25+ HR Statistics That Businesses Must-Know in 2024

“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 

  1. A significant 65% of small US businesses have implemented HR software.
  2. Within the next 1 to 2 years, 15% of small businesses plan to adopt HR software.
  3. An overwhelming 73% of companies intend to increase their investments in recruitment technology.
  4. Similarly, 97% of employers are considering higher investments in recruitment technology.
  5. As per 64% of HR professionals, their organizations’ automation or AI tools effectively eliminate unqualified candidates.
  6. A substantial 85% of employers utilizing automation or AI report time savings and enhanced efficiency.
  7. 66% of CEOs believe that AI has the potential to significantly improve HR functions.
  8. 20% of small businesses use a PEO for payroll processing. 
  9. On average, approximately 40% of small businesses accrue $845 in IRS penalties every year due to error in their payroll processes.
  10. 15% of organizations with 2,500 or fewer employees fully outsource their payroll services.

Source: (Capterra, Zippia, ZoomInfo, EightFold AI, Research and Markets, BusinessDIT)

AI in HR Statistics

  • According to 64% of HR professionals, their companies’ automation or AI tools automatically screen out unqualified candidates.
  • 85%of employers using automation or AI say it saves time or improves efficiency.
  • Automation and AI are used by 16% of employers with fewer than 100 workers and 42% of those with 5,000 or more.
  • In five years, 25% of companies will use automation or AI in recruitment and hiring.
  • 66% of CEOs think AI can boost HR.
  • 50% of HR executives agree that AI can transform HR.
  • 92% of HR leaders plan on using AI to acquire talent.
  • Intelligent AI mechanisms can quickly screen out 75% of applicants via scanning, reading, and evaluating their resumes.
  • The AI HR market is expected to grow 35.26% from USD 3.89 Bn in 2022 to USD 17.61 Bn in 2027.

Source: (SHRM, ZoomInfo, EightFold AI, Research and Markets)

HR Outsourcing Statistics

  • It is estimated that nearly 24% of small businesses outsource HR services.
  • 45% of businesses spend nearly a day a week on administrative HR issues.
  • Outsourcing HR could cut employment costs by 70%.
  • 44% of businesses say their biggest challenge working with outsourced HR is that vendors take a reactive versus proactive approach to issues.
  • HR outsourcing costs $583 per month per employee.
  • 78% of HRO providers met or exceeded cost goals.
  • Employee Training (58%) and recruitment (38%) are the most outsourced HR functions.

#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.

small US businesses have implemented HR software

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.