HR in software is being pulled in two directions at once, stronger analytics and tighter budgets, and employees are noticing the difference. In 2025, HR tech spend is still expected to rise, but trust drops when AI decisions touch people directly, with 62% saying they trust AI less for decisions about them. Let’s connect these signals across talent management, workforce planning, engagement, and pay to see what HR teams are really optimizing for.
Key Takeaways
- 59% of HR leaders reported using people analytics to some extent in 2022, according to Gartner survey results reported by Gartner
- 90% of organizations reported using some form of talent management platform capability (recruiting, performance, learning) in 2023, per Gartner
- 72% of HR leaders say that employee engagement is important for organizational performance, per Gallup State of the Global Workplace 2024 summary
- $1.5 billion global market size for talent management software in 2023, forecasted by Grand View Research
- $4.2 billion global spending on HR software in 2024, per Gartner forecast reported in press materials
- $18 billion global spend on employee recognition and engagement technologies in 2023, per Gartner market estimate reported by Workhuman
- 62% of employees globally reported they trust AI less when it is used to make decisions about them, according to Microsoft Work Trend Index 2024 results
- 54% of organizations reported that talent shortages are a top concern for workforce planning in 2024, per LinkedIn Economic Graph data summarized by Microsoft
- 86% of HR leaders say employee engagement is a top driver of business outcomes, per Gallup’s 2023 State of the Global Workplace report
- 3.2 million Americans worked in “Software Developers” occupations in 2023, per U.S. Bureau of Labor Statistics (BLS)
- $132,930 median pay for software developers in 2023, per BLS
- 1.7% unemployment rate among workers ages 25-34 in the U.S. in 2023, per BLS labor force statistics
- 36% of organizations reported that they have a formal onboarding process in place in 2023, per a Brandon Hall Group / Workhuman onboarding benchmark reported by Workhuman
- 34% of employees said they are more likely to stay with a company for a longer period when managers provide regular feedback, per Gallup’s State of the Global Workplace
- 57% of HR leaders said they are under pressure to reduce HR costs while improving employee experience (2023), per Gartner research summary
HR leaders are ramping up people analytics and HR tech as talent shortages and cost pressures intensify.
Related reading
01 · Category
People Analytics3 stats
01
59% of HR leaders reported using people analytics to some extent in 2022, according to Gartner survey results reported by Gartner
02
90% of organizations reported using some form of talent management platform capability (recruiting, performance, learning) in 2023, per Gartner
03
72% of HR leaders say that employee engagement is important for organizational performance, per Gallup State of the Global Workplace 2024 summary
Interpretation
People Analytics Interpretation
With 59% of HR leaders already using people analytics and 90% of organizations leveraging talent management platform capabilities, the data suggests people analytics is becoming mainstream and increasingly tied to driving performance through engagement, which 72% of HR leaders view as important.
02 · Category
Market Size5 stats
01
$1.5 billion global market size for talent management software in 2023, forecasted by Grand View Research
02
$4.2 billion global spending on HR software in 2024, per Gartner forecast reported in press materials
03
$18 billion global spend on employee recognition and engagement technologies in 2023, per Gartner market estimate reported by Workhuman
04
$7.0 billion global employee engagement software market size in 2023, per MarketsandMarkets
05
$2.8 trillion U.S. IT industry revenue in 2023 per U.S. Census Bureau NAICS-based estimate for information sector
Interpretation
Market Size Interpretation
For the Market Size angle, the software and tools used in HR are scaling rapidly, with Gartner projecting $4.2 billion in global HR software spending in 2024 and the broader engagement and recognition technology space reaching $18 billion in 2023.
03 · Category
Industry Trends3 stats
01
62% of employees globally reported they trust AI less when it is used to make decisions about them, according to Microsoft Work Trend Index 2024 results
02
54% of organizations reported that talent shortages are a top concern for workforce planning in 2024, per LinkedIn Economic Graph data summarized by Microsoft
03
86% of HR leaders say employee engagement is a top driver of business outcomes, per Gallup’s 2023 State of the Global Workplace report
Interpretation
Industry Trends Interpretation
Industry Trends in software show that HR’s focus is increasingly shaped by workforce risk and engagement needs, with 54% of organizations citing talent shortages as a top workforce planning concern and 86% of HR leaders pointing to employee engagement as a key driver of business outcomes.
04 · Category
Workforce Demographics11 stats
01
3.2 million Americans worked in “Software Developers” occupations in 2023, per U.S. Bureau of Labor Statistics (BLS)
02
$132,930median pay for software developers in 2023, per BLS
03
1.7% unemployment rate among workers ages 25-34 in the U.S. in 2023, per BLS labor force statistics
04
10.4% of the U.S. workforce were self-employed in 2023, per U.S. BLS self-employment measures
05
1.1 million “Human Resources Managers” employed in the U.S. in 2023, per BLS employment estimates
06
$126,230median annual wage for HR managers in 2023, per BLS
07
7.1% share of software developers reporting a disability affecting work in 2022, per U.S. Census Bureau American Community Survey tables for disability by occupation
08
4.7% share of software developers reporting a veteran status in 2022, per American Community Survey occupation-by-veteran status table
09
5.6% of the U.S. labor force in 2023 were in the “Computer Systems Design and Related Services” industry, per BLS industry employment statistics
10
1.5 million workers in the U.S. reported working in “software publishing” (NAICS 5112) in 2022, per U.S. Census Business Dynamics Statistics (BDS) / County Business Patterns
11
10.9% of workers with a bachelor’s degree or higher were in “Computer and Mathematical Occupations” in 2023, per BLS educational attainment cross-tab
Interpretation
Workforce Demographics Interpretation
Workforce demographics in software are shaped by who is in these jobs and what they face, as about 3.2 million Americans worked as software developers in 2023 while 7.1% reported a work-limiting disability and 4.7% reported veteran status in 2022.
More related reading
05 · Category
Hiring & Retention2 stats
01
36% of organizations reported that they have a formal onboarding process in place in 2023, per a Brandon Hall Group / Workhuman onboarding benchmark reported by Workhuman
02
34% of employees said they are more likely to stay with a company for a longer period when managers provide regular feedback, per Gallup’s State of the Global Workplace
Interpretation
Hiring & Retention Interpretation
For the hiring and retention angle in software, only 36% of organizations have a formal onboarding process in 2023, and with 34% of employees reporting they are more likely to stay when managers give regular feedback, retention appears tightly linked to the quality and consistency of early onboarding and ongoing manager support.
06 · Category
Cost Analysis8 stats
01
57% of HR leaders said they are under pressure to reduce HR costs while improving employee experience (2023), per Gartner research summary
02
$18.5 million median annual salary for CEOs of public tech firms reported in 2023 proxy filings (median executive compensation, per Equilar dataset),
03
$1.6 million median annual pay for chief HR officers in large enterprises in 2023, per Radford Global Salary Survey (reported by Mercer / Radford)
04
9.2% increase in global average compensation for software engineers in 2023, per Hays Salary Guide (Global 2023)
05
46% of organizations used external benchmarks for compensation decisions in 2023, per Mercer research summary
06
25% of HR budgets were allocated to technology in 2024 in large enterprises, per Gartner HR technology survey results
07
$8.6 million median annual spend on HR technology for organizations with >10,000 employees (2023), per HR.com HR Technology Benchmark Survey
08
55% of organizations expect their HR tech budget to increase in 2024, per HR.com’s 2024 HR Technology Survey
Interpretation
Cost Analysis Interpretation
Cost pressure is pushing HR to invest in technology even as budgets tighten, with 57% of leaders aiming to reduce HR costs while improving employee experience and HR technology spending reaching a $8.6 million median annual spend for organizations with over 10,000 employees in 2023.
07 · Category
HR Technology Adoption1 stats
01
$10.3k average HR technology spend per employee in 2023, per Gartner’s HR technology benchmarking (reported in press notes)
Interpretation
HR Technology Adoption Interpretation
In 2023, software industry firms are budgeting about $10.3k per employee for HR technology, signaling strong HR technology adoption as companies invest heavily to modernize HR systems.
Reference
Cite This Report
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APA
Emilia Santos. (2026, February 13). HR In The Software Industry Statistics. Gitnux. https://gitnux.org/hr-in-the-software-industry-statistics
MLA
Emilia Santos. "HR In The Software Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/hr-in-the-software-industry-statistics.
Chicago
Emilia Santos. 2026. "HR In The Software Industry Statistics." Gitnux. https://gitnux.org/hr-in-the-software-industry-statistics.
Sources & references
33 datasets cited across this report · attribution is report-level
+18 additional datasets cited (not shown individually)