HR Trends 2022: Key Predictions

Highlights from the TrustRadius 2022 HR Trends Report

As the Covid-19 pandemic enters year three, most HR professionals are feeling challenged and exhausted. The TrustRadius 2022 HR Trends Report published in January confirms that and indicates the Great Resignation and the need to rapidly improve diversity, equity and inclusion (DEI) efforts are significant concerns. It also indicates that the shift to remote work offers significant benefits: HR pros are seeing improvements in employee well-being; the move hasn’t made their jobs significantly harder, and investments in new HR technology are helping.
 

The survey, conducted in October 2021, is based on anonymous responses from 764 HR professionals ranging from associates to the C-suite, from their early 20s to 75 years of age, and across seven races or ethnic identities and nine industries. That broad range of HR professionals unveiled thought-provoking HR trends for 2022, including the following findings.

The Great Resignation Is Probably Permanent

A shocking majority of U.S.-based HR pros think the Great Resignation is a permanent change in the labor market. When asked how big the impact will be, 43% of total respondents said it will be significant and permanent, and 33% thought some small but permanent changes will persist. Race and ethnicity had clear effects: 44% of white HR pros called it a significant, permanent change compared to 38% of Latinx and 37% of Black HR pros. In my estimation, the Great Resignation also is likely to have a lasting, permanent impact on how employees view and search for work. We won’t return to pre-pandemic conditions anytime soon.

Respondents thought that the biggest cause of the Great Resignation related to company-based factors was stressful working conditions, with 31% citing this. Other company-related causes included compensation issues (16%), lack of flexibility (15%), and failure to address work/life balance (13%). These views illustrate that many employees will no longer tolerate being overworked, underpaid and unsupported and that they are moving to take back power. Over the past several years, aspects of worker engagement and choice in the gig economy have signaled a power shift as well, and the Great Resignation marks a continuation of that.

When it comes to employee-related causes of the Great Resignation, the biggest were workers gaining perspective on what’s important in their lives (30%) and what they want from their career (18%). However, mid-level managers are often the least likely to challenge their status quo regardless of their gender or generation, because at that level they are thinking more about their career trajectory.

Ten percent of HR pros thought that employees are trying to maximize government assistance. While it may be true that some are taking unfair advantage of pandemic aid, in my estimation it’s a small minority. If it appears to be a majority at a given company, that company should review culture because there probably are larger issues to address.

Thinking Differently About DEI

A commanding number (71%) of HR pros said that the Great Resignation will impact their DEI efforts. Looking closer, 41% see it as an opportunity to increase diversity, and 44% think it will require them to completely rethink their efforts.

Now that companies can expand remotely and are not limited by geographic location, there is indeed a significant opportunity to rethink how and where to find talent and to partner with community outreach and education programs to improve DEI efforts. We have a diverse leadership team at TrustRadius, and we recruit from diverse backgrounds and job boards. The opportunity to ramp those efforts up, even more, is exciting as we grow our headcount and expand this year.

It’s especially interesting that HR professionals in hybrid workplaces are most likely to describe their company as diverse and inclusive (65% and 49% respectively) compared to peers in other work environments, and that remote work has influenced DEI perception among HR pros. This could and should be an industry topic for further discussion. While it’s important to offer a hybrid work model whenever possible, it’s fair to note that it isn't always a viable business option. 

Is HR Succeeding with DEI?

Overall, HR professionals are divided on how they perceive their organization’s success at achieving diversity, equity and inclusion. A majority (60%) describe their company as diverse, but perceptions of equity (44%) and inclusiveness (43%) are lower. Race and ethnicity may have modestly influenced perceptions, but the perceptions of different groups did not diverge more than seven percentage points (diversity and inclusiveness) and as few as two points (equity). The data is mixed when it comes to DEI success, indicating that progress must continue in earnest.

Social media influences attitudes and perceptions, and there’s no question that DEI must be at its forefront, not presented as an afterthought. 

HR Teams Are Spending More on Technology

With the pandemic, companies are relying more on HR pros to bring solutions to the table. Both the HR pros and their company leaders recognize that to provide more effective people-oriented solutions, they need accurate data and the time to create a strategy based on that data. So, the pandemic-related HR software boom will continue in 2022 and beyond, as software solutions provide HR pros what they need to strategize and keep their organizations competitive. More than half (55%) said their companies are spending more on HR tech; of those, 45% are spending more to upgrade existing tech stacks and 38% are purchasing new tech. Tech companies are more likely to spend more on new tech (56% vs. 37% non-tech) or to improve tech stacks (67% vs. 44%).

HR Technology May Prevent Hiring Bias

There is a debate in HR circles about what effect if any, HR technology has on the unintended bias. Respondents have a largely positive take: 49% think their HR software helps prevent bias in hiring, while 15% say it reinforces existing bias. This perception differs significantly by gender: 62% of men believe their HR software helps prevent bias compared to 43% of women. Women were more likely to think their company’s tech has no impact on their diversity efforts. Overall, there were positive signs that HR software companies are meeting customer needs.

During this shift to new HR technology, many HR pros are doing their best to ensure new software helps them to address DEI challenges. This is a critical area where the choice of technology can make all the difference in the outcomes. TrustRadius is building a community where HR pros can discuss B2B tech experiences and how tech decisions impact their organizations over time.

It’s clear the overall survey results were mixed, which in many ways mirrors what we intuitively have been experiencing in a larger social context during the pandemic. The bad news is that most HR professionals are feeling challenged and exhausted and that they’re facing even bigger hurdles with the Great Resignation and the need to rapidly improve their DEI efforts. The good news is that, in general, the shift to remote work seems to be a good thing. HR pros are seeing improvements in employee well-being, and, with the help of HR technology, the move hasn’t made their jobs significantly harder. 

Jamy Conrad is Senior Director of People at TrustRadius. Connect Jamy Conrad