The world of human resources is constantly evolving. Between job seekers with gig jobs like driving for Uber and high-tech advancements that enable remote work, employees have more power than ever. There’s a continued desire to find a balance between work and life.
We’re seeing more job openings than candidates. Job opportunities are abundant, meaning workers have fewer reasons to rely on and remain loyal to their employers. Especially if their employers don’t provide employee benefits and offer employees what they want.
As we enter 2022, we took a look at the stats and trends in human resources, hiring and workplace culture. The future is here, so it’s important to understand the current employee engagement climate and be ready.
General HR Trends and Statistics
Candidates moving through the market have a range of opportunities, forcing companies and human resources managers to work harder than ever before to attract the best talent. With a healthy salary awaiting the average worker and less time spent looking for a job, it’s a candidate’s market.
- 2021 median household income was $72,353, a 7% increase over 2020.
- The U.S. has added nearly 7 million jobs over the past 12 months, and unemployment is holding steady at around 4%.
- The number of job openings as of December 2021 was 10.9 million.
- The average salary for new graduates to the market is $55,260.
- When hiring, a company usually faces an average of 27 days to hire a new employee, but top candidates are taken off the market within 10 days.
- The average job vacancy costs businesses $98 per day.
Employee Engagement and Retention
With the challenges companies face recruiting top talent, it’s more important than ever to work on keeping existing employees happy. By focusing on the evolving expectations candidates have for employers, companies can easily address today’s wants and needs, thus increasing employee retention.
- 90% of employees have used four or more methods of alternative benefits, like career development and PTO for community involvement.
- These progressive benefits are positively rated by 60% of employees when it comes to affecting engagement, motivation and satisfaction.
- More than 70% of employees feel that the importance of new benefits will continue to grow over time.
- Tuition reimbursement is a desirable benefit, which 56% of companies offer to employees.
- 45% of employees say they’re more likely to stay at their job if they’re offered more professional development through training.
- The U.S. is the only country out of 41 nations to not offer paid parental leave.
- 70% of employees feel that their job gives them a sense of meaning and purpose.
- 64% of millennials would rather make less at a job they love than make more at a job they find boring.
- More than 309,000 women dropped out of the workforce in September to care for family.
- 74% of millennials do not want to return to the office full-time.
- 39% of employees are actively searching for a new job.
- The search for better company culture contributes to a majority of company turnover.
- 35% of workers have switched companies within the last three years.
- Family status affects the desire to change jobs. Married employees are less likely to look for a new position than single people, but employees with children are more likely to job search.
- More than half (66%) of millennials think they will leave their current employer by 2020.
Recruiting and Hiring Statistics
One of the biggest concerns with modern recruiting is maintaining a level of diversity. Greater diversity has been proven again and again to help a company thrive. But with a shortage of talent and the importance of new recruitment strategies and the interview process, companies ought to be on their best behavior.
A Good First Impression
- According to 86% of recruiters, we’re currently in a candidate-driven market.
- As of 2019, the global talent shortage is at a 12-year high while skilled trade jobs are the most difficult to fill.
- Interviews aren’t just for the employer. 95% of candidates believe the way they’re treated during the interview reflects how they’ll be treated as an employee.
- “Ghosting” isn’t just for dating relationships anymore. Almost half of candidates are no-shows for their interviews or first day of work.
- 78% of companies have made it an initiative to hire diversely.
- Employees who work in a company with high fair treatment perform at a level that is 26% greater than those who don’t.
- Only 22% of HR leaders characterize their workplace as having a high degree of fairness.
- More than half of employees think their employers should focus on becoming more diverse.
The Future of Employment
With the rise of the gig economy and features of emerging technology, it’s safe to say that the job landscape has been fundamentally altered. Flexible schedules, rising wages and shifting benefits are the result of the changing landscape of employment.
A New Way to Work
- More than half (64%) of potential employees are using contract and gig work to supplement their income.
- 59% of employees say they’d be more likely to choose an employer that offers remote work.
- Employees have been meeting by video calls 50% more since before the pandemic.
- 30% of employees say they’re more productive and engaged working from home.
- 32% of employees say they would quit their jobs if they weren’t allowed to continue working remotely.
- Employee burnout accounts for up to half annual workforce turnover.
Raising the Pay
- 11% of families that earn minimum wage live below the poverty line. That number increases to 13% for employees who work in tipping industries.
- A single person making a living wage can, at minimum, live on $10.47 an hour but must make at least $17.46 an hour to live in a more expensive city (but they’d still need roommates).
- Almost 75% of employees earning minimum wage in 2020 worked in service jobs, mainly food preparation and serving.
- Most employers are optimistic about the addition of artificial intelligence (AI) and automation to their companies.
- Emerging technology has automated and redefined jobs, rather than replaced them.
- Most recruiters (75%) use applicant tracking software to find potential employees while 79% use social media. 98% of Fortune 500 companies use an applicant tracking system (ATS).
- A negative review of a company on Glassdoor leads to more than 50% of candidates declining an offer.
- By 2025 Millennials and Gen Z will make up nearly 64% of the labor force.
- By 2023, 52% of the American workforce will have spent time working in the gig economy.
- Most employers (97%) plan to increase their investments in recruiting technology.
A note about our sources:
To compile this list, we reviewed a variety of third-party sources to offer a comprehensive view of the HR landscape as it is today. We vetted the sources to ensure that the statistics referenced are all from credible experts in the field.