Navigating HR in an Uncertain Economy
Lead Your Business Through Uncertainty with HR Metrics That Matter
The economy is uncertain. But with the right HR insights, you can navigate the challenges ahead. Track the right metrics to optimize hiring and reduce labor costs.
Section 1: Why HR Matters in 2024
In 2024, the hiring market will remain candidate-driven, with significant gaps in industries like manufacturing and healthcare. At the same time, many organizations face increasing labor costs and competitive hiring markets.
- 56% chance of a recession in 2024 (New York Fed)
- Interest rates remain at 20-year highs
- Salary increases expected: 51% of employers plan to raise salaries to attract talent
As an HR leader, the decisions you make now will shape the future of your organization. Here are three key HR metrics to track in the coming year.
Section 2: Key HR Metrics to Track in 2024
1. Time-to-Fill
What it is: This metric tracks the time from when a job requisition is created to when a candidate accepts an offer.
Why it matters: It reveals how effective your recruiting process is, identifies bottlenecks, and can help you plan your hiring needs in advance.
- Average in 2023: 44 days
- Top performing companies: 36 days (Josh Bersin & AMS)
Track Time-to-Fill for efficiency and speed.
2. Referral Rate
What it is: Employee referrals account for 30-50% of all hires and are often the quickest source of high-quality candidates.
Why it matters: Referral programs can reduce hiring time and improve retention rates, helping you stay ahead in the competitive job market.
Encourage employee referrals to strengthen your hiring pipeline.
3. Cost-per-Hire
What it is: This metric measures the total cost of recruiting for each hire, including recruitment software, advertising, and onboarding.
Why it matters: Understanding your cost-per-hire can help you optimize your recruitment budget and reduce unnecessary spending.
- Average cost-per-hire: $4,700 (SHRM)
Keep labor costs in check by optimizing your recruiting spend.
Section 3: Focus on Labor Costs – The Biggest Expense
Labor costs represent the largest expense for most companies, and with economic uncertainty, it’s crucial to manage them effectively.
- Are your employees engaged and productive?
- How much are employee absences costing you?
- Are you overspending on labor or undercompensating employees?
This article is posted at paycor.com
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