In West Monroe’s Quarterly Executive poll, respondents told us talent is still a huge issue, that they’re spending the extra cash on their balance sheet, and they’re spending it on strategic projects that are digital in nature. Plus, cybersecurity is top-of-mind.
Explore the results
Far and away, executives cited hiring and retention as the top threat to their business in Q3: 49% said so, compared to the next-highest threat of cyberattacks at 13%. Their biggest challenge? Not finding people with the right skill set.
With cyberattacks the No. 2 threat to business in Q3, 62% of execs say they have conducted a cybersecurity incident response drill in 2021. But that leaves 38% who say they haven’t or are unsure.
Only 1 in 10 said they are not spending the extra cash on their balance sheet, while the majority are spending it on strategic initiatives that streamline their operations (45%) or improve the customer experience (36%).
2-MINute TAKEDOWN
Talent is still a huge issue.
There is a heightened awareness around cybersecurity.
Execs are spending money.
Back to beginning
Hiring needs—and challenges—continue to weigh on most executives.
STATE OF THE BUSINESS
What is the top threat to your business in Q3?
49%
Hiring and retention of our workforce
13%
Cyber attacks
10%
Inflation
9%
Adapting to hybrid work
READ MORE
Q&A Spotlight
Why the talent market is so wild in 2021
See how this changes by demographics
CFOs and executives on the East Coast are more likely to be concerned about inflation than their peers. CEOs and executives of midsize companies are even more concerned about hiring and retention of talent than the average respondent. Executives at the largest companies ($3B+) and in the Midwest are more likely to be concerned about cyber attacks.
Here’s how that compares TO previous quarters in 2021
Expect to hire more people
Expect to lay off more people
Little to no change
Back to q3 reSults
Q1
Q2
Q3
Hiring plans in Q3
60%
77%
7%
4%
44%
33%
19%
What is your biggest challenge related to hiring in Q3?
Trouble finding or onboarding the right outsourcing partner
3%
Can't keep up with turnover/attrition
11%
Not enough people with the right skill set
51%
Paying people their asking salary/wage
Heightened competition from other employers
16%
Need/want employees to work onsite and struggling to find willing talent
We aren't hiring
We don't face any challenges in hiring
Those that are more likely to be challenged by “not enough people with the right skill set” include larger companies ($3B+), companies in the South and Midwest, and manufacturers. Those that are more likely to be challenged by heightened competition from other employers include smaller companies (under $500M), companies on the East Coast, and CPG companies. Those that are more likely to be challenged by turnover include mid-sized companies ($500M-$1B), companies on the West Coast, and healthcare employers.
Executives see opportunities in digital and are spending their extra cash on strategic projects for their organizations.
MARKET EXPANSION
What is your top business opportunity in Q3?
Other
Marketing expansion due to more digital/remote business (17%) Connecting and using new digital technologies (17%) Launching digital products (9%) Creating hyperconnected customer experiences (9%)
Mergers & Acquisitions
Data
Gaining access to data (5%) Accessing and using data to make real-time decisions (10%)
52%
15%
8%
18%
Digital
Providing employees engaging work
Cost takeout (6%) Outsourcing (1%) Other (1%)
See DeTAILS
Learn how we help businesses be digital
With extra cash on your balance sheet, what are you spending it on before year’s end?
Investing in internal strategic projects/assets
Investing in customer-facing strategic projects
Paying down debt
Paying out profit-sharing/dividends
Investing in a market vehicle like stocks, bonds, private equity
Nothing, we are keeping it on our balance sheet
Stock repurchase
45%
36%
26%
We don't have extra cash on our balance sheet
Execs in the Midwest are outliers—they are more likely to put the cash toward a market vehicle (14%), pay down debt (38%) or keep it on their balance sheet (14%)—compared to the rest of the country.
As executives invest in the business, they are focused on both front-office and back-office digital—partially driven by a litany of changing preferences among their buyers and customers.
Where are you investing to make your operating model more digital?
Retaining the right talent
Attracting/ hiring the right talent
Managing employee performance
1
2
3
Broad access to data and decentralized decision-making
Real-time client feedback on products and experiences
Integrated experiences
A multidisciplinary team assigned permanently
Cloud-based platforms leveraging common frameworks
Algorithmic decision-making
Automated, iterative, data-driven management
47%
23%
53%
Human-centered design
Agile approaches
Secondary investments
Top investments
Less common investments
CMOs are bullish on digitizing their operating model, with an outsized focus compared to their C-suite peers on integrated experiences (67%), automated, data-driven management (72%), and broad access to data (56%). Manufacturers aren’t digitizing their operating model as much as other industries, except in the area of cloud-based platforms. Execs at the smallest and largest companies are more focused on gaining real-time client feedback, where mid-sized companies are more focused on cloud-based platforms and broad access to data.
What changing preferences are the most prevalent right now among your customer base?
Ease of doing business
Becoming more individual-centric
Increased buying decisions aligned to values/politics/ social causes
Heightened needs for self-service
4
79%
73%
71%
Click each preference to see rank details
Rank 1 – 36% Rank 2 – 20% Rank 3 – 23%
Rank 1 – 25% Rank 2 – 25% Rank 3 – 21%
Rank 1 – 26% Rank 2 – 24% Rank 3 – 23%
Rank 1 – 19% Rank 2 – 25% Rank 3 – 27%
Execs cited additional preferences as prevalent, but ranked these lower than the others:
• Demand for consistent experiences across analog and digital interactions • Demand for corporate transparency • Wanting to control how companies use their data/privacy
Those that rank “ease of doing business” the highest include execs in the South, smaller companies (under $500M), and manufacturers. Execs at the largest companies ($3B+) are more affected by “increased buying decisions aligned to values/politics/social causes.”
What are the biggest barriers to understanding new consumer/buyer preferences?
Execs cited additional barriers, but ranked these lower than the others:
85%
Finding the right data sources
84%
Gaining insights from data
Pace of change/volatility
78%
Too many varying preferences
Rank 1 – 30% Rank 2 – 21% Rank 3 – 34%
Rank 1 – 32% Rank 2 – 24% Rank 3 – 28%
Rank 1 – 35% Rank 2 – 24% Rank 3 – 20%
Rank 1 – 16% Rank 2 – 38% Rank 3 – 24%
POINT OF VIEW
Bring your customer data together to enable customer success
Cyber attacks represent the second-largest threat to conducting business in Q3, executives told us.
CYBER ISSUES
Has your business been hit by a cyberattack, ransomware, or breach in 2021?
No
Unsure/Not that I’m aware of
Yes
Preventing business disruption in an age of cyber attacks
Has your business conducted a cybersecurity incident response drill in 2021?
YES
62%
NO
32%
Unsure/not that I’m aware of
6%
Increases to 79% for those who have been hit by a cyber attack this year.
36% of execs who haven’t been hit by a cyberattack in 2021 also have not conducted a cyber incident response drill yet.
How tabletop exercises and cyber threats have changed since COVID-19
Cryptocurrency gets a lot of attention, but business adoption is lackluster—and more than half of execs say their business will never use cryptocurrency.
CRYPTO PAYMENTS
When are you considering using or accepting crypto payments?
12–18 months
By the end of 2021
in the next 5 years
56%
Never
1%
We already do this
West Monroe’s Quarterly Executive Poll takes the pulse of 150 C-level executives every quarter. This poll’s data was collected June 23-28, 2021. To qualify for the survey, respondents needed to have a C-level title at a company with at least $250 million in annual revenue.
About the poll
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About the RESPONDENTS
Industry
Title
Company's Annual Revenue
Region
Healthcare & Life Sciences
29%
Consumer Packaged Goods
17%
Manufacturers
Financial Services
Professional Services
5%
Hospitality
20%
Chief Executive Officer or President
Chief Financial Officer
Chief Operating Officer
Chief Marketing Officer
12%
Other C-Level
31%
$250 million – $499 million
$500 million – $999 million
$1 billion – $3 billion
39%
More than $3 billion
West
22%
East
Midwest
South
30%
