Less than half of US executives think supply chains will ease by late 2022
Source: Middle East Insurance Review | Apr 2022
Only 45% of respondents in a new PwC 2022 survey predict supply chain disruptions are likely to ease by the end of the year and 62% of business leaders indicate they will increase the price of goods and services in 2022 to manage against these risks.
Nearly 70% of business leaders believe that COVID-19 will turn from pandemic to endemic in 2022 but many expect that inflation will remain elevated, according to the survey.
More than 650 c-suite executives participated in the survey. They said the ability to hire and retain talent was both the most important factor (77%) and biggest risk (48%) in reaching their organisations’ growth goals in 2022.
The survey revealed that business leaders recognise the importance talent has in achieving growth this year, however, they are less optimistic on the current labour market. Only 36% believe that voluntary turnover will return to the pre-pandemic rate by the end of the year and only 31% are of the opinion that talent shortages will ease by the end of 2022.
Also, the survey found that the board members view talent management as a top issue, with 73% planning to devote more time to workforce and diversity, equity and inclusion efforts.
The business leaders also plan to deploy a number of initiatives to retain and attract talent, including offering hybrid work options for employees (43%), increasing career advancement and upskilling opportunities (36%), increasing compensation for employees (31%), making remote work a permanent option (30%) and improving benefits for employees (30%).
In addition to talent issues, executives identified supply chain disruptions and vulnerabilities (32%), the US policy and regulatory environment (29%) and business model changes (28%) as the biggest risks impacting their organisations’ growth.
The survey found that focus has shifted to the evolving global tax environment and business leaders are now considering a number of digital and technology investments to address these challenges. More than 40% are considering accelerating digital transformation initiatives while 38% are considering automating processes and 36% are considering making sizeable technology investments. M