Pulse of the Industry: Start of 2022

By: Philip Palaveev

Every six months, we reach out to participants and alumni of the G2 Leadership Institute to complete the Pulse of the Industry survey. A biannual benchmarking survey designed to capture industry trends without the usual lag time of eight to ten months between data collection and results, Pulse is a quick snapshot of the last half year that allows firms to check how they are doing relative to their industry peers.

In this latest edition of Pulse, we surveyed the G2 Leadership Institute community of firms on where they currently stand at the start of 2022 and compiled the results in the Pulse of the Industry 2022: Start of the Year Survey. Register for the full report at the link below.

Here are some key takeaways:

  • Amazing markets created record growth in 2021: Firms experienced median growth of 21.7% in 2021. With the S&P returning 26.9% for the year, firms grew revenues and profits to unprecedented levels.
  • New business development is strong: Firms also had success adding new clients, growing their net new relationships by 6.1% in 2021, exceeding the pre-COVID result of 5.3% in 2019 and 4.0% in 2020.
  • Firms continue to hire (but slowly): Sixty-five percent of firms in the survey hired for a new position in 2021 (rather than replacing a departure), and 45% of firms increased their headcount. Still, the typical firm does not currently have unfilled positions, and the average number of new positions open at the end of the year was just one for a typical firm of 24 employees.
  • Diverse and Possibly Conflicting Priorities: While large firms are looking to improve their investment departments and acquire other firms in 2022, small and medium-sized firms are focused on adding new partners and developing their people, perhaps declining the invitation to sell or merge with a larger firm.