The economic slowdown, mounting inflation, and rising interest rates are already a daunting triad of challenges for U.S. businesses. At the same time, senior executives are coming to the realization that talent shortages and wage pressures may be their most acute pain points for years to come.
Although lack of workforce participation may have reached its height during the pandemic, difficulties attracting talent promises to be a lasting challenge. Childcare shortages have only improved minimally. And retiring Baby Boomers, the Great Resignation, and incidences of long COVID will take a large swath out of the available talent pool for years to come, according to KPMG Chief Economist Diane Swonk. Long COVID is currently sidelining two to four million workers, and, on any given day, the number of people out sick is 60% above normal.1
Retaining talent amid the pressures of inflation and wage demands was cited as a top concern by 73% of respondents to the KPMG 2022 CEO Outlook survey. And, through KPMG’s conversations with senior executives, it has become clear that staffing concerns are at the top of the agenda across the C-suite.
“We are operating with a headcount that is 25% lower than what we actually need to operate our plants,” says one manufacturing Chief Financial Officer (CFO).
of CEO's cite retaining talent amid inflation and wage pressures a top concern.
The increase in workers out sick, on any given day, compared to normal levels.