Key Findings & Highlights:

2022 was another disruptive year characterized by inflationary pressures, supply constraints, climate impact events, low-growth or zero-growth economies, tight labor markets despite an element of demand softening, industrial action, attempts to normalize the office–work-from-home dynamic, and for many the good news of a return to travel and full lifting of COVID restrictions.

To support business strategies and address changing social attitudes and updated priorities, HR functions focused on further developing DEI and ESG programs, enhancing analytics alongside growing investments in the development of personalized employee experiences, embedding collaboration tools into HR processes, and geographical expansions.

Against the backdrop of ongoing legislative changes, increased operational costs, and high turnover rates, there was an overall recognition of the benefits of addressing pay inequity and supporting greater pay transparency to attract workforce participation. These pressures are expected to continue despite slowing employment growth predictions, as the availability of key skills remains tight.

Cloud HR Transformation vendors are focusing on the following activities:

• Investing in engagement platforms, analytics, automation, and chatbots; however, the adoption of chatbots across buyers of Cloud HR Transformation services is still nascent
• Undertaking geographical acquisitions, mainly across Europe and Asia Pacific, and pursuing technology acquisitions to enhance talent solutions
• Expanding HR services to enrich the training and development of HR practitioners.

For vendors offering a global HR service, they increasingly have a technology-agnostic approach and are investing in engagement and collaboration solutions.

For vendors with a technology preference, they tend to have a country or regional focus from which new developments are launched and tested in the largest region prior to rollout across other regions.