Tne Conference Board, andl group of economic experts who provide information on what is to comereleased the results of the Confidence of Human Resources Managers (CHRO) Index, a survey of US hiring managers that includes the components: staff recruitment, retention and engagement.
As Labor Day approaches, the third-quarter survey revealed the pulse of hiring plans at US companies.
CHROs remain optimistic overall, but a slowdown in hiring caused confidence to fall slightly in the third quarter.
The third quarter index found that 38% of CHROs expect hiring to increase in the coming months, up from 51% in the Q2 survey. Overall, the index fell to 55 in the third quarter, down from 58 in the second quarter. (A reading of more than 50 points reflects more positive responses than negative ones).
“HR leaders are beginning to feel the impact of weaker prospects for hiring and expansion. Also worrisome is the growing percentage of people who report lower employee engagement. CHROs should consider reassessing the employee experience by focusing on the critical factors of engagement: strong compensation and benefits,” said Diana Scott, leader of The Conference Board’s Human Capital Center.
Relevant data from the survey:
· In the CHRO Confidence Index the Hiring component fell to 53 in Q3well below 61 in the second quarter.
38% of CHROs expect their hiring to increase over the next six monthscompared to 51% in the second quarter.
· 26% expect their hiring decrease in the next six monthscompared to 13% in the second quarter.
· While 25% of CHROs in Q3 plan to “moderately decline” hiring, only 1% expect to “substantially decline,” compared with 10% and 3%, respectively, in the second quarter.
34% of CHROs expect their levels of employee retention improve over the next six months, unchanged from Q2, but still down from 45% in Q1.
The component of engagement dropped to 57 in the third quarter from 58 in the second.
More CHROs Are Seeing Declines in Employee Engagement in the Third Quarter: Reports Engagement Levels 25% have decreased in the last six monthscompared to 14% in the first and second quarters.
By the second quarter of 2023, the Index also surveyed CHROs on the anticipated impact of generative AI on various aspects of their organizations.
A large majority expects the Generative AI improves “productivity” (80%)“learning and development” (72%), “innovation” (70%), “creativity” (63%) and “quality of results” (60%).
· 53% of CHROs say their organization is considering generative AI in their strategic workforce planning, compared to 44% who don’t.
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