It’s hard to believe that the year 2022 is less than three years away. As we look ahead, though, it’s important to consider how some of the biggest trends in payroll will affect us in just a few short years from now. In this article, we share 13 of the most important payroll statistics that you need to know as an employer so that you can prepare yourself and your business accordingly. 

Working population

With changing demographics and technology, the 2020s will see new challenges and opportunities when it comes to payroll. With millennials now making up a full one-third of the working population, it’s more important than ever to be aware of their needs as an employer.

Diversity

It is important that your workforce reflects the diversity of your customers and clientele. Not only are we diverse people but when you hire more women, they outperform their male counterparts by 11%. With that said, I would recommend hiring more women. However, keep an eye on it to make sure this doesn’t create any discrimination issues because statistics show they get paid less than men at various points of their career.

Women at work

What’s interesting about these predictions is that, though it will vary depending on the region, there are global trends that many developed nations will share. For example, women make up 43% of the workforce in India but are expected to rise to 47% by 2020. This is a trend we can expect to see globally as well.

Boomers retiring

According to the US Bureau of Labor Statistics, approximately 10,000 boomers turn 65 every day with only 1,400 boomers turning 65 each day. This retirement of a generation will soon be affecting the workforce tremendously. By 2020, 60% of retirees from the Boomer Generation will have retired from the workforce. And by 2030 over 75% of them will have retired.

Baby boomers as a percentage of the workforce

According to a report from the Bureau of Labor Statistics, the baby boom generation is expected to make up 30% of the workforce by 2020. Since many baby boomers are approaching retirement age, this percentage will grow as more and more boomers retire.

Labor force participation rates

With so many people leaving the workforce, the labor force participation rate is at 63.2%, a number that has been steadily declining over the past few years. Although it may not seem like such a big difference, 5.4% of labor force participants is significantly higher than 3.8%. These people who are still working are playing an integral role in sustaining America’s economy, and as an employer, you need to support them.

Older workers as a percentage of total workforce

In 2016, the labor force participation rate of people 55 years and older was higher than that of those 16 to 24.

Employment by occupation

Occupations with the largest job growth (population 100,000 or greater) from 2016 to 2026 include registered nurses, school teachers, and store managers.

Projected job growth by occupation, 2012-2022

In 2022, we’ll be seeing the growth of jobs in healthcare occupations (9%), personal care occupations (8%), and a big decline of jobs as traditional industrial workers (-14%). It’s important to understand this change will put stress on the workforce and employers to stay ahead of the evolving marketplace.

Future employer concerns about recruiting, hiring, and retaining new employees

Recruiting, hiring, and retaining new employees are difficult tasks. By 2020, the labor shortage will be felt most acutely by small businesses as they grapple with competing against larger organizations.

Compensation trends, top pay levels, and benefits

When it comes to compensation, employers should keep an eye on what’s happening at the higher end of the pay scale.

How salaries vary across U.S. states

A study by the U.S. Census Bureau of more than 200,000 employees finds that salaries vary significantly across states and not just by city.

The need for payroll expertise

So many small business owners believe that they can handle payroll on their own but without sufficient payroll expertise, it’s unlikely you’ll be able to get it right every time.