Top HR Statistics

Introduction

The recruiting landscape has fundamentally changed in the past several years. In the second half of 2015, 90% of recruiters said they were operating in a candidate-driven market versus an employer-driven market. Just four years ago, in the second half of 2011, sentiment was almost equally split, with 54% leaning toward the candidate-driven market (Recruiter Sentiment Study 2015 2nd Half, MRI Network, December 2015).

An improving economy and empowered job seekers could be responsible. With more access to information than ever before, job seekers are now more carefully considering their choices. Experiences and issues exposed on social media and review sites can either undermine or enhance an employer's reputation'all this makes building trust absolutely critical.

We hope this collection of statistics from sources like Bersin by Deloitte, KPMG, Edelman, Gallup and Glassdoor research gives you the intelligence you need to make improvements in your company's employee recruitment and retention practices.

Recruiting

Filling positions in a candidate-driven market is more expensive and takes longer. Therefore, it's in an employer's best interest to proactively optimize recruiting practices and focus on retention, so that changing jobs is not the fastest way to a promotion.

1. $4,000 is the average amount U.S. companies spend to fill an open position. (Talent Acquisition Factbook 2015, Bersin by Deloitte, April 2015)
2. It takes an average of 52 days to fill an open position, up from 48 days in 2011. (Talent Acquisition Factbook 2015 2015, Bersin by Deloitte, April 2015)
3. 90% of recruiters say the market is candidate-driven in 2015, up from 54% in the second half of 2011. (Recruiter Sentiment Study 2015 2nd Half, MRI Network, 2015)
4. The top two obstacles to increasing headcount are a shortage of candidates (31%) and lengthy hiring practices (27%). (Recruiter Sentiment Study 2015 2nd Half, MRI Network, December 2015)
5. 47% of declined offers in the second half of 2015 were due to candidates accepting other jobs, up 10 points from the first half of 2015. (Recruiter Sentiment Study 2015 2nd Half, MRI Network, December 2015)
6. 48% of small businesses report there are few or no qualified applicants for the positions they are trying to fill. (NFIB, November 2015)
7. 51% of employees are considering a new job. (Workforce Panel, Gallup, November 2015)
8. One in three employers are concerned voluntary exits will increase. ( Harris Poll for Glassdoor, February 2015)
9. More than half (52%) of hiring decision makers say passive candidate sourcing has been less effective for their company. (Harris Poll for Glassdoor, 2014)
10. More than two-thirds (67%) of employers believe retention rates would be higher if candidates had a clearer picture of what to expect about working at the company before taking the job. (Harris Interactive Survey for Glassdoor, 2014)
11. 89% of Glassdoor users are either actively looking for jobs or would consider better opportunities. (Glassdoor U.S. Site Survey, January 2016)
12. 57% of Glassdoor visitors are employed either full-time or part-time. (Glassdoor U.S. Site Survey, January 2016)

Trust & Transparency

Issues of trust are relevant to both employees and consumers. After all, every employee is also a consumer, and more likely than ever to consult reviews or other information online before making important decisions. Highly publicized events involving product recalls, employment scandals and questionable business practices create an environment of mistrust, leading consumers to demand more information about products, services and employers.

Moving toward organizational transparency helps foster an environment of trust. Transparency is not just a buzzword; it may be a necessity for business survival in the 21^st Century.

13. Nearly two-thirds (63%) of consumers refuse to buy products and services from a company they do not trust, while 58% will criticize that organization to a friend or colleague. (Edelman 2015 Trust Barometer, January 2015)
14. 80% of consumers choose to buy products from companies they trust, and 68% will recommend those companies to a friend. (Edelman 2015 Trust Barometer, January 2015)
15. Although content provided by friends and family is still the most trusted (72%), content provided by employees is trusted by 52%. (Edelman 2015 Trust Barometer, January 2015)
16. Employees rank as the most trusted influencers when communicating about their company's engagement and integrity. (Edelman 2015 Trust Barometer, January 2015)
17. 32% of senior executives say building trust is one of their biggest challenges, second only to expansion and top line growth over the next one to two years. (KPMG Global Consumer Executive Top of Mind Survey, June 2015)
18. Nearly 75% of executives believe "our consumers demand transparency." (Global Consumer Executive Top of Mind Survey, June 2015)
19. 90% of job seekers find the employer perspective useful when learning about jobs and companies. (Glassdoor U.S. Site Survey, January 2015)

Employee Engagement

In almost any endeavor, enthusiasm and commitment'the very definition of engagement'breed success. Employees who understand their contribution to the company's mission are more likely to bring a positive attitude and commitment to the workplace, which trickles down to company performance at every level: operations, product design, customer service, etc.

Research on engagement and company performance shows a strong correlation between the two, proving that employee engagement is crucial to business success.

20. In 2015, 32% of U.S. workers were engaged. (Gallup daily tracking, January 2016)
21. Companies with employee engagement programs achieve 26% greater year-over-year increase in annual company revenue, compared those who do not have formal programs. (Aberdeen, October 2015)
22. 87% of organizations cite culture and engagement as one of their top challenges, and 50% call the problem "very important." (Global Human Capital Trends 2015, Deloitte, February 2015)
23. "Mission-driven" companies have 30% higher levels of innovation and 40% higher levels of retention, and they tend to be first or second in their market segment. (Becoming Irresistible, Deloitte, February 2015)
24. Two-thirds (66%) of HR respondents report they are updating their engagement and retention strategies. (Global Human Capital Trends 2015, Deloitte, February 2015)
25. Fewer than half (49%) of employees would recommend their employer to a friend. (Glassdoor Data Labs, December 2015)
26. While 90% of executives understand the importance of employee engagement, fewer than 50% understand how to address this issue. (Conference Board, cited by Deloitte University Press, January 2015)

Leadership & Management

It's often said that culture is set from the top down. But direct managers have just as much impact on employee engagement as top leaders. By recruiting, training and retaining strong managers and executives, companies create an environment of trust that will naturally improve employee engagement and increase retention rates.

27. Managers who are not engaged or who are actively disengaged cost the U.S. economy $319 billion to $398 billion annually. (State of the American Manager, Gallup, April 2015)
28. High-performing companies spend 1.5 to 2 times more on leadership than other companies, and reap results that are triple or quadruple the levels of their competitors. (Global Human Capital Trends 2015, Deloitte, February 2015)
29. One in two employees have left their job to get away from their manager at some point in their career. (State of the American Manager, Gallup, April 2015)
30. 35% of managers are engaged, 51% are not engaged and 14% are actively disengaged. (State of the American Manager, Gallup, April 2015)
31. 84% of organizations anticipate a shortfall in the minimum number of qualified leaders over the next five years. (State of Leadership Development 2015, Brandon Hall, August 2015)
32. 86% of global HR and business leaders cite leadership as a top issue for 2016. (Global Human Capital Trends 2015, Deloitte, February 2015)
33. Only 26% of employees agree that "my employer listens and responds well to me." (Employees Rising, Weber Shandwick, April 2014)
34. Only 18% of current managers have the high talent (that unique combination of talents needed to help a team achieve excellence in a way that significantly improves a company's performance) required of their role. (State of the American Manager, Gallup, April 2015)
35. Only 17% of employees highly rate communications from their company's top leader and senior leadership. (Employees Rising, Weber Shandwick, April 2014)
36. Employees who are supervised by highly engaged managers are 59% more likely to be engaged than those supervised by actively disengaged managers. (State of the American Manager, Gallup, April 2015)
37. More than two-thirds of Millennials believe it's management's job to provide accelerated development opportunities to encourage them to stay. (Becoming Irresistible, Deloitte, February 2015)
38. The average CEO approval rating on Glassdoor is 69%. (Glassdoor Data Labs, December 2015)

Social Media

With 76% of all U.S. Internet users on social media (Pew Internet, October 2015), social channels like Facebook, Twitter and Instagram have become increasingly popular for employer communication and employee recruitment. Company leaders and employees alike can influence perceptions through their personal social accounts.

By encouraging and training leaders and employees to use social media on the company's behalf, employers can generate goodwill and provide a first-hand view of life at the company for customers, candidates and future employees.

39. Three-quarters of U.S. respondents believe that companies whose C-Suite executives and leadership team use social media to communicate about core mission, brand values and purpose are more trustworthy. (The Global Social CEO Survey 2014, Brandfog)
40. 61% of U.S. respondents and 50% of U.K. respondents are more likely to purchase from a company whose values and leadership are clearly communicated through executive leadership participation on social media. (The Global Social CEO Survey 2014, Brandfog)
41. 39% of employees have shared praise or positive comments online about their employer. (Employees Rising, Weber Shandwick, April 2014)
42. There is a 50% increase in employees recommending company's products or services when the employer encourages social sharing. (Weber Shandwick, Employees Rising, 2014)
43. Only 33% of employers encourage employees to use social media to share news and information about their work or employer. (Weber Shandwick, Employees Rising, 2014)

Reviews

From books to tires to dentists, virtually no aspect of life has escaped online reviews. Company response to reviews has become increasingly important, particularly for high-touch products and services. Employers are no exception. Acknowledging faults, thanking people for their contributions and publicly committing to improvement are new expectations in the era of transparency.

44. Seven in 10 Americans seek out advice and opinions before making purchases. (American Lifestyles 2015, Mintel, June 2015)
45. 80% of shoppers conduct research online before making a purchase over $500. (Fourth Annual Major Purchase Consumer Study, Synchrony Financial, November 2015)
46. 61% of Glassdoor users report that they seek company reviews and ratings before making a decision to apply for a job. (Glassdoor U.S. Site Survey, January 2016)
47. Nearly two-thirds (62%) of Glassdoor users agree their perception of a company improves after seeing an employer respond to a review. (Glassdoor U.S. Site Survey, January 2016)
48. The majority of job seekers read at least 6 reviews before forming an opinion of a company. (Glassdoor U.S. Site Survey, January 2016)
49. 69% of active job seekers are likely to apply to a job if the employer actively manages its employer brand (e.g., responds to reviews, updates their profile, shares updates on the culture and work environment). (Glassdoor U.S. Site Survey, January 2016)
50. Top five pieces of information job seekers want employers to provide as they research where to work: (Glassdoor U.S. Site Survey, January 2016)
    • Details on compensation packages
    • Details on benefits packages
    • Basic company information
    • Details on what makes the company an attractive place to work
    • Company mission, vision and values