What is the “new normal” for organizations?
Results from CFO Strategic Partners’ 2022 mid-year business update survey
After the Covid-19 pandemic turned our world upside down two years ago, people and organizations are finally beginning to return to their routines and move on. However, things have certainly changed since pre-pandemic times.
From the Great Resignation creating a mass employee shortage to wide-scale supply chain issues limiting production in a variety of industries to quickly increasing inflation, business leaders aren’t completely out of the woods. And now there’s talk of an economic downturn.
CFO Strategic Partners recently conducted a mid-year business update to address some of business leaders’ top of mind questions. While there is still caution in the air, a majority of participants’ organizations are performing as expected or even better this year and many feel positive about the future. The survey also uncovered changes businesses were making including price increases, recruitment and retention tactics, customer mix and working locations.
This survey was answered by people from a wide range of industries including construction, professional services, hospitality, aerospace and more. See below for a full breakdown of our results.
Organizations’ performance in 2022 is on par with or exceeds expectations
Half of the survey participants reported company performance is on track for the first part of 2022 and 33 percent shared performance is actually better than originally expected. Still, nearly 17 percent of respondents said expectations aren’t being met.
Positivity is returning, but business leaders remain cautious
While no survey participant is feeling very nervous or uncertain about their organization’s future, most remain positive but cautious. Twenty-eight percent of people feel very positive about the future, while the same amount feel somewhat nervous and uncertain.
A majority of businesses have bounced back from the effects of the pandemic, or even improved performance
Exactly half of the survey respondents shared business is back to pre-pandemic levels. Twenty-two percent even claimed the pandemic has positively impacted their business. However, some people have shared while the opportunity for revenue is there, labor shortages are holding them back from maximizing opportunities. One participant said the pandemic allowed them the ability to get ahead, form new partnerships and provide exceptional advisory resources to its clients.
Organizations’ prices have either increased or remained the same since the pandemic
More than half of the survey participants reported their organization has raised prices, while 44 percent remained the same. None reported lowering their prices.
In addition to price increases, some organizations are making changes to their customer mix – From looking for new revenue vertices to augment weaker areas to increasing to efforts to develop retail sales.
A majority of businesses have returned to pre-pandemic work areas, however many maintain a hybrid or work-from-home model
Fifty-three percent of participants reported their organizations have returned to pre-pandemic work locations, but 41 percent are maintaining a hybrid program or work-from-home options. A small percentage actually changed policies to permanently facilitate work from home.
Organizations are trying new approaches to recruiting
All but 22 percent of participants have changed recruiting efforts to combat labor shortages. The most common strategy has been to increase starting salaries. This is followed closely by using outsourced recruiting services and online search services. Some organizations have expanded their search radius, while others have found success by embracing internal referrals.
Employee retention strategies have evolved
Just as organizations have struggled to attract new talent, retaining quality employees has been difficult in this competitive market. Over 70 percent of survey participants shared they were giving raises at higher levels and more than 60 percent were offering more bonuses. Other tactics used are increasing time off, flex time and work-from-home options.
All organizations polled are increasing wages
Every business leader who completed the survey is planning to increase wages this year. Most will be increasing wages between three to five percent, but some will be increasing more than 11 percent.
Is your organization struggling to adjust to a “new normal”? CFO Strategic Partners’ team of experienced, on-demand outsourced CFOs can provide the financial strategy and guidance you need to get on track. Email us at email@example.com or fill out the request for information form here.