The world of human resources is constantly evolving. With the introduction of “gig” jobs like Uber and high-tech advancements, employees have more power than ever. There's a new desire to find a balance between work and life.
There are more job openings than candidates. And opportunities to change jobs are abundant. Workers have less reason to rely on and remain loyal to their employers. Especially if their employers don’t offer employees what they want.
With 2020 right around the corner, we’re looking at the stats and trends we’ve seen in human resources, hiring, and workplace culture. The future is here. So, it’s important to understand the current climate and be ready.
General HR Trends and Statistics
Candidates moving through the market have a range of opportunities. Meanwhile, companies have to work 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.
- The 2019 median household income is $63,030, a .38% decrease from 2018.
- Experts estimate that there will be 55 million job openings through 2020, most of which can be attributed to Boomer retirement.
- The average salary for new graduates to the market is $54,010.
- 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.
Employee Engagement and Retention
With the challenges companies face recruiting top talent, it’s more important than ever to work on keeping employees happy. By focusing on the evolving expectations for employers by their workers, companies can easily address modern needs.
- Four or more methods of alternative benefits, like career development and community involvement, have been used by 90% of employees.
- These progressive benefits are positively rated by 60% of employees when it comes to affecting their engagement, motivation, and satisfaction.
- Over 70% of employees feel that the importance of new benefits will continue to grow over time.
- Tuition reimbursement has become a desired benefit, which 61% of companies now offer to employees.
- Advancement opportunities are sought after by 72% of candidates.
- The US is the only country out of 41 nations to not offer paid parental leave.
- Fathers spend drastically more time (17 hours a week) on childcare and housework as compared to 6.5 hours in 1965.
- 60-78% of employees feel that their job gives them a sense of meaning and purpose with the field of technology scoring the highest.
- 64% of millennials would rather make less at a job they love than make more at a job they find boring.
- If they feel there is a lack of career growth, 64% of millennials will leave their job.
- Employee Tenure
- 51% of employees are actively searching for a new job or position opening.
- 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. Once achieved, it helps the company thrive. But with a shortage of talent and the importance of 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 is a reflection of how they’ll be treated as an employee.
- “Ghosting” isn’t just for 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.
- Companies that acquire a diverse workforce are 15-35% more likely to have higher than average financial returns while those without diversity lag behind.
- Most women (68%) accept the first salary offer and don’t negotiate.
- More than half of employees think their employers should focus on becoming more diverse.
The Future of Employment
With the introduction of the “gig economy” and features of emerging technology, it’s safe to say that the job landscape has drastically changed. Flexible schedules, rising waes, 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 starting to utilize contractual work and the “gig economy” to supplement their income.
- Flexible work arrangements improved overall work satisfaction for 73% of respondents.
- In contrast, only 7% of employers have flexible working arrangements as an option to their employees.
- Finding a work-life balance is the most desirable benefit to 42% of job applicants.
- 87% of employees want employers to help them maintain a work-life balance.
- Employee burnout accounts for up to half annual workforce turnover.
Raising the Pay
- 13% of families that earn minimum wage working live below the poverty line.
- A single person making a living wage can, at minimum, live on $10.31 an hour but must make at least $16 an hour to live in a more expensive city.
- The majority (81%) of working parents would rather have work-life balance than receive higher pay.
- Most employers are optimistic about the addition of AI and automation to their companies
- Emerging technology has automated and redefined jobs, rather than replacing them.
- A majority of recruiters (75%) use applicant tracking software to find potential employees while 79% use social media.
- A negative review of a company on Glassdoor leads to over 50% of candidates deciding against accepting an offer.
- By 2020, over half of the US workforce will be comprised of millennials.
- 7.6 million US workers will be working in the “gig economy” regularly by 2020.
- A majority of 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 in order 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.
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