In West Monroe’s final Quarterly Executive Poll of 2021, respondents are bullish on the U.S. economic recovery with aggressive plans. They’re pushing through—and around—roadblocks, but the pandemic’s lingering effects are providing stubborn headwinds in certain areas.
2-Minute Takedown
LOOKBACK & OUTLOOK
Despite the lingering effects of COVID, a supermajority of executives have a positive outlook on the U.S. economic recovery—75% are bullish and 25% are bearish. Reflecting on 2021, the Delta variant, The Great Resignation, and shortages affected their business the most. They have strong M&A plans for Q4 and are focused on sustainability heading into 2022.
Execs remain positive—and aggressive with their plans.
Hiring is still hot: Only 5% say they’ll lay off this quarter, while 71% say they’ll hire more and 25% say “no change from last quarter,” when hiring was at its highest. The war for talent is leading executives to approve higher contingent labor levels than they’d like—and increase wages, invest in retention, and grant more “work from anywhere” policies to open up their talent pool.
Hiring is still hot, hot, hot—with execs trying new strategies. And hybrid workplaces are behind, but coming along.
HIRING & WORKPLACE
Executives are split on whether they’re more compelled to travel for business or pleasure. However, they are aligned on what will drive business travel: new customer acquisition, face time within their own companies, and in-person events. But, 83% say new variants and rising cases or death rates from COVID would continue to hamper business travel in 2022.
The future of travel is on thin ice.
FUTURE OF TRAVEL
Execs remain positive—and aggressive with their plans.
Section 1: Lookback & Outlook
Executive Outlook on U.S. Economic Recovery
Bullish
75%
Bearish
25%
87%
CMOs
Average
Companies with $1B-$3B in revenue
84%
South
82%
East Coast
72%
CEOs
69%
Companies with $250M to $500M in revenue
64%
COOs
61%
The pandemic
still weighed
heavy in 2021, while everything else took a backseat.
Delta variant/COVID-19
THE REST
4%
Tech
investments
Cyberattacks
3%
Availability of
the vaccine
3%
ESG trends/activism
0%
Other
6%
Q4 is M&A time: What’s driving your strategy?
34%
We’re not doing M&A in Q4
25%
Merging with a competitor
9%
Geographic expansion
44%
Divesting non-core assets
7%
Acquiring new capabilities
42%
Being acquired
3%
Q4 is filled with buyers—not sellers—with the largest companies ($3B+) the most acquisitive this quarter.
Looking ahead: Sustainability Actions Rise
Sustainability practices gain steam, and it’s hitting the supply chain.
Lookback: 2021’s Largest Impact ON BUSINESS
The Great Resignation
18%
Hiring is still hot, hot, hot—with execs trying new strategies. And hybrid workplaces are behind, but coming along.
Section 2: Hiring & Workplace
Pandemic’s effect on employees
15%
Shortages and scarcities
18%
Offsetting carbon footprint with credits
6%
Setting standards for partners and vendors
30%
Setting supply-chain-specific standards
42%
Investing in sustainable businesses
13%
Increasing use of renewable energy
34%
Increasing electric vehicle fleet
11%
The largest companies are all in on sustainability: They’re 4x as likely to offset their carbon footprint, 3x as likely to increase their electric fleet, and 1.5x as likely to increase use of renewable energy
No action on sustainability
25%
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
71%
5%
25%
Back to q4 reSults
Q1
49%
60%
77%
Q2
Q3
Q1
7%
7%
4%
Q2
Q3
Q1
44%
33%
19%
Q2
Q3
Hiring Plans in Q4
71%
Q4
Q4
5%
25%
Q4
Talent Shortage Strategies
Executives are trying a lot of new strategies—and multiple strategies at the same time.
READ MORE
point of view
The worker shortage should be treated as a supply-and-demand issue
Contingent Workforce Levels
Up to 20% of employees
86%
21% to 35%
36% or more
13%
2%
Of companies
Of companies
Of companies
Is this Higher or lower than
where you want to be?
Just right
46%
Higher
44%
Lower
10%
COVID Workplace Policies
We asked executives how their company’s workplace COVID policy relates to the Biden administration’s proposed OSHA rule that all companies with 100 or more employees must require the vaccine or a weekly negative COVID test. Here’s what they said.
Already require vaccines or a weekly negative test
17%
In this group: Largest companies
About to require vaccines or a weekly negative test
In this group: Smallest companies + West Coast
30%
We will do what we need to do to comply
In this group: Midsize companies + Midwest
44%
We are exploring alternative options
In this group: Midsize companies + South
8%
Hybrid models are delayed: 67% of executives thought they’d be fully operational by now, according to Q2 data, but only 40% report being there. However, the vast majority expect their company’s hybrid model to be fully operational by the end of the 2021.
Hybrid Models: Stops & Starts
33%
Now
End of 2021
First half of 2022
Later
40%
23%
3%
READ MORE
point of view
Where to apply upskilling in a hybrid model
see what they thought in Q2
67%
36%
6%
1%
The future of business travel is on thin ice.
Section 3: Future of Travel
Attitudes: Business vs. Personal Travel
26%
More likely to travel for
Willingness is the same
More likely to travel for
business
PERSONAL
43%
30%
Availability of
the vaccine
3%
THE REST
Business Travel Priorities
Client and prospect meetings
Internal
travel
Small
networking
events
Trade shows
and
conferences
1
2
3
4
Everyone agrees this
is the top priority
CMOs and East Coast companies prioritize this higher than their peers
The Midwest is most enthusiastic here
DISCOURAGES TRAVEL
ENCOURAGES TRAVEL
Increased rates
Decreased rates
83%
62%
COVID
Lower/no demand
Increased demand
34%
54%
Clients/
Customers
Resistance
Desire
38%
25%
Employees
Canceled
As scheduled
54%
41%
Events & Trade shows
Worsened
Improved
24%
26%
Pricing & Options
Hinder
Help
17%
23%
Vaccine mandates from travel providers
What will affect your company’s business travel in 2022?
Executives will be swayed to increase travel at their companies if customer demand rises and pricing options improve. On the other hand, they will be deterred by rising COVID rates, resistance from employees, and cancelled events.
Increasing automation
33%
Using contingent talent
51%
Increasing wages/salaries
68%
Investing in retention
46%
More flexibility where talent permanently resides
57%
Higher signing bonuses
41%
More nearshore/offshore resources
18%
About the poll
West Monroe’s Quarterly Executive Poll takes the pulse of 150 C-level executives every quarter. This poll’s data was collected September 17-21, 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.
Manufacturers
11%
Healthcare & Life Sciences
31%
Financial Services
7%
Consumer Packaged Goods/Retail
17%
Other
19%
Hospitality
6%
9%
Professional Services & IT Services
27%
Chief Financial Officer
23%
Chief Information Officer
12%
Chief Operating Officer
17%
Chief Executive Officer or President
10%
Chief Marketing Officer
11%
Other C-Level
15%
$250 million - $499 million
34%
$500 million - $999 million
37%
$1 billion - $3 billion
15%
More than $3 billion
INDUSTRY
INDUSTRY
TITLE
TITLE
COMPANY'S ANNUAL REVENUE
COMPANY'S
ANNUAL REVENUE
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The West (79%), Midwest (72%), and midsize companies (88%) are increasing wages the most
The smallest companies (75%) are highly focused on this strategy
The South (55%) and Midwest (53%) are more focused on this
The biggest companies (27%) are more focused on this
4 in 10 said this action is “new” for their businesses
The coasts are driving this, rising to 21% for companies in the East and 18% for companies in the West
59% for companies with $3B+
14% for companies with $3B+
14% for companies with $3B+
• CIOs
• Midwest
• Midsize companies
• COOs and other C-level
• West Coast
• Largest companies ($3B+)
Attitudes: Business vs. Personal Travel
• CEOs, CFOs, CMOs
• South
• Smallest companies
23%
West
31%
East
21%
Midwest
25%
South
REGION
REGION