Despite concerns about the economy, C-suite executives are more bullish about near-term revenue than they were a year ago, according to new research from Provo-based experience management platform Qualtrics. The vast majority of executives are concerned about inflation or a recession — or the combined effect of both — but still expect to increase their investments in technology and employee retention this year.{mprestriction ids="1,3"}
“During downturns, organizations have to focus intensely on what’s most important,” said Qualtrics CEO Zig Serafin. “Amid inflation and tough decisions about spending, the best leaders create a competitive advantage in understanding and swiftly acting on the needs, preferences, and interests of their customers and employees.”
According to the report, business leaders are concerned about the economy, but optimistic about the future of their own companies. Forty percent of leaders are concerned about stagflation — the combined effect of inflation and a recession — over the next 12 months. An additional 34 percent are worried about inflation on its own and 18 percent are worried about a recession.
In spite of these concerns, 83 percent of executives expect their companies’ revenue to increase over the next 12 months and 66 percent expect overall growth for their organizations. In 2021, these numbers were 76 percent and 59 percent, respectively.
Executives are making financial decisions for the long term, the report said. As organizations continue their digital transformations, 73 percent of C-suite leaders are planning to increase spending on technology modernization and 72 percent plan to increase spending on staffing and retaining their workforce, up from 62 percent in 2021.
Leaders are more likely to turn to short-term cost-saving measures in case of a recession, such as reducing spending on customer-facing travel (40 percent), employee perks (40 percent) and internal travel (36 percent), rather than reducing hiring plans (4 percent), downsizing their workforce (23 percent) or reducing their real estate footprint (24 percent).
The majority of leaders believe COVID will impact their business into 2023 and beyond:
• 38 percent say the pandemic fundamentally changed how they do business going forward, compared to 42 percent last year.
• 18 percent believe their business will still be impacted by COVID in 2023.
• Only 44 percent of leaders expect the business effects of COVID will be largely over by the end of the year, up slightly from 39 percent a year ago.
• When asked about their priorities for this year and beyond, public health was the top priority, with 40 percent of executives identifying it as a 2022 priority, up from 35 percent in 2021.
The Qualtrics study was fielded in June. Respondents were considered eligible if they are at least 18 years of age, employed full-time and a C-level executive, president or founder. The total number of respondents was 535.{/mprestriction}
