2023

STATE
OF
HR
SURVEY
PRESENTED BY :
BUSINESS MANAGEMENT DAILY
 State of HR Survey
presented by Business Management Daily

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 State of HR Survey
presented by Business Management Daily

2022 was a year of many challenges, and 2023 promises to provide many more. While
some things may be predictable, it’s impossible to fully predict what the future might hold.
However, HR professionals know planning for disruptions and unexpected challenges is
necessary.

In our 2023 State of HR Survey, we gathered the input of 168 HR professionals from
businesses in different industries and of varying sizes. We then asked for insight into what
challenges they face, what they expect for 2023, and how they overcame some of the
biggest challenges in 2022. Let’s see what they had to say.

Hiring & Recruiting

Our Question:
Finding the right match for a position can be challenging. When it comes to talent
acquisition, what’re the biggest challenges you face? (Select 2)

Insight from the comments

For some companies, whether it’s due to location, rules and regulations, or other causes,
it’s hard to get applicants in the first place.
• So far, the biggest obstacle is just getting applicants period.
• I work in a rural area that is difficult to attract talent. We continue to make compliance with the
COVID vaccine an expectation for employment, although religious accommodations are granted.
This mandate has made it much more difficult to attract people to our organization.
• Substantially fewer candidates are applying for our positions, post-Pandemic. Just one-third of
the pre-Pandemic amounts of candidates. Work-Life Balance seems to be their main emphasis
nowadays, so they avoid shift-work jobs.
• The major challenge is identifying the right talent pools from which quality candidates can be
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 sourced. Another challenge I face is the development of an Employee Value Proposition that really
resonates with the candidates I seek to attract.
The problem isn’t just getting candidates to apply, it’s getting candidates who have the
right skills and qualifications for the job. Lots of applicants simply don’t have the minimum
skills needed.
• Candidate quality has been a constant challenge, verification is not always reliable.
• Particularly within the last 4 years, it has been extremely difficult to find qualified candidates in the
public accounting industry. We’ve advertised in our local newspapers, our website, all social media
platforms, and also hired a recruiter. Unfortunately, the candidates that do apply either 1) are not
qualified; 2) request only wanting to work from home; or 3) before making a decision to accept a
position, ask about our paid leave.
• After placing an ad on the job search sites, we get candidates that don’t meet any of the requirements
we are looking for. This makes the hiring process more difficult. I even enter deal-breaker questions
that need to be answered before applying for the position. The amount I spend reading through 20
to 30 resumes a day is time-consuming. Or if I find the right candidate, they’re not willing to negotiate.
We offer excellent employee benefits, but candidates worry more about the monetary offer.
• We are a veterinary hospital so it is nearly impossible to find qualified applicants to even interview. We
give detailed specifics in the job description and list all qualifications that the applicant must possess.
However, people with absolutely none of the required qualifications apply or lie about their skills,
which we discover in the interview process. Even going through companies like Indeed or Zip Recruiter
doesn’t weed out the unqualified applicants despite the filters we set in place. After placing an ad on
the job search sites, we get candidates that don’t meet any of the requirements we are looking for.
This makes the hiring process more difficult. I even enter deal-breaker questions that need to be
answered before applying for the position. The amount I spend reading through 20 to 30 resumes
a day is time-consuming. Or if I find the right candidate, they’re not willing to negotiate. We offer
excellent employee benefits, but candidates worry more about the monetary offer. Substantially fewer
candidates are applying for our positions, post-Pandemic. Just one-third of the pre-Pandemic amounts
of candidates.
Competitive pay and benefits can be a big challenge, especially in government and
non-profit settings.
• As a not-for-profit, our wage scale tends to be lower than the area average. We also expect a lot
from our staff. These things together lead to high turnover and sometimes people either decline
the offer or accept it and never arrive for orientation. We have great benefits, but benefits don’t pay
the rent.
• Trouble competing with salaries larger companies can provide.
• Getting corporate to agree to adequate salary for the hires.
• We are a non-profit and compete with the private sector in compensation. We do offer great
benefits though so usually when we hire, we have no problems with retention IF the employee is OK
with the pay.
In some cases, applicants may accept the job, then disappear and not show up for shifts, or
quit shortly after.
• Our biggest issue is hiring the right people. So many times we make an offer and then we’re
ghosted or they quit after a short period of time.
• Getting applicants to follow through with accepting a position. Some never show back up for
orientation & training. Others finish orientation & training, but never show up for their schedule.

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 Recommended resources
7 job description best An in-depth guide How to apply diverse
practices to find the on best practices hiring practices to
perfect candidate. in interviewing. your business.
A job description is a candidate’s The #1 reason candidates turn Hiring practices don’t exist in a
first impression, to attract top talent, down a position is due to a negative vacuum, ensure your hiring practices
follow these best practices. experience during the interview. meet the moment.

Learn More Learn More Learn More

Employee Retention
Our Question:
Keeping good employees around is vital to an organization’s success. After all, hiring
is time-consuming, expensive, and in the meantime, productivity is lost. While you
can’t read employees’ minds, what do you see as your main struggles with improving
employee retention? (Select 2)

Insight from the comments

Low pay and limited resources to improve compensation make it difficult to keep skilled
employees when other companies are offering more.

• Mostly lack of resources during these difficult times.

• A key issue is competitive wages. Benefits are good but the private sector often equals or exceeds
in this area.
• Lack of resources — the organization is donor funded and the budgets do not support such
activities. A difficult company culture - some of the senior managers do not see the need to support
employees by investing in their training and development. they feel it is the responsibility of the
employee to take care of their training needs.
•
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• We are so busy we have been working 50 hours per week non-stop because we cannot find more
skilled labor. Because we are so busy we are missing deadlines or making errors that cost the
company money making it harder to raise wages and benefits for our workers.

Low pay and limited resources to improve compensation make it difficult to keep skilled
employees when other companies are offering more.
• Mostly lack of resources during these difficult times.
• A key issue is competitive wages. Benefits are good but the private sector often equals or exceeds
in this area.
• Lack of resources — the organization is donor funded and the budgets do not support such
activities. A difficult company culture - some of the senior managers do not see the need to
support employees by investing in their training and development. they feel it is the responsibility
of the employee to take care of their training needs.
• We are so busy we have been working 50 hours per week non-stop because we cannot find more
skilled labor. Because we are so busy we are missing deadlines or making errors that cost the
company money making it harder to raise wages and benefits for our workers.

At times, the problem is a difference in expectations - employers want a lot out of

employees at the same time more employees are thinking about a healthy work-life
balance and workplace flexibility.
• Company requires all to be in the office. Very little remote work is allowed, there’s a lack of flexibility.
• Employees don’t go the extra mile anymore to show loyalty and commitment to the company. They
only want to put 40 hrs of work, clock out, go home and repeat the same routine every day. There is
no motivation to be a better employee. We make different office activities to keep them engaged, but
nothing seems to work.
• There are too many other opportunities for them to go elsewhere. If they don’t like one company
policy or a coworker/manager, they just walk out and go next door.
• Often it seems like there is little accountability from the employee, many are struggling to make it from
pay check to paycheck, but do not want to work the hours necessary to reach their financial goal or
need. This could be a result of losing certain state benefits if they work too much.

In some cases, employees aren’t invested in the company for the long haul, instead, it’s just
a stepping stone.
• Within our company we have a host of longevity with core employees (10-40 years). After hiring
the “right candidate” it seems they just want to gain knowledge and move on. Most applications
reviewed by our company see an average employment history of about 3 years.

Recommended resources
It’s time to review What employees expect Spotting the stages of
your compensation from employee benefits burnout before they
strategy. packages. escalate.
Smart businesses consider their An attractive benefits package helps Being able to spot and prevent
compensation strategy a vital part of lure top talent and encourages burnout can save great workers from
their overall business strategy. employee retention. pursuit of greener pastures.

Learn More Learn More Learn More

5
Biggest Obstacles
Our Question:
Most HR team members have great ideas and good intentions, but going from idea to
action isn’t always as easy as it sounds. What are the biggest obstacles that stand in the
way of your success? (Select 2)

Insight from the comments

In many organizations, despite their importance, HR departments simply don’t get the seat
at the table that others do, making it difficult to get support for initiatives.
• It is very difficult to have 6 owners for 1 company. Trying to appease all 6 could have challenges in
most instances. Whatever I may suggest or try to implement, must go through all 6 owners for their
approval. At times, this could delay the process or simply shut down the idea. For the most part,
most employees in this firm adhere to any HR policies and procedures.
• C-level makes final decisions regardless of being shown proven business cases for why a different
option is better.
• Some of the senior managers think that they can work without the HR department. they make
most decisions without involving HR.
• Getting stakeholder buy-in for initiatives is not an easy feat. Especially when the major thrust is in
the aspect of Cost Control.
• Budget is always an obstacle. We constantly need to justify why the need for rewards for
employees. I believe sometimes management doesn’t see the value of any of these extra activities.

A major challenge HR professionals face is staying on top or rules, regulations, and other
changes while juggling their regular responsibilities.

• Although not new to HR, I’m new at my position, and new to this type of industry. Keeping up with
training for myself, learning a new industry, and a new company, while trying to keep up with the
day-to-day has been challenging.
• Being in healthcare and having staffing issues, all efforts go to hiring and supporting the staff we

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 have currently. The changes in law, regulation, and healthcare in general, on top of COVID, etc have
left little time to do much strategic planning and implementation. We were also understaffed for
almost 1 full year and trying to catch up. Regulatory reporting ACA, EEO, etc also take time. We have
just implemented a system hoping it would help with efficiencies, but currently, that is not the case.

A major challenge HR professionals face is staying on top or rules, regulations, and other
changes while juggling their regular responsibilities.
• Although not new to HR, I’m new at my position, and new to this type of industry. Keeping up with
training for myself, learning a new industry, and a new company, while trying to keep up with the
day-to-day has been challenging.
• Being in healthcare and having staffing issues, all efforts go to hiring and supporting the staff we
have currently. The changes in law, regulation, and healthcare in general, on top of COVID, etc have
left little time to do much strategic planning and implementation. We were also understaffed for
almost 1 full year and trying to catch up. Regulatory reporting ACA, EEO, etc

For many HR workers, whether they’re a team of one or part of a larger organization, there
simply aren’t enough staff members, tools, and resources to get the job done.
• There are not enough hours in the day to get everything done correctly. Exploring program
applications to help with the automation of some areas would be greatly appreciated.
• More resources to attract qualified candidates that would not cost so much. there are a lot of
companies out there that can help get your business seen, however by the end of it the cost is
overwhelming to a small business.
• Sometimes it is hard to get management to see the need for needed software upgrades.
• I am the manager and therefore the HR director. But I’m also a licensed veterinary nurse. There
are not enough people to cover all roles so I work essentially two full-time positions. I can’t always
devote the proper amount of time and effort to the HR role that it deserves.
• Upper management won’t loosen their wallets for the front line but they spend lavishly on their
Leadership events.

Recommended resources

Time management Live and on-demand

How to
techniques to improve training to stay up-to-date
sell an idea to your boss.
productivity. on the trends.
Don’t let your great ideas sit on the With the right strategies, you Browse our catalog of books,
shelf, get the support and buy-in you can cut the stress and get more webinars, and on-demand trainings
need to turn them into action. accomplished in less time. on a wide variety of business topics.

Learn More Learn More Learn More

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HR Challenges
Our Question:
The HR department needs to know a lot. You need interpersonal skills, a solid
understanding of company policy, knowledge of employment law, the software you use,
and much more. It’s hard to keep up with everything. What common HR responsibilities
do you have the most challenges with? (Select 2)

Insight from the comments

For many HR workers, time and money are major limitations in staying up to date on
current issues, regulations, and policy best practices.
• Not enough access to all the tools available to make sure we’re compliant and up-to-date; I spend
a lot of time researching for the most recent data I’m in need of. I learn better via printed materials,
but can’t afford to buy $500-$600 reference books and $2500/yr trainings offered by some
organizations.
• Most recently, the time required to research and do continuing education to stay on top of
changes when in a heavy recruiting environment and change management scenario.
• I could choose any of the above, because the root cause of our challenges is a lack of time and
resources. If I was to say what tends to be the most challenging for me, it’s the tasks that involve
applying employment law & regulations (almost everything, I know!) when the complexity or
uniqueness requires research. Compliance is also challenging and time-consuming.

In some cases, HR initiatives are held up by slow leadership who don’t react in a timely
manner.
• Management is much too slow to approve policy recommendations, and financial constraints have
really impacted payroll processing.
• The root of the issue is the lack of leadership completing tasks in a timely manner and the
turnaround time for the Board of Directors to approve changes.

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 In some cases, balancing state rules and regulations can add an extra degree of challenge.
• With our states paid family leave, there are many more requests that “double up” on paid time off,
and filling temporary paid leave for a large number of employees is difficult.

Recommended resources
Time management Stay organized and secure
Employee handbook
techniques to improve with electronic records
examples & sample policies.
productivity. management.
Whether you’re starting from scratch With the right strategies, you With so many required files to manage
or updating your policies, these can cut the stress and get more and track, it’ll be impossible to.
samples will get you started. accomplished in less time.

Learn More Learn More Learn More

Expectations for 2023

Our Question:
The last several years have brought unexpected challenges to HR departments all across the
US. While no one has a crystal ball to peer into the next year, what do you see as your biggest
upcoming challenges in 2023?

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Insight from the comments
Unsurprisingly, many expect to see challenges around recruiting and attracting employees
in 2023, with a tighter job market and high competition for highly skilled employees.
• We are finding less and less people are going to college to become a CPA and working in the public
accounting industry. The candidates we have offered a position to have either declined or ghosted
us. The candidates that have declined, I have asked those people why they did not choose us to
work for. Their response: “I don’t want public accounting to work on multiple client with various
industries. I need to work for just 1 company.” We are also facing employee compensation to be
quite competitive for this industry.
• More jobs than job seekers and as a recruiter I have to have an attractive salary and benefits plan. I
feel our company may be under market in those areas.

Increasingly, organizations recognize the importance of keeping good employees,

especially as the job market becomes more competitive. However, they don’t always have
the resources available to do so.
• Our organization has lost a significant number of employees due to the vaccine mandate. It has
been very difficult to replace all of these positions.
• Additional resources to provide employees with engaging activities, training and opportunities.
Understaffed HR departments are focused on basics like hiring and payroll just to get by.

A major problem for many organizations, related to both hiring and employee retention, is
keeping compensation and benefits competitive enough to attract and keep talent.
• With the challenges facing the industry because of inflation benefits and compensation are hard to
budget for.
• Our pay rates are often not competitive. More funding for such would help a lot in terms of
attracting and retaining staff.
• Government sector compensation has not kept pace with the private sector. Mobile . part-time,
and contractor options are not as plentiful in the government sector.
• “This is how we have always done it” isn’t going to work in this current environment. Pay needs to
be competitive with all the other jobs around us.

Many HR professionals have good plans are are read to implement them, but they hit a
roadblock when they don’t have a seat at the decision making table.
• I personally need to have access to more data to be able to provide and substantiate business
insight. Also, it’s hard to get people to buy-in to change.
• Management disregard of worker concerns, until such time as they become medical issues,
lawsuits, etc…
• Autonomy, for one and trust from C-Level Management about my recommendations.
• We need an HR professional on our board, so that they can answer the board member questions
and streamline the approval process for changes.

The best plans don’t mean much if you don’t have the resources to implement them.
Unfortunately, many HR professionals expect to face budget and resource constraints in
the year ahead.
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• Resources for training, development and succession planning. Often times upper management has
delusions about staff that appear fantastic to them, that are often sub-par when working with others
outside of that area that they do not see, or point blame at the inaccurate parties.
• We are currently budget constrained, so if we don’t increase employee compensation in the next few
months, I anticipate increased turnover challenges. Management has to buy in to the financial needs
of our employees in spite of our cash crunch.

HR Wins in 2022
Our Question:
That’s enough about your challenges, let’s talk about your triumphs. What’s one challenge
you overcame in 2022? How did you manage to do so?

Insight from the comments

Recruiting wins.
• Increased the number of applicants via virtual recruitment platforms. We targeted areas and
schools that have a high number of candidates through national outreach.
• We updated all of our job descriptions to reflect current responsibilities.
• Created all the processes/procedures and streamlined the time it takes to onboard new hires.
• Bring back some retired employees. We stayed connected with them after their retirement and
when they found it difficult to pay bills due to inflation they were eager to return on a part-time
basis, which we were able to accommodate.
• Moved toward an online applicant tracking system with lots of work and investment of resources.

Employee retention & engagement.

• Started in HR making small changes to show the employees are appreciated.
• Started focusing on employee engagement, through employee surveys.
• Moved from an old performance review system to a coaching model!
• We improved employee satisfaction by engaging employees in their ideas.
• HR stayed focused on employee engagement. We did several events to celebrate the important
work they provide.
• Employee Retention. HR initiatives in employee training and career advancement along with cross-
functional moves.
• The biggest challenge is retention. We have instituted training for management, increases in
salaries, performance increases, and continuing education for everyone.
• I was able to move our team to unlimited PTO. We had been working with flextime in addition to
our regular PTO and the team did so well managing it that moving to unlimited PTO was a very easy
sell to management!

Resource management.
• We have had the challenge of reducing paper. We identified employees who were reluctant to use
computers and worked with them individually to reduce the printout of unauthorized timesheets
by 90%.

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 Tips & Tricks for Success
Our Question:
Share your expertise: What’s one resource, tip, or trick you use to make your job easier?
How does it help?

Insight from the comments

Tools & Resources.
• Outsource payroll — I don’t need to focus on payroll laws, tax reports, and W-4s.
• Using a payroll system that incorporates time management, HR, onboarding, hiring, background
checks, leadership training, and performance evaluations all in one has been key.
• One resource is more bandwidth for faster connection with cloud-based applications.
• We utilized a recruiter more in the last year than ever in our history.

Staying up to date.
• I am part of a few HR professional groups and I participate in them fairly regularly in order to keep
my sanity.

Communicating with Employees.

• Improve management by walking around and ensuring employees know the face of HR.
• Communication. Talk to employees, ask how their workload is going. Make sure every employee
knows they can talk to me or an owner should they need additional resources, assistance, or time
off.
• I never say “no” to an employee’s question. There’s always a solution or an alternative answer vs.
“no.”
• Most managers share changes minimally with employees. I encourage managers to share changes
consistently in order to maintain full and accurate information for these changes.
• Management buy-in is important before rolling out new initiatives. Manager training is crucial to
getting things done by employees right so we focus on those areas when we roll out new initiatives.

Organization & task management.

• Calendar reminders and checklists to keep me from forgetting to get something done.
• I email myself updates and reminders so I don’t let things slip.
• I write notes, ideas, and conversations down in a notebook so I can refer back to them at a later
date.
• Turn off email when working on a project. Constant emails just make concentration more difficult.
Turn off email when working on a project. Constant emails just make concentration more difficult.

Program & tool recommendations.

• Dragon dictation. It’s a magical tool!
• Software called goHappy. Allows us to communicate directly with frontline workers instead of
whispering down the line using store managers.

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