HR Statistics and Trends You Need to Know in 2023
Handling all people-related concerns and ensuring employees are treated fairly falls under some of the most important responsibilities of HR departments. Strangely enough, though — 37% of employees would grade their HR departments with only a C.
Employee dissatisfaction is no joke, especially since 11% of the respondents of one US-based employee survey voluntarily quit their jobs in the past 12 months despite the economic downturn.
One of the main reasons for this is a shift in priorities.
The pandemic hasn’t only allowed remote work to become a more attainable option for employees. Among other things, it has also urged 53% of employees to prioritize their health and well-being over work.
Want to learn more about the most interesting US and global HR statistics and trends in 2023? Continue reading our guide to gain a clearer perspective on the state of employment and HR’s past, present, and future.
Table of Contents
The most important HR statistics for 2023
Below, we’ll go through a range of different HR statistics, tackling topics such as diversity in the workplace, increasing AI adoption, and employee wellness.
Before we start rifling through other fascinating HR stats, though, here’s a quick taste of what’s to come:
- The latest data shows HR is a female-dominated field since 595,842 HR workers are female, and only 195,816 are male.
- Inflation concerns were the biggest obstacle for 86% of HR professionals in the past year.
- A great deal of HR professionals (48%) believe a small budget will be one of their biggest success barriers in 2023.
- Low employee engagement costs the global economy about $8.8 trillion, so employee engagement is the #1 priority for 41% of HR professionals.
- Though global employee engagement has risen to 23%, 59% of employees around the world are quiet quitting.
- Poor mental health is the main reason people quit their jobs, with 31% quitting due to burnout or bad work/life balance.
- A clear lack of support for Diversity, Equity, and Inclusion initiatives is a good enough reason to quit for 72% of workers aged 18–34.
- Person-first experience is more important than ever, as 82% of workers want to be seen as people by their organizations — not just as employees.
- The idea of going into the office is so intolerable for some employees that 38% of them would consider quitting their jobs if they had to work in person for even 1 day a week.
- By 2025, 53% of organizations plan to make remote work permanently available for their whole staff.
General HR statistics
Although it’s common for men to be the dominant gender in most industries, women are actually the superstars of HR.
According to the US Department of Labor’s Employment and Earnings by Occupation data, most HR professionals are female.
The latest data shows women come out on top across all 3 types of occupations detailed in the report:
- HR managers — 184,737 women and 53,663 men,
- HR assistants — 43,384 women and 11,408 men, and
- HR workers — 595,842 women and 195,816 men.
How much do HR professionals earn?
Even though women essentially rule the HR world, pay equity has remained unattainable, with male HR professionals usually earning more than female HR professionals.
The same data mentioned above gives us an insight into the pay difference between men and women in HR:
|Occupation||Median annual earnings – women||Median annual earnings – men|
Which are the highest paying states for HR managers and HR specialists?
Based on the annual mean wage, the latest US Bureau of Labor Statistics data on HR managers shows they earn the most in:
- New York — $190,340,
- New Jersey — $183,060,
- Washington — $178,730,
- District of Columbia — $171,580, and
- Massachusetts — $171,050.
Looking at industries alone, the same US Bureau of Labor Statistics report shows the top paying industry for HR managers is Securities, Commodity Contracts, and Other Financial Investments and Related Activities ($229,560 annual mean wage).
As for HR specialists, the latest US Bureau of Labor Statistics data on HR specialists indicates they’re paid the highest annual mean wage in these states:
- District of Columbia — $103,650,
- Washington — $87,330,
- California — $86,260,
- New Jersey — $85,750, and
- New York — $85,170.
Per the same report, the highest paying industry for HR specialists is Web Search Portals, Libraries, Archives, and Other Information Services ($140,460 annual mean wage).
Which challenges do HR professionals face in their line of work?
External challenges are a huge point of concern for HR professionals given they drastically make their jobs harder.
According to SHRM’s 2022-2023 State of the Workplace Report, a whopping 86% of respondents listed inflation concerns as one of the biggest obstacles in the past year, followed by:
- Labor shortages — 80%,
- Mental health concerns — 72%,
- Economic slowdown concerns — 64%, and
- Supply chain issues — 59%.
However, the same report showed that in 2022, HR professionals had fewer issues with managing:
- Legal and compliance concerns — 49%,
- Diversity, equity, and inclusion concerns — 46%,
- Health and safety concerns — 44%, and
- Political issues — 36%.
How do organizations feel about their HR departments?
Generally speaking, it’s expected for HR departments to grade themselves better than how non-HR employees would grade them. However, the previously mentioned SHRM report shows a drastic discrepancy between their opinions.
It seems HR departments overwhelmingly think quite highly of themselves, as 18% of the surveyed HR professionals gave their HR departments an A, and 56% gave them a B.
HR executives apparently share a similar sentiment, with 33% giving their organization’s HR departments an A — and 53% giving them a B.
And yet, the fact remains other employees don’t believe their organization’s HR departments are all that effective. When asked about it, 37% gave their HR departments a C, and only 10% gave them an A.
How do HR professionals feel about their jobs?
What’s the state of HR in terms of how satisfied HR employees are with their jobs? The above-mentioned SHRM State of the Workplace report gives us some great answers to that question as well.
For instance, when asked about their jobs in the past year, HR professionals said that HR was still overloaded. Most agreed they worked either long hours or too hard (70% of respondents). Meanwhile, 61% maintained they didn’t have enough staff to handle all the workload.
An improper HR-to-staff ratio could be to blame. The average HR-to-staff ratio across organizations is about 2.57. It’s also common to have 1.4 HR staff per every 100 employees at the company.
On a more personal level, though, the same SHRM report showed HR employees might have a more positive opinion of their jobs than non-HR employees.
More than half of the respondents (58%) said they believed their work was appreciated more in the past year. They also thought they had a great influence on what went on in their department (86%).
Most notably, 72% of respondents said they trusted their companies to treat them fairly at work — so it’s no surprise that 76% would also recommend their organizations as great workplaces. What’s more, 63% of respondents said the positive work environment made them excited to go to work.
Despite this, HR employees are on par with non-HR employees when it comes to their turnover intent.
According to the same report, 19% of HR employees and 21% of non-HR employees were actively looking for a new job. Meanwhile, 24% and 26% of them respectively confessed they were eager to switch to another organization in 2023.
Employer statistics from an HR perspective
The economic uncertainty and limited resources organizations face today have definitely led to a shift in the initiatives employers and HR departments focus on. And it seems talent acquisition (TA) has taken quite a blow.
In Lattice’s 2021 State of People Strategy report, TA was being prioritized by 40% of surveyed HR leaders.
Yet, in Lattice’s 2023 State of People Strategy report, TA’s importance plummeted, with only 17% of organizations planning to prioritize it in the upcoming 12 months.
So, if TA isn’t so much of a priority nowadays, which areas are employers and HR departments focusing on now?
What are HR departments prioritizing today?
When asked about their high-priority initiatives, 41% of HR professionals who took part in Lattice’s 2023 State of People Strategy report highlighted employee engagement as the #1 concern.
Manager training (35%) and learning and development (34%) were also listed as high priorities, alongside Diversity, Equity, Inclusion, and Belonging (DEIB) programs (30%) and performance management (27%).
The situation is similar in the previously mentioned SHRM’s 2022-2023 State of the Workplace Report, in which 78% of respondents said they would likely prioritize maintaining employee engagement and morale in 2023.
Other priorities listed in the same report included:
- Retaining top talent — 77%,
- Finding and recruiting talent with the necessary skills — 64%,
- Figuring out how to reduce costs and improve efficiency — 61%, and
- Training leaders and people managers to be more effective — 60%.
Focusing on leadership alone, Gartner’s Top 5 Priorities for HR Leaders in 2023 report showed the percentage of HR leaders that would likely prioritize the following areas this year:
- Leader and manager effectiveness — 60%,
- Organizational design and change management — 53%,
- Employee experience — 47%,
- Recruiting — 46%, and
- Future of work — 42%.
What are the top obstacles HR professionals are dealing with?
According to the previously mentioned SHRM report, budget is one of the biggest challenges for many HR professionals.
Almost half (48%) of the HR professionals said a lack of budget was going to be one of the biggest obstacles to their organization’s success and achieving their priorities in 2023.
A slightly lower percentage (42%) highlighted limited time or dedicated personnel as a barrier, while 41% agreed senior leadership support or buy-in would be an issue.
Which HR areas are getting a budget increase in 2023?
Investing more money in certain areas of HR should help HR professionals tackle issues more easily and, hopefully, produce better results. And according to the previously mentioned SHRM report, virtually all HR budgets are expected to increase in 2023.
In the report, the majority of companies revealed they’d allocate more funds toward talent acquisition (45%) and HR employee compensation (43%) in 2023. Additionally, 34% of companies would increase the budget for employee wellness benefits/activities.
Not all areas are getting the same kind of attention, though.
Per the same study, people analytics would see a budget increase in only 14% of companies. Surprisingly enough, DEI efforts were treated almost the same, as only 19% of organizations planned to invest more in that area in 2023.
What are the top HR plans for 2023?
Both HR professionals and HR executives who took part in the SHRM’s 2022-2023 State of the Workplace Report were surprisingly aligned as far as their 2023 plans go.
When asked about their organizations’ main goals for 2023, they highlighted the following top 3 plans:
|Goal||% of HR executives||% of HR professionals|
|Further training of people managers to support the organization’s talent management strategy||82%||78%|
|Improvement of people managers’ soft skills||76%||76%|
|Higher number of employees||65%||74%|
That said, organizations may shift their focus from jobs to a more skills-based approach when it comes to matching the right people with work.
According to Deloitte’s 2023 Global Human Capital Trends Report, organizations have realized the industrial-age approach — where business changes are slow to come by and workers are just a piece of the puzzle — is no longer working for them.
Instead, they’re looking to focus more on the workers’s skills in an effort to improve their organizations’ success. And indeed, the report suggested the companies that matched the right talent to work were:
- 52% more likely to be innovative, and
- 57% more likely to be agile.
How are organizations staying competitive in today’s job market?
According to Monster’s 2023 Work Watch Report, 96% of employers were confident they’d be able to find the right workers for their open positions. And with 92% looking to hire in 2023, that kind of confidence is sure to come in handy.
However, to ensure proper hiring, gaining a competitive edge is a must. Luckily, organizations are already looking into how to make themselves more appealing to potential employees.
According to the same report, a great deal of employers were focusing on these 3 benefits in response to worker demand:
- Remote flexibility — 40% of employers,
- Flexible schedules — 39% of employers, and
- PTO and self-care days — 39% of employers.
This is in line with the wants and needs of potential employees. Per the same report, 49% and 45% of workers expected more flexibility in terms of where and when they work, respectively.
Generally speaking, the same report showed there’s a great dislike for in-person working. An incredible 38% of respondents said they’d consider quitting if they had to work in person for even just 1 day a week.
Worse, 26% of them said they’d rather endure getting a root canal than going into the office 5 days a week.
Diversity statistics from an HR perspective
A company’s DEI efforts are important if it wants to stay relevant and inclusive throughout the years. However, despite the regular chatter about Diversity, Equity, and Inclusion, some companies are still wary about delving deeper into the matter.
According to LinkedIn’s The Futureof Recruiting 2023 report, companies remain committed to DEI despite recent hiring issues.
In the report, 69% of recruiting professionals admitted the macroeconomic environment had a negative impact on hiring overall. However, despite the unfavorable macroeconomic factors, 74% denied they were deprioritizing DEI hiring.
According to the World Economic Forum’s Future of Jobs 2023 Report, many companies plan on being more inclusive in the future. The report showed that, as part of their DEI programs, most companies would be prioritizing:
- Women — 79%,
- Youth under 25 — 68%, and
- People with disabilities — 51%.
However, not all areas will get the same amount of attention, as a smaller percentage of companies would be focusing on:
- People coming from underprivileged racial, religious, or ethnic backgrounds — 39%,
- Workers older than 55 — 36%,
- People in the LGBTQI+ community — 35%, and
- Workers from a low-income background — 33%.
How committed are organizations to DEI?
According to the above-mentioned Deloitte 2023 Global Human Capital Trends Report, companies aren’t only talking about DEI — they’re actually putting their best foot forward.
Per the report, a whopping 86% of business leaders said they believed embedding DEI into work was essential to their organization’s success.
The report also highlighted the DEI conversation was no longer based on activities. Rather, the focus is now on outcomes.
Multinational organizations have definitely taken a hint in regard to DEI in the last 2 years as well. According to the same report, larger multinational companies made more than 1,000 public DEI commitments in the past 2 years. This translates into over $210 billion pledged to DEI initiatives.
How important is DEI to workers?
But how do workers feel about DEI? Are consistent DEI efforts a major reason for picking or staying with a company in the long term?
According to Indeed & Glassdoor’s Hiring and Workplace Trends 2023 report — it certainly is.
The report revealed that 74% of US workers deemed corporate investment in DEI very or somewhat important when deciding on a new job.
Interestingly enough, the same report showed age and generation predominantly determine whether someone finds DEI to be important in the workplace.
For instance, 72% of workers aged 18–34 would refuse a job offer or leave a company if DEI initiatives weren’t supported by their managers. However, only 52% of respondents aged 55–64 and 45% of respondents aged 65+ said the same.
When it comes to gender diversity, 67% of workers aged 18–34 would refuse a job offer or leave a company if they found that the company leadership had a stark gender imbalance.
Older generations don’t see that as much of a problem, though. Only 39% of those aged 55–64 and 35% of those aged 65+ would do the same.
A lack of race or ethnic diversity is a major issue for younger generations too. According to the same report, 65% of the respondents said they’d refuse a job offer or leave a company in case of poor race and ethnicity diversity in the company leadership.
In contrast, only 41% of those aged 55–64 and 43% of those aged 65+ would do the same.
How much discrimination do US workers face today?
Unfortunately, discrimination is still very real in the US workforce, according to Pew Research Center’s How Americans View Their Jobs 2023 report.
The study analyzed in the report showed workers usually have positive experiences in the workplace, as:
- 78% said they were treated with respect all or most of the time, and
- 72% said they were able to be themselves at work.
If you dig a little deeper, though, you’ll notice discrimination against minorities is still rather evident.
According to the same report, 41% of Black, 25% of Asian, and 20% of Hispanic workers experienced discrimination in the workplace due to their race or ethnicity. To compare, only 8% of White workers could say the same.
As for gender discrimination, there’s still a long way to go to rectify it. In the same report, 23% of women revealed they were subject to gender discrimination before. Yet, only 1 in 10 employed men reported experiencing the same kind of treatment.
Moreover, Pew Research Center’s Diversity, Equity and Inclusion in the Workplace 2023 report showed women, in general, valued DEI at work more than men (61% compared to only half of the male respondents).
Unsurprisingly, they have a good reason for this. The same report revealed that 34% of female respondents believed being a woman made it a little or a lot harder to be successful in their workplace. Overall, 36% of all surveyed workers said being a man made success at work easier to come by.
How confident are workers in DEI policies?
Yet, despite many companies incorporating DEI policies in their offices, it seems workers — especially the younger generations — aren’t so impressed with them.
According to the American Psychological Association’s 2022 Work and Well-Being Survey, almost half of the respondents (47%) said they believed their organization’s DEI efforts were just for show.
Among those, the most skeptical were the ones aged 26–43 (60%) and those aged 18–25 (53%).
To compare, older generations seem to be more confident in their companies’ DEI policies — or they at least believe they make some sort of an impact. So, the percentages of those who believe these policies are just for show were much lower among those aged 44–57 (37%), 58–64 (29%), and 65+ (25%).
Unfortunately, younger generations are definitely struggling to feel comfortable in the workplace. In the same survey, 53% of workers aged 18–25 said they often felt their workplaces didn’t accept them.
Recruiting and hiring statistics
The latest data provided by Appcast shows that the US labor force expanded by 2.5 million workers in 2022. Yet, talent acquisition hasn’t been easy for most companies that took part in SHRM’s 2022-2023 State of the Workplace Report.
According to that report, the top challenges regarding finding talent in 2022, as reported by HR professionals, were:
- Lack of well-qualified applicants — 69%,
- Uncompetitive compensation — 48%,
- Poor or no work flexibility — 30%,
- No career advancement opportunities — 25%, and
- Uncompetitive benefits — 13%.
What’s the current state of employment in the US?
A great many people around the US are either quietly quitting their jobs or looking for a side hustle to make ends meet due to inflation.
To better understand the state of employment in the US, we turned to the latest data provided by the US Bureau of Labor Statistics’s Employment Situation report.
According to the report, the unemployment rate went up by 0.3% to 3.8% in August 2023. The data also shows the number of unemployed rose by 514,000 and reached 6.4 million in the same month.
Though these numbers are discouraging, they’re actually not so different from last year’s situation. According to the same report, the unemployment rate was 3.7% and the number of unemployed was 6 million in August 2022.
That said, the number of job openings went down, according to the latest data from the US Bureau of Labor Statistics’s Job Openings and Labor Turnover report. Per that report, the job openings rate was at 5.3% at the end of July, with 8.8 million job openings available.
That same month, the rate of new hires was 3.7%, while the number of new hires was 5.8 million.
As for separations, the rate of total separations — including quits, layoffs, and discharges — was 3.5% in the same period, which translates to 5.5 million people.
What are the top job boards?
As technology evolved, so did the number of job boards HR departments could use to find the right candidates. But which ones are the most popular today?
According to Trakstar’s 2023 Human Resources Leadership Survey, 12% of respondents said they didn’t use any job boards.
However, among those who do, 37% of respondents believed LinkedIn provided the best candidates, while Indeed came in at a close second place, with 34% of respondents listing it as their preferred hiring board.
How are companies attracting talent?
In the post-pandemic world, workers are looking for more benefits, more flexible schedules, and overall, a better work environment.
According to HR Dive’s 2023 Identity of HR survey, money is no longer the only objective either — workers are also focusing on the total rewards package.
The survey revealed companies put in more effort to attract talent by increasing their rewards offerings in 2022. Here’s a comparison of their efforts in 2021 and 2022:
|Benefit||% of companies offering the benefit in 2021||% of companies offering the benefit in 2022|
|Higher hourly wages or salaries||59%||64%|
|Retirement contributions or benefits||35%||43%|
|Payment of employees’ medical premiums, copays, or other healthcare services||24%||27%|
|Student loan repayment or other educational benefit||9%||16%|
The survey also showed companies were less concerned about public transportation or rideshare benefits in 2022.
More importantly, they didn’t focus so much on offering remote or hybrid work arrangements either, showing a lack of interest in providing employees with different work model choices. While 64% of companies highlighted those arrangements as part of their TA strategy in 2021, only 56% did the same in 2022.
Which benefits should employers consider offering when hiring talent?
Employers may think they’re doing a good job as far as their benefits offering goes. However, Betterment at Work’s 2022 Financial Wellness Barometer report shows just how easily workers may decide to leave if they get a better deal somewhere else.
That’s not to say job loyalty doesn’t exist. Still, the report revealed more than half of the respondents (54%) would consider changing jobs if they were offered better benefits.
What’s interesting here is that fully in-office and hybrid workers are more likely to be enticed by better benefits.
When asked whether they’d leave their current jobs for a better benefits deal, 57% of fully in-office and 55% of hybrid workers said they’d consider it. In contrast, only 44% of fully remote workers said the same.
What’s more, younger generations are more passionate about benefits. In the same report, 63% of Gen Z workers said they would leave their jobs for better benefits — but only 41% of Boomers would do the same.
And what are these amazing benefits that would entice them?
According to the same report, financial wellness is top of mind for most potential employees. Therefore, the following benefits carry the most influence in this situation:
- 401(k) matching program — 57%,
- A 401(k) or other retirement plan — 51%,
- An employer-sponsored emergency fund — 47%,
- A flexible spending account (FSA) or a health savings account (HSA) — 32%,
- Wellness stipend — 31%,
- A student debt/401(k) matching program — 30%,
- Budgeting and savings tools — 25%,
- Access to a financial advisor — 21%,
- Student loan or financial assistance repayment programs — 18%,
- Childcare support — 14%,
- A 529 (college savings) plan — 9%, and
- Other — 4%.
What are the candidates’ top priorities?
When it comes to recruitment, we usually talk about what employers look for in candidates. However, it’s vital to consider candidate priorities too so that you know whether they’d be a good fit for your company.
According to Microsoft’s 2022 report on the challenges of successful hybrid work, the top 5 aspects of work employees wanted employers to provide were:
- Positive culture — 46%,
- Mental health and well-being benefits — 42%,
- A sense of purpose/meaning — 40%,
- Flexible work hours — 38%, and
- More than 2 weeks of annual paid vacation time — 36%.
On the other hand, LinkedIn’s The Future of Recruiting 2023 report listed the following as the top priorities for candidates looking to apply for a job:
- Work-life balance,
- Flexible working arrangements,
- Advancement, and
- Skill development.
Out of those, flexible working arrangements are the fastest-growing priority, marking a +5% increase in importance this year. Candidates are also now prioritizing compensation (+4%), supportive managers (+4%), clear goals from leadership (+3%), and job security (+2%) more.
The younger workforce, such as Gen Z, has additional priorities in mind. The same LinkedIn report showed that in comparison to Gen X, the younger generation was:
- 47% more likely to prioritize advancement within the company,
- 45% more likely to prioritize new skill development, and
- 17% more likely to prioritize an inclusive workplace for people of diverse backgrounds.
What kinds of skills do recruiters need to be successful?
Talent acquisition became more of a strategic function in 2022, according to 87% of recruiting pros who took part in LinkedIn’s The Future of Recruiting 2023 report. Due to this, recruiters may have to focus on improving their soft skills in the future to become better at their jobs.
According to the the report, the following skills will be in focus over the next 5 years:
- Communication — 78%,
- Relationship building — 73%,
- Adaptability — 58%,
- Problem-solving — 53%, and
- Business acumen — 51%.
What’s more, the same report indicated that having these skills would also improve the recruiters’ chances of promotion. Per the latest data, those with 1 or more of the above-mentioned soft skills experienced 3x more promotions than those without them.
This focus on skills is also evident in hiring other employees. In the same LinkedIn report, 75% of recruiters said they believed skills-first hiring would be a priority for their companies in the next 18 months.
But, in Monster’s 2023 Work Watch Report, 34% of recruiters revealed they believed the skill gap among workers increased in comparison to last year. What’s more, 63% of them said the skill gap made it more difficult to find the right people for on-site roles than remote positions.
How are small business owners handling recruiting and hiring?
According to the latest small business statistics, employee recruiting and retention are major issues for small business owners, with 22% of them marking them as some of their biggest challenges.
Furthermore, almost half of the respondents (47%) in Guidant Financial’s Small Business Trends 2023 report said hiring was somewhat or very difficult in the past year.
So why has the recruitment process proven to be such a challenge for small business owners?
The same report showed 22% of respondents believed they weren’t filling positions because of a lack of interest in their organizations. Meanwhile, 20% said competition from other employers was to blame.
Other reasons given by the respondents were linked to candidates, as they:
- Lacked the necessary work experience — 18%,
- Didn’t have the right technical skills — 11%, and
- Didn’t have the right soft skills — 11%.
The talent gap is also to blame for this ongoing trend. The same report showed that while the demand for skilled professionals was high, the talent gap made it difficult to fill positions in certain fields.
According to the respondents, the positions that were the most challenging to fill in the past year were:
- Sales — 24%,
- Construction and maintenance — 18%,
- Food service — 14%,
- Healthcare and childcare — 10%, and
- Management — 10%.
Still, small business owners are putting up a good fight, as 27% of them addressed these hiring difficulties by offering higher compensation. Meanwhile, 16% put more effort into retention, 9% increased benefits, and 6% offered hiring bonuses.
What’s in store for recruiting and hiring in the future?
Though we can never know what the future will bring, LinkedIn’s The Future of Recruiting 2023 report gives us a glimpse into the future of hiring based on the current trends.
One of the most significant predictions made in the report is that workers would have more power in recruiting in the future. A whopping 64% of respondents said recruiting could be more favorable to employees and candidates — and not employers — over the next 5 years.
Another prediction is that talent acquisition would have to collaborate more with learning and development to:
- Prep internal talent for new roles,
- Pinpoint skill gaps, and
- Make sure the company is a good place for people to grow their careers.
According to the same report, 81% said they’d need to work more closely with learning and development (L&D) in the future — and 62% of TA pros said they were already doing so.
What’s more, recruitment pros listed internal recruiting (75%) and employee upskilling and reskilling (81%) as factors that will shape the future of recruiting and help companies build a diverse workforce.
How will job automation and AI affect recruiting and hiring?
Job automation and AI adoption are already in full swing, but it’s going to take a few years to see their full effect on HR. That said, some predictions have already been made.
According to PwC’s Will Robots Really Steal Our Jobs? report, countries with dominant industrial production may experience very high automation rates by the 2030s — for example, Slovakia (44%) and Slovenia (42%).
In contrast, countries like Finland (22%) and South Korea (22%) may see lower automation rates because they have higher average education levels.
And organizations aren’t shying away from adopting new technologies.
According to the World Economic Forum’s Future of Jobs 2023 report, technology adoption will drive business transformation in the next 5 years — and over 75% of the surveyed organizations said they would focus their adoption efforts on AI, big data, and cloud computing.
The same report also predicted a whopping 42% of all business tasks would be automated by the year 2027. As for AI, it’s expected to be adopted by almost 75% of surveyed organizations, out of which:
- 50% said it would create job growth, and
- 25% said it would lead to job losses.
Employee engagement statistics
After a dip in 2020, employee engagement went back on the right track in 2022.
According to Gallup’s State of the Global Workplace 2023 Report, employee engagement rose to 23% in 2022.
This is great news since the same report revealed low employee engagement costs the global economy about $8.8 trillion — which accounts for 9% of the global GDP.
How disengaged are employees at work?
Despite the high employee engagement rate, Gallup’s data also showed that 59% of employees around the world were quiet quitting. What’s more, 18% of employees said they were loud quitting.
Given that so many people are quiet quitting today, the gravity of the situation begs the question — why is this happening?
The answer may lie in all the things that quiet quitters would change about their workplaces.
According to the same Gallup report, 41% of quiet quitters believed changes to engagement or culture would make their workplaces better. However, 28% would prefer it if their workplaces focused on pay and benefits.
Surprisingly, only 16% of quiet quitters thought workplaces should work harder to improve employee well-being.
Where are employees engaged the most?
If you’re wondering which regions worldwide have the most engaged employees, Gallup offers some interesting data on that as well.
According to the above-mentioned report, the top 3 regions with the most engaged employees are:
- South Asia — 33%,
- United States and Canada — 31%, and
- Latin America and the Caribbean — 31%.
In contrast, the lowest percentage of engaged employees is found in Europe (13%).
Focusing on US employee engagement alone, Gallup’s report showed:
- 32% of US employees were engaged, and
- 18% of them were actively disengaged.
Which US states have the happiest employees?
When it comes to how happy US employees are, we can turn to Lensa’s ranking of America’s happiest workforces.
The ranking took into account a few factors that contribute to employee happiness, including:
- Median annual wage,
- Average number of weekly work hours, and
- Number of unused annual vacation days.
According to Lensa’s research, the top 10 US states where workers seem to be the most satisfied are:
|Rank||State||Score out of 100|
In contrast, Lensa’s research says these 10 US states have the unhappiest workers:
|Rank||State||Score out of 100|
Which US cities have the happiest employees?
As for US cities, the latest data provided by Glassdoor — and based on metros with the highest Glassdoor ratings — indicates the following are the top 10 cities in America with the most satisfied workers:
- Provo, UT,
- San Jose, CA,
- Santa Barbara, CA,
- College Station, TX,
- Boston, MA,
- San Francisco, CA,
- Gainesville, FL,
- Washington, DC,
- Salt Lake City, UT, and
- San Diego, CA.
Which parts of their jobs are US employees satisfied with?
According to Pew Research Center’s How Americans View Their Jobs 2023 report, 51% of US employees reported they were extremely or very satisfied with their jobs.
In the same study, 50% of adult US employees reported their jobs were enjoyable all or most of the time — and 47% said they found them fulfilling as well.
When it comes to job satisfaction, the same report suggested employees mostly felt great about their workplace relationships. However, the responses showed they weren’t so enthusiastic about their pay or promotion opportunities.
Here are the job aspects the surveyed employees were satisfied with:
- Relationships with their co-workers — 67%,
- Relationship with their manager or supervisor — 62%,
- Commute — 59%,
- Day-to-day work tasks — 51%,
- Amount of feedback they get (e.g., how well they’re doing their jobs) — 49%,
- Benefits (e.g., health insurance and paid time off) — 49%,
- Training opportunities and new skill development — 44%,
- Pay — 34%, and
- Opportunities for work promotion — 33%.
Employee wellness and well-being statistics
The pandemic has certainly put things into perspective for employees, with more of them prioritizing wellness and well-being these days.
According to Microsoft’s 2022 report on hybrid work challenges, 53% of employees said they were more likely to prioritize their health and well-being over work than they had been before COVID-19. Moreover, 47% said they were now prioritizing family and personal life a lot more than before the pandemic.
If we consider Deloitte’s Mental Health Today report for 2023, we can also notice there’s a great emphasis on work/life balance among Gen Zs and Millennials.
According to the report, 76% of them were somewhat satisfied with their work/life balance, while 34% of Gen Zs and 31% of Millennials were very satisfied.
However, the worsening economic situation threatens to make achieving this balance more difficult, and both Gen Zs and Millennials are aware of it. About a third of them said they thought improving their work/life balance would become increasingly harder as the economy worsens. Worse, 15% confessed they believed it would become impossible.
How stressed are employees today?
According to Gallup’s State of the Global Workplace 2023 Report, stress is all too common among workers around the globe, with 44% of respondents reporting they were under a lot of stress the previous day.
According to the report, there are the top 3 regions with the highest stress levels among employees:
- United States and Canada — 52%,
- East Asia — 52%, and
- Australia and New Zealand.
One of the most easily resolvable sources of stress for employees is workplace monitoring.
According to APA’s 2022 Work and Well-Being Survey, workplace monitoring is all too common, but it’s harming workers’ mental health, given that:
- 60% of monitored workers reported feeling tense or stressed at work, and
- 45% of the monitored employees said their work environment had a negative impact on their mental health.
How prevalent is burnout among employees?
According to Eagle Hill Consulting’s Workforce Burnout Survey from August 2023, burnout is as troubling as ever.
The burnout trend has been in decline over the years, but the report shows the percentage of burned-out workers in 2023 remained high at 45%.
Burnout was reported by:
- 52% of Millennials,
- 45% of Gen Xers, and
- 32% of Boomers.
Gender-wise, women were reported to be more burned out than men (48% of women vs. 41% of men).
As for what’s causing the burnout, the respondents highlighted the following 5 causes:
- Workload — 51%,
- Staff shortages — 45%,
- Work/life balance — 42%,
- Lack of communication and support — 38%, and
- Time pressure — 34%.
Though only 57% of the respondents said they would be comfortable talking about burnout with their employers, the same report showed certain workplace improvements would definitely help them recover from it.
According to the data, workers said the top ways their burnout could be improved was if employers:
- Introduced a 4-day workweek — 67%,
- Allowed for more working hours/days flexibility — 65%,
- Decreased their workload — 65%,
- Introduced better health and wellness benefits — 60%,
- Allowed them to continue working from home (or let them WFH more often) — 56%,
- Lessened the administrative burden — 53%,
- Introduced more on-site amenities at physical workplaces — 50%, and
- Allowed them to relocate or work from different locations — 39%.
Which generations are the most anxious or stressed today?
According to Deloitte’s Mental Health Today 2023 report, stress and anxiety are common among Millenials and Gen Zs.
The report suggested that while 46% of Gen Zs often felt stressed or anxious, the same could be said for only 39% of surveyed Millennials.
Out of those who said they felt stressed or anxious all or most of the time:
- 36% of Gen Zs and 30% of Millennials were exhausted or had low energy levels at work,
- 35% of Gen Zs and 28% of Millennials mentally distanced themselves from work and had negative or cynical feelings toward it, and
- 42% of Gen Zs and 40% of Millennials were having trouble performing well in their workplaces.
As for what’s driving all this stress and anxiety, both generations reported family welfare and finances as their top concerns.
A number of work-related factors, such as an unhealthy team culture and heavy workload, also seem to contribute to high stress and anxiety levels in more than 60% of respondents:
|Stress or anxiety factors||% of Gen Zs reporting these factors||% of Millennials reporting these factors|
|Concerns about their mental health||79%||73%|
|Poor work/life balance||74%||73%|
|Work environment/team culture||67%||66%|
|Inability to be authentic self at work||64%||59%|
|Fear of losing their job||62%||62%|
Disconnecting from work seems to be downright impossible for both generations as well. The same report stated that 23% of Gen Zs and 30% of Millennials did extra work outside business hours (e.g., answering work emails) at least 5 days a week.
How are employers addressing employee wellness and well-being?
Despite the concerning results outlined above, the same Deloitte report revealed that employers are taking employee mental health more seriously these days.
According to the report, 56% of Gen Zs and 53% of Millennials said placing a larger focus on their mental health led to a positive change in their workplaces.
However, both generations reported having trouble using the mental health and well-being resources and support provided by their employers. For instance, only:
- 40% of Gen Zs and 50% of Millennials were using the offered vacation time,
- 31% of Gen Zs and 30% of Millennials were regularly catching up with their managers about their well-being,
- 30% of Gen Zs and 26% of Millennials were using the offered resources to help reduce stress, and
- 23% of Gen Zs and 19% of Millennials were taking advantage of the paid-for counseling/therapy services.
That said, the same report indicated the areas Gen Zs and Millennials think organizations should focus on to help improve employee work/life balance:
|Area to improve||% of Gen Zs||% of Millennials|
|Ensure comparable career advancement opportunities for part-time employees||36%||30%|
|Introduce 4-day workweeks||33%||31%|
|Create more part-time jobs||29%||24%|
|Create more job-sharing options||26%||20%|
|Introduce flexible working hours||24%||30%|
|Nurture a vacation-friendly culture (encourage staff to take vacation time)||23%||20%|
|Introduce remote work||23%||28%|
|Encourage the development of supportive leaders through mental health-related training||18%||17%|
|Restrict work emails outside of business hours||10%||10%|
|Reduce the number of low-value or unnecessary meetings||10%||13%|
Which wellness benefits are employers going to focus on in 2023?
According to Wellable’s 2023 Employee Wellness Industry Trends Report, the future of employee well-being seems bright. Not only did the surveyed employers report taking it seriously, but they were also likely to invest in a wide range of wellness benefits in 2023, such as:
- Mental health — 91%,
- Stress management and resilience — 77%,
- Mindfulness and meditation — 74%,
- Financial wellness — 65%, and
- Telemedicine — 65%.
Interestingly enough, employers said they’d be investing less in in-person or on-site programs, as well as benefits that aren’t so efficient, such as:
- On-site fitness classes — 49%,
- Biometric screenings — 48%,
- Health fairs — 42%,
- Free healthy food/stocked kitchen — 42%,
- Health risk assessments — 32%, and
- On-site/near-site clinics — 32%.
Employee retention statistics
According to Gallup’s State of the Global Workplace 2023 Report, 51% of employed workers were planning on “jumping ship” soon, i.e. they were on the lookout or actively searching for a new job.
Relying on the latest data, Gallup’s report also suggested that in the US and Canada alone, as many as 71% of workers believed the job climate was good enough to seek out other job opportunities.
Why do people seek out new jobs?
When it comes to the reasons people may seek out other employment, Indeed and Glassdoor’s Hiring and Workplace Trends 2023 report gave us an insight into why men and women were often eager to find a new job:
|Reason for wanting a new job||% of employed US male workers||% of employed US female workers|
|Wants a remote job||11%||16%|
|A new career path||17%||15%|
|Unhappy with their manager||9%||11%|
|The job is temporary||7%||6%|
Why do people quit their jobs?
The Great Resignation is still ongoing, according to the data provided in Betterment at Work’s 2022 Financial Wellness Barometer report. The report indicated that 11% of the respondents voluntarily quit their jobs in the past 12 months — which marked a 5% increase in comparison to the results from the year before.
When asked about their motivation for such a big step, the respondents mostly cited poor mental health. According to the report, the main motivations for quitting their jobs were:
- Burnout or work/life balance — 31%,
- Poor management or incompatibility with company culture — 30%,
- Life changes (e.g., moving) — 29%,
- Offered a better paid job — 29%,
- Finding a job better suited for their skills or passions — 27%,
- Getting a job with a better benefits package — 26%, and
- Switching to a job that allows remote work — 18%.
The same report also divulged the majority of people (58%) were looking for a new job to get a higher pay. However, 33% were more eager to get better benefits.
The continuation of the Great Resignation was further confirmed in PwC’s Global Workforce Hopes and Fears 2023 Survey. According to PwC’s latest data, 26% of respondents were planning to quit their jobs in the next 12 months, despite the economic uncertainty.
Due to financial pressure, as many as 21% of respondents also reported having more than one job. What’s more, only 36% said they got another job to learn new skills. For 69% of respondents, the need to earn more money took precedence.
Despite all that, the previously mentioned Betterment at Work report suggested quitting your job wouldn’t immediately make you happier. According to the data, 41% of those who quit over the past year came to regret leaving their jobs.
What makes people stay at their jobs?
According to Gartner, flexibility is highly valued among the workforce, with 52% of employees reporting flexible work policies would influence whether they stay at their organizations.
However, employees were now putting more emphasis on their personal experiences and how they’re treated. For example, 82% of employees want to be seen as people by their organizations, not just as employees.
According to Ceridian’s 2023 Pulse of Talent survey, 90% of the respondents felt stuck in their jobs over the past year, indicating that organizations need to step up if they want to keep their turnover optimal.
Luckily, there might be something they can do to prevent their employees from leaving. The same survey also showed:
- 51% would think about staying if the employer provided opportunities to change career paths within the company,
- 49% would like to put their skills to good use in new projects, and
- 43% would like to transition into a new role in another team or department.
In fact, internal mobility is a major aspect of retention that employers should look into. According to LinkedIn’s The Future of Recruiting 2023 report, employees who work for companies with high internal mobility stay 60% longer.
Hybrid and remote work statistics
In the post-pandemic world we live in, the workplace is no longer a synonym for a cubicle where we spend 8 hours a day, 5 days a week.
The idea of work is changing, and the future of work seems bright, at least when it comes to those who prefer working remotely.
Indeed, according to JLL’s Future of Work Survey 2022, 77% of organizations said they thought remote and hybrid work were an important means of attracting and retaining talent. As a result, 53% of all surveyed organizations revealed they would make sure remote work was permanently available for their whole staff by the year 2025.
How popular are hybrid and remote work?
According to Appspace’s 2023 Workplace Experience Trends & Insights Report, a great majority of organizations have embraced a less traditional work environment, with 43% of respondents saying they worked fully remote — while only 3% work in person.
As far as hybrid work goes, the same report indicated it was a great option for 54% of respondents. Out of those, 58% said they went to the office 2 to 3 days a week, whereas 78% went at least once a week.
And Microsoft’s 2022 report on hybrid work challenges offers further proof of hybrid work popularity. According to that report, the number of hybrid employees has climbed to 38%. What’s more, 53% of people said they were considering switching to hybrid work in the upcoming year.
However, priorities have been slightly reshuffled between remote and hybrid workers. Though the popularity of these work models remains high, Microsoft’s report also showed:
- 51% of hybrid workers were considering switching to remote work, and
- 57% of remote workers were thinking about switching to hybrid work.
Hybrid and remote work are also evidently more popular among younger generations. The same report disclosed that Gen Zs value entrepreneurial freedom, flexibility, and mobility, so it’s no surprise that in the year ahead:
- 58% are looking into switching to hybrid work, and
- 56% are considering switching to remote work.
Looking into remote work exclusively, Buffer’s State of Remote Work 2023 report revealed that 98% of the respondents would like to work remotely, and another 98% would recommend this work model to others.
When it comes to the respondents’ experience with remote work:
- 91% said it was very or somewhat positive,
- 8% were neutral about it, and
- 1% said it was very or somewhat negative.
How do employers feel about hybrid and remote work?
One of the biggest challenges employers have faced with hybrid and remote work is the so-called productivity paranoia.
According to Microsoft’s 2022 report on making hybrid work more impactful, although employees have been working more than ever before, 85% of leaders said going hybrid made them less confident in their employees’ productivity.
The report further elaborated that this lack of confidence mostly came down to the absence of visual cues that used to serve as proof of employee productivity.
So, hybrid managers were more likely to have trouble trusting their staff to do their best work (49%) compared to in-person managers (36%). Plus, 54% reported they had less visibility into their staff’s work, whereas only 38% of in-person managers could say the same.
What are the biggest benefits and drawbacks of remote work?
Every work model has its pros and cons, and the same goes for remote work.
According to Buffer’s State of Remote Work 2023 report, 22% of respondents said they believed flexibility in how they spend their time was the biggest benefit of remote work. Other benefits included:
- Flexibility in where they live — 19%,
- Flexibility to choose their work location — 13%,
- Lack of commute and more free time — 12%, and
- Better option financially — 11%.
However, remote work comes with significant drawbacks too, such as:
- Staying home too much because there’s no reason to leave — 21%,
- Loneliness — 15%,
- Working across time zones — 14%,
- Inability to unplug — 11%, and
- Difficulty staying motivated — 11%.
What are the biggest challenges of hybrid work?
Microsoft’s 2022 report on impactful hybrid work suggested the inability to connect with their co-workers was hard on hybrid workers.
According to the report, 68% of business decision makers highlighted team cohesion and social connections as one of the major challenges of shifting to hybrid work. And employees echoed this sentiment, as:
- 51% said relationships outside their immediate work group were weakened, and
- 43% said they felt disconnected from the company.
On the other hand, Lattice’s 2023 State of People Strategy report showed that though productivity is a concern, culture is one of the biggest issues of a hybrid work environment and reduced facetime.
Much like employees, 72% of surveyed HR leaders said they were also concerned about staff feeling disconnected from the company. Other challenges highlighted in that same report included:
- Difficulty tracking morale — 62%,
- Infrequent career conversations — 60%,
- Unclear employee expectations — 50%, and
- Difficulty tracking productivity — 45%.
Have hybrid and remote work affected employee productivity?
- 61.4% of them reporting their quality of work improved, and
- 60.4% of them reporting their productivity increased.
More recent data found in Microsoft’s 2022 report on hybrid work challenges revealed that 80% of employees believed they were just as or even more productive since switching to remote or hybrid.
Yet, despite that, the same report indicated that 54% of leaders were fearful that productivity was gravely impacted due to the shift to remote and hybrid work.
Why might employees go back to the office?
According to the previously mentioned Microsoft 2022 report on impactful hybrid work, 82% of business decision makers said they’d consider bringing people to the office again in the coming year.
Still, 73% of employees said they’d need a better reason to go back to the office than sheer company expectations.
Since a lack of socialization has been one of the biggest concerns, it’s no surprise that’s precisely what could push people toward in-person working again.
The same report stated that 84% of employees would be motivated to go to the office if they got to socialize with co-workers. Meanwhile, 85% would be motivated by the chance to rebuild team bonds.
A great percentage of employees (73%) would be more inclined to go to the office if their team members were there too. Naturally, 74% would do the same if their work friends came to work from the office as well.
HR software statistics
Per the results of Trakstar’s 2023 Human Resources Leadership Survey, only 13% of the surveyed respondents said they didn’t use HR software. Those who did, however, also reported on the most valued HR software areas.
According to the survey, 30% of the respondents listed hiring and interviewing as the most valued area, while 26% mentioned performance reviews.
Only 14% of the respondents said they saw the most value in the learning and training area — and the same goes for data and analytics.
Arguably the least important area among those who use HR software is engagement surveys, as only 3% said it was their favorite.
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Which types of performance management tools do HR professionals use?
HR can rely on various performance management tools to ensure their employees are developing their skills properly and are able to do their jobs to the best of their ability.
The previously mentioned Trakstar survey revealed that out of the 565 people leaders who took part in it, 317 used performance management software.
Interestingly enough, 126 respondents said they used Excel or Word docs for the reviews — and 56 confessed they used good old paper.
And how often are performance reviews done anyway?
According to the same survey, 51% of respondents said they do them once a year, while 25% revealed they do them bi-annually.
A smaller percentage (18%) said they conduct quarterly performance reviews, and just 1% do them every 2 years.
That said, not everyone seems to see the point of these reviews, as 5% of the respondents said they don’t conduct them at all.
Which tools are used for onboarding new employees?
The popularity of HR software is also noticeable when it comes to onboarding new employees.
According to the same Trakstar survey, 16% of the respondents said they use some form of learning management software to onboard their staff.
Still, one-on-one training takes the cake, with 56% listing it as their preferred onboarding method, while only 8% play in-house videos as part of their onboarding process.
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Conclusion: Expect a kaleidoscopic future for HR
As the latest HR statistics show, employees are once again in focus, with HR departments scrambling to not only make them happy — but also make them happy enough to stay with their companies.
Something shifted in employees once the pandemic started, changing their priorities for good. Thus, it’s no longer enough to stick with the most basic benefits packages and average pay. Instead, companies are competing to show which one cares more — and which is ready to go the extra mile for their employees.
However, the impending adoption of advanced technologies like AI is likely to change the world of HR and the job market as we know it forever.
Time will only tell what happens, but hopefully, these HR statistics can serve as food for thought and perhaps even help HR departments adjust and improve their strategies.
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