Private companies expect the impact of the pandemic to be felt over the next few years, are rather cautious about hiring plans for 2022 – The Diplomat Bucharest


Private companies around the world expect the far-reaching impacts of the pandemic to continue to be felt over the next few years, according to Deloitte’s latest private survey of 2,750 private companies in 33 countries in worldwide. Their main concerns for the next two years are the risks associated with COVID-19, such as the impact of the pandemic on the demand for products and services (28%), the operational impact on the supply chain, HR , IT and delivery (25%). Other risks they identify relate to potential cyber attacks and IT security (26%), increased competition in the market (26%), and the cost of raw materials and other input costs, including energy (23%).

While the majority of Deloitte survey respondents believe their company’s key business metrics, such as productivity, revenue, profit, and capital investment, will improve, they are cautious about plans to do so. hiring, with just 11 percent predicting an increase in headcount over the next year, while 8 percent predicting a decline.

Almost three-quarters (71%) of those surveyed believe that transforming their work, workforce and workplace is important or very important for building resilience within their organization and no less than 20% have completely transformed the nature of work in their organization. Most of the private companies surveyed say they are focused on employing flexible workforce arrangements and redesigning their organizations to be more agile and accomplish more with smaller, independent teams.

“Private companies have stepped up their organizational transformation efforts by accelerating their digital transformation and integrating sustainability principles in the broadest sense of the concept – environment, social impact and responsibility into their strategy. Respondents to the survey list government funding as an important way to offset the economic impact of the pandemic and as the most important form of government assistance they will need in the short term in order to facilitate growth, ”said Andrei Burz-Pinzaru, Reff & Associés partner | Deloitte Legal and leader of the Deloitte Private program, dedicated to serving private businesses of all sizes, including local entrepreneurs, SMEs, start-ups and family businesses.

Digital transformation has become a priority in the context of the pandemic, with 70% of companies significantly accelerating their digital transformation, as well as a growth strategy for the next two years for more than 40% of them. While more than a quarter had started their transformation before COVID-19, more than half initiated it in response to the crisis. The main technological areas in which private companies plan to invest are information security and cyber intelligence (39%), data analytics (37%), customer relationship management systems (34%) , AI (33%), business process automation. (32%), Internet of things (30%). The executives surveyed have high expectations about the gains that technological investments will bring to their organizations, such as improved customer engagement, increased sales volumes, an increased ability to manage and minimize costs.

In addition, nearly 70% of those polled said the goal had grown in importance to their organization as a direct result of the COVID-19 crisis. When it comes to sustainability and carbon reductions, two-thirds of private companies surveyed say they remain focused on these topics despite the disruption caused by COVID-19. But there is still a long way to go, as a third of those surveyed rate environmental, social and governance (ESG) issues as low risk for the coming year and 14% see no associated risk.

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