HiBob and Workology First Quarterly HR Benchmark Survey Reveals That Employee Retention is More Critical than Company Growth
Leading HR technology disruptor HiBob today shared the findings from their first quarterly survey with Workology, a global HR media company. The rolling benchmark study aims to help HR leaders understand how their peers approach HR strategy and programming and monitors how these approaches change and develop. The Q1/2022 results revealed that in most cases, HR is no longer responsible for only admin and payroll, but is playing a crucial role in high-level business decisions and is increasingly led by C-level executives.The pandemic has made HR a focal point for companies, and HR leaders need increasingly progressive HR tech to succeed in the Modern World of Work. Our survey results show that HR personnel now maintain a robust tech stack with metrics and data to help them meet company KPIs for employee retention, satisfaction, and more,” says HiBob CEO Ronni Zehavi. “The HiBob and Workology report shows that businesses understand the critical role of their HR departments, with 70% of top HR leaders reporting to the CEO. With the Great Resignation and Great Reshuffle, HR metrics are heavily influencing leadership decisions that affect a company’s bottom line.”
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HR Shifts from Admin to Leadership
After playing a leading role in helping companies adjust to the pandemic, HR teams have shifted away from admin and operations to focus on leadership tasks. Almost all respondents (97%) noted that HR is leading their company’s onboarding of new employees, managing the effort to foster company culture and employee engagement, and overseeing the recruiting process. In fact, only 50% of HR professionals stated they handle payroll, while nearly two-thirds (63%) manage employer branding.”Talent acquisition and retention have been crucial to the survival of companies throughout the pandemic of the last two years. As more organizations put HR at the forefront of people strategies, benchmarking these data points is more important than ever, enabling company leadership to speak, act on, and respond to the language of data,” says Workology founder Jessica Miller-Merrell.With this shift, HR has become increasingly critical to the company’s overall business, with 57% of respondents ranking HR at a 5/5 in its contribution to the success of the company. Company leaders also recognize that the future of work heavily relies on HR support and are increasing their investment in HR. Around half (45%) of HR professionals said their HR budgets will increase by up to 20% over the next year, and an additional 6% said it would increase by 30% or more.
Employee Retention is a Primary FocusWhen asked about their primary business focuses for the next six months, more than half (52%) of HR professionals replied that retention and turnover are their most critical issues. Only 28% of HR executives reported that compensation and benefits will be a priority, despite workers’ concerns about inflation, and only 37% said that rapid growth was a primary business focus. These results prove that HR teams are more focused on retaining and engaging their people rather than revenue since a strong team is a foundation for maintaining and increasing productivity.
Elevating HR Through Metrics and a Tech Stack Data is no longer just for business analysts and HR is increasingly centered around metrics that are communicated directly to managers and the C-Suite. Key performance indicators (KPIs) for HR include tracking turnover (79%), retention (52%), and tenure (51%).Because of HR’s new leadership role, HR tools are evolving rapidly. HR leaders believe that the most important tools to have in an HR tech stack are a human resources information system (HRIS), recruiting, survey, and payroll systems. While the survey gave a list of 12 tech solutions, the average number of tech stack functions that respondents used was six.”Since companies are planning to invest more in their HR this year, businesses should update their tech stack to help HR facilitate employee growth and best prepare companies to thrive in the modern world of work. Additional tools and functionality should automate and support learning and development, goal-setting, compensation benchmarking, and performance management,” added Ronni Zehavi.
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