6 th. PwC s Hungarian CEO Survey

Transcription

1 6 th PwC s Hungarian CEO Survey

2 Globally in 1379 Piaci célpontok Hungary 186CEOs from 7 industries took part in the survey. Thoughts on growth, threats to growth, finding and retaining talent. Managing man and machine, gaining trust in an increasingly digitised world, the positive and negative effects of globalisation, and factors that remain constant amidst the change. Growth Threats Talent Growth Threats Talent Man and machine Trust Globalisation

3 Hungarian CEOs are just as confident about their company s growth prospects as global CEOs. However, their optimism about global and Hungarian economic growth seems to have stalled. Growth RESPONDENTS WHO ARE CONFIDENT ABOUT GLOBAL AND HUNGARIAN ECONOMIC GROWTH AND THEIR OWN PROSPECTS FOR REVENUE GROWTH OVER THE NEXT YEAR Global CEOs Hungarian CEOs Global economic growth Confident about own revenue growth Confident about own revenue growth Global economic growth Hungarian economic growth 3

4 Targets for market growth While Hungarian CEOs continue to focus on Germany as their most important foreign market, the US and China have significantly grown in importance compared to the previous year. With regard to your company s local growth prospects, which countries, excluding the country in which you are based, do you think will be the most important in the next year? 43% +4% 33% -1% 17% -2% +4% 15% 41% +4% 23% +15% 22% +1% 1 +3% 1. USA +3% 8% 7% -2% 2. China 7% -1% 3. Germany +1% 6% 5% 4. United Kingdom 5% 1. Germany +1% 17% 15% 2. USA 15% +10% 3. Romania 10% 4. Russia +3% -3% 5. Japan 6. India 7. Brazil 8. Mexico 9. France 10. Australia 5. Slovakia 6. Austria 7. China 8. United Kingdom 9. Poland 10. Czech Republic Change from

5 As in previous years, cost reduction continues to be a key priority; however, rather than decreasing headcount, the majority of Hungarian CEOs are (also) planning to expand their business. Growth plans Which of the following activities are you planning in order to drive corporate growth? 7 62% 48% 41% 28% 17% 15% Organic growth Cost reduction New strategic alliance or joint venture New M&A Collaborate with entrepreneurs or start-ups Outsourcing Sell a business or exit a market 60% 54% 30% 23% 24% 18% 3% 5

6 Areas to be developed Which one of the following do you most want to strengthen in order to capitalise on new opportunities? The key to the future lies in continuous innovation and human capital development both globally and in Hungary. In particular, the importance of innovation was underlined by financial and automotive CEOs, while human capital ranked higher than average in retail, technology and telecoms. 23% 15% 15% 10% 10% 7% 5% 4% 3% 3% 2% 0% 1% Innovation Human resources Digital and technology capabilities Competitive advantage Customer experience M&A and partnerships Trust and transparency Funding growth Cost containment Big data Navigating risk and regulation Cybersecurity Other 22% 20% 3% 2% 6% 3% 1% 1% 5% 6

7 Skills shortages, which are at an all-time high, are the single most important barrier to growth, and affect practically every business in Hungary. Over-regulation also continues to be a top concern for both Hungarian and global CEOs. Threats RESPONDENTS WHO ARE CONCERNED ABOUT THE FACTOR IN QUESTION 82% Uncertain economic growth 45% 80% 7 77% 72% 74% 74% 70% 61% 70% 73% 68% 6 68% 65% 65% 60% 61% 61% 5 % 5 61% 58% 57% Over-regulation Availability of key skills Geopolitical uncertainty Speed of technological change Exchange rate volatility Increasing tax burden Social instability Changing consumer behaviour Cyber threats Protectionism Readiness to respond to a crisis New market entrants 73% 73% 92% 85% 58% 62% 40% 32% 60% 68% 34% 53% 38% 30% 35% 28% 4 31% 58% 35% 27% 46% 40%

8 Government priorities Which of the following outcomes do you think should be government priorities in Hungary? In the list of key outcomes to be achieved by the government, high levels of employment has fallen significantly in the rankings. Above all, however, most Hungarian CEOs expect the government to ensure the availability of a skilled workforce, and a clearly understood, stable and effective tax system. A skilled and adaptable workforce A clearly understood, stable and effective tax system Adequate physical and digital infrastructure Good health and well-being of the workforce Workforce diversity and inclusiveness Greater income equality High levels of employment 91% 83% % 35% 31% 36% 17% 6% 13% 14% 20%

9 The majority of the companies surveyed plan to increase headcount over the next 12 months, both globally and in Hungary. In Hungary, within particular industries, technology and telecom companies and privately owned businesses have the most ambitious plans to increase their staff numbers. Globally, only 16% of CEOs plan to cut their company s headcount over the next 12 months; in Hungary, 13% expect to do so. Talent and jobs RESPONDENTS PLANNING TO INCREASE HEADCOUNT % 52% 54% 51% 9

10 Talent management Large companies in Hungary have clearly increased their focus on attracting and retaining a skilled workforce. To what extent do you agree or disagree with the following statements about your organisation s talent activities? (Respondents who agree) 70% 6 66% 65% 62% We promote talent diversity and inclusiveness We seek out the best talent regardless of demographics or geography We move talent to where we need it We ve changed our people strategy to reflect the skills and employment structures we need for the future We re rethinking our HR function 10

11 In addition to professional competence, problem solving, collaboration and adaptability are the most important skills for both global and Hungarian CEOs. Skills that are still difficult to measure and cannot be replaced by machines will gain in significance, while the importance of skills that could be replaced by technology will diminish. People How important are the following skills? If important - how difficult is it to recruit people with these skills? 98% 61% 96% 61% 96% 48% 95% 74% 92% 76% 87% 63% 83% 58% 7 52% 70% 51% Problem solving Adaptability Collaboration Leadership Creativity and innovation Emotional intelligence Risk management Digital skills STEM skills (science, technology, engineering, and maths) 92% 60% 83% 45% 92% 41% 67% 74% 74% 65% 6 57% 44% 55% 65% 34% 44% 46% Respondents who answered somewhat important or very important Respondents who find it difficult to recruit people with skill 11

12 2013 Man and machine 62% 81% How many respondents say technology will be impacting them in the next ten years? According to Hungarian CEOs, technological advances such as digitisation will have the greatest transformative effect on transportation, communication, and the automotive industry. Hungarian CEOs display a high degree of digital literacy and adoption: they typically consume digital media more than print media, and they have strong digital skills. However, unlike the younger generations of digital natives, only a small portion of them are active on social media or make most of their purchases online. To what extent do you agree with the following statements about your personal use of technology? (Respondents who answered agree or strongly agree ) 6 64% 55% 5 40% 41% 43% 30% % 98% To what extent do you think technology will change competition in your industry over the next five years? Globally In Hungary I consume digital media more than print media 46% 26% I use home automation systems I have strong digital skills 32% 12% I use robotics in my home (e.g. vacuum, mower) I personally make most of my purchases online I m active on social media 10% I am an active gamer 12