State of the workforce: PwC Saratoga’s 2013/2014 US Human Capital Effectiveness Report

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07/25/2013 by PwC Saratoga
State of the workforce: PwC Saratoga’s 2013/2014 US Human Capital Effectiveness Report

At a glance

As the US economy recovers from recession, organizations are experiencing several positive outcomes. For example, employee productivity has increased for the first time in five years, and hiring is trending upward.

As the US economy recovers from recession, organizations are experiencing several positive outcomes. For example, employee productivity has increased for the first time in five years, and hiring is trending upward.

These successes, however, put pressure on organizations. The employment uptick brings higher turnover rates, leaving HR departments to address retention and hiring quality challenges. While organizations consider strategies to engage and retain their high performers and pivotal employees, traditional rewards, compensation, and benefits packages are shrinking in real terms. Increased turnover also requires organizations to boost hiring, which often reveals process weaknesses in recruiting and onboarding.

This whitepaper summarizes results from PwC Saratoga’s 2013/2014 US Human Capital Effectiveness Report, combining analysis and objective data from more than 300 organizations. We offer observations that may help organizations understand the dynamics at play in the labor market today.

Highlights from the report include:

  • Employee productivity has risen for the first time since the recession.
  • Key employee retention is fast becoming a major challenge for organizations.
  • Healthcare costs have continued to rise and erode the value of other benefits provided to employees.
  • Hiring process quality has fallen for the first time in five years.
  • Diversity programs are helping to ease the strain of higher turnover.
  • Investment in HR has continued to increase, rising by almost 20% per person in 2012.