25+ HR Statistics That Businesses Must-Know in 2024

Human resources play a critical role in every organization. From software adoption to AI use, these trends show why modern HR is so important.

With that in mind, we’ll cover some essential HR statistics that every business should be aware of.

HR Statistics: Key Numbers

65% of small US businesses use HR software.
15% of small businesses will adopt HR software in 1–2 years.
Over 73% of companies plan to invest more in recruitment tech.
97% of employers are considering increased recruitment technology investments.
64% of HR professionals say automation or AI tools eliminate unqualified candidates.
About 85% of employers using automation or AI save time and improve efficiency.
66% of CEOs think AI has the potential to significantly improve HR functions.
20% of small businesses use a PEO to handle payroll processing.
About 40% of small businesses incur $845 in IRS penalties annually due to payroll errors.
15% of organizations with 2,500 or fewer employees completely outsource payroll services.

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

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)

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.

75% of recruiters use a recruiting or Applicant Tracking System.
The global ATS market reached $2.3 billion in 2021 and is expected to reach $3.2 billion by 2026.
35% of small businesses use applicant tracking systems to screen resumes and candidates.
75% of recruiters use ATS to cut hiring costs.
89% of large companies screen resumes and applicants with ATS software.
98.8% of Fortune 500 companies use ATS.
94% of recruiters say their ATS has positively impacted their hiring process.

Sources: (Recruitee, GlobeNewswire, Jobscan, Empxtrack, Capterra)