Corporate America’s HR leaders continue to be more optimistic than pessimistic about the state of the workforce.
The Conference Board CHRO Confidence Index ticked up to 54 in Q1, from 53 last quarter. (A reading of more than 50 points reflects more positive than negative responses.) While retention and engagement expectations improved from last quarter, the survey reveals they are down compared to this time last year, signaling ongoing concerns about labor shortages. Hiring expectations remained stable.
The survey also reveals that businesses are stepping up as mental health concerns continue taking a toll on workers throughout the nation: 42% of surveyed companies plan to offer new well-being benefits this year.
Indeed, 36% say businesses are responsible for the well-being of their employees, with another 62% saying they are somewhat responsible. As a result, they are ramping up their focus on employee wellness: In addition to those offering new well-being benefits, a quarter plan to increase spending on well-being initiatives.
“Taking a holistic view of worker well-being can not only improve employee engagement and productivity but also retain your talent—a top focus of both CEOs and CHROs this year,” said Diana Scott, Leader of The Conference Board US Human Capital Center.
The Index, conducted quarterly, was launched in Q1 2023 and is comprised of three components—hiring, retention, and engagement—as well as special questions included in each survey. Nearly 150 CHROs participated in the Q1 survey, which included additional questions on employee well-being. Key findings include:
Hiring
The CHRO Confidence Index: Hiring component remained the same as both last quarter and YoY, at 55.
CHROs’ workforce expansion plans remained stable in Q1, with fewer CHROs expecting to increase or decrease hiring in the next six months:
Retention
The CHRO Confidence Index: Retention component rose to 53 in Q1 2024 from 51 in Q4 2023. But retention expectations are…
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