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HR Predictions

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HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 1


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And people responded amazingly well. While productivity
W hat can we expect in 2022? While the pandemic
continues, life goes on. The economy is growing, the
job market is hot, and workers feel more empowered than
took a dip in Q3 (July to September), the message to me is
clear. Businesses “reinvented” the model of work during the
ever. Despite the stress and challenges we faced this year, our pandemic, and I don’t think we’re going back. Hybrid work,
profession and our companies have transformed in a positive remote work, and contract work is now mainstream, and
way and we’re in for an exciting year ahead. companies are adjusting old models accordingly.

While this all occurred, we’ve seen a “rubber band” growth


cycle take place. Starting in 2009, after the global financial
What We Learned from 2021
meltdown, demand started to grow. Companies started
We learned to be more flexible and enable workers to do their digitizing their products and services, supply chains were
jobs with more autonomy and in new ways. We learned to be interconnected, and we started to see new digital business
more human-centric, bringing a stronger focus on empathy, models emerge. In 2018 we had a big tax cut in the United
care, and wellbeing at work. And we learned about digital States. The economy flourished, creating a “crisis in demand”
transformation. We now know we can do things faster than and lots of concerns about income inequality, the divide
we previously thought and build solutions that get better over between digital workers and those left behind, and the need
time. to build better social systems to prevent runaway income
inequality.
The HR profession has also transformed. We’re no longer
talking about “getting a seat at the table”; we’re now sitting Then along comes the pandemic. We experienced a massive
there. Most of you are involved in doing strategic work, demand interruption as people stayed home and businesses
participating in cross-functional teams, and designing new closed. One of the biggest lessons I learned during the
solutions faster than ever. In fact, in my mind, one of the pandemic is the unquenchable power of the human spirit,”2
big themes for 2022 is “HR as a center of design,” where and how people will adapt to change in ways we never
we reshape our HR teams to design, launch, monitor, and believed possible.
continuously improve our programs.
There have been other positive impacts. Despite the increase
in inflation, wages are increasing. Companies are relaxing
their criteria for hiring and ignoring requirements for college
Predictions 2022
degrees or certain types of experience.3 For example,
This report lays out what I see as all the major trends HR Scotiabank has now completely removed the need to submit
leaders and professionals should be keeping in mind as 2022 resumes for its digital product development team; instead,
unfolds. the company is using behavioral assessments to identify the
“PowerSkills fit” of new hires and plans to train for technical
1 The economy will grow—with a or functional skills.4 And many companies are adding bonuses,
constrained labor force. flexible benefits, and ever-more attractive perks to attract
I believe we are entering a fast-growing economy with the prospective employees. (This year 39% of all U.S. wage
biggest labor (and skills) shortage we’ve seen in decades. spending is allocated to benefits and insurance.5)

First, consider the reinvention of work that just occurred. Is this hurting business? Not at all. In 2021, the U.S. stock
During the last two years, more than 60 million American market was at an all-time high and companies made plenty
workers switched from working in offices to working
2 “The Unquenchable Power of the Human Spirit,” joshbersin.com, podcast, August 2021.
remotely.1 Companies reduced spending on real estate, travel, 3 “Help Really Wanted: No Degree, Work Experience or Background Checks,” Lauren Weber and
Chip Cutter/The Wall Street Journal, November 2021.
and facilities and instead, put their dollars in digital tools.
4 Scotiabank Transforms Campus Recruiting: Replacing Resumes with Behavioral Assessments,
Josh Bersin and Nehal Nangia/The Josh Bersin Company, November 2021.
5 Economic News Release: Employer Costs for Employee Compensation Summary, U.S. Bureau of
1 State of Remote Work: Executive Summary, Global Workplace Analytics/owllabs.com, July 2020. Labor Statistics, September 2021.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 1


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of money. The Conference Board’s new projections for the to automate and reorganize to deal with this labor shortage.
U.S. and global economy indicates we will have a 3.8% GDP (This is why we are launching a major new certification
increase in 2022 and 3% in 2023.6 These are really positive program and research study on organization design in
numbers, and the results will increase the demand for workers, business.)
skills, and expertise.
Figure 2: Projected Path of Employment in the EU,
Consider the following analysis from Citibank. Citibank 7 With and Without Fiscal Stimulus (’000s)
economists believe that the economic recovery and 230,000 Employment - EU
subsequent stimulus (the U.S. infrastructure bill just passed 225,000
at the writing of this report) will grow U.S. employment to 220,000
well over 160 million by late 2022. This will be the largest 215,000
employment number we have ever seen (see Figure 1). 210,000

205,000
Figure 1: Projected Path of Employment in the U.S.,
With and Without Fiscal Stimulus (’000s) 200,000

195,000
190,000 Employment - U.S.
190,000
180,000 185,000

170,000 180,000
Mar-00
Jun-01
Sep-02
Dec-03
Mar-05
Jun-06
Sep-07
Dec-08
Mar-10
Jun-11
Sep-12
Dec-13
Mar-15
Jun-16
Sep-17
Dec-18
Mar-20
Jun-21
Sep-22
Dec-23
Mar-25
Jun-26
Sep-27
160,000

Lower Bound Fiscal Stimulus-Mid Upper Bound Baseline


150,000
Source: Bureau of Labor Statistics, Citi Research
140,000
We also have the challenge of worker burnout. There are
130,000 almost 11 million open positions in the United States,9 and
120,000
more than 3% of all workers are voluntarily leaving their jobs
each month.10 This means that the biggest constraint to
Mar-00
Jun-01
Sep-02
Dec-03
Mar-05
Jun-06
Sep-07
Dec-08
Mar-10
Jun-11
Sep-12
Dec-13
Mar-15
Jun-16
Sep-17
Dec-18
Mar-20
Jun-21
Sep-22
Dec-23
Mar-25
Jun-26
Sep-27
Dec-28

economic growth isn’t just computer chips or manufacturing


Fiscal Stimulus-Mid
Lower Bound Upper Bound Baseline
supply; it’s people. So every company will likely be talent-
Source: Bureau of Labor Statistics, Citi Research
constrained, telling us that we, in HR, are even more important
And the growth of jobs in Europe is similar. EU jobs will reach than ever.
over 205 million by the end of next year, catching up to
We are just finishing our research for The Definitive Guide to
employment numbers before the pandemic (see Figure 2).
Talent Acquisition and find that only about 15% of companies
These new jobs will do two things. First, they’ll draw more are attracting and retaining candidates well. Those that
people into the labor force, effectively increasing the number are thriving focus on employee experience, a “healthy
of people working. Second, they’ll shift and change our talent organization,” and an ever-increasing focus on mission,
practices. Most of the new jobs created will be in construction, purpose, brand, and employee growth. So all the things
green energy, healthcare and services, transportation (there we do in HR to build healthy organizations and expand our
is already a shortage of 80,000 truck drivers in the U.S.8), and recruitment footprint will be needed.
other service professions. This means all of our businesses,
If your company is suffering from turnover, this is a leak you
which are becoming more service-driven each year, will have
must fix. This year we published The Definitive Guide: Employee
6 Global Economic Outlook 2022: From Pandemic Downturn to Growth Revival (US Edition), The
Conference Board, November 2021.
7 Technology at Work v6.0: The Coming of the Post-Production Society, Citi GPS: Global 9 Economic News Release, Job Openings and Labor Turnover Summary, U.S. Bureau of Labor
Perspectives & Solutions, June 2021. Statistics, November 2021.
8 “Shortage of 80,000 truck drivers is only going to get worse without change, experts say,” Asher 10 Economic News Release: Table 4. Quits Levels and rates by industry and region, U.S. Bureau of
Wildman/ Spectrum News 13, November 2021. Labor Statistics, November 2021.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 2


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Experience as well as The Definitive Guide to Wellbeing: The I’ve been working with AI for almost five years, and I do
Healthy Organization. Each of these reports will show you how believe the potential is huge. Right now, with Facebook
to manage retention and engagement issues. (Meta) and Microsoft (Dynamics 365 Connected Spaces
and Microsoft Mesh) pushing the agenda (see Figure 3 on
The good news is we, as HR leaders, understand this problem
the following page), I can see many of you experimenting
and recognize it will continue to be a top priority for the year
with AI in 2022. Our experience with STRIVR® (VR for
ahead.
training), Mursion (Avatars for soft skills), and other tools
shows tremendous impact. Dow, for example, is using
2 Hybrid work will evolve: enter the Mursion’s avatar-based simulations to develop leadership
metaverse. capabilities. AstraZeneca is piloting what it calls XR (extended
Hybrid work is now a well-accepted business practice. We reality) onboarding for researchers. This will, and should be,
wrote the playbook on this topic11 and almost every company something you investigate this year.
is reinventing “where to work” and “how.” Several studies have
now shown employees like this new situation. More than 50% I recently published an article called “What Is the Metaverse?”
of employees are willing to forgo as much as 5% of their pay and it is not something to be afraid of. On the contrary, these
for the option to work at home. 12 new digital experiences will further transform the definition
of hybrid work, as well as onboarding, training, collaboration,
However, as new research points out, many leaders expect meetings, and, of course, entertainment and commerce.
people to come back to the office. A new study found 70% of Imagine, for example, a staff meeting where everyone can
leaders want their teams back in the office while fewer than interact and move around (as if they were really there), but
40% of line workers feel the same.13 Many executives miss without spending five hours flying across the country. There’s
their corner offices and the power of personality; they believe a big future here.
true career growth requires face-to-face interaction.

While the jury is still out on fully returning to the office (many
3 Learning, skills, and career pathways
will become business critical.
tech companies have explicitly told people they can work
remotely forever), it’s clear this is an issue that will be with us The corporate learning market has never seemed so vibrant

for some time. While nobody likes a long commute, as more and healthy. And there’s good reason. Companies desperately

and more people show up, others will also want to be there. need to reskill and redeploy workers, and the L&D (learning
and development) market is responding faster than ever.
The old idea that working at home was synonymous with
goofing off is gone. We can now accept that hybrid work is I started studying L&D back in 1998 when I got involved

normal. And deskless workers, who make up almost 70% in the early days of e-learning. Since then, companies (and

of the global workforce, are getting new tools and more investors) have typically viewed corporate training as an

flexibility.14 important must-have but certainly not as a competitive


advantage.
The big trend in 2022 will be better, virtual tools (Teams, for
example, has myriad new features to help schedule, manage, Well, that has completely changed. Today every single
coordinate, and record meetings) and the emergence of the company executive is worried about skills. Not only have
metaverse. companies been redeploying, moving, and rethinking jobs and
roles all over the world, we now have a skills-centric mentality

11 The Big Reset Playbook: Hybrid Work, Josh Bersin; Kathi Enderes, PhD; Janet Mertens; and
Mark Spratt/The Josh Bersin Company, 2021.
12 “Work remote after COVID? Nearly 50% of US workers would take a pay cut for it, survey says,”
Terry Collins/usatoday.com, November 2021.
13 “What Bosses Really Think about the Future of the Office,” David Gellis/nytimes.com,
November 2021.
14 “Bersin: Why it’s time to build a new, improved deskless reality,” Josh Bersin/hrexecutive.com,
October 2021.

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Figure 3: Avatars in Mesh for Teams

Mesh for Teams users can take their avatars into immersive spaces to experience those serendipitous encounters that spark innovation.
Source: Image courtesy of Microsoft

that leads CEOs and CFOs to start thinking about what skills capability academies, for supporting corporate skills taxonomy
are missing among their workforces. projects (more on this later), and for determining what
technologies and content to buy.
Chevron, for example, is working on the new generation
of energy engineers to move the company beyond carbon. There are three huge issues for L&D leaders this year:
Ericsson is reskilling every business function around the
1. Building capability academies16 (end-to-end learning
technology and business models of 5G15. Intel is embracing
strategies led by the business).
AI. Autodesk is integrating its products to meet the new
2. Cleaning up and integrating all L&D technologies and tools.
demands of integrated architecture and engineering.
Healthcare companies like Kaiser Permanente are building a 3. Working with the rest of HR to implement a skills taxonomy
for the future.17 And this imperative is starting to pick up
new generation of care and IT careers. And companies like
speed.
Target, Walmart, and Amazon are learning about distribution,
customer experience management, and new models of retail. Companies are also integrating their L&D investments
with their urgent workforce needs. Walmart, for example,
This means L&D organizations must upskill their own sees a need for thousands of pharmacists in its stores. So
teams. Chief learning officers (CLOs) are now responsible for the company is building a series of what we call “career

16 “The Capability Academy: Where Corporate Training Is Going,” joshbersin.com, October 2019.
15 In telecommunications, 5G is the fifth generation technology standard for broadband 17 “What Is a Skills Taxonomy Anyway? Understanding the Market for SkillsTech,” joshbersin.com,
cellular networks (Wikipedia). podcast, April 2021.

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pathways”18 to show various employees how to train for these (which just raised $200 million), Degreed (valued at well over
positions. Healthcare providers are providing career pathways $2 billion), and Cornerstone (which went private at $5.1 billion)
for clinical and IT roles. And almost every company is building are all growing like crazy. The ERP players such as Oracle,
career pathways to develop cybersecurity specialists. SuccessFactors, and Workday have been less successful. Why?
Because the innovation cycle in learning is accelerating.
Note that a career pathway is not a “career path.” It’s a series
of carefully designed development steps (and roles) that take This year we will see Microsoft’s Viva Learning, LinkedIn
an individual from a current role to a role that is in higher Learning Hub, Cornerstone Xplor, and other innovative
demand, and often better paying. Skills data shows the companies come to market with an evermore exciting set
adjacent skills that make this possible. of tools. But the market is starting to mature. L&D and HR
leaders don’t want ten different learning platforms and the
And while all this is happening, the market itself is starting
vendors are feeling the heat. Many of the smaller standalone
to consolidate. For many years, the current $360 billion
players are starting to merge, and I do think the market will
corporate training market has been expanding, splintering,
consolidate.
and shifting toward new online content players, learning-in-
the-flow of work solutions, learning experience platforms, If you are in corporate L&D, you’ll want to create a learning
and a huge market of tools for skills inference, skills infrastructure that pulls the different pieces of the tech
recommendation, and skills taxonomy development. ecosystem together to help learners build needed skills and
capabilities for the future (see Figure 4).
The VC and private equity players have poured money into L&D-
related vendors. Companies like BetterUp (now valued over $4 What should you do to adapt? I recommend two important
billion), Udemy (now public with close to a $4 billion valuation), things: First, you should put in place a team that focuses on
Articulate (which just raised $1 billion in cash), 360Learning your SkillsTech architecture and the relationship between your

Figure 4: The Learning Infrastructure

Access Productivity Systems (Office, Salesforce, MS Teams, Workplace by Facebook)

Discover LXP Mobile Apps HR Portal VR

Talent
Learn Training Onboarding Academies Credential
Marketplace

LRS LMS HRMS Content Skills Providers


Learning Completion Job role Learning Skills data LinkedIn
transaction reporting hierarchy content and associated Skillsoft
data data person data video data with person Others
Source: The Josh Bersin Company, 2021

18 A “career pathway” is a series of career steps, designed through skills adjacencies, that
show an individual how to move to a more valued, in-demand career. This is one of the most
important new initiatives in HR, and skills and job data now make this possible.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 5


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skills strategy and career, recruiting, mobility, and pay. This
team should start to understand the technology and consider
4 Coaching will develop PowerSkills in
everyone.
issues such as:
Of all the L&D issues companies face, one of the hottest of all
• How will we curate and manage the taxonomy?
is PowerSkills—teaching people how to lead, work in teams,
• How can we redesign our job architecture to consolidate collaborate, communicate, tell stories, and think strategically.
skills across roles?
• How will we assess skills in various roles? We coined the term “PowerSkills” in 2019, when we started
our work with the Greater Good Science Center at the
• How will employees see and interact with the platform in
their profiles? University of California, Berkeley. We recognized that skills
like empathy, forgiveness, humility, and awe were the most
• What third-party external skills data do we need?
powerful and sustainable skills in business. While these
Second, it’s important to focus the effort on critical job roles kinds of “softer skills” were not widely discussed prior to the
or capability areas that matter. When it comes to skills, no pandemic, we now know they are essential to success.
company can possibly “boil the ocean” across the entire
enterprise, yet HR technology may infer skills everywhere. So Learning and developing these soft skills is difficult. Important
the best approach is to start with critical capability groups and skills like time management and strategic thinking do not come
then work with capability champions (business or functional easy. Every company has its own context for these capabilities
leaders) who can help drive the agenda forward. and we need to learn them together, in teams, and with leaders.
Some of our research with Mursion shows that people are very
A large high tech manufacturer, for example, has decided that willing to express their vulnerability when the environment is
every engineer and scientist must understand the disciplines right. And the pandemic created just this situation. We wrote
of AI. The company assigned a senior leader in engineering in an entire playbook on the need to foster human-centered
this area to be the capability champion who partners with the leadership skills.19 These kind of skills, capabilities, and
CLO to create an architectural plan. Like others, the company behaviors, which put people first, ensure business success will
is experimenting with multiple tools to figure out which follow (see Figure 5 on the following page).
vendors will work best.
Verizon, for example, felt a desperate need to train leaders
Let me also add that SkillsTech is still a young market. While and supervisors on the process of checking in with people,
most of the vendors claim to have advanced skills inference, listening to their challenges at home, and giving them more
recommendation, and curation tools, in most cases these are flexibility with work. They created a series of all-hands
immature. It’s important to select a few key vendors you like leadership meetings to share ideas, identify what works,
and then work with them over time. and let managers express their own frustrations during the
pandemic.
Vendors in this area include:

• HCM: Workday, SuccessFactors, Oracle One of our large clients, a global technology company, sees
its entire customer base starting to integrate its needs across
• Recruiting: Eightfold, Beamery, iCims, Avature
various industries. The company is set up as independent
• Talent Marketplace and Career: Gloat, Fuel50, Hitch,
product groups, each of which solves one part of this entire
PeopleFluent
complex problem. The company created a PowerSkills program
• Learning: Cornerstone, Degreed, Edcast, Valamis, Microsoft
to focus on systems thinking, training leaders and professionals
(Viva Learning), LinkedIn, Percipio
what this new, integrated customer experience looks like. This
• Cross-Domain Talent Intelligence: SkyHive, Eightfold, program is creating more internal mobility and teaching people
Censia, Retrain.ai
how each part of the product set fits together.

19 The Big Reset Playbook: Human-Centered Leadership, Josh Bersin; Kathi Enderes, PhD; and
Mark Spratt/ The Josh Bersin Company, April 2021.

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Figure 5: Business- vs. Human-Centered Leadership

Business-Centered Human-Centered
Lead the business Lead the people
People coming along for the ride They drive the business forward

Goals, rewards incentives, alignment Inspiration, skills, empowerment, relationships

Drive innovation with execution, innovation in a silo Execution demands innovation every day

Focus on growth and change Learn from problems to evolve organization

Proud, confident, knowledgeable, decisive Humble, empathetic, listener, growth mindset

Focused on the inside, managing the company Focused on outside, listening to customers, market

Pick favorites, rely on trusted confidants to succeed Look for diverse performers, open to new people

Focused on problem-solving, accountability Focused on systems thinking, why problems occur

Targets, budgets, plans Vision, goals, and growth perspectives

Driven by financial success, job promotion Driven by purpose, mission, grit, and passion

Massive change programs and initiatives Iterative change, series of small, measurable steps

Business First, People Second People First, Business Second


“People as a means to an end” “People as the purpose of the business”
Source: The Josh Bersin Company, 2021

5 Talent acquisition and internal


The coaching industry is also on fire. Vendors like BetterUp,
Torch, CoachHub, and many others are now digitally connecting
coaches to professionals at all levels. This democratization
mobility will converge.
of coaching is a breakthrough new solution that dramatically When I interviewed the head of talent acquisition for HSBC,
reduces the cost and gives the benefits of coaching to everyone. I felt like I was talking with an L&D leader. He understands,
through his experience with the company’s internal talent
Companies like Cultivate nudge leaders to listen more, talk less,
marketplace, that over 50% of all hiring will be done internally.
and act with empathy and ethics.
So his team is working on this integrated supply chain of
We believe that, in 2022, the focus on coaching and talent, not just filling empty seats.
PowerSkills will continue to grow, and every company will
Rather than just looking into the external candidate pool
revisit its leadership model to identify which PowerSkills are when trying to find talent, HSBC and many others are now
right for the business. identifying skills, experiences, and qualifications from internal
and external sources to find the right fit for open positions
(see Figure 6 on the following page).

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Figure 6: Matching People to Opportunities

Self-Assessment and Job Discovery Analysis Selection, Interviewing, Measure, Develop,


Promotion and Skills Matching Fit, Onboard, Hire Grow, Reward

• Infer skills in jobs (AI) • Post jobs, schedule • Fill development gaps
• Fill in profile
interview
• Infer skills from • Accommodate missing
• Assess interests
experience (AI) • Pay, salary, grade, growth skills
• Identify skills
• Assess skills manually • Onboarding • Set performance goals
• Categorize experiences
• Recommendations • Move, relocate • Assess success or failure

Employee Profile and AI and skills identification Recruiting and Performance and
HRMS Integration and matching assessment features development features

Source: The Josh Bersin Company, 2021

This is going on in many companies (if not every company). aren’t making your EX “irresistible,” I can guarantee your
Not only is it expensive and difficult to hire externally but also recruiting will be more difficult.
if the company is “leaking people,” it will never be able to hire
Our research also shows recruiting skills are more important
fast enough. Amazon, for example, has more than a 150%
than ever before. The days of selling a candidate on your
turnover rate in its distribution centers.20 This means it has to
company are over. Recruiters have to know how to source,
rehire almost a quarter of its workforce every month just to
how to assess, and how to work with hiring managers in a
stay in business. No company can survive this way for long.
subtle and consultative way. So it’s time to automate all the
Recruiting itself is being automated and improved. Companies tactical screening and scheduling activities and help your
like McDonald’s can now recruit candidates entirely through recruiters be extremely strategic.
mobile devices, without even using an ATS (instead, it uses
And the opportunity of internal mobility has become massive.
Paradox.ai). Companies like Bayer Pharmaceuticals rely on
For example, Sitel Group uses behavioral assessments to
the intelligence of Eightfold.ai to source candidates based
match behavioral skills of employees with open positions to
on their scientific expertise, reputation, and experience;
identify and shortlist people who might be good fits for those
the companies completely ignore current job titles. And
roles. One leader told me recruiters have turned into internal
with automation from vendors like iCims, Avature, LinkedIn,
headhunters who search inside the company to find the right
SmartRecruiters, Beamery, PeopleFluent, and many others,
person for an open job. Coupled with the growth of a talent
companies are reengineering their recruiting to be more
marketplace, this is a whole new way to recruit.
integrated than ever before.

Our Talent Acquisition research also points out that 6 Every company will need a talent
employment brand, reputation, and a company’s purpose and marketplace platform.
mission are more important than ever. For many years, we’ve I think the breakup of GE is a telling moment in time. It’s time
seen companies upgrade employee experience (EX) initiatives to put a nail in the coffin of the “top-down, management-led”
to be more growth-oriented, inclusive, and supportive. Now, organization. Even the Wall Street Journal now notes21 that
in a world where the economy is growing much faster than “GE’s idea of a management magic is flawed.”
the labor market, this has become essential. In fact, if you

20 The Amazon That Customers Don’t See, Jodi Kantor, Karen Weise, and Grace Ashford/
nytimes.com, June 2021. 21 “GE and the Belief in Management Magic,” Jason Zweig/wsj.com, November 2021.

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For most of my career, we had a belief system that all good believe that an internal talent marketplace is becoming one of
decisions are made by top leaders. This management style the most important systems that should exist in a business.
then delegated smaller decisions down the pyramid. For key
The talent marketplace has been slow to mature. In the early
talent decisions (who to hire, who to promote, who to move to
days I worked with companies trying to build complicated
a new role), we assumed that managers had the right answers.
internal career systems. Many were not very successful. They
So we built all sorts of tools (such as nine-box grids, ranking
always fell behind timelines, were hard to use, and were often
systems, rating scales, assessments) to validate management’s
resisted by managers.
decisions about people.

Fuel 50, a company that pioneered the automation of career


Now these beliefs are coming apart. As the GE story shows
pathing, stumbled on the marketplace opportunity first. Then
well, top managers do not always know what to do. They have
companies like Gloat, Hitch, Avature, PeopleFluent, Eightfold,
lots of insights and perspectives, of course, but many of the
and others jumped in, and today this is one of the hottest
best decisions in any company are made at the bottom, from
markets in HR.
the people who have an up-close view of the work and related
issues. In fact, the whole idea of jobcrafting and empowering Historically this area was called “career development.” Most
frontline workers has become a big theme in disruptive growth. organizations had career models, nine-box grids, and all sorts
of old-fashioned ways to help employees figure out where
The talent marketplace makes this happen. When you open up
to go next in their careers. The problem with this approach is
internal opportunities to people inside the company (and this
that it simply does not move fast enough. So now companies
means jobs, projects, mentors, assignments), you get the power
are embracing internal platforms that help managers find staff
of marketplace dynamics. Highly expert and ambitious people
to help with projects and help employees find mentors or
rise to the top; projects get staffed with the best people (not
new jobs. The most successful companies put career mobility
just the leader’s favorites), and everyone feels more empowered.
into the hands of the employees and help them move into
And in a world where it’s harder than ever to find external the direction of which they are most passionate with an agile
candidates, the marketplace becomes essential. I firmly model (see Figure 7).

Figure 7: Three Options for Talent Mobility

Planned Facilitated Agile


• Linear career paths • Vertical and horizontal • On-demand need-based
• Planned and managed • Facilitated, not planned • Changeable quickly
• Functional in nature • Based on aspirations • Gig and project oriented

Pros and Cons


+ Easy to understand, + Supported by leaders, + Badly needed today,
modeled in job market fits succession needs new model of work

- Long time to build, - Requires cultural shift, - Demands new systems and
may become out of date changes role of manager new company culture

Processes Needed
Development Planning Development Coaching Transparent Workforce Plan

Self-assessment, Self-assessment, Development need,


clear career goals purpose and direction current passions

Source: The Josh Bersin Company, 2021

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Today there is a specialized category of vendors that uses AI to engineering; oil companies are moving into renewable energy
match employees to opportunities in the company. Soon, this and services; and telcos are reinventing their businesses with
capability will be part of a feature set in your company’s talent 5G and content. In every single case, senior leaders are trying
intelligence platform, and you’ll use this for mobility, career to determine what skills they need next.
development, growth, and eventually for determining pay. A
In the old days we would hire experts. Or just hire new
leader from a large pipeline company pays people based on
employees with the needed skills. While these approaches
their skills certification, so its employees are now looking for
certainly work, they aren’t sustainable, nor do they solve
new opportunities at a rate never seen before.
challenges quickly. Solving the skills challenge requires
While a talent marketplace is a highly successful solution building a skills taxonomy—one of the biggest trends in HR.
and one that most companies will pilot in the year ahead, it’s However, this is something that takes a measured, careful
a bit more complicated than it looks. You have to simplify approach. The vendors in this space are very new and
job architectures, decide what technology you’ll use for immature; simply installing the Workday Skills Cloud and
skills and development (most talent marketplace platforms looking at the 50,000 employee skills identified is simply not
don’t support learning), and then think about how you’ll going to provide you with the answers you’re looking for.
manage performance, pay, and promotion as people start
We have done a lot of work in this area, and we’ll share what
moving around. For example, Truist started an internal talent
we’ve learned at our upcoming Irresistible conference in May.
marketplace as part of a megamerger of two banks to help
You will be focused on skills in 2022 because your learning,
with moving people into new roles. The solution was so
recruiting, mobility, career, and pay systems all rely on it.
successful that it spread like wildfire. Employees also wanted
Rather than defining skills differently in all these systems, the
to use the solution to find projects, gigs, and other types of
skills taxonomy creates a common language—the basis for
connection opportunities, so the company connected it with
your “talent intelligence layer” (see Figure 8 on the following
its HCM (human capital management), ATS (applicant tracking
page). But it’s important to take a focused approach, rather
software), and LXP (learning experience platform).
than trying to “boil the ocean.”
Each vendor in this space brings a slightly different
In 2022, you’ll need to create a skills architecture team,
perspective, so it’s worthwhile to do an RFP (request for
bringing together the COEs that need to be involved. You’ll
proposal) or call us for help. I do believe the innovations we’re
need to assign what I call “capability leaders” to each strategic
seeing in this category will ultimately become incorporated
area of your company, but not HR people; instead, they should
into core platforms pretty quickly, so pick your vendor
be business or functional leaders. This will then enable you to
carefully.
build a multiyear roadmap for identifying critical capabilities,
assessing and selecting SkillsTech, looking for external
7 Talent intelligence and skills data, and then applying this information to the problems of
taxonomy will become the recruitment, mobility, training, and rewards.
cornerstone of your people strategy.
For HR this means building a new center of excellence (COE),
As the economy grows and companies transform, every
the COE of skills architecture. This new team will own job
organization is trying to figure out the skills its employees
architectures, skills technologies, skills taxonomies, and the
possess, the skills that are needed, and where the gaps are.
coordination of the capability academies. It’s one of the
These are not just L&D issues—they’re actually talent
biggest changes hitting HR in years (probably as big as the
intelligence issues.
emergence of employee engagement and employee listening).
Automakers are becoming electric vehicle and AI companies;
Our experience with this challenge comes from the Josh
healthcare companies are becoming IT and digital health
Bersin Academy, which has helped us build our Global HR
companies; pharma companies are diving into genetic
Capability Project for more than two years. More than 100

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 10


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Figure 8: The Talent Intelligence (Skills) Layer

EXP–Journeys, Portals, Cases, Knowledge External

AI-Based Matching
Recruiting Platform Talent Source, Recruit,
• Prehire Assessment • Events Hire Process
• Interview • Recruitment Analytics
Talent Marketplace • Behavior
• Job Sharing • Project Work
• Career Planning • Gig Work Skills
LXP, Learning Systems • Mentoring Global Skills Taxonomy
• Compliance • Events
• Formal Learning • Learning Management Skills Strategic Capability Models
• Learning Discovery • Learning Analytics
• Learning Delivery
Job Architecture
Skills

Job Architecture & Org Structure Skills

Core HR, Payroll

Source: The Josh Bersin Company, 2021

companies have helped us build our model, and we now have its leaders), and so we wrote The Definitive Guide: Employee
94 capabilities clearly defined, assessed, and benchmarked. Experience, showing you how to become an irresistible
We built capability accelerators for each of capabilities organization (see Figure 9 on the following page).22
and to determine what content, skills, and developmental
In 2022, I believe we will be clearer about this topic, so let me
assignments are needed. And we are just getting started!
explain what’s happening.
HR leaders will want to incorporate skills initiatives into your
Despite the vendors all telling you how to do this, the real
strategic plans. Sales academies are very common, as are
problem of employee experience (EX) takes place in four stages:
leadership academies. But before you rush out and try to build
a global skills taxonomy, you need to decide where to start. First, you have to listen to people, analyze, and identify your
Then the learning curve goes fast and you can replicate the problems. This may mean, as Deutsche Telekom did, creating
process from one area of the business to another. employee personas and then creating “design centers” around
each major employee group. Truck drivers, retail workers, IT
8 The intense focus on employee professionals, and senior leaders all have different issues, so
experience will become mainstream. before you start buying things, you have to define the problem.
If there’s any ubiquitous phrase in HR, it’s “employee
Walmart, for example, came to the conclusion they needed
experience.” Every HR leader, vendor, and consultant is now
to purchase mobile phones for all their workers. Many
focused on this and the topic is accelerating this year. It’s an
manufacturers create phone channels, wall placards, and
incredibly complex topic that comprises all sorts of topics
other communication for employees with no email addresses.23
from the mundane (I had an issue on my commute) to the
Retailers need a system like Legion (an advanced workforce
interpersonal (I don’t get along with my teammates) to the
scheduling platform) to communicate with store workers.
highest order (I want to feel like I can trust the company and

22 The Definitive Guide: Employee Experience, Josh Bersin and Kathi Enderes, PhD/The Josh
Bersin Company, July 2021
23 The Big Playbook: Deskless Workers, Josh Bersin; Kathi Enderes, PhD; Nehal Nangia; and
Mark Spratt/The Josh Bersin Company, 2021.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 11


All rights reserved. Not for distribution. Licensed material.
Figure 9: The Irresistible Organization

Meaningful Strong Positive Health and Growth Trust in the


Work Management Workplace Wellbeing Opportunity Organization

Job and Clear goals Tools, processes, Safety and Open, facilitated Mission and
values fit with stretch and systems to security in all job and role purpose beyond
opportunities get work done aspects of work mobility financial goals
productively

Autonomy and Regular Appreciation, Personal fitness, Career growth Transparency,


agency coaching and recognition, and health, and in multiple paths empathy, and
feedback rewards physical-wellbeing integrity of
support leadership

Agile teams A focus on Flexible Psychological and Many forms of Continuous


and supportive management hours and emotional wellbeing learning as investment in
coworkers development workspace and support needed people

Time to focus, Transparent, Inclusive, Family and A culture that Focus on


innovate, and simple diverse, and financial support supports society,
recover performance a sense of learning environment,
management belonging and and community
community

Technology and Services


Foundation (security and access); support systems; insights apps; talent apps; communication apps; work technology

Source: The Josh Bersin Company, 2021

And tools like Medallia, Perceptyx, Glint (part of LinkedIn), and Third, you need to look at service delivery. All employees
Peakon (now part of Workday) are being reinvented to create want self-service, but they also need to talk with the local HR
“total listening platforms” to help you understand what the business partner, IT service center, or HR service center for
issues are. different issues. EX at its core is a service-delivery strategy, so
we have to rethink how delivery is set up. Bank of America, for
Second, you need to build a multifunctional team. Once
example, created a dedicated service-delivery team for retail
you understand the design issues of your various workforce
banker onboarding. This team follows cohorts during their
groups, you need to respond with a holistic strategy. This
entire first year journey.
means bringing together IT, HR, facilities, safety, legal, and
even operations to help. This EX team can then look at the Fourth, you need a long-term roadmap. EX is not something
top priority issues and decide what interventions, tools, or you solve in a single year. It’s a new lens for long-term
long-term investments are needed. investments. Should you build solutions in Viva, for example?
What is the role of ServiceNow, the Journey tools in your ERP,

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 12


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and chatbots? Is there a new case management or knowledge The pandemic taught us all one important lesson. If people
management system needed? And how will AI make all these don’t feel safe, they won’t be productive, innovative, or
EX solutions better? reliable. So above all, as Maslow’s Hierarchy of Needs clearly
states, we need to create a workplace that is safe, supportive,
I don’t think this craze is going away. If anything, it’s
and inclusive.
getting bigger. Companies are becoming more focused and
sophisticated in this area, and The Definitive Guide: Employee “Safe” means different things to different people. For an
Experience (and new benchmark scorecard) will help. African American woman, a young Asian engineer, or an
Hispanic nurse, “safety” is complex. Such employees may not
9 Diversity will be reframed as feel safe because people dismiss them, they aren’t invited to
“belonging, equity, and inclusion.” meetings, or others don’t acknowledge them. Or for instance, I
Let me take a risk and say that in 2022, we may be able to make recently read an article referencing a female restaurant worker
a dent on this terribly difficult problem. Our Elevating Equity who quit her job because she was sick of customers saying,
research finds that diversity, equity, and inclusion (DEI) is an
24 “Hey, would you pull down your mask so we can figure out
unsolved problem in business, and despite years of effort, most how much to tip you?” Too many employees have to deal with
companies see this as a work in process. Despite the hard work these kinds of microaggressions in their everyday work lives
by DEI leaders and many CHROs, only 20% of companies hold
As our research finds, creating equity and inclusion is not
themselves fully accountable for inclusion and diversity (and 40%
solved by hiring more people of color or promoting more
still see DEI as a compliance issue to avoid legal, reputational, or
women into management roles. While such actions are
compliance risks). Our maturity model (see Figure 10) shows how
definitely important parts of the solution, the bigger issue is
companies progress on the journey to elevating equity.
reframing business as an inclusive, supportive place to work.
Figure 10: DEI Maturity Model

Percent of surveyed
companies
at each level

LEVEL Accountability & Outcome-Focus


DEI ecosystem, partnerships, citizenship, accountability at all levels; 20%
4 all processes are built with DEI as an outcome; sustainable

LEVEL Strategic Focus & Commitment

3
Embed DEI in HR programs; develop HR capabilities; actively committed CEO;
DEI part of business strategy; measure what matters; focus on inclusion; 16%
communicate results transparently

LEVEL Listening & Response

2
Listen to employees; enable dialogue about difficult topics; leaders believe in benefits of
DEI; head of DEI partners with HR and CEO/COO; DEI strategy reactive and standalone
24%

LEVEL Risk Mitigation & Compliance


Focus on diversity only; prevent harassment; try to hire from a diverse pool of candidates; 40%
1 no comprehensive DEI strategy; head of DEI only partners with HR, not with the business

Source: The Josh Bersin Company, 2021

24 Elevating Equity: The Real Story of Diversity and Inclusion, Josh Bersin and Kathi Enderes,
PhD/The Josh Bersin Company, 2021.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 13


All rights reserved. Not for distribution. Licensed material.
Companies are, in many ways, separate communities. If a Our latest Definitive Guides on employee experience and
company’s policies aren’t fair and employees don’t feel as if healthy organizations discovered that equitable and fair pay is
they belong, they’ll simply jump to another community. And among the greatest drivers of employee satisfaction.
the employer will lose out.
This does not mean we have to pay people more (which often
Our Big Reset research on deskless workers focused on we do). It means we have to focus on pay equity, transparency
human-centered leadership this year because hundreds of
25
of process, and fairness in reward and recognition. In fact, if
HR executives kept telling us the key to addressing pandemic- you want to win the war for talent in 2022, fair pay may be
related challenges was not simply the creation of safe physical one of your biggest techniques.
workplaces but the creation of caring, respectful, flexible, and
Companies with a lot of hourly workers—retail, hospitality,
empathetic work environments. Such related competencies
healthcare, manufacturing and more—now increasingly
are very important PowerSkills. Ford, for example, considers
realize that people want access to the money they earned
“care” as one of the top characteristics of a leader. So does
as soon as they earned it, breaking open the old way of
Microsoft.
processing payroll biweekly with on-demand pay (see Figure
In 2022, I believe companies will build on the sense of 11). With new technology, it’s now possible to do this without
belonging they created during the pandemic to further refine burdening the employees with heavy loans, using ATM-like
their DEI programs. And given the highly competitive labor features to dip into already-earned money before payday.
market, companies will relax many of their assessment criteria
Vendors like DailyPay help with that, and it’s been a game-
and be ever-more inclusive for hiring.
changer in attracting and retaining key talent for Metz Culinary
and Houston Methodist.26 Early access to pay is another
10 Pay and rewards will get weapon in the war for talent. It can also mitigate financial
a serious refresh. stress, so it helps you with health and wellbeing, too.
Of all the HR domains we study, pay practices are still the
most traditional of all, even while wages have been rising and Making pay and recognition fair and equitable needs to be
hiring challenges increasing. a priority for every company. Salesforce has been on this
journey for five years, working tirelessly to fix the gender pay
In 2022, I believe rewards and recognition will get fresh eyes. gap and other pay inequities by spending millions of dollars

Figure 11: The History of Early-Pay Access

Check Cashers
Payday Loan Cash Advance On-Demand Pay
Salary Lenders

B2C B2C B2C B2B


Post-dated salary checks High-interest loan Debit employee accounts On-demand company funds
Daily fees Payday loan company funds Overdraft fees Tapping into earned income
Heavy burden Debt rollover Digital version of payday loan Flat fees or memberships

“Loan sharks” “Payday lenders” “Digital payday lenders” “The ATM for your pay”

Source: The Josh Bersin Company, 2021

25 The Big Reset: Deskless Workers, Josh Bersin; Kathi Enderes, PhD; Nehal Nangia; and Mark 26 On-Demand Pay: Real-Time Pay to Make Workers Happy, Josh Bersin and Kathi Enderes,
Spratt/The Josh Bersin Company, 2021. PhD/The Josh Bersin Company, 2021.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 14


All rights reserved. Not for distribution. Licensed material.
with equity adjustments every year. The company has also will not work for a company that does not have a focus on
looked at the problem holistically, reviewing hiring practices, sustainability, carbon neutral strategies, and environmental
learning opportunities, and promotion decisions to mitigate protection.28 On the flip side, our Healthy Organization
bias. Employees now trust the company to do right by them research shows that companies that prioritize sustainability
in rewards and recognition. Unilever even built its own total are much more likely to be considered a great place to work,
rewards system, uFlexReward, to accurately understand have much higher employee retention rates, and even see
compensation real-time, and it now leads in pay equity in the higher levels of customer satisfaction and loyalty.29
UK.27
U.S. pharmaceutical company Genentech, for example, is
New technologies including nudging to fit into work and acutely aware of the impact of climate change anxiety on the
meeting practices, goal-setting, career opportunities, health and wellbeing of its employees. Workers have been
compensation, and recruitment decisions can also help. But bringing their concerns right to the CEO, and the company
the biggest factor in creating equity is the culture of the is in the process of coordinating a range of individual and
company and moving toward a system that rewards those organizational actions to combat climate change.
who do the essential and best work. That’s why we are
HR leaders now have the responsibility to lean in to this
studying rewards and recognition in a big way in 2022.
problem and demonstrate its impact on the business. Similar
to DEI, in which HR leaders are both owners of the problem
11 Sustainability and global climate
change will become HR priorities. and the brand impact, global climate change will only get more
pressing, so you have to incorporate it into your strategy.
In many ways, HR is a “canary in the coal mine” when it
comes to corporate culture. Every new issue that impacts
12 Companies will need to rearchitect
employees—such as diversity and inclusion, fairness in pay, their HR technology.
and mental health—reaches HR first, and then becomes visible
The HR technology market goes in waves, and we are entering
to CEOs and CFOs. This is also the case with climate change.
a whole new layering of solutions. For many years, we focused
While climate change is daunting to fix, to say the least, we all on process integration, and companies bought integrated
have to pitch in to heal and repair the damage that has been talent management systems. In this period, vendors of
done. In my case, we’ve seen several years of fires, drought, importance included Taleo, SuccessFactors, and PeopleSoft.
and warming in my California neighborhood.
In the late 2000s, along came mobile and the cloud. Now
For employers, there are two big issues at stake. First, every all these systems became cloud-based talent platforms and
company now has a brand and responsibility to address vendors like Cornerstone, PeopleFluent, Workday, and ADP
global climate change in a real and meaningful way. Chief took center stage. While mobile felt like a big innovation,
sustainability officers are now coming into their own, and mobile access turned into a necessary feature. We now expect
they are looking at the supply chain, manufacturing practices, every technology to be mobile.
and eventually employee use of energy, commute, and
In the mid 2010s, we saw a huge wave of innovation. Cloud-
other factors. ServiceNow just announced a commitment
based apps are hundreds of times easier to build than licensed
to help convert companies’ ESG (environmental, social, and
systems, so the HR tech market exploded with growth. There
governance) goals into reality by providing visibility and
has been a new generation of applicant tracking systems;
transparency across their programs and initiatives.
sourcing and assessment systems; learning experience
The second more important issue for HR is the impact on platforms; survey and listening tools; and wellbeing and
employment brand. More than 65% of people say they

28 “Employees want climate-positive action from companies. Here’s how they can deliver,” Leyla
Acaroglu/reutersevents.com, December 2020.
27 The Definitive Guide: Employee Experience, Josh Bersin and Kathi Enderes, PhD/The Josh 29 The Definitive Guide to Wellbeing: The Healthy Organization, Josh Bersin and Janet Mertens/
Bersin Company, 2021. The Josh Bersin Company, 2021.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 15


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culture platforms. This is the period we live in, where almost The green area is comprised of talent marketplace
every vendor can get millions of venture capital in the first few systems, skills clouds, skills taxonomy engines, and even
years, and buyers are flooded with options. intelligent chatbots. These products use and leverage data
in transactional systems and add data-driven intelligence
Now, entering the early 2020s, we are in a new wave of
powered by AI. Eightfold, for example, is a highly intelligent
consolidation, and I believe many of the standalone vendors
platform with 1.6 billion people already loaded that helps
we see today will merge.
sourcers, recruiters, and talent planners find, move, and
As you can see from the below graphic (see Figure 12), develop their people. Gloat uses intelligence to help people
traditional talent management systems are essentially find new jobs and gigs in the company. Degreed and Edcast
transactional systems (the blue layer). These tools (applicant use intelligence to recommend content.
tracking, learning management, payroll, workforce
I put these solutions in their own layer to help companies
management) form the basis of everything we do in HR. But in
understand that while ADP, Oracle, SAP, UKG, Workday, and
their original design, they were not intended to be “intelligent”
every other core HR system claim to be AI-powered, there
or data driven, nor were they designed to be experiential
are features and capabilities that are very special provided
(design oriented). So in the last few years, a new sets of layers
by companies in this layer. For example, how do you import a
have been added.
huge database of skills or content into the system as you go
These new layers, by the way, are typically developed by into a new industry? These intelligence systems are different
startup companies so they initially look like new markets. But by design. Offerings such as talent marketplaces, LXPs, and
as in every other part of the enterprise software industry, over intelligent sourcing systems all fall into this area—as do
time, these market segments consolidate. This is the phase we specialized vendors like Eightfold and SkyHive that focus
are just about to enter. exclusively on this tech.

Figure 12: HR Technology (2021 and Beyond)

White Collar Hourly Senior Leaders Line Managers Candidates Contractors External Network Alumni

Work Tech: Systems of Productivity


CREATOR TOOLS
Build Build Build Build Build Build Build
Employee Portals Career & Mobility Learning & Wellbeing Employee Journeys Surveys Feedback Employee Communications Candidate Experience

Employee Experience Systems & Applications

Talent Intelligence Data & Applications

Transactional Talent & HCM Applications

Senior Junior Talent Specialists Wellbeing, Safety, HR Ops, AI & Analytics, Compensation, HR Tech, App
Geographic Geographic (HR, Recruiting, OD) Culture, Bots, Intelligence Monitoring, Benefits, Development HR Data Lake
Business Business Engagement, Predictive, Rewards
Partners Partners Recognition WF Planning

Source: The Josh Bersin Company, 2021

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 16


All rights reserved. Not for distribution. Licensed material.
In the dark blue layer, we see hundreds of new tools to Microsoft, for example, does pulse surveys to a randomly
build onboarding, development, and other employee sampled subset of employees every business day—equating
journeys, as well as systems like ServiceNow that offer case to approximately four opportunities to participate in pulse
management, knowledge management, and employee portals. surveys per employee per year. To this feedback, it adds
Viva Connections will be huge in this space as well. Many insights from Microsoft Viva based on actual digital behaviors
onboarding systems and portal tools fall into this layer. Again, and passive listening to get a great comprehensive picture of
all the HCM vendors are building out this kind of functionality what’s going on with its employees.
as well, but most companies buy specialized tools based on
This is a big deal. Every study we’ve done this past year
their employee base. I would also add Qualtrics, Medallia,
on topics ranging from business resilience to employee
Glint, Peakon, and other survey tools here. You could consider
experience to talent acquisition has come back with the
systems like Mya, Paradox, Yva, and other chatbots in this area,
common finding: listening to employees is one of the most
even though they clearly use the data in the green layer.
valuable management practices we have.
Highlighted in light blue are the “creator tools”—a new breed
If you’re still running an old survey platform or haven’t yet
of technology that helps HR professionals build, design,
adopted a continuous listening strategy, now is the time to do
and create things that employees need. ServiceNow calls
it. For example, I just interviewed executives from T-Mobile,
these citizen-developer tools. Oracle offers journey design
which uses Medallia’s crowdsourcing platform (Crowdicity) to
systems. These tools typically require no coding skills and
let retail workers all over the country suggest new ideas, rate
let nonprogrammers build content or workflows that help
each others’ suggestions, and compliment their peers. The
employees get their jobs done.
HR team told us this is one of the most popular platforms for
Additionally, there is the explosive power of the creator retail employees. With the data collected, HR leaders in New
economy in HR. Companies are now realizing if they let York know what retail employees in Hawaii need to make their
employees build and post their own training, they unlock stores better.
some of the most important learning in the company. We are
I have written several articles about Waggl that helped
witnessing the birth of a whole creator economy inside of any
PepsiCo decide how to redesign its entire performance
company, and new tools from L&D vendors and Microsoft are
management process. These kinds of systems are now
unleashing this power.
essential. Without them, you’re flying blind.
In 2022, these layers will become clearer as every vendor
And, as we learned from the pandemic, employees want
starts to span the entire vertical stack. My point is the entire
to trust that you’re listening. Trust, the most highly valued
HR tech market is rapidly changing, and new vendors are
element of employee experience, is built around your ability to
upsetting existing ones by adding these layers one at a time.
listen. This shift in technology is a big topic for the year ahead.
This gets me to another big change: employee listening
platforms. For many years, we bought enterprise survey tools 13 The people analytics crusade will
to perform annual or pulse surveys, and that data went to an touch on every aspect of your business.
I/O psychology group that analyzed and reported results. All One of the most interesting parts of my career in HR has
that is over now. been my personal journey through people analytics (PA).
When I entered the HR space in 1998, there was a huge, but
Vendors like Medallia, Peakon (Workday), Perceptyx, Glint
fairly geeky group of professionals trying to figure out how
(Microsoft), Willis Towers Watson, and mid-market solutions
to measure training. We had the Kirkpatrick model (which I
like CultureAmp, Lattice, and UKG (which acquired Great
always considered somewhat simplistic), ROI modeling, and all
Place to Work) are all focused on this capability. You simply
sorts of assessments. I spent many hours with talent analytics
cannot run a company without listening to your employees,
professionals sorting out the measurement challenges.
letting them speak up, and analyzing their input and feedback.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 17


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I even wrote The Training Measurement Book,30 which still has pipeline. Every part of business is now data driven. As more
relevance today. At that point in time, we were struggling to and more of our products become digital, we can go to our
figure out what data we had, what relevance it could bring, cloud provider and figure out who’s buying what, what they
and how we could align L&D and HR investments with various do and don’t like about our offerings, and perform all sorts of
business goals and issues. analysis of various aspects of the business.

Since then everything has changed. Every business area Until fairly recently, HR has been way behind in leveraging
is now automated and driven by data. Sales teams have analytics. Companies typically have multiple HR platforms
massive data sets that identify lead flow, the value of various tying into other back-office systems. Often there isn’t a way to
advertisements, and the activity and productivity of sales consolidate data for an employee. In an attempt to get around
reps, marketing programs, and presales teams. Our Employee this, we build data warehouses, data lakes, or data portals with
Experience research shows that advanced people analytics are the goal of seeing everything we need to know about each
the most impactful tech practice of all (see Figure 13). employee, contractor, or leader.

Similarly there is detailed data on your company’s supply Enter people analytics. Today people analytics teams have
chain, manufacturing process, financial systems, and research some of the most sophisticated tools in business at their

The
Figure Impact ofAdvanced
13: Impact of Advanced PeopleonAnalytics
People Analytics Outcomes on Outcomes
Companies that use advanced people analytics are:

4.3× More likely to create a


sense of belonging 2.6× More likely to exceed
financial targets

4.8× More likely to be seen as a


great place to work 6.7× More likely to adapt well
to change

7.3× More likely to engage and


retain employees 7.7× More likely to innovate
effectively

Of companies do
83% not use advanced people
analytics

Source: The Josh Bersin Company, 2021

30 The Training Measurement Book: Best Practices. Proven Methodologies, and Practical
Approaches, Josh Bersin/Pfeiffer, 2008.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 18


All rights reserved. Not for distribution. Licensed material.
disposal. Yet, we are still well behind other business areas.
14 Building HR skills and capabilities will
In 2022, you will see continued focus on analytics and the be a nonnegotiable.
benefits data analysis can offer. For example, in the pandemic,
When I set out to build the Josh Bersin Academy, I had a sixth
we used analytics to enhance vaccine management and
sense that capability-building in HR was becoming the single
work scheduling . Now that many HR organizations have an
biggest obstacle in our profession. And I think I was largely
analytics infrastructure, CHROs are going to be asked, “Can
correct. Among all the changes coming in 2022 and beyond,
you get me a view of how well our hybrid work program is
the biggest of all is that HR itself is now a design profession
going?” and other such questions. Which groups are most
in which every HR professional is being asked to consult,
impacted by mental health challenges? What is the ROI of all
design, listen, and adapt. That is why we are working on the
the wellbeing programs we’ve launched? Where are careers
Global HR Capability project and designed a future-focused,
and skills changing the fastest and what roles and jobs are
research-driven set of strategic HR-domain capabilities that
falling behind? And who are our HIPOs and highest-potential
individuals and organizations can focus on (see Figure 14 on
young people?
the following page).
There are hundreds of data-driven questions to answer in HR.
This means that HR teams and individual professionals must
Additionally, CEOs are now looking at diversity, pay equity,
stay up to date. Our work proves that organizations with great
sustainability, tenure, retention, and more. We, in HR, have to
HR capabilities outhire, outperform, and outinnovate their
really step up our analytics game.
peers.
If you work in a public company, you probably know about the
You wouldn’t run a sales organization with sales people who
new mandate to add information related to human capital to
don’t know the process, products, and competition, would
regulatory disclosures. While the requirement is very broad, it
you? Similarly, how can you run an HR organization without
is a great opportunity for HR and people analytics teams to
continuously developing the HR team? This year, I really want
highlight accomplishments. What measures you select and
to encourage you to invest in HR capability development. A
the story you tell about them will not just influence investors
great HR professional development program is inexpensive
and shareholders but also your customers and employees.
and one of the most empowering and exciting things you can
Companies like Fossil Group and Dentsply Sirona took that
do as an HR leader.
opportunity to explain how people-related practices and their
benefits add value to the business.31 Additionally, it’s important to recognize HR can no longer
function in silos. Certainly you have COEs and service-
Today, people analytics teams are quite sophisticated, often
delivery teams all over the world. But as the pandemic
staffed with employees with data science and psychology
showed us, it’s when people know each other and share new
degrees. These teams are doing amazing work, and the
ideas and solutions that HR really thrives. One way to create
domain has advanced exponentially. I believe the next big step
a connected business function is for employees to come
is for people analytics to become part of the company’s entire
together for an academy-oriented professional development
business analytics function.
experience. Kaiser Permanente’s organization development
Our Global HR Capability Project work shows analytics as team brought together a change management community
one of the top three skills in demand, alongside change from across HR and different business functions to share
management and employee experience. So, in 2022, I suggest success stories and learning and to develop capabilities
you start a crusade to ensure every HR business partner, around change and transformation. This community shares
specialist, and generalist takes a course in analytics and knowledge and tools in monthly meetings and in online
learns about storytelling, hypotheses, and the basics of Excel, discussion forums, focusing on increasing overall change
statistics, and charting. capacity within and outside of the HR function.

31 Human Capital Disclosures: Elevating People Success as a Business Priority, Josh Bersin and
Kathi Enderes, PhD/The Josh Bersin Company, 2021.

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 19


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Figure 14: The Global HR Capability Framework

Source: The Josh Bersin Company, 2021

HR Predictions for 2022 | Copyright © 2021 The Josh Bersin Company 20


All rights reserved. Not for distribution. Licensed material.
This is an example of transforming HR from the inside out. company work. And this lesson is one we, as HR leaders, have
Rather than just think about how you organize and create a to take forward.
new service-delivery model, remember that HR itself is largely
As the CHRO role evolves, so does the way companies
a people-dependent function. Bring your people together,
name the role itself. We’re now seeing the HR function
let them learn from each other, and a transformed HR
being rebranded as people operations, and the leader is
organization may just appear before your eyes.
now called the chief people officer. Other companies have
taken rebranding even further by giving leaders titles such
15 The CHRO role will be integral to
organizational success. as the chief heart officer (Vayner Media) or chief amazement
officer (Rock Central). And while traditionally disciplines
If you’re an HR or functional leader, let me celebrate you now.
and experience in employee relations, employment law, or
You and your peers have been the saviors of our economy,
compensation management were most desirable for senior
and I hope your company understands your importance. The
leaders, we now see more and more people coming into these
last two years have thrust HR leadership into the center of
pivotal roles from disciplines like organization development,
business recovery; this is a role we should maintain into the
people analytics, or even marketing or business operations.
future.
In the year ahead, as the labor market becomes
The old debate about HR having a seat at the table is now
hypercompetitive, it will be up to the CHRO to drive the
over. Every single business issue comes down to a discussion
internal mobility, new career pathways, recruiting, and
about people, and we, as HR leaders, need to keep pushing
employment branding your company needs to flourish
ahead. Over the last two years, HR leaders have become
and grow. Challenges ahead will include upskilling the HR
experts at empathy, flexibility, empowerment, and health.
team, organizing HR around agile design and delivery, and
You’ve learned about agile design, the global supply chain for
continuously innovating around the employee experience,
talent, internal mobility, and new approaches to leadership.
recruitment, hybrid work, and multigenerational career paths.
And you’ve learned how to bring the employee-first focus to
your CEO, CFO, and CIO.

In 2022, we must continue this effort. While companies have Wrapping It Up


become more focused on human-centered leadership during
Let me summarize with this. The last two years have
the pandemic, it’s important not slip backward as we go back
taught us a lot. Our organizations are more flexible, more
to a more normal economy. In 2022, we will face the issues of
empathetic, and more digital than ever. This coming year will
inflation, higher interest rates, and an intense need to improve
bring a challenging set of issues: a very competitive labor
sustainability, climate protection, and environmental care.
market, inflation and supply chain disruptions, and a highly

Jill Sochor, one of our faculty members who helps lead the empowered workforce.

leadership development work at Ford Motor Company,


HR leaders are in the driver’s seat. We hope these predictions
recently told me the top competency for leaders at Ford
give you the insights and perspective to keep your team
is “care.” And while this may seem a bit touchy-feely, as we
and strategies current in the year ahead. As always, we
talked it through, I understood. Ford, which is going through
look forward to hearing from you and helping you with your
the biggest reinvention the company has seen in generations,
organization’s people strategies.
has discovered that taking care of people is what makes the

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About the Authors

Josh Bersin
Josh founded Bersin & Associates in 2001 to provide research and advisory services focused
on corporate learning. He expanded the company’s coverage to encompass HR, talent
management, talent acquisition, and leadership and became a recognized expert in the talent
market. Josh sold the company to Deloitte in 2012 and was a partner in Bersin by Deloitte
up until 2018.

In 2019, Josh founded the Josh Bersin Academy, a professional development academy that
has become the “home for HR.” In 2020, he put together a team of analysts and advisors
who are now working with him to support and guide HR organizations from around the
world under the umbrella of The Josh Bersin Company. Recent research covers topics such
as hybrid work; HR technology market trends; employee experience; and diversity, equity,
and inclusion. He is frequently featured in publications such as Forbes, Harvard Business
Review, HR Executive, The Wall Street Journal, and CLO Magazine. He is a popular
blogger and has more than 800,000 followers on LinkedIn.

Kathi Enderes, PhD


Kathi is the vice president of research at The Josh Bersin Company; she leads research for all areas of
HR, learning, talent, and HR technology. Kathi has more than 20 years of experience in management
consulting with IBM, PwC, and EY and as a talent leader at McKesson and Kaiser Permanente. Most
recently, Kathi led talent and workforce research at Deloitte, where she directed many research studies
on various topics of HR and talent and frequently spoke at industry conferences. Originally from Austria,
Kathi has worked in Vienna, London, and Spain and now lives in San Francisco. Kathi holds a doctoral
degree and a master’s degree in mathematics from the University of Vienna.

Janet Mertens
Janet is the director of research at The Josh Bersin Company. In this role, she conducts empirical
research on a variety of topics related to work and people, as well as leads the development of fact-
based insights for today’s HR executive. With 20 years of HR consulting experience across multiple
industries, Janet most recently led the human capital research program at IBM’s Institute for Business
Value. She has published key studies on employee experience, the enterprise skills gap, and the emerging
role of the CHRO. Janet holds degrees in computer science, education, and psychology; her current
research areas include talent acquisition, workforce wellbeing, and the application of AI in HR.

Nehal Nangia
Nehal is the senior manager for research at The Josh Bersin Company. In this role, Nehal drives empirical
research on key workforce-related topics and the development of actionable insights and powerful stories
for today’s talent executives. Nehal has almost 15 years of professional experience in human capital,
with a focus on performance management; employment value proposition; workforce transformation;
and diversity, equity, and inclusion (DEI). Prior to joining The Josh Bersin Company, Nehal was a global
advisor for clients at Deloitte and published several studies on pertinent topics such as DEI, performance
management, and bias. Nehal lives and works in India and has a master’s degree in psychology.

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