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

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

Inflation is a looming menace, however giant finances cuts can formulate the precise precarious state of affairs corporations hope to keep away from. Relatively than appearing swiftly, the survey discovered executives are centered on planning for the potential timing and severity of a recession.

Executives are fascinated with the best way to reduce prices with out decreasing headcount, equivalent to 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 frightened about wage development not maintaining with rising prices, and plan to cut back the variety of full-time staff because of this. Actually, 81% of CHROs plan to implement at the least one tactic to cut back their workforce, equivalent to 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 position 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 acutely aware of their price construction, it’s a part of a much bigger dialog about how they’ll rework their companies for the longer term, relatively than a knee-jerk response to present financial circumstances. How nicely and the way shortly they can execute will decide the end result.

Efficient strategic planning, funding in development and steady flexibility will see corporations 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.