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04 April 2023 | Press Release
HR leaders are optimistic about hiring and retaining workers over the next few months. And that confidence comes despite expectations of a recession in 2023 and news of layoffs.
Indeed, three-quarters of Chief Human Resource Officers (CHROs) expect hiring to stay steady or even ramp up over the next six months. That’s according to The Conference Board CHRO Confidence Index for the first quarter of 2023.
The survey also found that while nearly half (45 percent) of CHROs expect more employees to stay at their current companies, many are concerned about workers jumping ship. Indeed, 19 percent are expecting more workers to leave. To attract and keep workers, CHROs say they are prioritizing the strengthening of culture and the development of the workforce this year.
Overall, CHRO confidence in Q1 stands at 57 (a reading of more than 50 points reflects more positive than negative responses). The index tracks CHROs’ sentiment surrounding workforce growth, stability, and stress by focusing on hiring, retention, and engagement.
This marks the first quarterly measure of CHRO Confidence from The Conference Board. A total of 172 CHROs participated in the survey, which was fielded from January 16 through February 10. Key findings include:
Despite recent news of layoffs in some sectors, 3 in 4 CHROs expect hiring to remain unchanged or increase.
The Great Resignation hasn’t ended: 1 in 5 CHROs expect a decrease in retention.
Nearly half of CHROs say employee engagement is increasing.
CHRO Confidence vs. CEO Confidence
The following section draws comparisons between the Q1 CHRO Confidence Index and the Q1 Measure of CEO Confidence™. The latter is a quarterly survey of US CEOs by The Conference Board in collaboration with The Business Council.
CHROs are more optimistic about hiring than CEOs.
CHROs are prioritizing the development of leaders at more than two times the rate of CEOs.
While CHROs and CEOs agree on the importance of culture and leadership to retain talent, CHROs are placing a higher priority on these efforts.
CEOs prioritize innovation, agility, and resilience more than CHROs.
“While both CEOs and CHROs are concerned about the ability to hire workers, CHROs are acutely aware of the strengths and weaknesses of the workforce, and the challenges of finding and retaining talent,” said Rebecca Ray, Executive Vice President of Human Capital at The Conference Board. “Indeed, CHROs know the greater time and effort that is now necessary to successfully hire someone. They are also concerned that critical talent, if not developed internally, may be difficult to find in the current labor market. It follows that they would place a greater emphasis on improving culture and developing the workforce, especially if nearly 20 percent expect retention to decrease in the next six months. CEOs are focused on navigating their organizations through a sea of uncertainty and change. If economic volatility and gray swan events continue to be the norm, organizational agility, resilience, and innovation will be key to a thriving business.”
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