
As such, the market is set to be worth around $90 billion in 2025.
That said, at the moment, companies spend just 0.74% of their revenue on HR.
85% of workers aren't engaged in their roles. Usually, this is because managers haven't taken the time to listen to their expectations, leading to a sense of disconnect and unfulfillment.
As such, 65% of employees complain that they don't get enough feedback from their managers, hindering their development and progress.
Only 29% of employees are happy with career advancement opportunities at their current company.
60% of employees experience financial stress and are five times more likely to be distracted at work.
As a result, 83% of employees expect a raise.
Almost 3 in 4 companies say they need to link compensation and performance better, with current structures failing to reward productivity, skills, and contributions appropriately.
That said, 90% of employees value health insurance as the top benefit. This is likely due to public health not being as accessible as it was following excessive wait times and increasingly smaller budgets.
39% of employees who give their overall well-being low ratings say that lack of work-life balance is the top factor.
One-third of employees say they would quit if they found themselves in a toxic work environment.
Nearly 3 in 4 employees would prefer a job at a company that better prioritises mental health and well-being.
4 in 5 HR leaders agree that managers are ill-equipped to lead change.
77% of HR leaders report employee fatigue from excessive changes.
37% of employees leave because of their manager.
It takes an average of 11 weeks to hire for an open position.
3 in 4 recruiters say that they struggle to find qualified candidates for positions.
43% of companies cite “competition from other employers” as the primary reason for difficulty hiring the right employees.
68% of candidates quit the job application process midway because of its length and complexity.
64% of job seekers are more likely to apply if salary information is included in the job description.
77% of workers think a company’s values and purpose, from sustainability and diversity to transparency and goals, are important when selecting an employer.
Only 12% of employees strongly agree that their company does a great job onboarding new employees.
90% of executives say retaining new employees is a major issue.
49% of workers aren’t actively looking for a new job but would consider applying if approached by a recruiter.
64% of talent professionals feel recruiting will become more candidate-driven in the coming years as the demand for talent rises and job listings grow.
Remote work reduces quit rates by 35% through better work-life balance and increased trust.
In fact, hybrid models are unlikely to go anywhere soon, with 66% of hybrid and remote managers seeing an improvement in productivity once they have those models working.
77% of managers find it easy to manage a hybrid or remote team.
Just 43% of HR pros believe employees are satisfied with their technology and automation.
Over half of HR pros say technology for skills management is their most important investment.
56% of HR managers say analytics will play a key role in hiring decisions.
95% of HR professionals believe artificial intelligence (AI) could help with the application process for candidates.
On the other hand, 35% of HR pros believe AI could overlook unique and unconventional talents, highlighting the potential risks involved with relying on AI for recruitment.
Outsourcing recruitment leads to a 97% satisfaction rate.
Outsourcing also leads to a 10 to 12% reduction in HR staff size.
As such, 35% of businesses with fewer than 1,000 employees outsource one or more HR functions.
However, HR outsourcing can be expensive, costing up to $1,500. For this reason, small businesses must carefully consider whether outsourcing is absolutely necessary.
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