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 Introduction
HR in 2022

01
Recruitment & retention:
Two sides of the same coin

02
Adapting to a new world of work

Table of 03
DEI: After the tipping point

Contents 04
Skills in an age of change

3
 How to Read This Report
This report is based on data gathered from McLean & Company’s 2022 HR Trends Survey of
826 business professionals. The data was gathered in September 2021.

Note: Graph totals may not add up to 100% due to rounding.

Key terms used throughout this report include:

Organizational Size Industry Analysis
Small: 100 or fewer employees Contrasts the responses of remote-capable
Medium: 101 to 2,000 employees industries (e.g. professional services) with
Large: 2,001 or more employees primarily onsite industries (e.g. manufacturing).
See Appendix I for more information.

High Performing Highly Effective

The percentage of respondents who selected The percentage of respondents who selected
8, 9, or 10 out of 10 when asked to rate 8, 9, or 10 out of 10 when asked to rate
performance across various parameters. effectiveness across various parameters.

Highly Effective:
Association & Relationship
Any time an association or relationship is referenced in this report, it refers to a statistically significant
result. Graphs or visualizations that show a difference in effectiveness based on certain practices are
also only shown if they are statistically significant. These are used to indicate which practices are
disproportionately used by the most effective HR departments.

McLean & Company © | 2022 HR Trends 4

 Characteristics of 2022 survey respondents
N=826 (unless otherwise noted)

Organization Size Turnover Rates Role Respondents by Industry

Manufacturing 15%
Large 22% Non-HR HR
Professional Services 12%

Financial Services
15% 11%
Medium 56% 48%
52% Media, Information,
Telecom & Technology 9%
6%
Healthcare & Life Sciences 9%
Small 22%
Voluntary Involuntary Not-for-Profit 8%
n=610 n=583

Government 7%
Seniority Location
Education 6%

56% North America

Senior Leaders 8% Europe Retail & Wholesale 5%
71%
4% Asia Other 4%
Middle East 2%
29%
Management Construction 4%
Latin America 5% 6%
Africa 4% Oceania
Transportation & Warehousing 3%
15%
Individual Contributors Utilities 3%

McLean & Company © | 2022 HR Trends 5

 Despite the workplace upheavals of the last two years, perceptions of HR effectiveness have increased.
Unfortunately, the gap between how HR and non-HR professionals perceive HR effectiveness remains significant,
pointing to a need to improve communications about HR’s role and how it enables organizational success.

HR in
Not surprisingly, recruiting remains the top organizational HR priority, and HR respondents plan to spend 25%
more time on talent acquisition in 2022.
The strides HR made in 2021 with respect to planning and executing on strategy appear to have solidified. HR

2022
departments are also moving beyond traditional functions: 83% of respondents reported that at least one of
Diversity, Equity & Inclusion, Corporate Social Responsibility, or Environment and Social Governance has been
added to the HR department’s portfolio.
Worryingly, HR professionals report feeling more stressed than ever. 2022 should be a year when HR departments
spend more time addressing their own wellbeing in addition to that of the broader workforce.

6
 Recruitment remains top priority, with
employee experience leaping to second
Top priorities for organizations in 2021 N=850 Top priorities for organizations in 2022 N=826

01 Recruiting 01 Recruiting

02 Developing leaders 02 Providing a great employee experience

03 Controlling labor costs 03 Developing leaders

04 Diversity, equity, and inclusion (DEI) 04 Controlling labor costs

05 Providing a great employee experience 05 Diversity, equity, and inclusion (DEI)

06 Fostering a positive labor relations climate 06 Enabling innovation

“Providing a great employee experience” jumping up to second priority highlights the emphasis organizations are placing on helping employees
adjust after having been forced to change the way work gets done. Similarly, “enabling innovation” increasing in priority (from tenth in 2020 to
Insight eighth in 2021) signals organizations are acknowledging the need to effectively generate and implement new ideas to stay competitive.

McLean & Company © | 2022 HR Trends 7

 HR is allocating more of its time to
acquiring talent
Average distribution of HR’s time across activities:
20%
HR departments are spending the
2021 2022 most time on talent acquisition (TA)
16% n=494 n=405
TA is the only activity that saw a significant
increase, illustrating the increased emphasis
13%13% organizations are placing on recruiting:

25%
10% 10% 10%
9% 9% 9% 9% 9% increase compared
8% 8% 8% to 2021
6% 6% 6% (n=405)
5% 5%
4%
3% This may indicate the increased level of
2% 2% complexity involved in recruiting talent in the
new world of work. Changes in the labor market
brought on by the emergence of remote and
flexible work mean HR departments must invest
more time to fill vacant roles with quality talent.

McLean & Company © | 2022 HR Trends 8

 HR continues to play a key role in
organizational strategies
HR’s involvement in the broader organizational strategy: Recent environmental pressures have
expanded HR’s role:
50%
A partner in planning and
40% executing strategy report that Diversity, Equity & Inclusion (DEI)
62%
has been added to HR’s role.
Asked for input into planning;
30% involved in executing strategy

20% Involved in executing strategy

after it is developed report that Corporate Social Responsibility
49%
10% (CSR) has been added to HR’s role.
Not involved with the strategy

0%
2019 2020 2021 2022 report that Environmental and Social
n=854 n=718 n=758 n=746 47% Governance (ESG) has been added to
HR’s role.
When HR is a partner, organizations are…

1.4x
n=738
more likely to be highly effective
at quickly changing at scale to
capitalize on new opportunities.
1.3x
n=743
more likely to be highly
effective at generating and
implementing new ideas.
83%
n=380
report that at least one of the three
has been added to HR’s role.

McLean & Company © | 2022 HR Trends 9

 HR’s effectiveness has also increased
HR effectiveness: However, the gap in perceptions of effectiveness
2021 between the two groups remains significant:

HR respondents (45%) Fostering an environment of DEI +4% *

n=456
Enabling learning & development -2%
Non-HR respondents (26%)
n=394
Facilitating data-driven people decisions -4%
Highly effective
Developing the organization’s leaders -6%
Not highly effective
Enabling innovation -8%
2022
Recruiting -14%
HR respondents (54%) Providing a great employee experience -15%
n=431
Non-HR respondents (33%) Providing a great candidate experience -18%
n=378
Supporting change -22%
Highly effective
Not highly effective *percentage point difference HR n=805

The large discrepancy in the ratings of HR effectiveness between

Perceptions of HR effectiveness increased by 9 percentage these two groups may indicate a lack of understanding about HR’s
points among HR professionals and 7 percentage points role among non-HR respondents. This points to an opportunity for HR
among non-HR professionals.
Insight
to better communicate its role and results across the organization.

McLean & Company © | 2022 HR Trends 10

 HR headcount has not kept up with its
expanded scope
HR to FTE Ratio by Organization Size: Expected Change in HR Headcount:
100%

Large 1:141 80%

1:129 1:127
Growing
1:97 60%
Medium 1:82
1:73 40%
No
Change
1:56 1:58
1:47 20%
Small
1:37 1:32 0%
1:31
2019 2020 2021 2022
2019 2020 2021 2022 n=478 n=465 n=420 n=385
n=454 n=407 n=436 n=392
HR has more on its plate than ever
Organizational headcount has recovered for large organizations Despite HR’s expanded role as a strategic partner and the increased
With the pandemic leading to a significant number of layoffs, organizations of all sizes number of FTEs it is responsible for supporting across the organization,
saw their HR to FTE ratios decrease in 2021. While the ratios at medium and small HR has managed to increase its effectiveness. Most respondents do not
organizations have stayed flat, large organizations’ ratios have since bounced back. expect HR headcount to change, even with HR’s expanded scope.

McLean & Company © | 2022 HR Trends 11

It is not surprising that more HR
professionals have higher levels of stress
“I experience higher levels of stress related to HR professionals’ stress levels have increased
my job as an HR professional today compared 60% by 1.5x compared to 2020 and 1.2x compared to
to three years ago.” 2021. However, only…

50%
12%
of respondents have programs
or processes to support HR
41% n=291
professionals.

58%
of respondents have no plans to
implement programs or processes to
n=291
support HR professionals.

Despite such conditions, HR respondents remain

positive about their profession.

More than three out of four HR

respondents would encourage a friend or
77% family member to enter the HR profession.
2020 2021 2022 n=394

n=469 n=456 n=384

12
 What
Comes Next? Actions and Practical Resources

Many impacts from the workplace upheavals of the last two years are here to stay. In Focus HR resources where they will have the greatest
2022 and beyond, HR will continue to play a critical role in helping organizations find organizational impact by creating a talent strategy.
their footing in the new world of work. Equip your HR team with the resilience techniques needed to
support themselves and the organization.
While perceptions of HR effectiveness increased year over year, the gap between how
HR and non-HR professionals perceive HR effectiveness remains significant. This Design a candidate-centric talent acquisition process that
points to a need for improved communications about HR’s role and how it enables addresses candidate feedback.
organizational success. Design the employee experience by finding the sweet spot
where employee needs and organizational strategy meet.
Worryingly, HR professionals report feeling more stressed than ever. 2022 will be a
year when HR departments must spend more time addressing their own wellbeing. Assess and act on stakeholders’ priorities and perceptions of
HR via an HR Stakeholder Management Survey and action plan
McLean & Company © | 2022 HR Trends 13
TREND 1

Recruitment & Recent environmental pressures impacted traditional working arrangements

retention:
and showed more workplace flexibility is often possible. At the same time,
many employees’ expectations about how, when, and where they choose to
work have also evolved – and it is an employees’ market.

Two sides of Recruitment and retention are reflections of different sides of the same
employee value proposition coin. Organizations that fail to reinvent their

the same coin

approach to attracting and retaining talent by focusing on candidate and
employee experience risk turnover, vacancies, and lost opportunities that
can negatively impact the bottom line.

14
 Recruiting is a challenge, especially for
industries that operate primarily onsite
HR departments’ effectiveness at Industry Analysis: Onsite industries experience
more challenges with candidates
enabling recruiting has decreased
since 2021: Increase in candidate ghosting Percentage point difference
39%

44% 2021
36%
2022
57%

Decrease in applications for job openings

18%

n=806 n=805
50%
13%
The increased burden placed on HR to quickly attract, assess, and 63%
hire talent in large volumes due to the “Great Resignation” may be
driving down their perceived effectiveness in enabling recruiting. Increase in rejected offers
45%
10%
Having a TA strategy that is up to date with the 55%
current context of the labor market is more critical
than ever. However, just 38% of organizations
Remote-Capable Industries n=121 For a breakdown of the industry
report having a documented TA strategy (n=390).
Primarily Onsite Industries n=164 analysis, refer to Appendix I.

McLean & Company © | 2022 HR Trends 15

 The benefits of remote work aren’t
available to all
For jobs that be performed Remote work has shifted the landscape of talent recruitment
remotely, organizations are… and retention

3x
The emergency work-from-home measures of 2020 and 2021 began to challenge
more likely to report that remote work has
skepticism around the feasibility of remote work. Over the past year,
had a positive impact on attraction. n=313 organizations have embraced and leveraged it to their benefit. This is hardly
surprising – when given the option between remote and onsite work, employees

2.7x more likely to report that remote work has

had a positive impact on retention. n=314
will often elect to work remotely.
This trend is beneficial for organizations whose roles can primarily be conducted
remotely, but the reverse is true for organizations that do not have the option to
For jobs that be performed offer remote work.
remotely, organizations are…

4.2x
Organizations that cannot offer remote work must reinvent
more likely to report that remote work has their recruitment and retention strategy
had a negative impact on attraction. n=321
In an environment where remote work is highly desirable for most employees,
organizations that do not have the option to offer remote work will have to find

2.8x more likely to report that remote work has

had a negative impact on retention. n=317
creative solutions to attract and retain talent. Organizations that fail to adapt to
the new talent landscape risk losing talent and being left behind.

McLean & Company © | 2022 HR Trends 16

 Remote and non-remote organizations
are tackling challenges differently
Industry Analysis: What has your organization done to
improve attraction and/or retention of candidates and
employees? Organizations operating primarily onsite are
more likely to take actions to address talent
1.2x
Remote-Capable challenges
Industries
62% Organizations that require employees to be onsite are making up
Primarily Onsite for their inability to offer remote work by offering higher
51% Industries compensation. They also place greater focus on retaining talent in
45% n=294
critical roles due to the higher degree of difficulty they face
1.2x
39% attracting new talent.
37%
32%
Employee experience is deeply intertwined
2.1x with recruitment and retention
19% 1.8x
17% Increasing base pay was the most common approach, which is a
positive trend given that doing so was positively associated with
9% 9%
employee experience.
Organizations that took actions were better off than those that did
Increasing Offering additional Focusing retention Increasing Increasing not. Taking no action to improve attraction and/or retention was
base pay training and efforts on high variable pay vacation time negatively associated with employee experience.
development performers in
opportunities critical roles

McLean & Company © | 2022 HR Trends 17

 It’s time for organizations to revisit their
employee value proposition (EVP)
Organizations that cannot offer remote work can Despite these benefits, most organizations have no
leverage the EVP to communicate their efforts plans to revisit their EVP:
Organizations that operate primarily onsite are taking more significant
actions to offset their talent recruitment and retention challenges (e.g. 5%
they are 20% more likely to increase base pay). Implemented
21%
However, industry analysis reveals that remote-capable organizations Planning to Implement
43%
are 16% more likely to revisit their EVP (n=295). This suggests that In Progress
although primarily onsite organizations have done more to address their
No Plans
talent challenges, they are doing far less in communicating their efforts
to potential candidates. 31% n=295

Remote-capable organizations stand to benefit by

embedding a remote work option into their EVP
Efforts to address talent challenges will yield limited
Remote work has been shown to have an immensely positive impact
results if they are not communicated externally to
on attraction and retention for jobs that can be performed remotely.
candidates as well as internally. Reshaping the EVP to
Organizations that are revisiting their EVP are 10% more likely to
highlight the ways in which the organization has adapted
report that remote work has had a positive impact on attraction for Insight to recent environmental pressures can resonate profoundly
jobs that can be performed remotely (n=259).
with candidates in the new world of work, especially for
organizations that cannot offer remote work.

McLean & Company © | 2022 HR Trends 18

 A focus on candidate and employee
experience is key
Organizations whose HR departments are not providing However, providing a great candidate experience
a great employee experience are… ranked 12th out of 12 top organizational priorities: N=826

34% 01
more likely to agree that retention for non- Recruiting
remote jobs has been negatively impacted.
n=317
02 Providing a great employee experience

Organizations whose HR departments are not providing a

great candidate experience are…

23%
more likely to agree that attraction for non-
remote jobs has been negatively impacted. 12 Providing a great candidate experience
n=319

Organizations are recruiting without candidate experience in mind.

HR’s ability to provide a great employee and The gap in priorities suggests that while organizations are recruiting
candidate experience is correlated with: Insight for more positions, not much weight is placed on how candidates
experience the talent acquisition process. Talent challenges will not be resolved
Organizational Workforce through retention alone. Organizations must prioritize candidate experience as
performance productivity much as they do employee experience to attract top talent in a market that is
more candidate driven than ever.

McLean & Company © | 2022 HR Trends 19

 What
Comes Next? Actions and Practical Resources

Keep talent from walking out the door by developing an effective

talent retention program.
There’s no easy solution to recruitment and retention challenges, particularly for Create a talent acquisition strategy to optimize foundational
organizations that are not able to offer remote work. Many of the actions taken elements and elevate the TA function.
to address these challenges (e.g. increasing compensation) are not sustainable
in the long term, so organizations will need to find different approaches in 2022 Lay the groundwork for compensation that is competitive, cost
by listening to the employee voice. effective, and brand aligned.
Create a compelling and realistic employee value proposition to
Revisiting and realigning the employee value proposition will help recruit and recruit and retain the right talent.
retain the right talent. All organizations should approach these challenges by
focusing on improving both employee and candidate experience. Use surveys to monitor the employee voice with our New Hire
Survey, Employee Exit Survey, and Employee Experience Monitor.
McLean & Company © | 2022 HR Trends 20
TREND 2
Environmental pressures have produced monumental changes in working

Adapting to conditions with an increased focus on employee experience in terms of

increased compensation and workplace flexibility.
Anticipated benefits of ongoing remote work include increased employee

a new world
availability as well as improved retention, enhanced ability to attract candidates,
and increased talent pools, all of which will be critical in the age of the “Great
Resignation.”

of work
Survey results point to a need for a degree of caution about increased working
hours. Over and above the potential risk of employee burnout and turnover, the
data showed the highest performing organizations were actually less likely to
report an increase in employee hours worked.
.
21
 The continuation of remote work to any
degree comes with many anticipated
benefits Flexibility of employee availability is a balancing act
By far, flexibility in hours of employee availability is the benefit organizations most
commonly expect from continued remote work. However, this flexibility must be carefully
managed to ensure it doesn’t result in increased working hours, burnout, and turnover.
62% 52%
Engagement and productivity gains are
overlooked benefits
Expanded Increased 46%
hiring pool employee High-performing organizations recognize the
64%
Improved
retention Reduced
facilities
1.6x
n=325
benefits of remote work, as they are 1.6x
more likely to anticipate that remote work will
candidate costs 45% improve engagement.
attraction Increased
employee Yet fewer than half of respondents anticipate remote work
engagement will have a positive impact on employee engagement and
76% productivity. With additional focus, remote work
environments can increase and sustain engagement and
Flexibility in hours of Anticipated 41%
employee availability benefits of Increased employee productivity, both of which can impact the bottom line.
continuing productivity However, it will be critical to not conflate increased hours
remote work
worked with increased productivity.
n=328

McLean & Company © | 2022 HR Trends 22

 There is less of a focus on structural
changes to roles, work, and teams

63%
Organizations that made changes to the nature
of roles, work, or teams to improve suitability for Percentage point
remote or hybrid work change since 2021
(n=373)
14% *
18%
Project-based structures
(e.g. agile) -10% are not making changes to from 2021
roles, work, or teams *percentage point difference

Last year saw a significant amount of change as a result of the

Changes to core hours 14% -5% pandemic. With the advent of a new normal for organizations
and employees, organizations are less likely to make further
changes to work structures and are now able to shift their
Flatter structure (e.g. fewer focus to improving the employee experience within existing
layers of management) 10% -2%
roles, work, and teams.

Smaller teams 5% -4% With no clear link between these changes and
improved productivity or performance, efforts
Insight are better focused on improving the employee
Smaller satellite offices 5% -3% experience within current structures rather than creating
unnecessary and disruptive structural change.

McLean & Company © | 2022 HR Trends 23

 Changing work conditions are impacting
wellbeing and the employee experience
In what ways
have recent 25% 43% 80% 62%
environmental Increased Increased Increased Increased
pressures shifted benefits salaries flexibility working hours
working conditions?
(n=394)

Don’t overlook total rewards’ impact on the Keep an eye on wellbeing

employee experience It’s of little surprise that increased flexibility was the top change in working
Despite a lot of buzz in the past year about exploring salary decreases conditions over the past year. However, despite the many benefits increased
for employees moving out of high-cost centers, only 10% of respondents flexibility provides, it’s not without downsides.
report decreasing salaries, compared to 43% increasing salaries. Increased working hours is the second most common change to
working conditions. Increased flexibility can blur the line between work
HR departments that are highly effective at enabling a
and non-work time, often resulting in employees working longer hours.
1.2x great employee experience are 1.2x more likely to
increase salary in response to changing working 70% of HR respondents who claimed that working hours increased
strongly agreed that they are more stressed compared to three years
(n=393) conditions than non-highly effective HR departments.
ago (n=244).
McLean & Company © | 2022 HR Trends 24
 Increased working hours is a particularly
concerning trend
Non-high-performing organizations were more likely to increase working hours.
*percentage point difference

10%* 13%*
68% 68%
Increased working hours may not
58% lead to more positive organizational
% Increased Working Hours

55% outcomes
While increased flexibility has been a common
trend for all organizations regardless of their
performance, the same is not observed in the
change in working hours.

Organizations that scored highly in workforce

productivity and ability to change were far less
likely to have increased working hours as a
result of recent environmental pressures. This
indicates that, at best, increased working hours
does not contribute to producing more positive
Workforce Productivity Ability to Change organizational outcomes. At worst, it is having
n=393 n=387 a negative impact.

High-Performing Organizations Non-High-Performing Organizations

McLean & Company © | 2022 HR Trends 25
 What
Comes Next? Actions and Practical Resources

Reinforce resilient behaviors in your workforce to help your

The new world of work looks very different for different industries, jurisdictions, organization thrive during times of change and adversity.
and organizations. Regardless of the situation, though, the emergence of trends
indicating an increase in work hours means that every organization needs to Keep an eye on employee and HR wellbeing by creating a
focus on employee wellbeing and encourage and develop resilient behaviors holistic employee wellbeing program.
among all employees.
Adapt to the new world of work with a planned, integrated,
Strategic planning will be required for those organizations where remote or and supported hybrid work program.
hybrid work is the future in 2022 and employees' expectations shift as we adapt
to the new world of work.

McLean & Company © | 2022 HR Trends 26

TREND 3

DEI: After While organizations report that diversity, equity, and inclusion (DEI)
continues to be a focus, action taken appears to be skewed to quick
fixes versus long-term initiatives to address equity and inclusion.

the tipping
And evidence shows momentum is being lost even with addressing
surface-level issues.
Without a strategic focus on long-term, sustainable initiatives, many

point
organizations have now stalled in their DEI journeys. Many are still
lacking the leadership buy-in, governance structure, and formalized
strategy required to move things forward, and as a result they risk
losing traction in this essential work.

27
 Organizations continue to
report that DEI is a focus
A majority of organizations acknowledge the value of DEI.

1.6x
more
62% of respondents report that DEI has been added as a part of HR’s role. voluntary
(n=380)
turnover n=414

The number of respondents reporting that DEI is a focus Organizations that are not focusing on
continues to decrease year over year: creating an environment of DEI are
experiencing 1.6x more voluntary turnover

25% 6% 5%
than those that are focused on it. Potential
explanations for this include:
• Increased employee and candidate
2020 2021 2022 expectations regarding organizations’
n=439 n=415 n=535
commitment to DEI.
• Increased likelihood that employees
Organizations clearly recognize the importance of DEI and related benefits for experiencing inequities, lack of inclusion,
the organization. However, there is a disconnect between saying DEI is a focus and other DEI challenges will leave.
and actually taking steps to address and eradicate systemic challenges.

McLean & Company © | 2022 HR Trends 28

 The reported focus on DEI is not backed by
concrete actions to address systemic
issues
Percentage
Actions organizations are taking to Association with Actions don’t match words
point change
from 2021 create an environment of DEI (n=535) organizational outcomes While 95% of respondents report that DEI is an
area of organizational focus, the 2022 data
Clearly articulating the link between DEI and shows fewer organizations are taking focused
0% organizational goals Organizational actions associated with improved DEI
performance performance.
N/A Providing DEI training to all employees
Lack of action where it’s needed
Evaluating inclusive behaviors throughout the Actions required to address deeper systemic
-2% performance appraisal process for leaders issues and make strategic, sustainable changes
to the organization’s culture of equity and
Embedding inclusive behaviors into values or DEI inclusion are continuing to decrease.
-4% competencies performance
A particularly important example of this is
identifying and addressing pay inequities: with
Purposefully establishing diverse project teams many organizations increasing salaries this past
-6% across the organization year, inequities may be exacerbated if action is
not taken to get at systemic issues.
Identifying and addressing pay inequities for Workforce
-7% underrepresented groups productivity
McLean & Company © | 2022 HR Trends 29
 As momentum is lost, even surface-level
issues are being overlooked
Actions organizations are taking to create an environment of DEI 2020 2021 2022
(n=439) (n=415) (n=535)

38% 42% 36%

32% 33% 32%
25% 3…
17% 14% 17% 19%

Purposefully sourcing diverse groups Tracking and reporting on DEI metrics Creating employee resource groups Recognizing employees for inclusive
of candidates behaviors

Even short-term, reactive initiatives taken last year are becoming More work is required
less common
Many of the actions that organizations were quick to take last year are ad hoc, reactive Taking a few of these actions for a single year will not
initiatives that only address diversity, such as sourcing diverse groups of candidates. create sustainable change. DEI is a journey requiring
These actions have no association with organizational outcomes. strategic, ongoing action that moves beyond diversity
alone and addresses the culture of equity and inclusion.
Yet even these low-impact actions that were previously a focus are happening less than Without this, organizations risk their DEI initiatives
before. Not only are organizations not taking deeper, proactive action, many are letting coming across as performative rather than impactful.
their initial motivation and drive fade away.

McLean & Company © | 2022 HR Trends 30

 Organizations are facing several
challenges that are limiting actual and
lasting change
DEI is a journey Leadership buy-in is on the
decline. Only…

42%
While organizations that are high performing in DEI are more likely to be struggling
to allocate adequate resources and funds, those that are low performing list not
knowing where to start as a challenge. In both cases it’s important to remember
that DEI is a journey, requiring a long-term strategy and resources to be
sustainable and change as organizational DEI maturity evolves.
of organizations have leadership that is
Organizations that are low performing in DEI are committed to modeling inclusive behavior and
challenged by lack of leadership buy-in championing DEI initiatives (n=275). This is
down 5 percentage points from 2021
Organizations that are low performing in DEI are more likely to list lack of (n=352).
leadership buy-in as a top challenge than those that are high performing.
Leadership buy-in and
Dedicated time is a shared top challenge championing is crucial to
All organizations, regardless of level of DEI performance, struggle with Insight the success of DEI
initiatives and embedding and sustaining
finding dedicated time to do the work associated with DEI. In fact, only 5% of
DEI throughout the organization.
HR’s time is spent on DEI – the same as in 2021 (n=405).

McLean & Company © | 2022 HR Trends 31

 Progress in DEI will continue to stall if
practices remain focused on compliance
rather than rooted in a strategy
No increase in organizations with a DEI strategy from 2021 More than 2 out of 5 respondents describe
Only 38% of respondents report having a formal DEI strategy – the same as 2021 their organization’s DEI practices as only
(n=390). Organizations without one are at risk of missing out on key benefits to focused on compliance and meeting legislated
organizational performance. Having a DEI strategy is associated with improved: minimum requirements.
n=275
DEI performance (n=387)
Compliance alone is not enough
Social and environmental sustainability performance (n=379) Despite DEI being an organizational focus for 95% of respondents,
41% are focused only on compliance (n=275). To effectively create
an environment of DEI, organizations must make taking actions
Even fewer organizations have a best-practice DEI strategy. beyond compliance-based practices a priority.
Only….

Stating that DEI is a focus for an organization

without backing it up with a formal strategy risks

13%
of respondents have an overarching DEI strategy in place
that is aligned to the employee lifecycle and other
Insight DEI efforts being performative. DEI is a journey and
organizational processes, systems, programs, and policies. requires going beyond check-box, compliance-focused practices.
It must be strategic and embedded into the culture of the
n=275 organization to make meaningful change that will be sustained.

McLean & Company © | 2022 HR Trends 32

 Organizations must focus on three
foundational elements to make and
sustain progress in DEI
The data shows that the following three elements are foundational to creating an environment of DEI. Governance, strategy, and leadership support
provide accountability and direction and ensure alignment of DEI initiatives, programs, and policies to organizational priorities.

Leadership buy-in Governance Strategy

58% 70% 62%

of respondents do not have leadership buy-in that of respondents do not have a DEI governance of respondents do not have a
shows commitment to modeling inclusive behavior framework or have one where the accountabilities formal DEI strategy (n=390).
or championing and supporting all DEI initiatives, are unclear (n=341).
and leaders are not held accountable to DEI (n=275).

Keep up the momentum. Without leadership championship, governance, and strategy, organizations’ DEI journeys will be cut short. If
DEI is truly a focus, it is critical to act now to obtain leadership buy-in, create a governance framework, and develop a strategy to progress
Insight and sustain efforts.

McLean & Company © | 2022 HR Trends 33

 What Actions and Practical Resources

Comes Next? Explore toolkits, training, and resources such as facilitated workshops
and executive roundtables to support your DEI journey in McLean &
Company’s Diversity, Equity & Inclusion (DEI) Resource Center.

2021 represented a DEI reckoning for many organizations in the face of a variety Build a sustainable DEI strategy by focusing on employees’
of social movements in North America and around the world. Organizations experiences to uncover and address systemic inequities across the
responded by taking quick actions in the DEI space. employee lifecycle.
Realize the benefits of a diverse workforce by embedding inclusion
While the stated commitment to DEI remains high in 2022, the focus seems be
into the organization’s culture through work practices, behaviors, and
on compliance rather than creating a DEI strategy, even though the latter is
values.
associated with a number of powerful organizational outcomes. Leadership buy-
in, DEI strategy, and a DEI governance framework are key aspects that need more Emphasize inclusion as an organizational priority and uncover the
attention from organizations for real progress to be achieved. most meaningful changes your employees want to see with the
Diversity, Equity & Inclusion Engagement Pulse survey.
McLean & Company © | 2022 HR Trends 34
TREND 4

Skills in The rate and scale of changes to the world of work is resulting in rapid changes to what
are considered essential skills and making change-supportive competencies such as

an age of
resilience, change management, and design thinking more important than ever. Remote
work has also uncovered significant gaps in managers’ skills.
With tight labor markets a reality for many, hiring for aptitude and training for skills may
well be the path forward. A strategic approach to enabling continuous learning across

change
the board is critical, starting with a formal L&D strategy and an increased focus on
leadership development. Don’t forget your HR team when it comes to leadership
development or developing strategic HR competencies!

35
 High proficiency in change-supportive
competencies is associated with
improved organizational performance
Organizations with high proficiency in… …are more likely to be high performing across
the organization in…

Resilience
Displaying flexibility, activating networks, and adopting a
Workforce
productivity 1.8x more likely to be high performing
n=337
continuous growth mindset to learn from mistakes and
bounce back from adversity.

Change management
Adjusting thinking and behavior to face and
Ability to
change 2.2x more likely to be high performing
n=324
enable change while helping others deal with
the effects of change.

Design thinking
Using an iterative approach to designing solutions
Innovation 2x more likely to be high performing
n=315
while prioritizing the end user’s experience.

McLean & Company © | 2022 HR Trends 36

 While proficiency in resilience is
rebounding, the other competencies
remain stagnant
Organizations that are highly proficient Resilience is rebounding
in change-supportive competencies
While high proficiency in resilience dropped last year, this year saw a large improvement.
n=316-338 2022 2021 2020

16%
Organizations with high proficiency in resilience increased by 16
34% percentage points, nearly doubling last year’s result.
Resilience 18% This jump in high proficiency was even greater for organizations that are high performing in DEI,
25% innovation, and workforce productivity. These organizations are at least 2x more likely to be
highly proficient in resilience than those who are not high performing in these areas.

13% Last year’s drop in change management has been sustained

Change management 13% The decrease in high proficiency in change management in 2021 has extended into this year.
No improvements have been made, and little is being done to change this.
21%

41%
of respondents have no plans to offer additional training on change
management to deal with rapid changes in the environment.
14%
Design thinking has seen no improvement
Design thinking 14%
Year over year, proficiency in design thinking remains low, despite its important associations
13%
with organizational performance, ability to change, innovation, workforce productivity, and DEI.
McLean & Company © | 2022 HR Trends 37
 Accelerating development in key
competencies requires strategic L&D
Learning and development (L&D) enables the development of the key competencies of the future and will help
organizations achieve associated benefits.

Enabling continuous learning is critical A strategic approach maximizes impact

Keeping up with the changing world of work requires strategic L&D Having a formal L&D strategy is associated with…
initiatives to enable continuous learning. As the competencies of the
future evolve and new skills requirements come up, organizations must • Overall organizational performance
be able to develop their talent appropriately. Improved • Social and environmental sustainability
organizational performance
performance • Ability to quickly change at scale to capitalize on
When HR is Workforce productivity (n=428)
(n=379-387) new opportunities
effective at
enabling L&D, Innovation (n=426) • Recruiting
the organization • Providing a great employee experience
is more likely to Improved HR
effectiveness • Fostering an environment of DEI
have increased… Ability to quickly change at scale to
capitalize on new opportunities (n=421) • Supporting change
(n=385-390) • Enabling innovation

McLean & Company © | 2022 HR Trends 38

 Leadership competencies will be a strong
focus in 2022
Skills gaps rated as important or very important
Leadership competencies are of top importance (n=346-352)
The drastic changes to the world of work over the last few years have Leadership competencies
highlighted the criticality of leadership and have also revealed many gaps in
leadership competencies.
Personal competencies
Nearly 3 in 4 respondents rate the gap in leadership (e.g. digital literacy)
competencies at their organization as important or
very important. This makes them the top priority, with Technical skills
respondents rating their importance above personal
competencies (e.g. digital literacy) and technical skills.
74%

Leadership development is critical

64% 53%
Addressing the gap in leadership competencies will require more
development offerings targeting these competencies at different levels (e.g.
first-level managers, middle managers, and senior leaders). Additionally,
leaders must be both willing and able to learn. Without the right training and
mindsets, the gap in leadership competencies will continue to grow.

McLean & Company © | 2022 HR Trends 39

 Remote work has uncovered significant
gaps in managers’ skills
New skills for a new way of working How are organizations addressing the gap in manager skills
uncovered by remote work? (n=337)
Remote work has likely played a large role in the importance
organizations are placing on leadership competencies.
Leading remote staff requires strong management skills Offering management training for existing managers
and even new skills that may not have been required when
working in person. Offering management training for new managers
Management training takes the top spot
Hiring for different skill sets
The most common action organizations are taking to close
this skills gap is helping new and existing managers develop
through training. Assessing manager competencies

Effective L&D is key to close the gap Creating buddy/mentorship programs

90% ofmanager
respondents report there is a gap in
capabilities at their organization.
Creating communities of practices
HR departments that are highly effective at developing
organizational leaders are less likely to report having a gap
in manager capabilities. Being a successful manager looks different in a remote or hybrid
environment than it did in the office, and organizations need to provide
Insight supports for managers as they make this transition.

McLean & Company © | 2022 HR Trends 40

 Development of leadership and strategic
competencies is overlooked in HR
Important or highly Prevalence of
Distribution of skills gaps importance is equal, but
important skills gap (n=338-353)
development offerings
development opportunities are not
in HR for HR
Development offerings are skewed toward functional competencies.
Leadership competencies 74%
(senior HR leaders) 33% Development of HR leadership is pushed aside
69% While gaps in leadership competencies are top priority for the rest of
Leadership competencies the organization, they remain less of a focus for HR itself. HR is
(middle HR managers) 37%
underinvesting in developing its own leaders, despite how important
such development is for the success of the organization.
68%
Leadership competencies
(first-level HR managers) 42%
Strategic HR competencies is overlooked

Strategic HR competencies 74% Fewer than half of organizations are offering development in strategic
(e.g. business acumen) 48% competencies, despite all the benefits it may provide. Developing strategic
competencies is associated with increased HR effectiveness in:
Personal competencies 74%
(e.g. digital literacy) 56%

75% Supporting Providing a Enabling Fostering an Facilitating data-

Functional HR competencies change great employee innovation environment driven people
(e.g. compensation) 66%
experience of DEI decisions
McLean & Company © | 2022 HR Trends 41
 Importance of continuous learning and
development reflected in hiring practices
When hiring, what is most important? Organizations are addressing current skills gaps and
minimizing future ones by looking for a balance of existing
The ability to learn is more important skills and learning ability when hiring.
than skills and experience
Learning ability is just as important as, if not more important than, existing skills and
experience. The majority of respondents weigh demonstrated skill and experience
23% equally with the ability to learn.

More than 1 in 5 respondents agree that the ability to learn is more

important than skills and experience. This increases to more than 1 in
4 respondents for organizations that are:
The ability to learn and • High performing overall
n=350
demonstrated skills and • High performing in ability to quickly change at scale
61% experience are equally • High performing at innovation
important

Hire for aptitude; train for skill. The world continues to change
16% drastically, and the skills it takes for individuals and organizations to
Insight be successful will change alongside it. If employees are hired for
existing skills alone and cannot learn new ones, the organization will fall behind while
Skills and experience are more
the world moves on. Employees must have a “learn to learn” mindset to keep up.
important than the ability to learn

McLean & Company © | 2022 HR Trends 42

 What
Comes Next? Actions and Practical Resources

Develop and deploy critical competencies for strategic HR

professionals and provide them with the tools to undertake that
Skills have been a key focus of senior leaders for many years, and this has only development themselves.
been exacerbated by the upheaval of the past two years. Change-supportive
competencies, leadership competencies, and HR competencies will be a major Help new people managers quickly excel with Management
focus in 2022. Fundamentals.

To enable this, start with your L&D strategy and build continuous learning into Transform your learning and development function from
your employee lifecycle. HR development often falls by the wayside, and with reactive to strategic with a learning and development strategy.
HR front and center to deal with workplace upheaval, it will be essential to offer
development opportunities specifically targeted at HR professionals. Leverage the single most important tool for driving key HR
functions: a competency framework.
McLean & Company © | 2022 HR Trends 43
 Appendix I: Industry Analysis
An analysis of industries was conducted to reveal the differences in the experiences of organizations that can
and cannot offer remote work. While in practice the extent of remote work varies by organization and role, the
dichotomy captures the general trends in each industry.

Number of Number of
Remote-Capable Industries Respondents Primarily Onsite Industries Respondents

Professional Services 99 Manufacturing 123

Healthcare & Life

Financial Services 87 74
Sciences

Media, Information,
78 Education 49
Telecom & Technology

Not-for-Profit 69 Retail & Wholesale 38

Government 56 Construction 31

Note: Industries with fewer than 30 responding organizations were omitted to preserve the integrity of the analysis.

McLean & Company © | 2022 HR Trends 44

 London, ON
Corporate Headquarters
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Toronto, ON
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McLean & Company © | 2022 HR Trends 45

 McLean & Company offers various levels
of support to best suit your needs

Guided
DIY Toolkit Implementation Workshop Consulting
“Our team has already made this “Our team knows that we need to fix “We need to hit the ground “Our team does not have the time or
critical project a priority, and we a process, but we need assistance running and get this project the knowledge to take this project
have the time and capability, but to determine where to focus. Some kicked off immediately. Our team on. We need assistance through the
some guidance along the way check-ins along the way would help has the ability to take this over entirety of this project.”
would be helpful.” keep us on track.” once we get a framework and
strategy in place.”

Diagnostics and consistent frameworks are used throughout all four options.

McLean & Company © | 2022 HR Trends 46

 Improve Employee
Build a Data-Driven Experience and HR Processes
New Hire Survey

Strategy Using Ensure recruiting and onboarding programs are effective by surveying new employees.

Full-Service
Employee Engagement
Move beyond measuring job satisfaction with a comprehensive view of engagement.

Diagnostic Programs
Pandemic Engagement Pulse Check
Assess the effect of pandemic response plans on employee engagement.

Diversity, Equity & Inclusion Engagement Pulse

Take a thoughtful approach to mobilize inclusion efforts across your organization.

McLean Employee Experience Monitor

Evolve to leader-driven engagement with a real-time dashboard and results.

Employee Exit Survey

Understand why people leave the organization in order to proactively retain top talent.

360 Feedback
Empower employees with a holistic view of their performance to prioritize development.

Optimize the HR
Department for Success
HR Stakeholder Management Survey
Align HR initiatives with business strategy and stakeholder needs.

HR Management & Governance

Improve HR’s core functions and drive project success.
McLean & Company © | 2022 HR Trends 47
 Leadership Membership
The Leadership Membership Difference Features:

This membership will give you the tools you need to

push your HR department further, faster. Complete
major projects with the help of a dedicated Executive
Advisor who is a former HR Leader.

You’ll get a dedicated Executive Advisor who will meet with you quarterly.
Their experience will benefit you as you work toward delivering key initiatives.
They can help you prioritize projects, mitigate challenges, direct you to the
relevant research or subject matter experts, and keep you on track.

Boost your own development with one 360 Degree Feedback personal Leverage the expertise of fellow senior HR leaders in Quarterly Leadership
evaluation, including one debrief session and a separate development Peer-to-Peer Roundtables. These 60-minute facilitated discussions are an
planning session. opportunity to network and collaborate in an open, honest, and inclusive
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Your choice of one ticket to McLean & Company’s Signature Conference or Save money and obtain peace of mind from our HR technology vendor
one ticket to our virtual Elevate HR strategic leadership development management and contract review services. These services help you assess,
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could be transferred to a colleague.

McLean & Company © | 2022 HR Trends 48

 Counselor Seat Services
The Counselor Membership Difference Features:

You’ll get a dedicated Executive Counselor

who is a former senior HR executive and
has been in your shoes.

You will benefit from two online advisory sessions throughout the year Leverage your dedicated Executive Counselor to make your
(along with unlimited scheduled and ad hoc phone calls) that integrate personal and professional development a priority.
your Executive Counselor as a trusted part of your professional
support network. Use these meetings to cover anything you’d like, Your customized Personal Leadership Development Plan, created with your trusted
from prioritizing your own development to working through a project. Executive Counselor, will link to your personal and organizational goals and values.

You’ll develop a custom, authentic leadership brand that allows you to thrive and better
Your Executive Counselor can help you navigate board- or executive- market your unique value proposition.
level challenges and prepare for meetings.

Plus all the benefits of a Leadership Membership, such as:

You’ll get access to cutting-edge IT research via our IT division,
Info-Tech Research Group. Network and collaborate with fellow senior HR leaders in Quarterly Leadership Peer-to-Peer
Roundtables.
Your choice of a ticket to McLean & Company’s Signature Conference or to our virtual
Your dedicated Executive Counselor will provide a high-touchpoint, customized
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experience to help you develop yourself and your team while increasing your
personal and functional strategic impact. The McLean Membership serves your Protect your organization and save money with expert HR technology contract review.
firm; the Counselor membership serves you personally.

McLean & Company © | 2022 HR Trends 49

 Develop managers and your HR
team with our learning Develop your managers

solutions with our varied, interactive,

remote training sessions.

Sample topics include:

• Master the 3i’s of Employee

Engagement

• Build High-Performing Teams

McLean Elevate HR Management
• Master Difficult Conversations
Academy Online Fundamentals Online
• Emotional Intelligence
A self-paced eLearning program for A blended learning program A practical, interactive, and impactful in Leadership
HR professionals. The curriculum is designed to develop a strategic HR blended learning program designed
• Lead Through Change
built around McLean's HR framework mindset and help HR practitioners to develop foundational management
and provides practical, outcome- better respond to the growing capabilities. • Manage Remote Teams
driven advice on tackling HR complexity of the workplace of the • Give Effective Feedback and
initiatives. future. Coaching

• Systems Thinking

McLean & Company © | 2022 HR Trends 50

 Leadership Development Coaching
Maximize your leaders’ performance, potential, and engagement with our Leadership Development and Engagement
Coaching offerings. Our trained coaches work one-on-one with your leaders in a confidential environment to accelerate
their self-awareness and development.

Help Leaders: How It Works

1
Build self-awareness by understanding This virtual coaching is available for groups of 10+ leaders in your
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reports, peers, and manager. will receive three 50-minute 1:1 sessions with a trained coach.
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2 Identify strengths and opportunities for at any level who are sessions in year two for an additional fee. This coaching is offered to
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3
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McLean & Company © | 2022 HR Trends *Coaching program fees are billed annually
McLean & Company © | 2022 HR Trends