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The Conference Board CHRO Confidence Index surveys Chief Human Resources Officers and is comprised of three components: Hiring, Retention, and Engagement.
As Labor Day approaches, the Q3 survey reveals the pulse of hiring plans in Corporate America. Chief Human Resources Officers (CHROs) remain optimistic overall, but a slowdown in hiring drove confidence slightly lower in the third quarter.
The Q3 Index found that 38% of CHROs expect hiring to increase in the coming months, down from 51% in the Q2 survey. Overall, the Index fell to 55 in Q3, down from 58 in Q2. (A reading of more than 50 points reflects more positive than negative responses.)
"HR leaders are beginning to feel the impact of a weaker outlook for hiring and expansion. Also concerning is the growing share who report decreased employee engagement. CHROs should consider reevaluating the employee experience with a focus on critical drivers of engagement: strong compensation and benefits, managers who empower, and ways to connect what they do to a greater purpose," said Diana Scott, Leader of The Conference Board Human Capital Center.
The Index, conducted quarterly, was launched in Q1 2023. A total of 112 CHROs participated in the Q3 survey, which included additional questions on artificial intelligence. Key findings include:
Hiring
The CHRO Confidence Index: Hiring component fell to 53 in Q3—down sharply from 61 in Q2.
On average, CHROs' workforce expansion plans have pulled back substantially in Q3:
CHROs' hiring plans are more closely aligned with CEOs in Q3 after surging ahead earlier this year:
Retention
The CHRO Confidence Index: Retention component ticked down to 54 in Q3 from 55 in Q2.
Q2's sharp decline in CHROs' expectations regarding employee retention has plateaued in Q3:
Engagement
The CHRO Confidence Index: Engagement component ticked down to 57 in Q3 from 58 in Q2.
More CHROs are seeing declines in employee engagement in Q3:
Special Questions for Q3: Artificial Intelligence
For Q2 2023, the Index also surveyed CHROs on the anticipated impact of generative AI on various aspects of their organizations.
Most CHROs are optimistic that generative AI tools will have a positive impact on their companies:
Read the full report here.