HR statistics and trends are important to HR practitioners to be aware of so they can make informed decisions and create effective strategies for their HR initiatives. We have scoured the web and compiled the key human resources statistics and trends to look out for in 2024.
General HR Trends and Statistics
1. There continues to be a shortage of HR professionals (Statista, SHRM)
There will be 840,120 HR professionals in the United States by 2025. Despite this number, the Society for Human Resource Management (SHRM), says that there is still a talent shortage of HR professionals, with the increase of opening HR job roles and the thinning of inbound applications to fill these roles.
2. HR leaders will focus on 5 key areas focused within their companies(Gartner)
Organizations will focus more on leader and manager development, organizational culture, HR technology, change management and career management, and internal mobility. This shows that organizations will be more inward-looking, focusing more on the well-being and development of their employees. However, this does not mean that they will focus less on customer service. Instead, organizations have realized that by taking care of their people first, they will become more effective and productive.
Recruiting and Hiring
3. 60% of millennials often switch from job to job (Gallup)
While millennials make up the largest demographic in the workforce, they are also the generation that easily gives up one job for another. According to Gallup, 6 out of 10 millennials will jump at a new opportunity presented to them. This can work for or against an organization. If you want to retain or attract high-performing millennial workers, try providing more competitive benefits and opportunities for room and development.
4. 64% of job candidates favor companies that are more transparent (Gartner)
If you want more applicants to respond to your job posting, you might consider adding information that shows how much they can benefit from working in your company. According to Gartner, around 64% of job candidates will apply to a job if that job posting contains the salary range and benefits.
Employee Encouragement and Retention
5. Gen Z and millennials (53%) are the most likely to leave their jobs (EY 2023 Work Reimagined Survey)
Compared to Boomers, Gen Zs and millennials are not afraid of job hopping. The same goes for those who work in tech industries, where 60% say that they are most likely to leave their jobs in the coming year. The top three reasons why they will quit include pay rate, disengagement, and the lack of meaningful work. They also will not hesitate leaving their job if it doesn’t align with their personal values. If they cannot get that, they won’t hesitate to quit.
6. Around 90% of job candidates backed out of a job offer after receiving it (Gartner)
A high-paying job is not enough for job seekers to make them stay or accept the job offer. If your employee value proposition (EVP) does not align with what they are looking for (could be salary, benefits, diversity, career path, or flexibility) they will not accept the job offer. Thus, HR and hiring managers should delve deeper into what candidates are looking for.
7. The average number of years an employee stays in a company is 4.1 years (US Bureau of Labor and Statistics)
Retaining top talent is crucial for the success of an organization. With employee tenure only at four years, companies need to rethink their strategies to retain top talent and reduce turnover.
8. 61% of companies have difficulty retaining employees; 75% are having a hard time attracting employees (Integrated Benefits Institute Study)
To address this challenge, a study revealed that a strong onboarding process improves talent retention. A well-structured onboarding process allows new hires to effectively integrate into the company’s culture, make them feel connected, and get the necessary training and resources.
Diversity and Inclusion
9. 53% of applicants find DEI programs as a determining factor to signing on to a company (Staffing Industry Analyst)
A company’s DEI program is the determining factor for 53% of workers when they are considering a job. If your organization hasn’t got one yet, you might consider developing one, especially if you’re trying to attract new talents to join your company.
10. 62% of workers say that they have DEI policies in their organizations (Pew Research)
Aside from this, 52% say they received DEI training in their workplace. These statistics show that organizations are putting some effort into diversifying their workplaces.
Despite the statistics above, many DEI professionals are extremely tired and frustrated because there’s no progress in their DEI efforts. That’s because while there are policies in place, there’s a lack of support from the leadership (i.e., CEOS and top executives). The same report from HRD also added that DEI efforts in the workplace have insufficient funding and lack data.
11. Millennials represent the largest demographic in the workforce 49.5 million workers (Glassdoor)
This will have a significant effect in organizations as millennials bring their own set of unique skills into the workplace. If you want to engage millennials and keep them motivated in the workplace, organizations should create a collaborative work environment where employees feel valued and appreciated.
Here is how the workplace is divided by generation:
- Boomers (17.3 million)
- Generation X (42.8 million)
- Millennials (49.5 million)
- Generation Z (17.1 million)
12. Labor participation of mothers with children under 5 years old is at 70% (Brookings, White House)
While women with children have been a significant part of the workplace, there has been an unprecedented spike in the number of mothers with young children. The number has exceeded its pre-pandemic peak and is growing rapidly.
Employee Engagement
13. Recognition and reward are the top drivers of engagement (StartUs Insights)
With their real-time feedback loops and gamified reward process, recognition and reward platforms will have the greatest impact in driving employee engagement in the workplace. Companies can further enhance engagement by offering a wide range of reward options like free coffee, dinner, or travel.
14. 50% of employees are happy their companies care about what they think (Qualtrics)
Half of the American workforce appreciates their companies gathering data about them. It makes employees feel that their company cares to know more about them. However, they don’t want their companies to use their social media accounts to mine their data.
Employee Burnout and Wellness
15. 62% of workers say paid time off (PTO) is extremely important to them (Pew)
Around six out of 10 workers say that they would love to have a job that offers paid time off, sick leaves, and health insurance. This shows how much employees value their work-life balance.
16. 57% of Americans report experiencing moderate levels of burnout (Aflac WorkForces Reports)
Women are more likely to experience burnout than men. Additionally, Gen Zs and millennials are more prone to burnout than boomers and other generations. The study also mentions that heavy workload is often the source of burnout in the workplace.
17. Only 48% of workers firmly believe that their employers care for their mental wellness (Aflac WorkForce Reports)
Since Aflac started this survey in 2021, the number of workers who think their employers care for their well-being has significantly decreased (from 60% to 48%). Moreover, 60% are more likely to leave their jobs within a year.
18. Burnout affects employees’ non-work activities (SHRM)
Nearly 38% of US employees have reported that they are unable to participate in non-work activities because they are too exhausted from work.
Future of Employment
19. Unemployment will continue to rise until 2024 (Statista, Congressional Budget Office)
There are 167.93 million civilian workers in the United States. These include people who are either working or actively looking for work and are at least 16 years old. However, the number of unemployed individuals is expected to rise from 5.9 million to 7.8 million until the end of 2024.
20. There won’t be mass layoffs despite increasing unemployment rates (WSJ)
Because of the rising unemployment rate from the last quarter of 2023 all the way to 2024, potential job cuts are to be expected. However, a report from the Wall Street Journal says that mass layoffs are far from happening.
Remote and Hybrid Working Trends
21. Greater flexibility is one of the top reasons (59%) of jobseekers to accept a job offer (Gartner)
Jobseekers are now averse to doing the nine-to-five grind. Instead, they prefer a hybrid work setup, where some days they commute to work and some days they work from home. Flexibility is so important that even 49% of active employees are looking for a job that offers greater flexibility.
22. Workers in the US are not happy with the full-time return-to-office policy (Integrated Benefits Institute Study)
47% of employees said that they would resign if their company required them to go back to the office and work full time. Instead of pushing employees to comply, help them reintegrate back to the workplace by adopting a hybrid work setup. Aside from that, you can also offer perks and benefits that will make going back to work more attractive. For example, you can offer on-site cafeterias with free coffee or quiet zones where they can take a short break and just relax.
23. 81% of full-time workers prefer a 4-day workweek (Bankrate)
Although 68% of full-time employees prefer a hybrid work arrangement, 81% favor the four-day workweek. This significant preference for a compressed work schedule further emphasizes the growing desire of employees for a better work-life balance and a more efficient use of their time.
Bottom Line
Organizations should be aware of the current trends in HR not only for making informed decisions but also to improve their current practices and create better strategies. Consequently, this results in increased productivity, high employee engagement, and boost innovation.
