The latest quarterly research (Q4 2021) from the Institute of Directors (IoD) in Ireland found that headline inflation, wage inflation and supply chain issues are of concern to a majority of business leaders as their organizations face 2022. The survey also reveals that a majority of business leaders remain optimistic about the financial performance of their core organization both in the first quarter of 2022 and, in fact, for the year 2022.
Preliminary results from the latest IoD Director Sentiment Monitor survey for the fourth quarter of 2021, to be released in January 2022, revealed that:
86% of business leaders fear (to a greater or lesser extent) that general inflation will have a negative impact on the financial performance of their main organization in the first quarter of 2022
83% of survey respondents are concerned (to a greater or lesser extent) that wage inflation will have an impact on staff retention and recruitment in the first quarter of 2022
Almost a third (33%) of business leaders say their business model has been adapted to supply chain issues
66% of business leaders are concerned (more or less) with regard to their main organization and its supply chain challenges at the end of 2021
34% of respondents say supply chain issues impact their ‘bottom line’ for 2021
46% of business leaders fear there will be supply chain issues for their core organization in 2022
64% of respondents believe their main organization’s financial performance will improve in Q1 2022
77% of business leaders believe that the financial performance of their main organization will improve for the year 2022.
Commenting on the findings, Maura Quinn, Managing Director of the Institute of Directors (IoD) in Ireland, said that they are conclusive findings that headline inflation, wage inflation, and labor chain issues procurement are real concerns for business leaders.
“As businesses continue to grapple with the fallout from the pandemic and ongoing supply chain issues, inflation is casting a shadow over the near-term outlook for the financial performance of organizations as is, retention and recruitment of staff.
“That said, while these potential implications are concerning, they are not necessarily certain and the business leaders in our research remain optimistic for 2022,” she said.