Global CEO: "Importance of 'Workforce Management' Grows After COVID-19"

KPMG '2020 Global CEO Outlook' Report

[Asia Economy Reporter Minji Lee] Amid the unprecedented uncertainty faced worldwide due to the COVID-19 pandemic, global CEOs have identified ‘workforce management’ as the most important issue for companies.

According to KPMG on the 26th, a survey conducted twice in January and July this year targeting global CEOs showed that the proportion of CEOs citing workforce management (21%) as the most important challenge for companies increased in July. In the survey conducted in January, environmental and climate change issues were the highest at 22%, while only 1% of CEOs selected workforce management, indicating a rapid shift in corporate agendas due to COVID-19.

The number of CEOs optimistic about the global economic outlook has also significantly decreased. When asked about the global economic outlook for the next three years, 32% of respondents answered that they were less confident in growth compared to the survey conducted earlier this year. However, 45% of CEOs were more optimistic about their domestic economies than at the beginning of the year and showed confidence in their country’s business resilience.

Bill Thomas, Chairman of KPMG, stated, “The significant change in priorities among global CEOs over the past six months means that companies are adapting to respond to the COVID-19 pandemic and manage uncertainty,” adding, “The crisis caused by COVID-19 is accelerating the formulation and execution of strategies related to digitalization and social responsibility.”

World leaders have been investing heavily in technology during the period of business restrictions caused by COVID-19, focusing on digital transformation for resilient and customer-centric business operations. Eighty percent of global CEOs responded that the digital transformation of business has accelerated during the COVID-19 pandemic, and two out of three CEOs (67%) expressed willingness to invest more in technology. This figure is similar to the results from the survey conducted earlier this year.

Among the CEOs surveyed, 79% said they reassessed their company’s goals due to the COVID-19 situation. Additionally, 63% of CEOs regarded ESG (Environmental, Social, and Governance) as a core agenda due to the pandemic, and 65% recognized managing risks related to climate change as a key factor determining future corporate success.

Bill Thomas, Chairman of KPMG, said, “The COVID-19 crisis is redefining what good corporate leadership means. While environmental aspects remain important, social impact has become an even more critical agenda,” adding, “Corporate leaders are considering these agendas when defining their organization’s purpose and making business decisions.”

Meanwhile, the ‘2020 Global CEO Outlook’ report, published for the sixth time this year, surveyed global executives on their outlook for corporate and economic growth. This year, the first survey was conducted with 1,300 CEOs from January to February, and to examine changes in CEOs’ priorities due to COVID-19, a second survey was conducted with 315 CEOs from July to August. CEOs from 11 countries including the United States, United Kingdom, Germany, China, Japan, India, and France participated, representing companies in 11 key industries such as banking, automotive, energy, infrastructure, technology, telecommunications, consumer goods and retail, life sciences, manufacturing, insurance, and asset management.

This content was produced with the assistance of AI translation services.