According to the KPMG 2022 CEO Outlook, which was released on Tuesday, the Great Resignation is slowing down, with 39% of worldwide chief executive officers implementing a hiring freeze and 46% considering shrinking their personnel over the next six months.
In-depth details that 46% of CEOs globally are considering job cuts and while 39% freeze hiring
More than 1,300 CEOs of the largest companies in the globe participated in the poll, which also included leaders from 11 important markets, including India, China, the United States, the United Kingdom, France, Germany, Italy, Japan, Canada, Australia, and Spain.
However, the outlook for the next three years is more upbeat, with only 9% anticipating further headcount reductions. The fact that more than half of executives anticipate a mild and brief recession is another encouraging development.
A significant percentage of senior executives (14%) list a recession as one of their main concerns right now, up slightly from early 2022 (9%), while pandemic weariness comes in the first place (15%).
More than eight out of ten (86%) worldwide CEOs believe that a recession will occur during the next year, and 71% believe that it will have a 10% or more impact on business earnings. 73% of senior executives are confident that a recession will thwart projected expansion. But three-quarters have already taken safety measures.
Despite their worries, senior executives are significantly more optimistic than they were in February (60%), when KPMG surveyed 500 CEOs for its CEO Outlook Pulse study, about the economy’s ability to survive the next six months (73%). Furthermore, nearly nine in ten (85%) executives are optimistic about the future growth of their organization, and 71% of leaders are optimistic about the prospects for the global economy over the next three years (up from 60% in early 2022).
CEOs are continuing to prioritize digital transformation despite the present state of unpredictability, but 40% of organizations have delayed their plans for the same, and another 37% want to do so in the upcoming six months.
More than a quarter of respondents say that, in the long run, improving digitalization and business connectivity are essential to reaching growth targets over the next three years. Additionally, 74% of respondents believe that their organization’s strategic investments in digital and environmental, social, and governance (ESG) issues are intrinsically intertwined.
Over the next three years, emerging and disruptive technology will pose the greatest threat to business growth. CEOs have also named a number of other factors as major threats to growth, including reputation, governmental regulations and operational difficulties, and climate change.
Comparatively to early 2022, CEOs are more worried about reputational risks, such as misalignment with consumer or public sentiment (10% in August vs. 3% in February). Due to geopolitical difficulties, 34% of the organizations plan to stop cooperating with Russia during the next six months, and 51% of them have stopped doing so already.
In an effort to get their companies ready for the effects of a potential recession, CEOs are also delaying a number of ESG goals, the survey found.
An increase from 37% just a year ago, nearly half (45%) of CEOs now concur that advancements in ESG boost corporate financial performance. However, the survey found that as long as the economy remains uncertain, half of the companies would pause or reevaluate their ESG initiatives in the coming six months, and 34% have already done so.
According to the research, top executives reported more stakeholder demand for increased reporting and transparency on ESG, up from 58% in 2021.
