2022 Hiring Benchmark Report

Every year, we survey hiring professionals from across all industries to learn more about how they attract, hire, and retain their teams. 

For our fifth annual report, we explore the state of hiring in 2022. This year has been an unusual one, marked by turbulent and often contradictory economic factors. 

The Great Resignation has continued, and the hiring market appears to still be in the candidate’s favor, with far more job openings than job seekers to fill them. However, at the same time, the economy has seen an increase in layoffs, and hiring professionals are barraged with constant warnings of a looming recession. 

To add even more color to the economic landscape, 2022 also experienced record inflation. And with the threat of COVID-19 finally waning, many organizations started instituting Return-to-Office (RTO) policies to bring employees back into the office. Our report seeks to understand how all of these swirling factors come together to impact the world of hiring. 

The results in this report are based on a survey of over 500 hiring professionals across organizations large and small, and across a wide breadth of industries. Responses were collected in July and August of 2022. The 2022 report surveyed a global audience, with the majority of respondents hailing from the United States, Australia, and Canada. 

Workforce Trends that Shaped 2022 

The Great Resignation has had a lasting impact. 

While the Great Resignation was first coined in May of 2021, it is anything but over. Employee turnover has been one of the leading concerns for organizations throughout 2022, and it’s had a major impact on hiring. When turnover is high, organizations not only have to fill new roles but also must backfill a growing list of open positions. Half of the hiring professionals surveyed this year say that turnover at their organization is a major issue. 

Return-to-Office (RTO) is in full swing. 

With the reduced threat of COVID-19, organizations are starting to make the move back into the physical office. While many employees became accustomed to (and quite fond of) remote work, many organizations have opted to require a return-to-office for some or all days of the week. In fact, the majority (54%) of survey respondents say that their organization has implemented a Return-to-Office plan this year. 

This also varied widely by industry. The Transportation & Logistics, and Government/Public Sector industries were most likely to say they were returning to the office, while the Insurance and Technology industries were the least likely.  

The office is no longer the dominant way to work. 

With so many organizations returning to the office, we want to know how, and where, companies are working in 2022. According to our respondents, 39% of organizations are working mostly in-person, while another 39% are operating under a hybrid model. And 22% of surveyed hiring professionals classified their organization as operating mostly remotely. This suggests that the impact of the pandemic has some staying power—while most organizations prior to 2020 operated mostly in-person, today the playing field looks a lot more varied. While RTO is a major trend this year, remote and hybrid work is likely here to stay in at least some capacity. 

Food for Thought 

How do candidates and employees feel about each of these work models? Later in this report we dig into candidate preferences and the impact of certain work models on retention. 

Optimism for 2023 abounds! 

Despite talks of inflation, high turnover, layoffs, and a looming recession, our survey respondents reveal a remarkable level of optimism about 2023. Economic warnings aside, 78% of survey respondents believe that their organization will experience growth in 2023. 15% expect things to stay the same at their company, while just 2% expect negative growth in 2023. These levels also vary by industry, with the Staffing & Recruiting and Technology industries being the most likely to expect growth. 

Key Takeaway 

This data challenges much of the discourse we’ve heard throughout 2022 about an impending economic recession. Whatever the source of this confidence may be, it should provide some reassurance that hiring professionals feel like their organizations are on the right track. Whether or not the optimism is warranted will have to wait until next year! 

The Hiring Landscape 

Hiring demand may finally level out.  

The year of 2022 has been characterized by an exceptionally high demand for talent, and not enough job seekers to fill that demand. At its peak in the United States, there were about two jobs for every person unemployed. 

But early signs from this survey suggest that hiring volume may start to level out next year. We asked hiring professionals how many people they planned to hire this year, compared to next year. Altogether, the total hiring volume is projected to decrease by 3.9%. Just 27% of companies are planning to increase hiring next year, while 41% are planning to decrease hiring. 

Key Takeaway 

While a “decrease” may have a negative connotation, it’s not always a bad thing. With record hiring demand in 2022, a small decrease in hiring volume for 2023 may bring the hiring market back to a healthy equilibrium. 

HR budgets, however, are on the rise. 

Another major trend facing hiring professionals this year? Inflation. Reaching a peak of 9.1% in the United States, inflation has had a global impact, leading to a higher cost of goods, elevated gas prices, and greater salary demands from candidates. Inflation may also be the reason why hiring professionals say that they expect their HR budgets to grow next year, even when they anticipate lower hiring volume. On average, our survey respondents predict that their HR budgets would increase by 7.4%. 

Hiring presents the same challenges as ever. 

In 2022, the greatest challenge facing hiring professionals is the ability to find high-quality job candidates. This is followed by the challenges of getting enough applicants and reducing employee turnover. These challenges have been constants in every annual release of this benchmark report. However, this year, hiring professionals perceive many of these challenges to be a little less challenging compared to last year.