Some of the things that created challenges for companies this year will be hanging around for a while
As we head towards a new year, despite uncertainty over the pandemic, there are some reasons to be optimistic about the global economy.
Economic growth is set to start 2022 strong according to 80% of respondents to a survey of chief executives from across the world and from 44 industries.
However, challenges are part of running a business and the next 12 months will provide plenty to keep CEOs occupied according to the YPO Global Pulse Survey.
More than one third of CEOs said their companies have fared well in 2021, overcoming headwinds to post increases in revenues of 20% or more, while only 10% said they posted decreases of 10% or more.
Hiring has also ticked higher with 38% of respondents experiencing a 10% increase or more in the number of employees since the beginning of 2021, although 45% of firms said their total head count is about the same as it was in early 2021 and 16% said they saw a decrease.
The global labour shortage may disrupt hiring intentions though.
Inflation and supply chains
Inflation is one of the key concerns of CEOs for 2022. More than three quarters of respondents said inflation may impact their business and there are signs that price rises will be necessary - bad news for consumers.
Supply chain issues are also set to remain into 2022. Most business leaders are split between expecting this problem to be fixed by the end of 2022 (38%) or early in 2023 (39%).
The pandemic-driven shift to working from home will lead to greater levels of flexible working, despite only 1% of the CEOs believing that productivity is better at home than in the office.
Workers’ mental health will also be a key consideration with 35% reporting some type of mental health investment or strategy for employees and 16% saying they don’t have one now but plan to add one.
Cryptocurrencies
While the crypto bulls are calling for greater mainstream adoption of digital currencies in 2022, CEOs are not convinced.
Only 28% of surveyed leaders said they have invested in cryptocurrencies, with 13% planning to in the future, leaving the majority (60%) saying they aren’t and don’t have plans to invest personally.
Perhaps unsurprisingly, respondents under the age of 35 are most likely to back cryptos with 58% sharing that they are already investing.
