12-12-2023 7:01pm

Despite Improved Hiring Outlook, HR Leaders' Expectations Worsen

Donnella Tilery Editor

In recent months, America's red-hot post-pandemic labor market has finally begun to cool, though substantial labor shortages remain as a long-feared recession failed to materialize for 2023. Under these more balanced conditions, a new survey of Chief Human Resources Officers finds CHROs are increasingly confident about expanding their companies' workforces: 44% expect to increase their hiring over the next six months—up from 38% in Q3.

Overall, The Conference Board CHRO Confidence Index fell to 53 in Q4 2023, down from 55 in Q3. (A reading of more than 50 points reflects more positive than negative responses.) Despite the improved outlook on hiring, expectations in the Index's other two component areas—retention and employee engagement—continued to slide in Q4, driving down headline CHRO confidence.

"HR leaders' optimism is waning as recession remains on the horizon to start 2024," said Diana Scott, Leader of The Conference Board US Human Capital Center. "With a third of CHROs expecting employee engagement to decline, it is reassuring that CHROs plan to strengthen employee experience and organizational culture in 2024. And while the percentage of CHROs planning to hire workers ticked up after a steep drop last quarter, nearly a quarter expect to lose workers in the coming months. It follows that an overwhelming percentage of leaders say retaining existing workers will be a key part of their talent strategy next year."

The CHRO Confidence Index: Hiring component rose to 55 in Q4 2023—up slightly from 53 in Q3.

On average, CHROs' workforce expansion plans improved in Q4:

44% of CHROs expect to increase their hiring over the next six months—up from 38% in Q3.
19% expect to decrease their hiring over the next six months—down from 26% in Q3.
more details can be found about specific trends on the website:www.conference-board.org