While the current economic and employment conditions are causing mixed feelings among CHROs, many of them have expressed optimism about signs of stabilization in interest rates, prices, and inflation. However, there are concerns about wages not keeping up with inflation and higher labor costs impacting their organizations’ bottom lines. As uncertainty continues to loom over the upcoming 2024 U.S. election, some CHROs believe that the economy will improve in an election year while others worry about political divisiveness hindering progress.
Geopolitical instability is also a growing concern for CHROs this quarter, particularly conflicts in the Middle East and Ukraine. Despite stiff competition for talent in certain professions, some CHROs have noticed a softening labor market with wage stabilization and declining job openings leading to increased retention rates in their organizations. However, filling managerial and executive-level positions remains a challenge.
Looking ahead, most CHROs project small increases in full-time headcounts and total rewards budgets, with stable indicators in other areas. They are optimistic about minor increases in revenue, profits, and capital investments except in the service industry where concerns about economic stability are reflected. Overall, CHROs remain cautiously optimistic about the economy while remaining wary of potential challenges on the horizon.
