What’s Impacting CEO’s Confidence?
The latest PricewaterhouseCoopers (PwC) CEO survey revealed that confidence levels for chief executive officers (CEOs) has dropped compared to results from the previous year. Moreover, the analysis suggested that executives are increasingly looking for cost-effective ways to drive business growth.
With managing staff a key expense for most companies, the right HR management software may be able to provide the boost of positivity required to make up for the lack of confidence.
Low confidence for CEOs
The recent PwC report revealed that Australian CEOs are showing less confidence regarding their business growth prospects as well as overall growth in the global economy. PwC found that just over one-third responded that they are “very confident” about revenue growth over the next year. This is significantly lower than last year’s results at 43 per cent.
When asked about the global economy, PwC recorded similar results. The survey found that 31 per cent of CEOs predicted a rise in economic growth this year, down from 38 per cent in last year’s report.
PwC CEO Luke Sayers attributed the results to difficult operating conditions, uncertain global outlook and a growing financial deficit. Accumulated, these factors have lead to 2016 becoming a ‘make or break’ year for many Australian companies, demanding innovation in the workplace in order to maintain profitability.
“Australia’s twenty-four years of uninterrupted economic growth is frequently highlighted, but we mustn’t forget the history of difficult reforms that made this record possible,” he said.
“If the next quarter-century is going to look anything like the last, it’s crucial that the lessons of the past are applied.”
Managing staff costs
The key priority for Australian CEOs, according to the survey, is introducing a cost-reducing initiative (73 per cent). One of the biggest costs a company generates is managing staff, according to a study by the Human Capital Management Institute.
The report, Managing an Organization’s Biggest Cost: The Workforce, stated that the total workforce cost averages an estimated 70 per cent of the overall operating costs of a company. Due to the changing nature of these costs, it can be difficult to manage effectively.
By establishing a Human Resource Information System (HRIS), these costs can be better managed and analysed. A well-organised HR department is essential to managing business operations, and with Robert Half predicting that the majority of Australian executives are looking to increase staff levels, is only going to become more important in 2016.
Using HR management software can be the cost-reduction measure Australian organisations need for 2016 to help increase CEO confidence.