The latest Fortune/Deloitte CEO Survey shows that as we head into the summer of 2021, CEOs are less optimistic, particularly on the global economy, where they see that inflation and geopolitical instability will have a significant impact on their business in the coming years 12 months.
For the 116 leading executive directors representing more than 15 industries, the effects of the “Great Resignation” remain a priority as business leaders implement new tactics to attract and retain the best talents.
Deloitte notes that after leading its organizations through an unprecedented health crisis in the last two years and now facing a new wave of social, political, and economic disruption, participants of the survey indicated that their biggest challenges today are “uncertainty” and “volatility”. Other top challenges noted were “inflation” , “stakeholder management”, “supply chain” and “navigating change”.
When this survey was conducted in January of 2022, there was a balance in the expectations of CEOs for 2022, with as many describing their outlook as “hopeful” as those who saw it as “uncertain”. Now, in the middle of 2022, with a host of external factors including rising inflation, growing mental health crisis, and geopolitical instability, coupled with a With an increasingly wide range of stakeholders with diverse interests, opinions and expectations, it is not surprising that CEO optimism has waned, the Fortune/Deloitte report notes.
As concern grows Due to inflation and the market, CEOs’ optimism about growth prospects for their organizations has decreased by 15% from January 2021 and a 28% for a year, and less than half say they expect strong or very strong growth for their organization in the coming years 10 months.
With respect to the outlook for the global economy, less than 10% has a very optimistic view. This marks a significant change from five months ago, when only 12% of participants in the survey felt pessimistic or very pessimistic about the global economy. Optimism about your industry and individual company performance paints a more optimistic picture with 46% and 72%, respectively.
Key Survey Findings
– Approximately half of CEO survey participants have “very strong” or “strong” expectations about the growth of your organization during the next 10 months, compared to 65% in January 2022.
– More than 80 % of CEOs surveyed expect inflation to influence or disrupt their business strategy in the coming 12 months, overcoming the labor and skills shortages of their previous top position, but still a top disruptor for more than half (59%) of the executive directors.
– When it comes to dealing with the “Great Resignation,” most CEOs believe that allowing more flexibility and empowering employees will have far more impact than raising wages or expanding benefits.
– The focus on diversity, equity and inclusion (DEI) has increased considerably , with 92% of CEOs indicating that it has been integrated into their priorities and strategic goals, versus 61% in June 2021.
– When asked how the war between Russia and Ukraine has negatively affected their organization, executive directors mentioned more the implications for the mental health of employees and families.
For more details on the survey go here.
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