100+ Critical HR Statistics and Trends for 2025

You're here for the HR stats and trends that truly matter, so let's get right to it: the key HR statistics for 2025, covering everything from hiring to HR outsourcing, talent retention, automation, and workplace well-being.

Key HR Statistics

Almost 6 in 10 (56%) of organizations find attracting and retaining talent a thorny challenge.
Remote work is highly sought after, with 98% of employees desiring this perk.
Employee referral programs are the most effective recruitment strategy for 7 in 10 employers.
Fast-growing small companies are nearly 20% more likely to implement HR best practices compared to those with no growth. They are also more likely to have employee assistance programs (74% vs. 38%) and employee recognition programs (32% higher).
Despite its potential, nearly 6 in 10 employers underutilize their Human Resource Information Systems (HRIS).
65% of HR leaders view AI positively, and AI is primarily used in recruiting (43%), learning and development (25%), and performance management (10%).
For almost 9 out of 10 companies, AI helps HR save time and increases productivity.
Across different industries, 62% of HR functions are outsourced.

HR Industry Statistics

The labor market has become more stable since the Great Resignation, but employers still face challenges in attracting and retaining skilled workers.

Talent management was a top priority for many employers in 2024, with 56% reporting that attracting and retaining talent is one of their biggest HR challenges, according to the latest HR Industry Trends Survey Report by HR Works, Inc. Other significant challenges include leadership development and succession planning (32%) and employee engagement (31%).

In 2024, most companies experienced significant delays in filling open positions.

Also, from the above-cited data set, 15% of employers filled roles in under four weeks, while 30% needed between two and four months. The largest group, 40%, took between 4 and 8 weeks to find the right candidate.

While some employers retain 90% or more of their workforce, others struggle, with 20% retaining less than half of their employees.

The report from HR Works, Inc. shows a wide range of employee retention rates among employers. While 30% of employers retain 90% or more of their workforce, and another 20% keep 75-89% of their employees, a significant number struggle with retention. 15% of employers retain only 50-74% of their employees, and a concerning 20% retain less than half of their workforce.

Surveyed employers identified employee referrals as a key recruiting tool.

According to 70% of those surveyed, employee referrals were the most successful recruiting tool. Indeed was almost as popular (70%), followed by LinkedIn (50%), social media (24%), and recruitment events (20%).

Benchmarking, a process used to evaluate compensation and benefits by comparing them to those offered by similar organizations for similar roles, is surprisingly not a widespread practice among employers.

HR Works, Inc. also revealed in their survey that nearly 6 in 10 employers (59%) fail to consistently benchmark their compensation packages against market rates, which can result in misaligned pay, inequity, and challenges in attracting and retaining talent.

Only 15% of employers included a communication and training plan as a part of their compensation structure.

The most common elements of their compensation structures were compliant job descriptions (71%) and external salary benchmarking (62%). Less common were FLSA assessments (40%), pay grade development (37%), pay gap analysis (35%), and a standardized compensation policy (30%), reported HR Works, Inc.

The most common forms of compensation, besides a base salary, were annual merit increases and discretionary bonuses.

According to the same data set, annual merit increases and discretionary bonuses were the most prevalent forms of compensation, accounting for 24% and 19%, respectively. Shift differentials (11%), spot bonuses (10%), and premium pay for holidays and weekends (10%) were also frequently provided. Less common were nondiscretionary bonuses (7%) and other forms of compensation (6%).

Common holiday and paid time off practices are important aspects of employee benefits.

The majority of surveyed employers (65%) offer either major holidays or all federal holidays. Additionally, new hires typically receive two to three weeks of paid time off, demonstrating a commitment to work-life balance.

The demand for flexible work arrangements is overwhelmingly high, with 98% of workers desiring remote work options.

Employees primarily seek an improved work-life balance (91%), which drives their preference for remote work, according to the report. In response, a majority of employers (67%) are offering hybrid work models.

Mentorship programs are an invaluable tool for employee development and retention, yet they remain underutilized.

Despite fostering leadership development, aiding succession planning, and providing crucial career guidance and support, only 30% of employers offer these valuable programs to their employees.

Nearly 6 in 10 employers underutilize their Human Resource Information Systems (HRIS).

Despite the potential of HRIS to streamline HR operations and automate tasks, the trend survey shows that 58% of surveyed employers don't consider their HR software essential. Furthermore, 82% aren't maximizing the system to improve HR workflows, and 55% don't use it to increase employee engagement.

Small Business HR Statistics

Small teams experiencing fast growth are nearly 20% more likely to adopt HR best practices than those with no growth.

Recent data from Asure reveals that 83% of fast-growth companies have implemented HR best practices, while only 64% of zero-growth companies have done the same, indicating a 19% difference. This suggests that a strong focus on HR best practices may contribute to accelerated company growth.

Fast-growing companies are more likely to have wellness programs (74%) than zero-growth companies (38%).

This is particularly noticeable among small businesses with 25 or fewer employees: almost 60% of fast-growth companies in this category have implemented wellness programs, while less than 15% of zero-growth companies have done the same, says Asure. Overall, over 74% of fast-growth companies offer mental wellness programs, compared to less than 38% of companies experiencing zero growth.

While only half of zero-growth small businesses offer a 401(k), nearly three-quarters of fast-growth companies do so.

According to the Asure HR benchmark report cited earlier, three-quarters of fast-growth teams with 25 employees or fewer (73%) offer a 401(k) plan, more than double that of their zero-growth counterparts.

Small Business HR Stats on Retirement Plans

Most rapidly growing small businesses value clear communication and goal setting, with 9 in 10 holding company-wide meetings and using formal performance review processes.

These companies also invest in their employees' development and recognition, with 81% of respondents offering leadership training and 84% implementing employee recognition programs.

Fast-growth companies are more likely to have written job descriptions for openings than zero-growth companies (80% vs. 76%).

According to Asure, 93% of fast-growing companies express certainty in their job postings’ compliance, compared to only 80% of companies that experienced zero growth.

Over 80% of small companies, regardless of their growth rate, are confident that their job applications do not contain any illegal questions.

However, there's room for improvement in other areas. For example, 25% of companies that didn't grow last year are unsure if their interview process is compliant and effective, the same report points out. Additionally, 81% of fast-growing businesses conduct background checks on candidates, compared to just 67% of businesses that didn't grow last year.

Over 80% of fast-growing small companies offer health insurance, compared to 60% of companies with zero growth.

While staff consistently rank health insurance as the most valuable employee benefit offered by employers, a significant disparity exists between fast-growth and zero-growth companies in providing these benefits, according to Asure. Over 80% of fast-growth companies reported offering a full range of benefits, compared to only 60% of zero-growth companies.

93% of fast-growing small companies prioritize I-9 form completion training for their staff, as opposed to only 67% of zero-growth small companies.

The report also found that fast-growing small companies are more likely to prioritize compliance and employee onboarding than those with stagnant growth. A significant majority (81%) of fast-growing companies have updated their employee handbook within the past year, and 89% use an onboarding checklist.

Conversely, zero-growth small companies with incomplete onboarding programs experience a 30% higher new hire attrition rate, according to the report. These incomplete programs often lack basics like onboarding checklists and formal new employee orientations, leaving a third of these companies at risk of failing a federal audit.

While 80% of fast-growth companies implement best practices for employee development, less than half of zero-growth companies do the same.

Small companies experiencing rapid growth are significantly more likely to invest in human resource development than those with stagnant growth. This is evident in the higher percentages of fast-growth small companies that offer structured training (76% vs. 52%), on-demand training (73% vs. 54%), tuition reimbursement (72% vs. 57%), leadership training (69% vs. 51%), and stretch assignments (58% vs. 35%).

Rapidly growing small businesses are more likely (84%) to have formal HR investigation procedures than those with stagnant growth (59%).

While 83% of zero-growth small companies are confident about their compliance with FLSA wage and hour requirements, Asure found that over 90% of fast-growing counterparts are certain of their compliance.

In contrast to their confidence in wage and hour requirements, 16% of zero-growth companies are not compliant with I-9 requirements and are therefore at risk of an audit from immigration and customs enforcement.

Small businesses that are experiencing rapid growth are far ahead of their stagnant counterparts when it comes to investing in workplace safety.

According to Asure, 72% of fast-growing small companies conduct sexual harassment training, compared to only 54% of zero-growth small companies. When categorized by company size, 74% of businesses with 51-500 employees conduct sexual harassment training, while only 56% of businesses with 50 or fewer employees do.

When asked five questions about retention best practices, 83% of fast-growth small companies answered "yes" to all 5, while only 45% of zero-growth small companies did the same.

While 90% of fast-growth small businesses utilize company-wide meetings to communicate changes and initiatives, this practice is less prevalent in zero-growth small companies (70%), Asure found. Concerningly, less than half of the surveyed zero-growth and down-year small companies employ additional methods to gauge employee engagement, suggesting a lack of adherence to effective employee retention strategies.

High-growth small companies are considerably more likely to survey employees for engagement feedback than those with zero growth (83% vs. 40%).

They are also more interested in understanding their employees' personal perspectives. 73% of fast-growing companies conduct “Stay Interviews” to gain insight into what motivates employees to stay or leave, while just one-third of stagnant or non-growing companies do the same.

Fast-growing small businesses are 32% more likely to have employee recognition programs than those with no growth.

When asked, “Do you have an employee recognition program?”, fast-growing businesses are 32% more likely to say they have one that publicly praises exemplary performance than businesses experiencing no growth, found Asure.

Fast-growing small companies are more than twice as likely to offer career path coaching for employees as those with zero growth.

Also, according to the same report from Asure, 78% of fast-growing companies offer this, compared to only 33% of companies with zero growth.

Ninety percent of fast-growing small businesses have a formal performance review process, compared to 66% of those with zero growth.

Formal performance review processes are more prevalent in fast-growing small businesses, with 90% reporting that they have one. In contrast, only 66% of zero-growth small businesses have a formal performance review process in place.

Additionally, when asked, “Do you regularly communicate expectations for job performance?” 83% of fast-growth small companies said yes, compared to 67% of zero-growth small companies.

Fast-growing small businesses are more than twice as likely to use 360-degree reviews than no-growth small businesses (78% vs 36%).

According to Asure’s data, 78% of fast-growing small businesses utilize 360 reviews that include feedback from multiple team members, compared to only 36% of small businesses that are not experiencing growth.

Fast-growth small companies are more likely (75% vs 63%) to document performance improvement plans for underperforming employees.

3 in 4 fast-growth small companies, compared to 63% of zero-growth small companies, document performance improvement plans for underperforming employees, reported Asure. About 9 in 10 fast-growth small companies reward higher performance with recognition and higher pay, while 70% of zero-growth small companies do the same.

Fast-growth small companies were considerably more likely (84%) than zero-growth small companies (62%) to respond affirmatively to all our post-employment questions.

The data showed that fast-growing small businesses were 31% more likely to provide a termination letter to departing employees than stagnant companies. They were also 23% more likely to conduct exit interviews with employees who left voluntarily, compared to small companies with zero growth.

Additionally, approximately 80% of fast-growth small companies conducted exit interviews and provided termination letters, while only about half of zero-growth small companies did so.

HR Outsourcing Statistics

The human resource outsourcing market is experiencing significant growth.

According to new data, the HR outsourcing market was valued at roughly USD 20 billion in 2024 and is projected to grow by 50% to reach USD 31 billion by 2030.

HR remains a core function that companies choose to outsource.

Along with finance and IT, HR remains a core function that companies choose to outsource. Deloitte reports that 62% of HR functions are outsourced across different industries.

The primary goal driving HR outsourcing is cost reduction (85%), with standardization and process efficiency being a close second (82%).

The key drivers for outsourcing HR are cost reduction and operational efficiency, which are cited by 85% and 82% of companies, respectively, Deloitte reported.

Organizations that outsource HR functions often experience significantly improved business outcomes.

According to The Hackett Group, these organizations embrace new approaches to working and continue to invest significantly more in technology than peers, 85% greater cost per full-time employee. As a result, they spend 39% less on labor per employee and allocate 23% less to labor-performing transactional tasks.

Global HR Statistics

Valued at roughly USD 7 billion in 2024, the HR professional services market is projected to achieve a compound annual growth rate of 13.4% from 2025 to 2030.

This substantial growth is expected to propel the market to an estimated value of USD 13.66 billion by 2029, according to a new report from Mordor Intelligence. Key components of this growth include the increasing diversity of the workforce, rapid technological advancements, a focus on cost reduction, and the automation of HR processes through technologies like big data analytics and artificial intelligence.

In 2025, the U.S. alone is projected to have a market size of over USD 317 billion, expected to reach nearly USD 450 billion by 2030. Europe also shows promise, driven by digital transformation and employee well-being initiatives, with Germany as a key player due to its strong manufacturing sector and tech adoption. APAC is forecasted to experience the fastest growth, with a compound annual growth rate of over 15% from 2025 to 2030, found the report.

The Human Resource industry is valued at USD 10 billion in 2023.

Mordor Intelligence reported that Employee Benefits Administration followed with a valuation of USD 7.5 billion. Additionally, HR Consulting Services, which provides external expertise to organizations, held a valuation of USD 3.43 billion.

As of 2024, there are approximately 1,075,311 businesses operating within the global HR and recruitment services industry.

The number of businesses has grown at a CAGR of 5.2% between 2019 and 2024, told Mordor Intelligence.

In 2024, the global HR and recruitment service industry employed about 10,937,141 individuals worldwide.

Employment within the sector has increased at a CAGR of 2.3% from 2019 to 2024.

Key players such as Randstad and Adecco are leading the global HR and recruitment services market.

Mordor Intelligence projected Randstad as the leading player in 2024 with an estimated revenue of $26.89 billion and a profit margin of 3.2%, followed closely by Adecco with a projected revenue of $26.23 billion and a slightly higher profit margin of 3.3%.

The global HR Tech market was valued at over USD 6 billion in 2024 and is projected to experience substantial growth.

With an expected compound annual growth rate of 8.71% between 2025 and 2030, Mordor Intelligence estimated the global HR tech market would reach USD 13.66 billion by 2029.

Key segments within the HR Tech market are also poised for significant expansion:

The People Analytics Software market, valued at an estimated USD 4.87 billion in 2025, is projected to grow to approximately USD 8.92 billion by 2030.
The HR Software market is forecasted to reach over USD 410 billion in 2025 and grow to about USD 740 billion by 2030.

In 2025, North America will have the biggest share of the HR Tech Market.

Asia-Pacific is predicted to be the fastest-growing region, with an estimated compound annual growth rate of 15.4% from 2025 to 2030, according to Mordor Intelligence. This surge can be attributed to the region's expanding business process outsourcing sector and a growing need for advanced technological solutions to streamline essential HR functions.

Major HR Tech players include ADP, Oracle, SAP HR, UKG, and HiBob.

For more information on these vendors' offerings, check out our in-depth reviews of ADP’s enterprise payroll, UKG, and HiBob’s HRIS.

HR Automation Statistics

Leaders worldwide are embracing AI for HR transformation.

A recent Engagedly report revealed that 45% of companies are using AI for human resource management, with an additional 39% planning to do so in the near future.

The largest organizations, especially those in technology and finance, are pioneering the use of AI for HR functions.

A recent SHRM report highlights that larger organizations and those in the technology and finance sectors lead the adoption of AI for HR-related activities. Statistically, 38% of large enterprises (5,000+ employees) are utilizing AI in HR functions. This adoption rate decreases with company size, with only 22% of small organizations (2-99 employees) using AI in HR.

Industry-specific data further emphasizes this trend. The IT, data processing, and software development sector has the highest AI adoption rate, at 35%, followed by finance, insurance, information, and real estate, at 32%. All other industries combined have an AI adoption rate of 26%.

65% of leaders agree that AI is having a positive impact on HR.

The use of AI in human resources has generally been perceived positively by the majority of its users, with 65% reporting significant increases in productivity and efficiency for HR management tasks, according to the Engagedly report. Findings from SHRM echo this trend, with most HR professionals feeling optimistic about the potential benefits of AI for their organizations:

Three-fourths of respondents agree that AI will make human intelligence more valuable at work.
61% are confident that staff can use AI effectively.
56% think AI can improve team collaboration.

Some differing views on AI's impact.

Interestingly, while 65% of HR leaders using AI report a significant rise in their productivity and efficiency, 31% believe that AI presents new challenges and limitations in addition to benefits.

This aligns with findings from SHRM, which indicate that while most HR professionals are optimistic about AI's potential benefits, nearly 1 in 4 are concerned that it will lead to job displacement. However, those who work at organizations already utilizing artificial intelligence are 16 times more likely to say that it has transformed their jobs rather than displaced them.

Some technical issues have been reported when incorporating AI into HR.

The integration of AI into existing HR technologies and processes poses a significant challenge, as reported by 47% of leaders surveyed by Engagedly. Another challenge is the lack of AI knowledge and understanding among HR professionals (33%).

Furthermore, 1 in 10 survey participants cited a scarcity of resources required for AI implementation, while 8% of respondents mentioned difficulties in measuring the efficacy of AI within the HR context.

Half of the surveyed leaders found integrating AI with their existing systems to be tricky.

The top 3 challenges cited by surveyed leaders are:

Integration with Existing Systems (50%): The biggest challenge is that older systems may not work with AI, and new technologies may be expensive.
Lack of Understanding and Knowledge (24%): Many HR professionals lack sufficient knowledge about AI, which makes it challenging to use it effectively.
Difficulty Measuring Effectiveness (21%): It's challenging to measure the impact of AI on HR because there are no standard ways to do so.

Organizations are taking different approaches to ensure AI is used ethically in HR.

The Engagedly report also revealed that 86% of organizations using AI in HR have an established AI policy governing its use is a promising indication of proactive measures taken by these organizations to ensure the ethical and responsible use of this technology. Moreover, about half (51%) of organizations have established ethical guidelines for AI use in HR.

Unfortunately, just 18% have trained their HR staff on AI ethics, 16% have not considered the ethical implications of AI in HR, and just about the same figure (15%) have formed AI ethics committees to address these concerns collaboratively.

Almost 3 out of 5 survey participants believe that HR professionals in their companies have sufficient or exceptional technical skills in using AI tools.

While AI is rapidly being adopted into the HR industry, not all HR professionals are completely comfortable with the technology yet. According to an Engagedly report, only 59% of HR professionals feel that they have adequate or better skills when it comes to using AI tools. 20% reported being only somewhat adept, and 3% admitted to having no skills with AI tools at all.

However, these numbers are likely to improve. According to SHRM data, nearly three in ten organizations that use AI have already taken the initiative to train and upskill their employees to work with AI.

Key areas in HR where AI is most frequently used are recruiting (43%), learning and development (25%), and performance management (10%).

The SHRM survey results indicate that 64% of companies have used some form of AI to support hiring:

Nearly two-thirds utilize AI to generate job descriptions.
Two-fifths use AI to customize job postings to appeal to specific target groups.
One-third use AI to review and screen resumes, assist with their interviews, and automate candidate searches.

AI saves time and boosts productivity for nearly 9 in 10 HR teams.

Of the 64% of organizations that use AI to support recruitment, 88% reported that it saves time and increases efficiency, and 35% reported that it improves their ability to identify top candidates. Other benefits include cost reduction (23%) and access to underrepresented talent pools (10%).

AI also enhances the candidate experience (reported by 30% of HR professionals), reduces potential bias (20%), and improves the ability to identify diverse candidates (15%).

Further, nearly half of HR professionals say that AI has improved the quantity of applications they must manually review somewhat (35%) or much (14%). About the same say that AI has improved the time it takes to fill open positions somewhat (45%) or much (7%).

These findings are supported by another study that found 85% of employers using HR automation or AI report time savings and efficiency gains. Additionally, this study found AI can reduce the number of applications HR professionals need to manually review to as low as 24%.

HR Trends and Takeaways

Driven by extensive conversations with HR leaders across various industries, we’ve identified the top five HR trends that are expected to shape the landscape in 2025:

#1. HR Digital Transformation Continues at Full Force

In 2025, organizations are believed to embrace digital transformation within HR functions increasingly. This shift involves the adoption of AI and advanced Human Resource Management Software that automates routine tasks, freeing up HR professionals for more strategic initiatives.

Also, the leverage of people data analytics tools is projected to empower HR leaders to make informed decisions.

#2. Strategic Recruitment Counters the Great Resignation

As employers are still dealing with the aftermath of the Great Resignation, the need for effective recruitment strategies becomes a no-brainer. In the coming years, it’s believed that more focus and effort will be put into multiple areas of talent acquisition, including:

In addition, companies are expected to invest more heavily in how they onboard new hires to keep talent engaged and satisfied.

#3. Diversity and Inclusion Initiatives Will See Increased Adoption

Given the worrying engagement statistics, the push for DEI is expected to be profound across organizations in 2025, with employers becoming more willing to invest in comprehensive DEI recruitment tools and diverse hiring strategies.

Additionally, more would adopt transparent reporting practices to hold themselves accountable for their DEI efforts.

Listen to our recent conversation with four DEI experts:

LaShawnda Rodgers, Founder, Rodgers Global Leadership Consortium
Rocki Howard, Founder, Diversiology & Chief People & Equity Officer, Textio
Javier Barrientos, Chief Diversity Officer, Point32Health
Heather Bussing, Employment Attorney, Bussing Law

for more insights on how to ensure a fair and inclusive workplace in 2025.

#4. AI is Here, and It Will Stay

AI is changing the way HR professionals work, and it can actually be a good thing. AI-driven recruitment tools, for example, are already assisting human resources teams in several tasks, from resume screening to candidate matching and sentiment analysis of employee feedback. What’s more, predictive analytics will help HR professionals anticipate turnover risks and identify leadership potential within the organization.

Further, recruiting and HR chatbots have also been increasingly implemented as an effort to provide immediate support for administrative inquiries, such as HR policies and benefits.

#5. Focus on Employee Mental Wellness

Given the critical state of workplace wellness, it’s no surprise that organizations are doubling down on employee assistance programs (EAPs) as a means of showing support to their people’s work-life balance.

That’s a good call. As numerous studies have pointed out, a healthy work culture that fosters open conversations about wellbeing without stigma tends to be handsomely rewarded by higher employee engagement and productivity.

As these trends come into play, companies that adapt to the changes and make smart moves (instead of pretending they’re not happening) will not only become leaders in the market but also create a great workplace vibe that people want to stay for in the long run.