Benchmarking With Gartner December 2022 Deck

Preparing for 2023,
Workforce Planning,
Talent Trends and
Predictions
Benchmarks From Polling Webinar
Hosted on 14 December 2022
The following is a summary of the results from the Gartner webinar hosted
on 14 December 2022 titled Benchmark With Gartner: Preparing for 2023,
Workforce Planning, Talent Trends and Predictions
We had over 330 HR Leaders on the line representing a spectrum of
industries. There was a global representation of attendees across a spectrum
of industries with a focus on North America.
© 2023 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
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Economic volatility prevails, but job market
shows signs of strength
News headlines from early December reported that the slowing global Leaders Expect Talent Competition to Cool Off
economy seems to be faring better than feared. Looking ahead, job cuts Q: “How do you expect talent competition to change in the next six months?”
won’t necessarily mean massive layoffs and many jobs, particularly in tech, Percentage of HR leaders selecting “More Competitive” and
appear still safe. “Much More Competitive”
This is a continuation and evolution from the trends of November. At that
time, our survey showed organizations regaining confidence in future growth 70% 66%
opportunities with 51% of leaders expecting revenue increases for the 57% 59%
following quarter. 60% 55%
50% 50%
Many leaders implemented cost-saving measures in response to economic 50%
pressure and expected to slow hiring or even freeze it.
41%
40%
As people continued to head back to work on-site, organizations were
loosening or eliminating their return-to-work requirements in response to 30%
employee preferences (as well as high levels of noncompliance with in-office 20%
requirements).
10%
The effort to move toward greater pay transparency continued with a higher
share of HR leaders planning increased transparency. 0%
May June July August September October November
As we began December, HR leaders expected talent competition to cool, but
what are they thinking about growth, compensation and strategy as they
n = 226 HR leaders (May 2022), 125 (June 2022), 170 (July 2022), 184 (August 2022), 148 (September 2022), 101 (October 2022),
head into 2023? 69 (November 2022)
Sources: Benchmark With Brian: Strategies to Attract, Retain and Engage Talent (May 2022), Benchmark With Brian: Strategies to
Manage HR Priorities Through Disruption (June 2022), Benchmark With Brian: Attracting and Retaining Critical Talent While
Preparing HR for Disruption (July 2022), Benchmark With Brian: Strategies to Manage Retention and Attrition Amidst Economic
Uncertainty (August 2022), Benchmark With Brian: Attracting Talent and Improving the Employee Experience Amid Uncertainty
(September 2022), Strategies to Attract and Retain Talent in Times of Economic Volatility (19 October), How HR Leaders Navigate
Return to Workplace Pressures and Other Challenges (16 November)
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2 © 2023 Gartner, Inc. and/or its affiliates. All rights reserved.
Economic volatility prevails, but job market shows
signs of strength
In a Gartner webinar hosted on 14 December 2022, we polled 330 HR leaders about their views on the state of economic
volatility, attracting and retaining talent, workforce planning, return to workplace and strategy. The main findings were:
52% 35% 53% 73%

of organizations of organizations of organizations of HR leaders cited
expect an increase expect increased expect merit pay collaborating with
in overall business talent competition over increases only. business leaders as a
revenue over the the next six months. top priority of 2023.
next quarter.
Read on for the full details and data from the questions we asked.
Benchmarking topics
Economic Volatility Talent Attraction and Workforce Planning

Retention
Return to Workplace 2023 Talent Strategy Appendix (Introduction slides

from the webinar)
Economic
Volatility
HR leaders continue to expect increase in
business revenue in next quarter
Percentage of HR leaders
3% 52% of organizations
Significant Increase (>10%) 11% expect an increase in
3%
overall business revenue
17%
Moderate Increase (6-10%) 14% over the next quarter
16% compared to 51% in
32% November and 44% in
Some Increase (1-5%) 26%
25% October 2022.
12%
No Change 14%
15%
Some Decline (1-5%) 14%
14% expect a decline in overall
5% business revenue over the
Moderate Decline (6-10%) 9% next quarter compared to
7%
1% 27% in November and
Significant Decline (>10%) 4% 24% in October 2022.
3%
18%
Not Sure 6%
16%
2%
Other 1% Dec-22
0% Nov-22
0% 20% 40% Oct-22
n = 227 (December 2022), 70 (November 2022), 125 (October 2022)

Question: How does your organization expect its overall business revenue to change over the next quarter? (Select one)
Source: Benchmark With Gartner: "Preparing for 2023, Workforce Planning, Talent Trends and Predictions"; How HR Leaders Navigate Return to Workplace
Pressures and Other Challenges (16 November); Strategies to Attract and Retain Talent in Times of Economic Volatility (19 October)
One in two organizations are expecting increase
in net profit for next quarter
1%
Significant Increase (>10%)
7% expect an increase in
Moderate Increase (6-10%)
12% net profit in the next
44% quarter.
Some Increase (1-5%)
30%
19%
No Change
21%
9%
Some Decline (1-5%)
12%
2%
Moderate Decline (6-10%)
8%
2%
Significant Decline (>10%)
2%
Dec-22
16%
Not sure Nov-22
8%
1%
Other
3%
0% 30% 60%
n = 164 (December 2022), 66 (November 2022)

Question: How does your organization expect its net profit to change over the next quarter? (Select one)
Source: Benchmark With Gartner: "Preparing for 2023, Workforce Planning, Talent Trends and Predictions"; How HR Leaders Navigate Return to Workplace Pressures and Other Challenges (16 November)
Diverse expectations on talent competition in
next six months
Fewer organizations
3%
Much More Competitive 4% (35%) expect increased
13% talent competition over
the next six months as of
32% December 2022
More Competitive 51% compared to 55% in
46% November.
21%
No Change 9%
16%
More organizations
35% (38%) expect decreased
Less Competitive 35% talent competition over
23% the next six months as of
December 2022
Much Less Competitive 0% Dec-22
2% November.
Nov-22
7%
Not Sure 1% Oct-22
0%
0% 30% 60%
Question: How do you expect talent competition to change in the next six months? (Select one)
Source: Benchmark With Gartner: "Preparing for 2023, Workforce Planning, Talent Trends and Predictions"; How HR Leaders Navigate Return to Workplace Pressures and Other
Challenges (16 November); Strategies to Attract and Retain Talent in Times of Economic Volatility (19 October)
HR leaders expect slow hiring and decrease in
HR budgets for cost savings
50% of
Slow hiring for roles 50% organizations
58%
suggested slow
Decrease overall HR budget 26% down in hiring, as
23%
compared to 58%
Freeze hiring for roles 24% in November.
35%
Decrease recruiting budget 21%
21%
Layoff employees 14%
8% Increase in layoffs
to 14% in
Cut benefits that were added during the pandemic 8%
10% comparison to
November at 8%.
Rescind offers made to candidates 1%
4%
Furlough employees 1%
2%
We do not anticipate taking any cost-savings steps 24%
27% Dec-22
7% Nov-22
Other
4%
0% 30% 60%
Question: Which of the following talent cost-saving measures do you anticipate your organization taking in the next three months? (Select all that apply)
Employee compensation primarily adjusted purely
on merit basis
Merit pay increases only 53%
Merit pay increases that include cost-of-living adjustments 15%
Separate cost-of-living adjustments and merit pay increases 10%
Cost-of-living adjustments only 3%
We have not yet decided 14%
We will not be adjusting salaries for most employees in 2023 5%
0% 30% 60%
n= 176 (December 2022)
Question: Please select the item that best describes how your organization has adjusted (or will adjust) employee compensation with regard to cost-of-living and merit increases in 2023. (Select one)
Source: Benchmark With Gartner: "Preparing for 2023, Workforce Planning, Talent Trends and Predictions"
Talent
Attraction and
Retention
Majority of organizations plan for increase in
salary adjustments for 2023
We will not make any change 3%

We have not yet decided the percentage increase 24%
Increase salaries by approximately 1% 1%
Increase salaries by approximately 3% 28% Weighted average for
salary increase at 3.4%
Increase salaries by approximately 8% or more 0%
0% 20% 40%
n= 158 (December 2022)

Question: If your organization has made (or plans to make) salary adjustments in 2023, what is (or what will be) the approximate percentage increase for the average employee?
Account for BOTH merit and cost-of-living. (Select one)
Note: The average salary adjustment was computed using the weighted average of each percentage class interval (with “8% or more” considered as 8% and “We will not make any
change” considered as 0%), with the percentage of leaders selecting it as weights, except those who answered, “We have not yet decided the percentage increase.”
HR leaders see improvement in hiring volume
compared to previous months
3%
Significant Increase (>10%) 8% 28% of organizations
2%
suggested increase
7% in hiring volume, as
Moderate Increase (6-10%) 2%
18% November.
Some Increase (1-5%) 16%
17%
25%
No Change 18%
26%
17%
Some Decline (1-5%) 25%
9%
suggested decrease
Moderate Decline (6-10%) 10% in hiring volume, as
7% November.
Significant Decline (>10%) 16%
7% Dec-22
14% Nov-22
Not sure 6% Oct-22
5%
0% 20% 40%
Question: How has your organization’s hiring volume changed this month compared to the last three months? (Select one)
Source: Benchmark With Gartner: "Preparing for 2023, Workforce Planning, Talent Trends and Predictions"; How HR Leaders Navigate Return to Workplace Pressures and Other
Challenges (16 November); Strategies to Attract and Retain Talent in Times of Economic Volatility (19 October)
Workforce
Planning
Collaboration with leadership remains top priority
for 2023 workforce planning
73%
Collaborating with business leaders
79%
Identifying roles that are critical to organizational needs and planning 51%
accordingly 61%
41%
Identifying skills needed to meet strategic goals and planning accordingly
48%
35%
Collaborating with finance leaders
48%
22%
Collecting relevant external data to inform workforce planning
25%
21%
Preparing for various economic scenarios
32% Dec-22
8% Nov-22
Identifying and working with predefined triggers to adjust plans
23%
1%
Other
2%
0% 40% 80%
Question: What approaches are you using to conduct workforce planning for 2023, considering the economic uncertainty? (Select all that apply)
Prioritization of workforce planning by business
leaders remains a challenge
Getting business leaders to prioritize workforce planning over other 46%

responsibilities 48%
42%
Understanding the current state of skills in our workforce
45%
39%
Identifying what skills we need to meet strategic goals
40%
34%
Ensuring business leaders follow through on actions required by workforce plan
44%
Updating the workforce plan as needed to adapt to strategic or environmental 25%
change 34%
22%
Selecting what actions ensure we have the talent to meet our strategic goals
34%
13%
Evaluating the success of the workforce plan
19%
12%
Deciding which employment models we should use
16%
10% Dec-22
Collecting relevant external data
8% Nov-22
3%
Other
2%
0% 30% 60%
Question: What are the top challenges you face when conducting workforce planning for 2023? (Select all that apply)
Return to
Workplace
Leadership apprehensions are the top driver for
return to workplace policy
69%
Leadership concerns about collaboration, culture, creativity and engagement 67%
69%
46%
Leadership concerns about productivity, performance and accountability 39%
30%
32%
Recruiting and/or retention pressures 24%
36%
31%
Employee concerns 18%
33%
17%
Current real estate cost and investment 10%
23%
10%
Equitable internal career pathing 4%
6%
6% Dec-22
DEI concerns 12%
17% Nov-22
8%
We don't have a plan to return to the workplace 14% Oct-22
10%
1%
We have not yet decided on our plan to return to the workplace 10%
5%
1%
Other 2%
2%
0% 40% 80%
Question: What are the top drivers of your return to workplace policy? (Select all that apply)
Source: Benchmark With Gartner: "Preparing for 2023, Workforce Planning, Talent Trends and Predictions"; How HR Leaders Navigate Return to Workplace Pressures and Other Challenges
(16 November); Strategies to Attract and Retain Talent in Times of Economic Volatility (19 October)
2023 Talent
Strategy
2023 strategy planning to focus on talent
shortages and potential recession
Talent shortages and continued high attrition 62%
Potential recession 39%
Shifting employee expectations of employers 38%
Technology investments changing what skills employees need 31%
Overall decline in employee mental health 25%
Increasing use of nontraditional employment models 21%
Increasing flexibility for frontline workers 18%
Gen Z skill gaps 16%
Declining effectiveness of return to office mandates 12%
Employees holding multiple jobs simultaneously 7%
0% 40% 80%
n = 159 (December 2022)
Question: Which trends have you been thinking about as part of planning for your organization's 2023 talent strategy? (Select all that apply)
Talent shortages and attrition to have major
impact on 2023 talent strategy
Talent shortages and continued high attrition 66%
Shifting employee expectations of employers 40%
Potential recession 29%
Technology investments changing what skills employees need 16%
Increasing use of nontraditional employment models 15%
Increasing flexibility for frontline workers 13%
Gen Z skill gaps 12%
Overall decline in employee mental health 10%
Declining effectiveness of return to office mandates 9%
Employees holding multiple jobs simultaneously 7%
0% 40% 80%
n = 119 (December 2022)
Question: Which of the following do you think will have the biggest impact on your organization's talent strategy in 2023? (Select all that apply)
HR leaders and research experts are key sources
to learn about HR trends
Senior HR leader (CHRO/VP of HR/etc.) selects the trends 39%
External expert research (such as Gartner) 31%
Board/C-suite prompts/requests 18%
Crowdsourcing from employees 2%
We don't include trends in our talent strategy 6%
Other 4%
0% 20% 40%
n = 109 (December 2022)
Question: How do you decide what trends to consider in your talent strategy? (Select one)
Appendix
Economic volatility prevails, but job market
is strong
In the headlines …
27 November, Bloomberg 29 November, Business Standard
There’s a Job-Market Riddle at the In coming global recession, job cuts

Heart of the Next Recession won't mean mass layoffs
23 November, The Wall Street Journal 13 November, Business Insider
Mass tech layoffs might look scary, but

Global Economy Slows, but Seems to Be
here's why your job is probably safe —
Faring Better Than Feared
even if a recession strikes
Few HR leaders prepare for various scenarios
Q: “What approaches are you using to conduct workforce planning for 2023, considering the economic uncertainty?
(Select all that apply)
Collaborating with business leaders 79%
Identifying roles that are critical to organizational needs and planning

accordingly 61%
Collaborating with finance leaders 48%
Identifying skills needed to meet strategic goals and planning accordingly 48%
Preparing for various economic scenarios 32%
0% 40% 80%
n = 56 (November 2022)
Note: The top 5 selected responses for the month of November are reported above. Responses not shown include “Collecting relevant external
data to inform workforce planning,” “Identifying and working with predefined triggers to adjust plans,” and “Other.”
Question: What approaches are you using to conduct workforce planning for 2023, considering the economic uncertainty? (Select all that apply)
Leaders expect talent competition to cool off
Q: “How do you expect talent competition to change in the next six months?”
Percentage of HR leaders selecting “More Competitive” and “Much More Competitive”
70% 66%
57% 59%
60% 55%
50% 50%
50%
41%
40%
30%
20%
10%
0%
May June July August September October November
n = 226 HR leaders (May 2022), 125 (June 2022), 170 (July 2022), 184 (August 2022), 148 (September 2022), 101 (October 2022), 69 (November 2022)
Sources: Benchmark With Brian: Strategies to Attract, Retain and Engage Talent (May 2022), Benchmark With Brian: Strategies to Manage HR Priorities Through Disruption (June 2022), Benchmark With Brian: Attracting
and Retaining Critical Talent While Preparing HR for Disruption (July 2022), Benchmark With Brian: Strategies to Manage Retention and Attrition Amidst Economic Uncertainty (August 2022), Benchmark With Brian:
Attracting Talent and Improving the Employee Experience Amid Uncertainty (September 2022), Strategies to Attract and Retain Talent in Times of Economic Volatility (19 October), How HR Leaders Navigate Return to
Workplace Pressures and Other Challenges (16 November)
Learn more.
Dig deep.
Stay ahead.
Follow us on LinkedIn | Gartner for HR
Learn more about Gartner for HR at

gartner.com/en/human-resources

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Preparing for 2023,

52% 35% 53% 73%

Economic Volatility Talent Attraction and Workforce Planning

Return to Workplace 2023 Talent Strategy Appendix (Introduction slides

n = 227 (December 2022), 70 (November 2022), 125 (October 2022)

n = 164 (December 2022), 66 (November 2022)

Merit pay increases only 53%

Merit pay increases that include cost-of-living adjustments 15%

Separate cost-of-living adjustments and merit pay increases 10%

Cost-of-living adjustments only 3%

We have not yet decided 14%

We will not be adjusting salaries for most employees in 2023 5%

We will not make any change 3%

n= 158 (December 2022)

Getting business leaders to prioritize workforce planning over other 46%

Talent shortages and continued high attrition 62%

Potential recession 39%

Shifting employee expectations of employers 38%

Technology investments changing what skills employees need 31%

Overall decline in employee mental health 25%

Increasing use of nontraditional employment models 21%

Increasing flexibility for frontline workers 18%

Gen Z skill gaps 16%

Declining effectiveness of return to office mandates 12%

Employees holding multiple jobs simultaneously 7%

Talent shortages and continued high attrition 66%

Shifting employee expectations of employers 40%

Potential recession 29%

Technology investments changing what skills employees need 16%

Increasing use of nontraditional employment models 15%

Increasing flexibility for frontline workers 13%

Gen Z skill gaps 12%

Overall decline in employee mental health 10%

Declining effectiveness of return to office mandates 9%

Employees holding multiple jobs simultaneously 7%

Senior HR leader (CHRO/VP of HR/etc.) selects the trends 39%

External expert research (such as Gartner) 31%

Board/C-suite prompts/requests 18%

Crowdsourcing from employees 2%

We don't include trends in our talent strategy 6%

27 November, Bloomberg 29 November, Business Standard

There’s a Job-Market Riddle at the In coming global recession, job cuts

23 November, The Wall Street Journal 13 November, Business Insider

Mass tech layoffs might look scary, but

Collaborating with business leaders 79%

Identifying roles that are critical to organizational needs and planning

Collaborating with finance leaders 48%

Preparing for various economic scenarios 32%

Learn more about Gartner for HR at

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