Earlier this year, we surveyed hiring professionals across all industries to learn more about how they hire, and we released the results in our second annual Pre-Employment Testing Benchmark Report.
One interesting discovery from the report is that HR budgets are projected to rise by 9.3% next year. Contrast this to our 2018 report last year, which found that HR budgets were set to rise by a more modest 6.7%.
Over time, gradual increases in spending are common and expected. What makes this projected increase particularly surprising is that our survey data also showed that hiring professionals are planning to hire about 11% fewer employees next year. This is the first indication within the last few years that hiring demand may finally be slowing down, and it’s no small decrease. But if the extra budget isn’t going towards hiring more people, where do HR teams plan to increase their investments in 2020?
Among our survey respondents, we saw that almost no one was planning to decrease spending. The vast majority of organizations are planning to either maintain their HR budgets or increase them. More than in any other area, hiring professionals are planning to increase their investment in “finding high quality job candidates.” This was closely followed by “maintaining a strong employer brand” and “cultivating a positive work environment.” So while companies may not be putting their funds towards hiring more people, instead they are focusing their attention on improving the quality of their applicant pools.
For even more insights into HR trends and hiring practices, download a copy of the Pre-Employment Testing Benchmark Report.