The Pulse of HR 2022
A comprehensive view of the state of HR in U.S. Business
Explore Now
1. Top HR Challenges
2. Finding/Attracting Talent
3. Improving Engagement/Retention
4. Creating a Successful Hybrid/Remote Work Environment
5. Avoiding Employee Burnout
6. Building a Diverse Workforce
7. Optimizing Employee Benefits
8. Summary
Top Challenges
Finding/Attracting Talent
Engagement/Retention
Hybrid Work Success
Avoiding Burnout
Diverse Workforce
Time to Expand
Summary
Top HR Challenges
Read More
Chapter 1
Choose a Chapter
Finding and Attracting Talent
Chapter 2
Engagement and Retention
Chapter 3
Chapter 4
Chapter 8
Optimizing Employee Benefits
Chapter 7
Building a Diverse Workforce
Chapter 6
Avoiding Employee Burnout
Chapter 5
The sixth annual Paychex Pulse of HR report provides an in-depth look at how HR professionals are achieving ambitious goals in this new era of work.
Discover How HR Leaders Are Helping Their Companies Thrive In a New Era of Work
• The most time-consuming task for HR leaders today • What’s working now to attract and retain top talent • The tool that’s saving HR teams 120 hours per year • The new definition for good employee performance
• The close link between employee well-being andcompany success • How the right remote work policies are improving employee engagement • The benefits and technology that HR leaders areleaning on most
Download the Full Report
4. Creating a Successful Hybrid/Remote Work Success
HR Leaders Face an Intensified Time Crunch
Tracking staff hours is now the most time-consuming task for HR professionals and their teams, even ranking above compliance and data management, which have topped the list in previous years. New tasks around return-to-office policy creation and devising workplace health and safety guidelines are also notable additions to the workloads of HR professionals.
Most Time-Consuming HR Tasks
Chasing down employees' time worked/hours
Researching/trying to keep up with the latest federal, state, and local regulations
No. 1 Task
No. 2 Task
Rekeying data into multiple HR Systems
Merging data from separate HR systems to make informed decisions
Tracking only the increased scope of responsibilities for HR leaders understates the depth and breadth of the challenges they face. It’s not just more work, it’s more complex work — with no real precedent. The result is an increased cognitive load on HR professionals who are both creating and continually updating policies in response to rapidly changing external dynamics, workforce demands, and mandates. HR leaders reveal that HR technology and payroll tools have helped them streamline tasks and manage new and ongoing responsibilities more efficiently, helping to alleviate some of this burden. In short, HR software/technology is saving time — time that is absolutely priceless for HR teams who are strained.
(1)
Alleviating the Burden
Near
surveyed say that HR software and technology helped boost their company efficiency
50%
say HR software/technology has made it easier to manage payroll and benefits administration
40%
say changing their payroll solution or technology saved their company between 60 and 120 hours a year in both preparing payroll and fixing payroll issues
33%
Tax Preparation Time
HR leaders say HR Technology helps them save between 60-120 hours each year on the following:
37%
Giving Employees Self Service Capabilities
29%
Entering Information into Multiple Systems
36%
Creating and Analyzing Reports
scroll
Devising workplace health and safety guidel
Developing and implementing return-to-office policies
Testimonials
Stats
HR Leaders say HR Technology Helps Them Save Between 60-120 Hours Each Year on the Following:
Using HR software/technology has improved the process of administering our employee benefits, and that is what is needed now to retain employees and sustain loyalty — a top priority for our company.
— New York-based HR professional at a 3,000-person manufacturing company
Having the right technology in place to support employees’ physical and mental health needs is an important part of our HR strategy.
— Michigan-based HR professional at a 65-person retail company
Having the right tools for effectively managing payroll and benefits administration can help HR leaders clear a path for more critical strategic endeavors. Ultimately, finding a way to balance these responsibilities helps increase their focus on employee engagement, which in turn will benefit their overall business.
— Alison Stevens, Director of HR Services at Paychex
Current
Other
2020
2021
Avoid Burnout
Chapter 1 - Top HR Challenges
Continue to Chapter 2 - Finding/Attracting Talent
1. Top Challenges
3. Engagement/Retention
4. Hybrid Work Success
5. Avoiding Burnout
6. Diverse Workforce
7. Time to Expand
In This Chapter
1. Most Time Consuming HR Tasks
2. Most Time Consuming HR Tasks
HR leaders admit that their companies are struggling with critical hiring and retention goals. Half of respondents say their organizations are not effective at hiring, onboarding, and retention. HR technology is helping to accelerate key parts of the talent acquisition journey, including broadening and deepening visibility for open positions. It’s also instrumental in supporting the work arrangements required to boost application acceptance.
The Tools and Tactics that HR Leaders are Using to Boost Recruitment
of respondents say their organizations are not effective at:
• Using third-party job sites to boost the visibility of open positions and increase the number of job applicants
Top Talent Acquisition Tactics That HR Leaders are Using Include:
Hiring
Onboarding
Retention
• Offering remote work and higher pay to encourage candidates to accept job offers
The Top Five Tactics That Currently Work Best To Boost the Visibility of Open Positions and Increase the Number of Job Applicants Are:
Accepting Offers
Boosting Visibility
1
2
3
4
5
Using third-party job sites and employee referrals
Hiring remote workers
Emphasizing diversity
Posting on industry-specificsites/platforms
Increasing recruiting budgets
Emphasizing career advancement and development paths
Making offers quickly and using salary/compensation benchmarking to create competitive offers
Emphasizing company culture
Offering remote/flexible work
Offering higher pay
The Top Five Most Effective Tactics That HR Leaders Have Deployed to Encourage Candidates to Accept Job Offers Include:
— New Jersey-based HR professional at a 35-person retail company
Offering a flexible schedule is essential for us to attract people. We’ve also implemented a sign-on bonus program to encourage candidates to choose us.
— Pennsylvania-based HR professional at a 1,000-person transportation and warehousing company
Continue to Chapter 3 - Improving Engagement/Retention
2. See What HR Leaders are Saying
3.
Offer higher pay
Chapter 2 - Finding and Attracting Talent
The all-important responsibility of engaging employees requires HR professionals to track what matters most to employees and then continually address those needs. This is a 24/7/365 requirement for HR professionals, and they report that HR tools and technology have enabled them to better listen and respond to the needs of their workforce, starting from day one of employment, in order to:
How HR Leaders are Keeping Up with the Demands of their Workforce
Improving Engagement/Retention
• Improve engagement • Boost their ability to train and build skills • Enhance communication and collaboration
Regularly surveying employees about job satisfaction
41%
Specifically, what currently works best for HR professionals when it comes to fostering employee engagement is:
Offering training to boost job and leadership skills
Encouraging more communication between employees and managers about advancement/career development
Actively encouraging peer-to-peer recognition and developingand emphasizing company culture
Improving the onboarding process to help new hires feel engaged and be productive right away
35%
27%
Providing pay transparency and having “stay” conversations/interviewsto learn more about employees’ needs and aspirations
31%
Demonstrating a commitment to diversity, equity, and inclusion
Focusing on employee engagement
Increasing compensation
Increasing work flexibility via flexible hours and remote work
The top tactics HR professionals use to improve employee retention include:
The tactics being used by companies that are currently hiring many people — which, right now, are disproportionately those with 500 or more employees — are providing alook into what businesses of all sizes may need to do in order to find and keep top talent.
For example, larger companies are:
more likely than their smaller counterparts to provide pay transparency — something that is increasingly desired by American workers
more likely to have "stay" conversations with staff
42%
— Connecticut-based HR professional at a 28-person personal services company
We’ve heard from employees that they need work/life balance support and we are now offering perks to support team members’ morale and work/life management. For our team so far, that’s lunch time yoga classes and flexible schedules, but we’re still listening.
— California-based HR professional at a 1,500-person computer hardware/electronic equipment company
Improving our onboarding process and putting a focus on diversity and equity have helped our employee retention efforts, since we’re communicating that we care and are listening right from someone’s first day.
Continue to Chapter 4 - Creating a Successful Hybrid/Remote Work Environment
The Tools and Tactics that HR Leaders are Using to Boost Results
1. Top Talent Acquisition Tactics
2.
3. Testimonials
Continue to Chapter 3 - Engagement/Retention
Chapter 3 - Improving Engagement/Retention
Among HR professionals with employees working remotely, 95% are planning to bring at least some staff back to the office. Only 15% of companies have staff working exclusively on-site at the time of this research. Perhaps unsurprisingly, HR leaders’ plans for remote and flexible work vary widely, with no single policy clearly dominating.
Tactics That HR Leaders Say Are Helping Employees Thrive
Creating a Successful Hybrid/Remote Work Environment
Hybrid & Remote Work Plans
Each department, location, orbusiness unit sets or will set its ownremote work policies
21%
Remote work is or will be an option for people whose job allows for it
13%
Remote work is or will be an ongoing option on set days
Remote work is or will be an ongoing option on days of an employee’s choosing
Staff at a certain level in the organization are or will be allowed to work remotely
Remote work is or will be an option forpeople who can demonstrate a need
The entire team works or will work permanently from home
4%
N/A – the entire team has always worked remotely
1%
Job rotation/cross-training to encourage exposure to new roles/skills
Employee leadership training
Training for managers on how to support employee career advancement/development
Employee training/skill building
45%
Technology to support communication around goal setting, career advancement, and development between employees and managers
As more teams are dispersed and adopt flexible schedules, tools and more opportunities for training and career development will be an essential support for remote/hybrid employees and managers, including:
Technology to optimize remote employee productivity
39%
A system to plan and track regularly scheduled manager/employee check-ins to ensure opportunities for remote and on-site employees
HR leaders say they will use the following approaches to better manage remote or hybrid employees:
As the performance management process changes to adjust for the hybrid/remote workforce, HR leaders emphasize the role technology is playing and will continue to play in supporting communication, training, and career development. This needs to happen quickly and at scale so employees feel confident that they can succeed in this new era of work where performance, and the performance management process, might look different than it has historically.
A secure method for employees to receive confidential answersto HR questions without meeting in person
Increased training to optimize remote employee productivity
Online communication tools to keep managers and employees connected
51%
There will be more emphasis/importance placed on an employee’s ability to communicate effectively online
53%
The ability to learn new skills will be increasingly important in the review process
59%
Performance reviews will ignore employee location
For those with employees permanently working in a hybrid or remote fashion, HR leaders revealed they are updating their employee performance evaluation plans in the following ways, in order to be more accommodating:
Companies adding many new employees — which are disproportionately those with 500 or more employees — are providing insight into what all organizations may need to do to succeed when it comes to sustained remote/hybrid work. A full 60% of these larger businesses say they will use employee training/skill building to support career advancement and development of remote/hybrid employees.
of all HR leaders say the ability to learn new skills and communicate effectively online are going to be more important than employee location during employee performance evaluations.
More than half
with remote workers say that remote/hybridwork improves employee emotional, physical, financial well-being, boosts retention, enhances quality of work, and increases productivity.
4/10 HR leaders
in the number of companies offering remote or hybrid work
124% increase
in the number of companies offering flexible scheduling
50% increase
— Texas-based HR professional at a 45-person banking/mortgage/insurance company
Offering increased employee training and a hybrid work environment has helped us attract more people and given them the support needed to be successful in our company.
— Washington-state-based HR professional at a 400-person computer services/consultingcompany
We created a talent identification and development program so that we can provide our team with a clear path to career advancement. This approach is good for our team and our business.
48%
Professional services
Manufacturing
30%
Personal services/education
23%
Organizations Offering Hybrid Work
Continue to Chapter 5 - Avoiding Employee Burnout
1.
2. The Top Tactics HR Professionals Use to Improve Employee Retention
Continue to Chapter 4 - Hybrid Work Success
5.
Chapter 4 - Creating a Successful Hybrid/Remote Work Environment
Roughly one in three HR leaders say the competitive hiring environment and its associated high turnover is putting stress on their team members who are responsible for filling open positions, and on current employees who are working to compensate for staff shortages. This is being addressed, in part, by an increased focus on helping employees avoid burnout. Sixty percent of HR leaders are concerned about employee burnout currently, an increase of 18% from before the COVID-19 pandemic.
How Suporting Employee Well-Being Has Become the Keystone of Better Business
26%
Create confidential ways for employees to communicate questions and concerns
Provide training for employees and managers on avoiding burnout
Encourage managers to create clear job descriptions and expectations to make work feel manageable
Emphasize work/life balance as part ofcompany culture
Offer flexible work schedules
How HR Leaders Plan to Address Employee Burnout
from before the COVID-19 pandemic
18% increase
are concerned about employee burnout
60% of HR leaders
— Illinois-based HR professional at a 48-person education/training company
Morale is better when employees know that someone will follow-up if they express a concern, and we consistently follow through on that. We’re also providing tactical help — like subscriptions to meditation apps — to support our team.
— Virginia-based HR professional at a 200-person computer services consulting company
Having one-on-one conversations with people about their needs and their future with the company has helped us improve our relationships with employees.
HR leaders are focused on employee well-being and are using all the tools at their disposal to stay tuned-in to employee priorities. HR technology plays a huge part in enabling HR leaders to demonstrate a strong understanding and action plan for addressing employee needs.
Continue to Chapter 6 - Building a Diverse Workforce
Tactics that HR Leaders say are Helping Employees Thrive
The Secret to Hybrid Work Success
1. Hybrid and Remote Work Plans Data
Chapter 5 - Avoiding Employee Burnout
Many employees are seeking a workplace that better reflects the population of the U.S. as a whole. This is especially true for Gen Z, Millennials, and Gen X, with 57% of 18-to 39-year-olds and 52% of 40-to 55-year-olds reporting that diversity in the workplace is extremely or very important to them. But diversity, equity, and inclusion (DEI) policies, guidelines, and training need to do more than just communicate a commitment to creating a diverse workforce — they need to empower employees to implement DEI strategies and foster an environment where everyoneis a DEI advocate.
How HR Leaders are Prioritizing DEI
28%
Getting help from an HR or DEI consultant to create a plan
Making DEI guidelines and documents easily accessible to employees
Ensuring that vendors and partners have a provencommitment to DEI
Offering bias and other DEI-related training
71% of HR leaders are doing at least one of the following:
— New York-based HR professional at 405-person retail company
We look for a diverse range of candidates when recruiting new hires. Internally, we hold team meetings often to give workers opportunities to voice their concerns and suggestions for how we can foster diversity.
25%
Manufacturing/Personal Services/Education
Professional Services
Retail/Wholesale
Some industries are leading the way in insisting that vendors and partners have a proven commitment to DEI:
DEI by Industry
— Indiana-based HR professional at a 47-person personal services company
Being able to offer hybrid work has enabled us to attract a more diverse team of employees and we’re communicating our commitment across all departments to be sure it’s widespread in our organization.
A survey of 1,000 total randomly selected U.S. respondents from U.S. companies (employees and employers) with 10 to 500 employees. Fielded from July 30, 2021 to August 22, 2021.
Continue to Chapter 7 - Optimizing Employee Benefits
How Suporting Employee Well-Being has Become the Keystone of Better Business
1. 2. Continue to Chapter 6 - Diverse Workforce 1. Top HR Challenges 2. Finding/Attracting Talent 3. Improving Engagement/Retention 4. Creating a Successful Hybrid/Remote Work Success 5. Avoiding Employee Burnout 6. Building a Diverse Workforce 7. Optimizing Employee Benefits 8. Summary Download the Full Report 1. Top HR Challenges 2. Finding/Attracting Talent 3. Improving Engagement/Retention 4. Creating a Successful Hybrid/Remote Work Environment 5. Avoiding Employee Burnout 6. Building a Diverse Workforce 7. Optimizing Employee Benefits 8. Summary Download the Full Report Chapter 6 - Building a Diverse Workforce
Continue to Chapter 6 - Diverse Workforce
Chapter 6 - Building a Diverse Workforce
A fundamental element of HR success is offering robust benefits that are tailored to employees’ needs and priorities. Organizations have increased the benefits they are offering by an average of 22% compared to the year before the COVID-19 pandemic. As companies offer more benefits to remain competitive in today’s marketplace, benefits administration has also increased in scope and volume.
72%
Health Insurance
Benefits Offered by Companies with 20-500 Employees
Currently Offer
Offered Before the Covid-19 Pandemic
61%
67%
57%
Retirement
Remote or Hybrid Work
60%
38%
Dental Insurance
56%
Life Insurance
Maternity/Paternity Leave
Vision Insurance
Flexible Scheduling
54%
43%
Short-Term Disability Insurance
Health Savings Account (HSA)
Fortunately, HR software/technology has improved HR’s ability to manage the increasing demands of benefits administration. And not only that — HR leaders revealed that HR software/technology has proven to be an important tool for reaching other major HR and business goals.
Improved ability to manage HR processes such as payroll, benefits administration, and other processes
Increased employee productivity
HR Software/Technology Impact on HR Objectives
Improved engagement
Improved ability to train and build skills
Improved ability to attract/hire candidates
Improved career advancement/development efforts
Enhanced communication and collaboration
Improved retention
Increased onboarding
34%
Increased sales
Improved competitiveness
Increased profitability
Improved customer service
Boosted company efficiency
HR Software/Technology Contribution to Attaining Business Objectives
Reduced costs
— Florida-based HR professional at a 74-person travel/hotel hospitality company
Providing daycare services has been very popular with our employees. We’ve also increased the number of annual mental health days.
— Minnesota-based HR professional at a 550-person manufacturing company
Employees want more choice, so we’ve responded by increasing the number of options offered for benefits.
Continue to Chapter 8 - Summary
1. 2. Many employees are seeking a workplace that better reflects the population of the U.S. as a whole. This is especially true for Gen Z, Millennials, and Gen X, with 57% of 18-to 39-year-olds and 52% of 40-to 55-year-olds reporting that diversity in the workplace is extremely or very important to them. But diversity, equity, and inclusion (DEI) policies, guidelines, and training need to do more than just communicate a commitment to creating a diverse workforce — they need to empower employees to implement DEI strategies and foster an environment where everyoneis a DEI advocate. Building a Diverse Workforce 3. Stats - HR Software/Technology Contribution to Attaining Business Objectives 51% Health Savings Account (HSA) 54% Short-Term Disability Insurance 56% Flexible Scheduling 57% Vision Insurance 59% Maternity/Paternity Leave 60% Life Insurance 60% Dental Insurance 61% Remote or Hybrid Work 67% Retirement 72% Health Insurance — Pennsylvania-based HR professional at a 1,000-person transportation and warehousing company Using HR software/technology has improved the process of administering our employee benefits, and that is what is needed now to retain employees and sustain loyalty — a top priority for our company. — New Jersey-based HR professional at a 35-person retail company Offering a flexible schedule is essential for us to attract people. We’ve also implemented a sign-on bonus program to encourage candidates to choose us. Testimonials Stats Testimonials Stats Testimonials Stats Continue to Chapter 7 - Time to Expand 1. Top HR Challenges 2. Finding/Attracting Talent 3. Improving Engagement/Retention 4. Creating a Successful Hybrid/Remote Work Success 5. Avoiding Employee Burnout 6. Building a Diverse Workforce 7. Optimizing Employee Benefits 8. Summary Download the Full Report 1. Top HR Challenges 2. Finding/Attracting Talent 3. Improving Engagement/Retention 4. Creating a Successful Hybrid/Remote Work Environment 5. Avoiding Employee Burnout 6. Building a Diverse Workforce 7. Optimizing Employee Benefits 8. Summary Download the Full Report Chapter 7 - Optimizing Employee Benefits
3. Stats - HR Software/Technology Contribution to Attaining Business Objectives
Continue to Chapter 7 - Time to Expand
Chapter 7 - Optimizing Employee Benefits
This year’s Pulse of HR report reveals a closer-than-ever link between meeting the needs of employee and business success, and the important role that HR tools and technology play in doing this effectively. Close to 40% of HR leaders say that HR technology is helping them reach their HR objectives, such as increasing employee productivity, having more efficient payroll and benefits management, and fostering greater employee engagement. And, between 40% and 50% of HR leaders say that having these tools helps them to support business goals such as increased company efficiency, better customer service, and increased profitability.
The 2022 Paychex Pulse of HR Survey was conducted via an online survey from April 15 - May 6, 2022, among 1,000 HR decision-makers at U.S. companies with 20 or more employees. It is the sixth in an annual series of benchmark surveys investigating HR leaders’ challenges, priorities, and use of technology.
Survey Methodology
In short, HR leaders are leaning on HR tools and technology in larger numbers than ever before to effectively manage their ever-growing day-to-day tactical responsibilities. They’re also using it to ensure that employees are heard, empowered, and engaged so they can focus on — and succeed in achieving — their ultimate HR and business goals.
Paychex is committed to providing HR professionals the tools, resources, and guidance they need to contribute effectively to their organizations. Our unique combination of innovative, award-winning products and world-class service is designed to meet the evolving needs of employers and their employees. Whether your company is looking to fully outsource human resources or you’re simply looking for ways to improve your business, our team of certified HR professionals is here to help.
The Power of Paychex
Paychex, Inc. (Nasdaq: PAYX) is a leading provider of integrated human capital management software solutions for humanresources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology andmobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners tofocus on the growth and management of their business. Backed by 50 years of industry expertise, Paychex served morethan 710,000 payroll clients as of May 31, 2021 in the U.S. and Europe, and pays one out of every 12 American privatesector employees. Learn more about Paychex by visiting paychex.com and stay connected on Twitter and LinkedIn.
Why Now is the Time to Expand and Optimize Benefits
1. Comparison Stats - Benefits Offered by Companies with 20-500 Employees
2. Stats - HR Software/Technology Impact on HR Objectives>
HR Benchmarking Checklist
Webinar: Redefining What It Takes To Succeed in HR
Podcast Episode: Helping Employees Maintain Wellness, Avoid Burnout, and More
Additional Resources:
Apple Podcast
Spotify
YouTube
iHeartRadio
Chapter 8 - Summary
