Nearly 80 per cent of global CEO’s are expecting to be in hiring mode through to mid 2018, according to a major new study released by KPMG International.
The study, which tracks insights on the coming three years, said that chief executives of global businesses are confident about the ability of their companies to grow over the next three years, and have expressed confidence for the prospects for the global economy.
The 2015 KPMG CEO Outlook Study questioned 1,278 CEOs, with 69 per cent of CEOs in Europe, 66 per cent in Asia Pacific and 52 per cent in the US saying that they are more confident than they were last year about growth and the global economy over the next three years.
When looking at their own company’s growth prospects, 70 per cent of European CEOs and 68 per cent of Asia Pacific CEOs indicated that they were more confident than a year ago. For the US, 19 per cent said they were more confident, than a year ago, with another 46 per cent expressing the same level of confidence in their company’s growth.
Crucially, CEOs globally are set to hire, with 78 per cent of those questioned indicating that they are expecting to be in hiring mode through to mid-2018.
Josh Veihmeyer, Global Chairman of KPMG International said: “”The overall message we’ve gotten from CEOs around the globe, is that they are positive about their prospects over the next three years, and importantly that they are looking to hire more people.”
“There is a more positive change in confidence versus the prior year, in Europe and Asia compared to the US, which is in part reflective of the US being in a more advanced stage of the economic recovery.”
74 per cent of Global CEOs are worried about new market entrants; 72 per cent are worried about keeping pace with new technologies and 68 per cent are concerned about their competitors’ ability to take business away from them.
According to the study 44 percent of the surveyed CEOs indicated that they are only ‘somewhat comfortable’ with their current business model, with five percent expressing that they are ‘uncomfortable.’ In the study, 29 percent of leaders said their organizations are likely to be transformed into significantly different entities in the next three years.
“CEOs continue to confront business challenges of unprecedented complexity,” said Veihmeyer. “Many CEOs in our study have repeated what I am hearing when I meet with business leaders—that they need to take more calculated risks with their growth strategies. They know that they are going to have to have to do things differently, and they are looking hard at their organizations to determine how they can transform to stay relevant and strengthen their competitive positions.”