5 technology predictions for 2022

This year presents a huge opportunity for technology companies because the digital economy’s importance continues to accelerate. Covid-19 variants are still limiting in-person collaborations for marketing, sales, and innovation, so online communities for conversations and research continue to develop and help people make important business decisions.

What do these trends mean on a more granular level? Here are five technology predictions for 2022:

1. B2B’S DIGITAL ECONOMY KICKS INTO A HIGHER GEAR 

The business-to-business (B2B) digital economy has been booming over the last two years, and B2B e-commerce is expected to hit nearly $21 trillion by 2027. Buying decisions for software and hardware products are not being made over discussions at trade shows anymore; they are being made online via peer reviews and other digital research. Such research is also driving quicker decisions. My company’s research found that 55% of buyers need less than three months to make a decision on a software purchase of $20,000 or more, and 85% of all decisions are made in under six months.

These numbers represent a shift away from traditional resources toward online platforms that allow B2B buyers to make smarter decisions in less time. In 2022, this speed will help B2B’s digital economy kick into an even higher gear.

2. TRUST DRIVES SUCCESS

The growing importance of trust has been bubbling to the surface for a while. Yet, it’s starting to mature in new ways. For instance, according to Forrester Research, five global companies have recently named a new kind of “CTO”—a Chief Trust Officer. Forrester expects that number to grow to 20 in 2022.

This is happening because trust drives success. Winning and keeping the trust of your customers and your team has to be the top priority for all leaders in 2022. Given the upheavals and pain caused by the pandemic and growing political divide, company executives are being challenged to earn the trust of all their stakeholders. Without trust, technology companies will lose customers and talent, and they won’t be able to attract new talent in this time of The Great Resignation.

3. WFH FLEXIBILITY AND WORK-LIFE BALANCE WILL REMAIN

Flexible work is here to stay because many technology leaders and talent now prefer it. Companies like mine have seen the advantages of more flexibility at work, as it allows team members to still be highly productive while being more present for their family and friends. By not losing valuable time and energy on commutes every day, we’ve seen productivity levels rise and results reach record levels.

Of course, we all miss the energy and connection we gain from our colleagues, so adding a cadence of in-person meetings for our people to get together will be critical for building a PEAK culture (a culture that prioritizes performance, entrepreneurial spirit, authenticity, and kindness) and aligning and energizing our teams.

A hybrid approach can help companies retain talent, too, because employees appreciate the flexibility. A recent study found that employees, if given the choice, now want to come into the office a little less than half of the week—even if the pandemic totally goes away.

4. TALENT RETENTION TAKES TOP PRIORITY 

The Great Resignation is shaking up every industry. And while it’s been a prevalent trend throughout 2021, it’s starting to look more like a lasting shift in how we think about work. The Department of Labor recently reported that September’s quit rate rose to 3% from its high of 2.9% the previous month, when about 4.3 million Americans left their jobs in an all-time record.

With that in mind, I believe retaining and attracting top talent will be the No. 1 challenge faced by companies in various sectors, as employees have increasing choices for employment, partly due to a global labor shortage. This challenge is ubiquitious in technology, where most companies now support remote work. Many of them are growing because the pandemic accelerated investor capital flowing in.

Therefore, it seems every company is trying to hire, and talent retention will be a top priority for company leaders in 2022—especially those in software, where it is an unusually tough challenge.

5. RISING COSTS CHALLENGE ENTREPRENEURS

Startup founders should focus on cost and maximizing their funding in 2022 in a way that is nearly unprecedented. Entrepreneurs have always had to watch their spending, but there’s a confluence of factors that make the current environment more challenging.

For instance, part of hiring and retaining staffers will have to include paying higher salaries. Also, healthcare and benefits are going to be more expensive. And companies selling physical products may face significant rises in shipping costs.

All of those factors add up to a huge challenge for every company but especially startups. Entrepreneurs can manage the situation effectively by making shrewd investments in talent and treating every software or hardware purchase with care by reading online customer reviews and ratings to make sure they are getting the best bang for their buck.

The future of business, after all, is the digital economy. In 2022, the technology community has an excellent opportunity because the sector is growing so rapidly. And the companies that build trusted brands in the community will acquire and retain the best talent and the biggest customers.

Godard Abel is Co-Founder/CEO at G2, a software reviews platform. Previously, he was Founder/CEO at BigMachines and CEO for SteelBrick.