The labor market in 2022 will be profoundly influenced by significant changes; the following describes what those trends will be.
The epidemic has been primarily responsible for the significant upheaval that has occurred in the employment market over the last two years, and there is no reason to believe that the situation will improve in 2022.
Because the labor market is so unpredictable, it is more necessary than ever to keep up with the significant shifts and trends that are occurring in the market. This is something that is true not just if you are an employer or a recruiter, but also if you are a job seeker; if you want to have the greatest chance of securing the best position, you need to remain on top of things.
We have compiled a list of nine of the most prominent trends that you can anticipate seeing in 2022 and discussed the reasons why they are likely to be such a significant factor. After reading this, you will have all of the knowledge at your disposal that you need to make the most of your professional life in the year 2022.
In addition, if you are interested in learning more about the labor market, check out our rundown of the top 10 strategies to attract top talent to your company (will open in a new tab), as well as our evaluation of the finest job sites in the United States, which can be found here.
Remote working makes itself at home
As a result of the worldwide epidemic, tens of millions of people were forced to remain inside. This drove many individuals to get accustomed to working from home (opens in new tab), and many discovered that they like it. According to a poll that was carried out by FlexJobs (opens in a new tab), following the epidemic, 58 percent of respondents wanted to work from home permanently, while 39 percent desired a hybrid atmosphere. Studies have also revealed that remote workers are more productive than in-office personnel, and that the availability of remote working possibilities allows businesses to recruit employees from a more varied pool of candidates.
The choice that many people have for working from home or remotely isn't going away, particularly when new COVID-19 strains arise and lockdowns are extended in a number of different nations. In point of fact, this shift represents less of a passing fad and more of a fundamental shift.
When applying for opportunities, candidates will have the expectation that they will have the option to work from home or in a hybrid setting. On the other hand, employers will be required to provide flexible and work-from-home choices if they want to attract and retain the most qualified workers. The most successful businesses will recognize that certain workers are more productive in an office setting, while others are more productive working from home, and still others will need a combination of the two.
More diversified sorts of labor
In 2022, not only will there be an increase in remote work, but the variety of work that people do will also continue to be an important trend in the labor market.
We're seeing an increase in opportunities for contract work, project work, and one-time commissions, and an increasing number of individuals are realizing that working for yourself is a better choice for them than traditional employment. Additionally, the gig economy is becoming increasingly significant, and this trend is not likely to abate any time soon.
These various ways of working will continue to gain popularity in 2022, which implies that businesses will have to adjust to a labor market that is far more diversified in its composition. Traditional paid and hourly jobs aren't cutting it anymore since more people demand greater flexibility in their working lives, and these jobs just can't provide it.
Candidates who are aware of their own value
In 2021, there were more people looking for work than there were available openings, which indicates that job seekers were in a position of power within the labor market. Expect to see more job listings(opens in new tab) in 2022 as businesses strive to grow and build back from the epidemic; nevertheless, continue to believe that applicants have all of the cards in the negotiation process.
People are less willing than they have ever been to put up with poor working conditions, and this trend will continue in 2022. If you need evidence that people are less willing than they have ever been to put up with poor working conditions, look at the Great Resignation (opens in new tab), which will show you that people are less willing than ever to put up with poor working conditions.
We anticipate that applicants will seek greater compensation levels than they may have done in the past, particularly when this factor is paired with rises in the cost of living. In addition, businesses will have to increase the amount of money they provide in order to compete for the best employees.
Employees who are anticipating improved perks
In the year 2022, you shouldn't merely anticipate businesses to be providing greater wages for their employees. Assume that they will give a wider variety of advantages as well, and be aware that your business will need to keep up with the competition in order to survive.
Staff in 2022 and beyond will anticipate more comprehensive medical coverage, which will include greater mental health care. Employees will also seek an improved approach to parental leave and more flexibility in their place of work, including the ability to work remotely.
In 2022, potential workers are looking out for themselves more than they ever have before, which implies that a stronger benefits package together with greater compensation will become the standard in the labor market. Responding to this trend will be companies that strive to employ the most qualified candidates.
The promotion of diversity and inclusion together with observable progress
The past few years have seen a huge growth in awareness around social justice issues, and any company that wants to succeed with customers and staff in 2022 will place a more significant emphasis than it has ever placed on its diversity, equity, and inclusion initiatives. In addition, any company that wants to succeed with customers and staff in 2022 will place a greater emphasis than ever on its diversity, equity, and inclusion initiatives
From both a moral and a practical perspective, carrying out this action is unquestionably the best option available. When looking for employment, a younger and more educated workforce now places a greater emphasis on these types of efforts. This makes perfect sense from a commercial point of view. A workplace that is fair and inclusive will be able to recruit and keep a staff that is both happier and more diverse, which is a win for the company in every facet of its operation.
It is no longer acceptable for businesses to just "pay lip service" to diversity and inclusion programs; this kind of mentality belongs in the past. Businesses will need to fulfill their lofty commitments beginning in 2022 and beyond, since politicians will place a greater emphasis on deeds than statements.
Robotics and artificial intelligence
In the year 2022, more businesses will consider automating their processes as a result of the ever-increasing impact of technology, the significant shift toward working remotely, and the increased strain on smaller workforces. In addition, in order to satisfy this need, businesses will go to companies who provide services that are automated.
There is already a substantial amount of data in support of this in the area of human resources. There are a plethora of third-party software programs (opens in new tab) that are at your disposal and can automate many of the procedures that are associated with the management and recruiting of workers. Expect additional procedures outside of HR to become automated in 2022, which will result in jobs being both faster and simpler.
Because AI and machine learning can be used to enhance accuracy and results in automated activities, artificial intelligence will go hand in hand with more automation in the future. This is because AI can be used to improve accuracy and results in automated tasks.
A strong environmental emphasis
Because of the growing threat posed by climate change, people won't only be thinking more about concerns relating to social justice in 2022 and beyond; they'll also be much more concerned with issues relating to the environment.
If businesses want to retain their existing consumers, recruit new employees, and maintain their level of success, they will need to react to this. The vast majority of consumers would rather give their money to companies that take their responsibility to the environment seriously.
This does not only mean that businesses need to give environmental concerns lip regard. In 2022 and beyond, employees and consumers will not settle for anything less than firms delivering tangible action and quantifiable, accountable progress in this area. They will demand nothing less.
Developing one's brand
Companies that wish to recruit and retain personnel in 2022 will need to provide competitive compensation, a comprehensive benefits package, clear diversity efforts, and beneficial environmental consequences. However, this is not all that is required.
Candidates are increasingly interested in working for organizations that share their ethics and principles; hence, it is crucial for firms to highlight their purpose and culture in job advertisements.
In 2022, one of the most important trends will be a greater emphasis on the importance of business culture, both in job advertisements and beyond. After all, we are in a candidate's market, and more and more employees are looking for work environments that are gratifying and in line with their own beliefs.
The workweek consisting of four days.
There is a rising trend toward shorter work weeks and more flexibility when it comes to work hours and locations. This may be attributed to the growing popularity of remote work as well as a greater awareness of the need of maintaining a healthy lifestyle.
In point of fact, the four-day work week (opens in new tab) is gaining more and more support among workers. And despite the fact that a lot of individuals find the concept of having a three-day weekend as part of their routine to be appealing, several tests and research have shown that shifting to a four-day week may often prove to be good for workers as well as businesses.
Back in 2019, Microsoft Japan conducted an experiment to determine the effects of a four-day work week and discovered that it led to a 40 percent increase in productivity and a 23 percent decrease in power use. (Opens in new tab) According to research carried out in New Zealand and Iceland, companies with a four-day work week had employees who reported higher levels of happiness and productivity. According to the findings of a research conducted in the United Kingdom, 63 percent of businesses had more success in recruiting and retaining personnel when they switched to a four-day work week.
Kickstarter, Unilever, and Shake Shack are among the companies that have already begun testing the concept. The trend is now finding its way into the real world. Currently, tests are being conducted on it in Belgium, Scotland, and Spain.
There is no question that a four-day work week will not be suitable for everyone, and in certain fields of endeavor and companies, it is just not feasible to implement such a schedule. But it is undeniably a useful alternative for a wide variety of businesses, and there is little question that it will develop into a more significant one between now and 2022.
The concept of wellness will develop into a tangible statistic.
We have already covered the topic of employees expecting better benefits and improved mental health support in the workplace in 2022. This massive trend will coincide with the need for businesses to measure the impact of the various additions they make to their staffing packages, as we have previously discussed.
You may thus anticipate that firms will begin using inventive new measures in 2022 and beyond in order to monitor the mental health, physical health, and work happiness of their employees. These statistics will be required by businesses in order to evaluate the efficacy of the newly implemented wellness programs and perks in the workplace. They will need to demonstrate to the board members and shareholders that these alterations have had a good effect.
Managers and analysts will depend on data to assess the number of individuals who are taking advantage of the advantages that are being offered. Staffing surveys and feedback sessions will be used to determine whether or not workers are reporting greater levels of pleasure and satisfaction. Companies will analyze levels of productivity, financial performance, the number of sick days taken, and fluctuation rates more carefully in order to provide a more comprehensive picture of how these new political dynamics are functioning.
If a sufficient number of those data shift in the correct direction, it will demonstrate to businesses that it is worthwhile to invest in improved benefits and to care after the wellbeing of staff members.
Upon Arrival Back at the Office
We anticipate that there will be some resistance to the new style of working in 2022, despite the fact that working from home and in hybrid workplaces will become far more common in that year.
You may anticipate finding a large number of more conventional managers who are uneasy with the idea of so many of their employees spending so much time at home. This is mostly due to the fact that these managers do not trust their employees to get the work done. A circumstance like this one will prompt management to attempt to enforce office requirements, which will in turn lead to resentment and discontent among the workforce.
We believe that businesses will point the finger at hybrid and remote working as the cause of bad financial outcomes, and that these businesses will attempt to take corrective action by ordering employees to return to their assigned workstations. In a similar vein, high-level managers will be concerned about the possibility of their firm losing its culture. As a response, they will work to bring employees back into the workplace.
Studies have shown that employees are happier and more productive when allowed flexibility, and there are more plausible causes for poor financial performance than the factors listed below. None of them are especially compelling reasons to give up working remotely or in a hybrid setting. However, a significant number of more senior managers and employees will approach these novel methods of working with skepticism, thus there will undoubtedly be a discernible backlash against this tendency. Even if it's not a positive trend, it seems to be on its way to becoming a trend anyway.