YPO Global Pulse Survey: What does 2022 hold for global business leaders?
The COVID-19 Pandemic has significantly impacted the economy on a global scale. Despite the difficulties, a YPO survey shows that over 80% of global chief executives across 44 industries believe economic growth will remain strong in 2022. According to the YPO Global Pulse Survey, the growth will however not be without a high level of uncertainty and volatility.
The YPO Global Pulse Survey was conducted from 18 November to 5 December 2021, with 1,700 chief executives from 101 countries involved. According to the survey, things are looking good for many companies when it comes to two critical business factors: revenue growth and hiring.
Revenue growth & hiring
In the past YPO Global Pulse Survey presented in October 2020, only 19% of respondents expected an increase in revenue of 20% or more in 2021. However, a positive outcome was achieved this year with 37% reported a 20% increase since the beginning of 2021.
Meanwhile, only 17% of the chief executives said they saw a decrease of 10% or more revenue since the beginning of the year.
On the hiring side, 38% of the respondents see a 10% increase or more in the number of employees since the beginning of 2021. Although nearly half of the firms said their total headcount is about the same as it was in early 2021, only 16% said they saw a decrease.
Moreover, the global labour shortage continues to pose challenges for many companies.
Difficulty in hiring results in global labour shortage
A total of 67% of respondents said that it is somewhat or very difficult for their businesses to find employees for the general workforce at present. Also, another 57% of respondents reported the same levels of difficulty when it comes to hiring C-suite and executive.
Are employees more productive during the pandemic?
Many firms are moving forward with flexible and remote work schedules despite the clear concerns over productivity. More than half of the business leaders (74%) shared that some form of flexible work arrangements will become more permanent.
However, only 1% of executives believe employees are more productive at home than in the office.
Importance of mental health
Some businesses (35%) are taking steps to improve mental health benefits with mental health investment or strategy. Another 16% do not have the initiative for now but they plan to add one in the future. It is evident that mental health would eventually be the key in employment.
Impact of inflation
Inflation marks the most concerning matter for most of the chief executives. A total of 71% is reported to be either very or somewhat concerned about the impact of inflation on their businesses next year. Among all countries across the world, U.S. leaders (77%) are more concerned about inflation than their counterparts.
Inflation concerns could spell bad news for consumers
The concern on inflation for these business leaders also associates with bad news for consumers. Industries that are planning to raise price in response to inflation include:
- Food and Beverage industry (74%)
- Manufacturing (73%) and Retail
- Wholesale Sales (62%)
Unfortunately for supply chain issues, there seems to be no immediate end in sight for the matter. Only 2% of respondents believe they will be resolved in early 2022. Another 39% do believe resolution will come at the end of 2022 while 38% expect it in 2023 or later.
Global leaders are not on board with cryptocurrencies
Only 28% of the leaders said they have invested in cryptocurrencies, with 13% planning to in the future while the majority (60%) are not interested and do not have plans to invest personally.
However, cryptocurrencies tend to be more popular in the younger demographic group. 58% of respondents aged under the age of 35 are already investing in cryptocurrencies.
The top three industries YPO members are investing crypto in are:
- Media/Entertainment (43%)
- Aerospace/ Aviation (42%)
- Financial Services (35%).
Key focus in 2022
Heading into 2022, YPO member chief executives shared 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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YPO members inspire and support each other through peer learning and exceptional experiences in an inclusive community of open sharing and trust.
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