81 Shocking HR statistics that helped us shape the best LMS.
A huge thanks to the authors of these reports and to GlassDoor for the enlightenment.
11 Employee Engagement Statistics
Engagement of employees is critical to business success. Just watch a determined employee who hates your company, gently cause mayhem amongst co-workers and clients.
We all only have one life, every day counts. This is why we have a zero policy on poor engagement. If we fail to engage you in your role, we do not deserve to keep you and you must help us fix the problem or move on.
This is so problematic that one of my friends now invites employees to leave after their 1st month by offering 2 months salary to leave then and there. The take up is an astonishing 3 out of 4.
But those that stay are incredible. She feels the gene pool in her business is getting a super-boost.
Employee engagement starts at the top with well defined vision and values that are communicated quickly, frequently and widely to everyone. After this flows best practices and processes. Let your rock-stars join the L&D team and become teachers. The impact is infectious and outstanding.
In building the best LMS we felt that rapid and easy content creation, distribution and tracking (adherence and compliance) was critical in solving the engagement challenges.
- In 2015, ONLY 32% of U.S. workers were engaged. (Gallup daily tracking, January 2016)
- Fewer than half (49%) of employees would recommend their employer to a friend. (Glassdoor Data Labs, December 2015)
- Companies with employee engagement programs achieve 26% greater year-over-year increase in annual company revenue, compared those who do not have formal programs. (Aberdeen, October 2015)
- 87% of organizations cite culture and engagement as one of their top challenges, and 50% call the problem "very important." (Global Human Capital Trends 2015, Deloitte, February 2015)
- "Mission-driven" companies have 30% higher levels of innovation and 40% higher levels of retention, and they tend to be first or second in their market segment. (Becoming Irresistible, Deloitte, February 2015)
- Two-thirds (66%) of HR respondents report they are updating their engagement and retention strategies. (Global Human Capital Trends 2015, Deloitte, February 2015)
- While 90% of executives understand the importance of employee engagement, fewer than 50% understand how to address this issue. (Conference Board, cited by Deloitte University Press, January 2015)
- 62% agree their perception of a company improves after seeing an employer respond to a review. (Glassdoor U.S. Site Survey, January 2016; *Updated from 69%, Glassdoor survey, October 2014)
- 72% of employees with socially encouraging employers are significantly more likely to help boost sales, compared to only 48% of employees whose employers aren't socially encouraging. (Weber Shandwick research study, April 2014)
- 70% of employees who lack confidence in the abilities of senior leadership aren't fully engaged. (Dale Carnegie)
- Increasing employee engagement investments by 10% can increase profits by $2,400 per employee, per year. (Workplace Research Foundation)
6 Employer Branding Statistics
Very few organisations think about this. Those that do retain people for longer and reduce significant costs including:
- Recruitment cost
- Recruitment time by many
- Often times you will have to pay more for the same hire
- Onboarding cost and lost efficiency while the new hire finds their feet
- The value of lost knowledge and skills. Frustration caused to customers and fellow team members who might be minded to leave.
We felt that the best LMS should make it easy to retain people in post for longer and to have tools that make it easy to lock in the knowledge and wisdom.
- 69% are likely to apply to a job if the employer actively manages its employer brand (e.g., responds to reviews, updates their profile, shares updates on the culture and work environment). (Glassdoor U.S. Site Survey, January 2016; *Updated from 94%, Glassdoor survey, October 2014)
- 76% want details on what makes the company an attractive place to work. (Glassdoor survey, October 2014)
- Top five pieces of information job seekers want employers to provide as they research where to work: 1) Salary/compensation, 2) Benefits, 3) Basic company information, 4) What makes it an attractive place to work, 5) Company mission, vision, values. (Glassdoor U.S. Site Survey, January 2016)
- 69% would not take a job with a company that had a bad reputation, even if they were unemployed! (Corporate Responsibility Magazine / Allegis Group Services Study, August 2012)
- 84% would consider leaving their current jobs if offered another role with a company that had an excellent corporate reputation. And most in $75-100K salary range would only require a 1-10% salary increase to consider such a move (Corporate Responsibility Magazine / Allegis Group Services Study, August 2012)
- 84% of companies believe a clearly defined strategy is key to achieving employer branding objectives (Employer Brand International Global Research Study)
12 Leadership and Management Statistics
Like it not, outstanding leaders are incredible teachers.
The best LMS would certainly make it easy for leadership to excel, communicate, and teach. The platform would be built in such a way that would allow outstanding leaders who may not be tech savvy to share their existing content be it slides, PDF, video etc and add in quizzes to track and measure understanding.
We also felt it was critical to provide an affordable, flexi-on-demand L&D team. At just £1,800 (circa $2,500) per month for 25 hours. This team can manage the LMS for you and even build content.
- The average CEO approval rating on Glassdoor is 69%. (Glassdoor Data Labs, December 2015)
- 84% of organizations anticipate a shortfall in the minimum number of qualified leaders over the next five years. (State of Leadership Development 2015, Brandon Hall, August 2015)
- Managers who are not engaged or who are actively disengaged cost the U.S. economy $319 billion to $398 billion annually. (State of the American Manager, Gallup, April 2015)
- One in two employees have left their job to get away from their manager at some point in their career. (State of the American Manager, Gallup, April 2015)
- 35% of managers are engaged, 51% are not engaged and 14% are actively disengaged. (State of the American Manager, Gallup, April 2015)
- Only 18% of current managers have the high talent (that unique combination of talents needed to help a team achieve excellence in a way that significantly improves a company's performance) required of their role. (State of the American Manager, Gallup, April 2015)
- Employees who are supervised by highly engaged managers are 59% more likely to be engaged than those supervised by actively disengaged managers. (State of the American Manager, Gallup, April 2015)
- High-performing companies spend 1.5 to 2 times more on leadership than other companies, and reap results that are triple or quadruple the levels of their competitors. (Global Human Capital Trends 2015, Deloitte, February 2015)
- 86% of global HR and business leaders cite leadership as a top issue for 2016. (Global Human Capital Trends 2015, Deloitte, February 2015)
- More than two-thirds of Millennials believe it's management's job to provide accelerated development opportunities to encourage them to stay. (Becoming Irresistible, Deloitte, February 2015)
- Only 26% of employees agree "my employer listens and responds well to me." (Employees Rising, Weber Shandwick, April 2014)
- Only 17% of employees highly rate communications from their company's top leader and senior leadership. (Employees Rising, Weber Shandwick, April 2014)
20 Recruiting Statistics
How many times have we hired that rock-star who upon joining turns out to be an utter turkey. Is it just me?
So the best LMS would make it super easy for me to hire based on:
- Showing new recruits our vision, values and needs in a powerful about us video
- Sharing the pros and cons of the job
- Clearly defining the skills needed and testing for these
- Progress through the content and general time invested in learning about the role
- Their listed development needs uncovered during the process
Then as soon as they accept our offer, we begin the onboarding process with the progress fully tracked.
- 89% of Glassdoor users are either actively looking for jobs or would consider better opportunities. (Glassdoor U.S. Site Survey, January 2016)
- 57% of Glassdoor visitors are employed either full-time or part-time. (Glassdoor U.S. Site Survey, January 2016)
- One in three employers are concerned voluntary exits will increase. (Harris Poll for Glassdoor, February 2015)
- $4,000 is the average amount U.S. companies spend to fill an open position. (Talent Acquisition Factbook 2015, Bersin by Deloitte, April 2015)
- It takes an average of 52 days to fill an open position, up from 48 days in 2011. (Talent Acquisition Factbook 2015 2015, Bersin by Deloitte, April 2015)
- 48% of small businesses report there are few or no qualified applicants for the positions they are trying to fill. (NFIB, November 2015)
- 51% of employees are considering a new job. (Workforce Panel, Gallup, November 2015)
- The top two obstacles to increasing headcount are a shortage of candidates (31%) and lengthy hiring practices (27%). (Recruiter Sentiment Study 2015 2nd Half, MRI Network, December 2015)
- 47% of declined offers in the second half of 2015 were due to candidates accepting other jobs, up 10 points from the first half of 2015. (Recruiter Sentiment Study 2015 2nd Half, MRI Network, December 2015)
- 90% of recruiters say the market is candidate-driven in 2015, up from 54% in the second half of 2011. (Recruiter Sentiment Study 2015 2nd Half, MRI Network, 2015)
- Top 5 pieces biggest considerations job seekers take into account before accepting a job offer: Salary and compensation, Career growth opportunities, Work-life balance, Location/commute, Company culture and values. (Glassdoor survey, October 2014)
- 78% of sales professionals said they would accept less money to work at a company selling something compelling. (Glassdoor survey, June 2014)
- 94% of sales professionals say that base salary is the most important element of the compensation plan, while 62% say that commission is. (Glassdoor survey, June 2014)
- 66% of healthcare professionals are likely to accept less money to work at a company with a great culture. (Glassdoor survey, April 2014)
- 78% of software engineers say the top reason they would leave their job is salary and compensation. (Glassdoor survey, January 2014)
- 48% of female software engineers are likely to apply to a company a friend recommended. (Glassdoor survey, January 2014)
- More than half (52%) of hiring decision makers say passive candidate sourcing has been less effective for their company. (Harris Poll for Glassdoor, 2014)
- More than two-thirds (67%) of employers believe retention rates would be higher if candidates had a clearer picture of what to expect about working at the company before taking the job. (Harris Interactive Survey for Glassdoor, 2014)
- 46% of Glassdoor members are reading reviews when they have just started their job search and have not yet spoken with a company recruiting or hiring manager. (Glassdoor survey, September 2013)
- On average, each corporate job opening attracts 250 resumes. Of these candidates, four to six will be called for an interview and only one will be offered the job. (ERE Survey, 2013)
9 Millennials Recruiting Statistics
Like it or not Millennials are set to dominate the workforce by 2025. When you understand what makes Millennials tick, serving their reasonable needs is easier than you think.
In building the best LMS we needed to streamline the 'needy' things Millennials crave.
- Most Baby Boomers (41%) said workers should stay with an employer at least five years before looking for a new job—only 13% of Millennials agreed. (PayScale & Millennial Branding Third Annual Study, November 2014)
- 76% of Millennials say that retirement benefits offered by a prospective employer are a major factor in their decision to accept a job offer. (Transamerica Center, July 2014)
- Nearly 80% of Millennials look for people and culture fit with employers, followed by career potential. (Collegefeed, March 2014)
- Around 70% of Millennials say they hear about companies through friends and job boards. (Collegefeed, March 2014)
- 64% of Millennials would rather make $40K a year at a job they love, than $100K a year at a job they think is boring. (The Columbus Dispatch, Study Conducted by the Intelligence Group, 2014)
- 65% of Millennials said that they are more skeptical of claims made by employers now than they were in 2011. (CEB Survey, 2014)
- 60% of Millennials consider the most attractive perk to be growth opportunities (Glassdoor survey, March 2013)
- 46% of Millennials left their last job due to lack of career growth. (Glassdoor survey, March 2013)
- 98% of companies still believe on-campus fairs are still the best way to brand themselves with students. (NACE Survey, 2013)
10 Employment Statistics and Social Media
In designing the best LMS we felt that it was important for management to decide if content could be shared easily onto social. You of course would not share sensitive pricing information but by making it easy for sharing:
- Culture, vision and values
- Product information, training and tutorials
- Subject matter information from key opinion leaders within your business etc
Look at the success of SpaceX and the StarMan and his Tesla being streamed across social media.
- Three-quarters of U.S. respondents believe that companies whose C-Suite executives and leadership team use social media to communicate about core mission, brand values and purpose are more trustworthy. (The Global Social CEO Survey 2014, Brandfog)
- 39% of employees have shared praise or positive comments online about their employer. (Employees Rising, Weber Shandwick, April 2014)
- 61% of U.S. respondents and 50% of U.K. respondents are more likely to purchase from a company whose values and leadership are clearly communicated through executive leadership participation on social media. (The Global Social CEO Survey 2014, Brandfog)
- There is a 50% increase in employees recommending company's products or services when the employer encourages social sharing. (Weber Shandwick, Employees Rising, 2014)
- Only 33% of employers encourage employees to use social media to share news and information about their work or employer. (Weber Shandwick, Employees Rising, 2014)
- 79% are likely to use social media in their job search. (Glassdoor survey, March 2013)
- 86% of people in the first 10 years of their career are likely to use social media in their job search. (Glassdoor survey, March 2013)
- Nearly 2 in 3 say their employer does not (or know how to) use social media to promote job openings. (Glassdoor survey, March 2013)
- Nearly 3 in 4 say their employer does not (or know how to) promote their employment brand on social media. (Glassdoor survey, March 2013)
- 2 of the top 3 channels most used for employer brand promotion are their website (92%) and social media (80%) (Universum, 2013)
13 Statistics on Trust and Transparency in the Workplace
Every needs to feel trusted. Yet it amazes us how insecure so many people feel. The best LMS must make everyone feel like a trusted and valued asset of the business.
- 90% of job seekers say that it's important to work for a company that embraces transparency. (Glassdoor U.S. Site Survey, January 2016; *Updated from 96%, Glassdoor survey, October 2014)
- Most job seekers read at least six reviews before forming an opinion of a company. (Glassdoor U.S. Site Survey, January 2016; *Updated from four to seven reviews, Glassdoor survey, October 2014)
- 32% of senior executives say building trust is one of their biggest challenges, second only to expansion and top line growth over the next one to two years. (KPMG Global Consumer Executive Top of Mind Survey, June 2015)
- Nearly two-thirds (63%) of consumers refuse to buy products and services from a company they do not trust, while 58% will criticize that organization to a friend or colleague. (Edelman 2015 Trust Barometer, January 2015)
- 80% of consumers choose to buy products from companies they trust, and 68% will recommend those companies to a friend. (Edelman 2015 Trust Barometer, January 2015)
- Although content provided by friends and family is still the most trusted (72%), content provided by employees is trusted by 52%. (Edelman 2015 Trust Barometer, January 2015)
- Employees rank as the most trusted influencers when communicating about their company's engagement and integrity. (Edelman 2015 Trust Barometer, January 2015)
- Nearly 75% of executives believe "our consumers demand transparency." (Global Consumer Executive Top of Mind Survey, June 2015)
- 90% of job seekers find the employer perspective useful when learning about jobs and companies. (Glassdoor U.S. Site Survey, January 2015)
- 78% of job seekers say that ratings and reviews from those on the inside are influential when deciding where to work. (Glassdoor survey, September 2014)
- 61% of employees say new job realities differ from expectations set during the interview process. (Glassdoor survey, May 2013)
- 68% of consumers trust reviews more when they see both good and bad reviews. (Revoo Insight research, 2013)
- 95% suspect censorship or faked reviews when they don't see bad scores. (Revoo Insight research, 2013)
We hope you have found this information useful and thank the authors of these studies and GlassDoor once again for helping to surface this invaluable data.
If you need help solving these issues or would like to see CreateLMS in action please contact us for a demo.