CEOs predict leaner & more agile workforces post pandemic

A global survey has revealed that CEOs worldwide believe that the workforces will become leaner and more agile as a result of the Covid-19 pandemic. According to the report of more than 1,300 CEOs and C-Suite executives, organisations are likely to use more contract workers and fewer permanent staff. Business travel will also be reduced in favour of more videoconferencing. The report carried out by The Conference Board reveals how CEOs and C-suite executives globally believe the workplace will change as a result of the Covid-19 pandemic.

Globally, CEOs believe that pre-pandemic revenue levels will not return for at least a year or more. Views on recovery post COVID-19 however varies. US CEOs, for example, believe that the country will face a double dip recession as opposed to a v-shaped recovery. Globally, more than 40% predict a U-shaped recovery, with more sustainable growth resuming by Q4 of 2020. About a third expect an L-shaped recovery, with sustained growth resuming only in late 2021. 

NEXT NORMAL

“In the short term, preparing for growth and recovery will require finding the right balance between conserving cash and investing in the innovations needed to succeed in a new commercial landscape – the next normal, if you will,” stated Chuck Mitchell, one of the report’s authors and Director of Knowledge, Content and Quality at The Conference Board. “Post-COVID-19, CEOs expect their organisations to emerge leaner and more agile, redefining how work gets done.” 

So what will be the long-term impact of COVID-19 on human capital, management and talent? CEOs plan to emerge from the pandemic with more contract and gig workers and fewer permanent, in-house workers. CEOS also expect more flexible work hours and more permanent telecommuting post-COVID-19. Teams are expected to get a makeover with agile project teams redefining how work gets done post-pandemic.

C-suite executives also believe that the crisis will compel them to accelerate their digital transformation plans and rethink their business models. Also, they do not see an increased urgency around the long-term restructuring of supply chains, reflecting a degree of confidence in their ability to manage emerging risks.

RECOVERY & GROWTH EXPECTATIONS

What will the recovery post COVID-19 look like around the world? CEOs globally anticipate a U-shaped recovery (extended contraction in Q3 with growth resuming by Q4). Europe’s CEOs are more optimistic with 55% predicting a U-shaped recovery as the most likely scenario. 

Slightly more than 40% of leaders in both the US and China anticipate a U-shaped recovery. However, nearly a quarter of US and Japanese CEOs expect a W-shaped recovery (second contraction in latter half of 2020). Globally, just 11% of CEOs expect a V-Shaped recovery (a fast recovery in Q3). China’s CEOs are more hopeful with 21% predicting a V-Shaped recovery.

LONG-TERM FOCUS

“While business leaders are navigating through the many disruptions and uncertainties brought on by the global pandemic, they are focusing on shaping long-term growth strategies in a post-pandemic world,” added Ataman Ozyildirim, co-author and Global Research Chair of The Conference Board. “Even though they expect their business revenues to recover slowly and not fully before the end of 2021, their focus on accelerating digital transformation and innovating new business models to serve their customers could lay the ground work for a sustainable growth path in the longer term.”

Approximately 47% of CEOs globally predict revenues to return to pre-COVID-19 levels sometime in 2021. Around 62% of European CEOs see this as highly likely, compared to just 51% of US CEOs. However, 41% of American CEOs are expecting an earlier recovery in 2020.