Management priorities

"People" topics here include, for example, dealing with the demands of Gen Z, flexible working, staff shortages or the further development of leadership skills. Across all industries, 58 percent of the approximately 430 top executives surveyed worldwide say that these issues are currently “very important”. For another 34 percent, they are “important”. In the service sector, digitalization is still ahead of "people" aspects in strategic CxO priorities rankings – but the two topics often go hand-in-hand. For example, the potential of artificial intelligence to replace or support skilled workers plays an enormously important role.

What our study also makes clear: There is still significant room for improvement in terms of the strategies and measures companies are pursuing to retain existing employees and attract the best new talent. When asked how they are addressing these challenges, the most frequently cited approach by companies is to offer flexible working models. Top 2 is further development in the area of culture and employer branding. By a larger margin, engagement in terms of leadership lands in third place. From there the measures become more fragmented, with some focused on training and others on digitalization or extensive benefits programs.

Against the backdrop of staff shortages and cost increases, it is particularly surprising that "reskilling”, i.e., retraining existing personnel, is not given much higher priority. In addition, projects in the area of culture or leadership are often underestimated in practice and scheduled with too little time and budget. What is at stake here is nothing less than securing the "people as a resource" – which is more important than ever for business success in the future.

A look at the industry reveals another exciting trend. Companies are planning to expand personnel capacities in the coming years – but not in Central and Southern Europe. Quite the opposite: One-third of the companies are looking to reduce or relocate their "workforce" here. North America, India, China and other Asian countries will benefit from the relocation.

The CxOs surveyed cited lower personnel costs in the target country as the main motive for this relocation. But this is not the only driver, nor does it apply to all regions. The second most important motive is a 'local-for-local' approach, which comes into play for regulatory as well as cost reasons. In North America, for example, it is the Inflation Reduction Act that offers much more attractive conditions to industrial companies that create value locally. According to the top managers surveyed, the third most important reason for this "shift" is a lack of skilled workers. And that's an important paradigm shift: It is no longer just a question of the price at which labor is available, but whether it is available at all.