Executives predict increase in spend to meet rising demands

This article was originally posted on Qualtrics.com.

In the midst of the pandemic and ongoing labor shortage, C-Suite executives say customers and employees will become more demanding in the coming months, and spending will increase around technology, hiring new workers and supporting current employees, according to a new study from Qualtrics.

Despite predictions that the pandemic will continue to affect businesses into 2022 and beyond, CEOs and other leaders are optimistic about the future. 76 per cent expect their revenue to increase over the next year, and 85 per cent predict moderate to very strong growth.

These predictions come at a time when companies are experiencing transformations across multiple areas. Not only are business leaders looking for creative ways to retain and attract employees during what has been dubbed The Great Resignation, they are also transforming their physical offices to adapt to hybrid work and improving products and technology as customers raise their expectations for virtual services.

In order to adapt to this ever-changing world, the majority of executives expect to see increases in spending around updating technology, training and re-training current employees, hiring new talent, supporting remote work, and providing mental health services. With big changes on the horizon, company leaders will need to continue to adapt, not only to the latest Covid-19 guidance but to current trends in the world of work.

Qualtrics asked over 500 CEOs and other C-Suite executives about their predictions for the future and how their businesses are faring during the pandemic. Here is what they had to say.

Executives predict continued growth over the next year

Most CEOs and other executives report that their organizations actually grew in the past year, and they expect continued growth in the future.

• 58 per cent said their revenue increased over the past year, while 26 per cent said it stayed the same
• 76 per cent said they expected their revenue to increase over the next year, while 21 per cent said they expected it to stay the same.
• 31 per cent said they expected very strong growth over the next year, while 28 per cent said they expected strong growth, and 26 per cent said they expected moderate growth

Employees and customers will become more demanding

Despite robust projections for growth, CEOs and other executives believe that customers and employees will become more demanding in the future. Many also believe that Covid-19 has fundamentally changed how they do business.

• 56 per cent said employees will become more demanding in the next few months
• 67 per cent said customers will become more demanding in the next few months
• 42 per cent said the pandemic fundamentally changed how they will do business going forward
• 19 per cent said their business will continue to be impacted by the pandemic in 2022
• 39 per cent believe the effects of the pandemic will largely be over by the end of 2021

Organizations are experiencing transformations across all aspects of business

Most organizations are reportedly either experiencing a transformation or preparing to experience one across several areas of work, including talent, real estate, and technology. Some of these transformations are no doubt tied to changes brought about by Covid-19.

• 51 per cent of CEOs and C-Suite leaders said their companies are currently experiencing a digital transformation, while 30 per cent said they are preparing to experience one
• 47 per cent are currently experiencing workforce/talent transformation, while 30 per cent are preparing to experience one
• 46 per cent said they are currently experiencing a financial transformation, while 31 per cent are preparing to experience one
• 40 per cent said they are currently experiencing a workplace/real estate transformation while 29 per cent are preparing to experience one
• 33 per cent reported that they are currently experiencing a diversity, equity and inclusion (DEI) transformation, 32 per cent reported they are preparing to experience one

Company spending is expected to increase in the next year, especially around technology

Spending is especially likely to increase around technology, with 51 per cent of organizations reporting they are currently experiencing a digital transformation. However, a significant number also say they will be increasing spending around areas to support workers.

• 72 per cent of C-Suite executives said they think spending will increase around technology modernization, while 67 per cent foresee an increase in cybersecurity
• 64 per cent said there will be an increase in spending for training/reskilling their workforce and 62 per cent said the same for staffing/retaining a workforce. To support those workers, 60 per cent said they expect an increase in spending for remote work support and 57 per cent for mental health support
• 57 per cent predicted an increase in travel spending

New technology and innovation will be key to a company’s success

• 53 per cent of CEOs and other company leaders see new technology as an area with the most impact on their success, and 41 per cent said they believed innovation/new products had the most impact
• 39 per cent said operational efficiencies were key to their success
• 39 per cent of CEOs said the increased cost of supplies poses the greatest threat to their success of the next year, while 32 per cent see new technology as a threat, and 30 per cent see changing consumer demands as a threat

Cybersecurity tops the agenda for leaders

Cybersecurity, tax policy, social issues, and diversity will be top of mind for business leaders over the next year.

• 63 per cent said cybersecurity is very important to their agenda, and 37 per cent reported it as a 2021 priority
• 56 per cent said social issues, such as public health, are very important on the agenda, and 35 per cent said they are a priority
• 55 per cent said tax policy is a very important agenda item, and 36 per cent see it as a 2021 priority
• Finally, 46 per cent said diversity, equity, and inclusion (DEI) is a very important agenda item, with 31 per cent saying it is a priority

To learn more from Qualtrics, read their latest study on the ROI of customer experience in 2021 here.