“Human resources isn’t a thing we do. It’s the thing that runs our business,” declared Steve Wynn, emphasizing the indispensable role of HR in the success of any organization.
HR statistics reveal that an impressive 65% of small US businesses have integrated HR software into their operations. Over the next one to two years, an additional 15% of small businesses plan to adopt such software.
Furthermore, with 66% of CEOs acknowledging the potential of artificial intelligence to enhance HR, it is clear that the future of HR lies in harnessing cutting-edge technology to maximize efficiency and effectiveness.
Key Finding on HR Statistics
- A significant 65% of small US businesses have implemented HR software.
- Within the next 1 to 2 years, 15% of small businesses plan to adopt HR software.
- An overwhelming 73% of companies intend to increase their investments in recruitment technology.
- Similarly, 97% of employers are considering higher investments in recruitment technology.
- As per 64% of HR professionals, their organizations’ automation or AI tools effectively eliminate unqualified candidates.
- A substantial 85% of employers utilizing automation or AI report time savings and enhanced efficiency.
- 66% of CEOs believe that AI has the potential to significantly improve HR functions.
- 20% of small businesses use a PEO for payroll processing.
- On average, approximately 40% of small businesses accrue $845 in IRS penalties every year due to error in their payroll processes.
- 15% of organizations with 2,500 or fewer employees fully outsource their payroll services.
Source: (Capterra, Zippia, ZoomInfo, EightFold AI, Research and Markets, BusinessDIT)
#1. A significant 65% of small US businesses have implemented HR software.
According to Capterra, 65% of small US businesses use HR software, with 15% planning on doing so in the next one or two years.
This suggests that a significant number of small US businesses have already implemented HR software, and more are planning to do so in the near future.
#2. An overwhelming 73% of companies intend to increase their investments in recruitment technology.
Naukrirms, a leading applicant tracking and recruitment software provider, reveals that 73% of companies are eager to invest further in recruitment technology.
EnterpriseWorld also enumerates compelling reasons for businesses to invest in recruiting technology, such as reducing expenses and augmenting profits through enhanced recruitment and hiring strategies.
Kand emphasizes the advantages of recruitment technology, including streamlining the recruitment process and conserving both time and resources.
Consequently, it is evident that a substantial portion of organizations are keen to increase their investments in recruitment technology, enabling them to refine their recruitment processes and effectively tackle the challenges presented by the modern labor market.
Is HR a growing industry?
Undoubtedly, the HR industry is experiencing substantial growth. Fortune Business Insights projects the global HR technology market to soar from $23.98 billion in 2022 to $39.90 billion by 2029, with a remarkable CAGR of 7.5%.
Similarly, Grandview Research anticipates the global human resource management market to expand at an impressive compound annual growth rate of 12.8% from 2022 to 2030, ultimately reaching a value of USD 56.15 billion by 2030.
TeamStage further corroborates this growth, revealing a 10.4% annual expansion in the HR market and a 13% growth rate for HR platforms.
Allied Market Research also highlights the increasing demand for HR software solutions. Collectively, these statistics demonstrate the undeniable upward trajectory of the HR industry, a trend poised to continue into the future.