Q1 Whitepaper Insightspredictions R7 Indd

center of excellence by HR in 2023: Insights & Predictions A PAYCOR SURVEY OF NEARLY 6,000 PROFESSIONALS EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . 3 SURVEY DEMOGRAPHICS . . . . . . . . . . . . . . . . . . 4 SURVEY RESULTS . . . . . . . . . . . . . . . . . . . . . . . . 5 INSIGHTS & PREDICTIONS, PART 1 . . . . . . . . . . . 11 INSIGHTS & PREDICTIONS, PART 2 . . . . . . . . . . . 16 ABOUT PAYCOR . . . . . . . . . . . . . . . . . . . . . . . . 17 What’s Inside:

In Q2 2022, we fielded two online surveys. Respondents included more than 3,000 managers and more than 1,000 business owners/chief execs., all of whom have primary or significant involvement in HR-related functions at their organization. We also received responses from more than 1,000 individual contributors, bringing the total number of respondents to 5,677. EXECUTIVE SUMMARY KEY TAKEAWAYS: Who we talked to: • A consensus is forming that the current talent shortage may be a long-term or permanent feature of the economy. This perception is a driving force behind how HR leaders are prioritizing and allocating their resources in the next 12 months. • The labor market today is the most competitive in decades. 91% of businesses plan to hire in the next 12 months. • Employee retention will be the #1 priority of 2023. Company culture is the #1 driver of retention (with salary & benefits coming in a very close second). • Wages will continue to rise, especially for blue-collar jobs. But the most successful organizations will find non-monetary ways to attract & retain talent. • The relationship between organizations and workers is changing in fundamental ways. Employees at all levels are expecting more from their employers than they did in the past. • The pandemic exposed the strengths and weaknesses of company cultures. Organizations that came through the pandemic stronger than ever had company cultures that prioritize trust, communication, manager training, and a sensitive approach to balancing political polarization in the workplace.

# of employees

Respondents represent every major industry and company size. 3,198 Managers

In the second quarter of 2022, we fi elded two online surveys via Survey Monkey. Nearly 6,000 people responded. SURVEY DEMOGRAPHICS