CEO Projections: “Growing forward” in the next 12 months

Theme 1: Workforce velocity

It’s employees, not employers, who are in control of the UK’s labour market. Unemployment rates are low, there are huge numbers of open positions for candidates to choose from, and worker quit rates are high. 

Employees can use this as leverage, both with their existing employer and when negotiating a deal for a new role. This has resulted in high levels of workforce velocity: disruption to the workforce that is caused by a high quit rate, low numbers of new hires, a high number of open positions and the length of time it takes to recruit for a position. 

With 60% of SME CEOs planning on increasing their headcount this year, this increase in workforce velocity could cause problems. 59% of CEOs state that challenges in hiring are impacting their ability to work at full capacity. 

Many are working to resolve this issue by employing tactics like increasing wages, improving benefits and offering flexible hours and/or remote working. However, there is plenty more that could be done. 

In our report you’ll find our suggested tactics for managing workplace velocity – including adapting to the needs of changing demographics, building better bosses, and focusing on retention. 

Theme 2: Infrastructure to execute

In the past it was the physical infrastructure that was vital to a business’ success. Now, it’s the technological infrastructure that’s often the most important.

During COVID-19 lockdowns, businesses needed to adapt quickly to changing working practices. Zoom calls became the norm, collaboration was achieved remotely with Slack. With hybrid working still very much in force, such tools continue to be used. 

However, challenges still remain. When businesses first had to switch to remote working, the challenges were to facilitate collaboration, foster company culture and manage accountability. Now, businesses must leverage, streamline and integrate the appropriate technology to continue to optimise the hybrid working environment. 

In our report, we explore a three-pronged approach to optimising the workplace with technology: 

• Tactical: Get good at collaboration
• Practical: Upgrade the workplace
• Strategic: Application optimisation

Learn more by downloading the report here.

Theme 3: Maximising opportunity in the aftermath

The aftershocks of the pandemic have meant that some businesses are seeing a significant slow in demand, while others are experiencing rapid growth. The landscape has changed and has become more competitive – so how will you ensure that you grow? 

In our Vistage Confidence Index survey, CEOs stated that their top three drivers of growth over the next 12 months were likely to be price increases (70%), customer growth (61%) and launching new products or services (55%). Despite the current climate, CEOs are fairly optimistic about the year ahead. 69% expect their revenues to grow over the next year, while 48% believe that their profits will increase during this period. 

To boost the likelihood of such growth, we have identified three key levers for growth, detailed in full in our report. These are:

• Customer changes: Reevaluating what, how and where you sell to take advantage of changes in customer attitudes and behaviour. 
• Competitor changes: Understanding how to use competitors’ disadvantages to your advantage. 
• Pricing changes: 82% of CEOs plan on increasing their prices in the next year – but this needs to be strategic. 

The emerging Aftermath Economy is going to prove challenging for CEOs of all types of business. The workforce has changed. Customers have changed. The economic and business landscapes are ever-evolving.

Without the right strategies in place – encompassing talent, customer service, operations and finances – the 18 to 24 months that this Aftermath Economy is predicted to last could be a struggle. 

You’ll find more on the Aftermath Economy and how leaders can “grow forward” in our full report. Click here to download CEO Projections 2023: Growing Forward in full.

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