Deloitte-Fortune survey: labor shortage is a bigger concern than the pandemic for companies over the next year

Nearly three-quarters (73%) of companies are concerned about the way labor and skills shortage will influence their business strategy within the next 12 months, slightly higher than the share of those which are concerned about the pandemic evolution, such as future COVID-19 variants (70%), according to the latest CEO survey conducted by Deloitte and Fortune magazine. The top challenges to organizations’ talent and workforce goals, as rated by the surveyed CEOs, are attracting and recruiting talent (57%), designing a post-pandemic workplace (53%), retaining talent (51%) and building a diverse, equitable and inclusive workforce (43%).

When asked about the actions taken in order to strengthen their ability to attract and retain talent in the past year, CEOs seem to emphasize intangibles levers, such as increased flexibility around work (80%), focus on purpose (68%), on diversity, equitability and inclusiveness (68%), on well-being and mental health (65%) and on environmental, social and governance - ESG (50%). Some of them also appealed to traditional benefits, such as increased pay (50%) or more time off (24%).

“As organizations have already adapted to the new normal of constant uncertainty, attracting and retaining talent in a tight labor market has ascended to the top of their list of strategic priorities. The pandemic has accelerated a future of work in which flexibility, personal development or even reinvention, well-being and a feeling of belonging need to be on offer, together with a sense of purpose which is increasingly about how companies are stepping up commitments to help solve complex societal issues, including climate change,” said Alexandru Reff, Country Managing Partner, Deloitte Romania and Moldova.

The climate agenda appears to have become a major focus point, as the overwhelming majority of the surveyed CEOs (90%) agree that climate change needs to be addressed urgently, and 86% of them believe their organization can play a positive role in addressing this issue. This also has benefits in one of their major areas of concern, as 85% of respondents agree that executing on their climate agenda will positively affect their ability to attract, retain, and engage their workforce.

At the beginning of 2021, the CEOs surveyed by Deloitte and Fortune described this as the year of hope. Now, they believe the pandemic’s effects on the business will continue beyond 2021, with nearly a third not expecting to see business effects ending in the foreseeable future. Nevertheless, expectations for business evolution remain strong, with two-thirds of respondents anticipating their organization’s growth to be very strong or strong over the next 12 months, as investments in digital transformation and innovation continue to drive a positive economic outlook.

The CEO Survey was conducted by Deloitte and Fortune magazine in the fall of 2021 among approximately 120 CEOs representing companies active in 15 industries.

Deloitte provides worldwide audit, consulting, legal, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 companies through a globally connected network of member firms in more than 150 countries and territories, bringing world-class capabilities, insights, and high-quality service to address clients' most complex business challenges. Deloitte's goal is to make an impact that matters through its more than 345,000 professionals.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates | Deloitte Legal, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes as well as technology services and other related services, through 2,600 professionals.