More than 80 percent of global chief executives across 44 industries are optimistic that economic growth will remain strong in 2022, however, it won’t be without a high level of uncertainty and volatility, according to a new survey by YPO, the global leadership community of chief executives.
According to the report, which surveyed 1,700 chief executives in 101 countries, companies are optimistic about two critical business factors – revenue growth and hiring.
37 percent of those surveyed reported a 20 percent increase in revenue or more since the beginning of 2021, while only 17 percent said they saw a decrease of 10 percent or more since the start of the year.
Hiring has also picked up, with 38 percent of respondents experiencing a 10 percent increase or more in the number of employees since the beginning of 2021, though 45 percent of firms said their total head count is about the same as it was in early 2021, and 16 percent said they saw a decrease.
However, the global labour shortage continues to pose challenges for many businesses, with 67 percent of respondents stating it is somewhat or very difficult to find employees and 57 percent reporting the same levels of difficulty when it comes to C-suite and executive hires.
Reem Osman, regional CEO of Saudi German Hospital, indicated two factors contributing to the shortage of global labour – competition in labour markets and the type of labour required.
“Is it skilled labour or unskilled labour that is needed? Do they need heavy training or are they unskilled and can be trained very fast and won’t need a license to practice like in the Gulf’s medical sector?” she said.
With increasingly competitive labour markets and rising demand for skilled labour, employees are at an advantage, according to Osman, compelling them to join workforces in countries that offer greater advantages.
“Some countries might provide better salaries, career paths, or benefits, so labourers will prefer to work in some countries over others, forcing them to leave their home countries,” said Osman.
Using the example of the healthcare sector, Osman shared that sudden shortages in manpower are also not easy to account for or accommodate due to regulatory and licensing requirements for new staff, stating: “This was seen at the beginning of Covid where, all of sudden, there was a high need for medical staff globally. So, by default, there was a shortage in manpower and medical staff globally.”
While only 1 percent of executives believe employees are more productive at home than in office, 74 percent of surveyed business leaders shared that some form of flexible work arrangements will become more permanent.
With pandemic pressures taking their toll on teams, businesses are also taking steps to improve mental health benefits, with 35 percent reporting some type of mental health investment or strategy for employees and 16 percent saying they don’t have one now but plan to add one.
However, prospects for a mental health work strategy in MENA businesses remains low, with 72 percent of MENA chief executives reporting that they are less likely to have a plan set in place.
Looking at the world of cryptocurrency, the report illustrated that only a minority (28 percent) of global business leaders are buying into cryptocurrencies, with 13 percent planning to in the future, and the majority (60 percent) sharing that they have no intentions to invest. The majority (58 percent) of chief executives leaning into crypto were under the age of 35.
Heading into 2022, YPO member chief executives shared that all business leaders should keep their eyes focused on these key management issues:
- Improving employee engagement and work culture/retention.
- Exploring alternative cash streams and protecting existing cash flows.
- Preparing for the impact of inflation.
- Planning for any future supply chain issues.
- Understanding evolving customer needs.
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