PwC report: 81% of executives anticipate a recession inside the subsequent six months

Main by means of turbulent occasions has change into far too acquainted for leaders; PwC’s new report discovered 90% of executives are involved about macroeconomic situations, together with the Federal Reserve’s tightening cycle, larger value of capital, and wages not maintaining with inflation. Nevertheless, 82% stay assured about their potential to execute on digital transformation initiatives and 77% are assured they’ll obtain near-term development objectives.

Inflation is a looming risk, however massive price range cuts can formulate the precise precarious state of affairs firms hope to keep away from. Moderately than performing swiftly, the survey discovered executives are centered on planning for the potential timing and severity of a recession.

Executives are fascinated with how you can lower prices with out lowering headcount, reminiscent of utilizing automation and managed providers for effectivity. CIOs nonetheless plan to put money into digital transformation.

Implementing methods for recession-proofing

Together with inflation fears, executives are nervous about wage development not maintaining with rising prices, and plan to scale back the variety of full-time staff because of this. Actually, 81% of CHROs plan to implement at the least one tactic to scale back their workforce, reminiscent of layoffs, voluntary retirement or not changing individuals who depart on hiring freezes.

The state of hybrid work stays a subject amongst executives. Two-thirds are involved with a slower-than-expected returns to work. Many search to implement on-site coaching, teaching and mentoring alternatives to draw staff. Executives are challenged to rethink the function of the workplace by making a tradition that fosters in-office participation.

Whereas fears of a recession loom, not all hope is misplaced. Leaders are centered on development and seeking to enter a attainable recession wholesome and exit more healthy. Whereas aware of their value construction, it’s a part of an even bigger dialog about how they may remodel their companies for the long run, relatively than a knee-jerk response to present financial situations. How effectively and the way rapidly they can execute will decide the result.

Efficient strategic planning, funding in development and steady flexibility will see firms by means of rising issues.

PwC’s report surveyed greater than 650 enterprise executives, together with 91 CFOs and 94 CHROs.

Learn the total report by PwC.