Despite Recession Fears, Qualtrics Research Shows Executives are Optimistic About Their Growth
06 July 2022 - 10:30PM
Business Wire
C-suite leaders’ expectations for growth and
revenue have increased since last summer as they invest for the
long term
- 83% of executives expect revenue to increase in the next 12
months
- 92% of C-level executives are concerned about inflation or a
recession
- 56% of leaders say the business effects of COVID will continue
beyond the end of 2022
Despite concerns about the economy, C-suite executives are more
bullish about near-term revenue than they were a year ago,
according to new research from Qualtrics (Nasdaq: XM). The vast
majority of executives are concerned about inflation or a
recession–or the combined effect of both–but still expect to
increase their investments in technology and employee retention
this year.
Qualtrics asked CEOs and other C-level leaders about their
expectations for the next 12 months, managing through a recession,
the effects of COVID on their business, and how their plans have
changed since July 2021.
“During downturns, organizations have to focus intensely on
what’s most important,” said Qualtrics CEO Zig Serafin. “Amid
inflation and tough decisions about spending, the best leaders
create a competitive advantage in understanding and swiftly acting
on the needs, preferences, and interests of their customers and
employees.”
Key Insights
Business leaders are concerned about the economy, but
optimistic about the future of their own companies
- 40% of leaders are concerned about stagflation–the combined
effect of inflation and a recession–in the next 12 months. An
additional 34% are worried about inflation on its own, and 18% are
worried about a recession.
- In spite of these concerns, 83% of executives expect their
companies’ revenue to increase over the next 12 months, and 66%
expect overall growth for their organizations. In 2021, these
numbers were 76% and 59%, respectively.
Executives are making financial decisions for the
long-term
- As organizations continue their digital transformations, 73% of
C-suite leaders are planning to increase spending on technology
modernization.
- 72% of executives plan to increase spending on staffing and
retaining their workforce, up from 62% in 2021.
- Leaders are more likely to turn to short-term cost saving
measures in case of a recession, such as reducing spending on
customer-facing travel (40%), employee perks (40%) and internal
travel (36%), rather than reducing hiring plans (4%), downsizing
their workforce (23%), or reducing their real estate footprint
(24%).
The majority of leaders believe COVID will impact their
business into 2023 and beyond
- 38% say the pandemic fundamentally changed how they do business
going forward, compared to 42% last year.
- 18% believe their business will still be impacted by COVID in
2023.
- Only 44% of leaders expect the business effects of COVID will
be largely over by the end of the year, up slightly from 39% a year
ago.
- When asked about their priorities for this year and beyond,
public health was the top priority with 40% of executives
identifying it as a 2022 priority, up from 35% in 2021.
2021
2022
Expect revenue to increase or
increase significantly over the next 12 months
76%
83%
Expect strong to very strong
growth over next 12 months
59%
66%
Overall, expect spending to
increase or increase significantly
76%
85%
Expect spending to increase or
increase significantly on...
...tech modernization
72%
73%
...cybersecurity
67%
73%
...staffing/retaining
workforce
62%
72%
...training/reskilling
workforce
64%
70%
...remote work support
60%
70%
Expect the business impact of
COVID...
...will largely be over by the
end of the current year
39%
44%
...fundamentally changed how they
do business
42%
38%
...will still be impacting their
business in the next year
19%
18%
Customers will become more
demanding in the next 3 months
67%
73%
Employees will become more
demanding in the next 3 months
56%
66%
Methodology This study was fielded in June 2022.
Respondents were considered eligible if they are at least 18 years
of age, employed full-time and a C-level executive, President or
Founder. The total number of respondents was 535. Respondents who
did not pass quality standards were removed.
About Qualtrics Qualtrics, the leader and creator of the
experience management (XM) category, is changing the way
organizations manage and improve the four core experiences of
business—customer, employee, product and brand. Over 16,750
organizations around the world use Qualtrics to listen, understand
and take action on experience data (X-data™)—the beliefs, emotions
and intentions that tell you why things are happening, and what to
do about it. The Qualtrics XM Platform™ is a system of action that
helps businesses attract customers who stay longer and buy more,
engage employees who build a positive culture, develop breakthrough
products people love and build a brand people are passionate about.
To learn more, please visit qualtrics.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220706005258/en/
Lauren Braun press@qualtrics.com
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