PwC BrandVoice: Trends In Turnover, Promotions And HR

In the United States, the 2024 Saratoga Annual HR Benchmarking report from PwC reveals significant trends in workforce management. Turnover rates have decreased to pre-pandemic levels, with voluntary separation rates dropping from a high of 15.9% in 2021 to 13.7% in 2023. This decline indicates that employees are increasingly remaining in their positions, which has led to a 17% reduction in external recruitment rates. However, the overall promotion rate has also seen a decline of about 15%, with the most notable drop among White men, who experienced a nearly 23% decrease in promotions within a year. The report highlights the growing importance of HR functions, particularly in people analytics, which have expanded significantly across various industries. The technology and manufacturing sectors, in particular, have seen a notable increase in HR personnel, aligning their HR team sizes with other industries. This shift is accompanied by a remarkable 200% increase in people analytics teams in manufacturing and engineering companies, indicating a trend towards data-driven HR practices. The findings underscore the challenges faced by Chief Human Resources Officers (CHROs) in managing turnover and maintaining a skilled workforce in a competitive labor market. The report also emphasizes the need for organizations to focus on internal talent development and retention strategies to navigate these changes effectively. Overall, the 2024 Saratoga Annual HR Benchmarking report provides valuable insights into the evolving landscape of workforce management, highlighting the need for organizations to adapt to these trends to remain competitive.