Following an expected increase in hiring, 57 percent of private-company CEOs plan to increase their workforce expenses

As signs of economic recovery continue to positively trend, approximately 57 percent of CEOs interviewed for PricewaterhouseCoopers’ Private Company Trendsetter Barometer survey plan to increase their total workforce expenses over the next 12 to 18 months, while 35 percent plan to remain the same, and only 5 percent expect a decrease.

Concurrently, the majority of private companies surveyed (57 percent) reported being affected by reductions in their companies’ workforces as a result of the economic crisis. While most employment areas were affected, there was a particular emphasis on middle management and skilled labor. In contrast, of those surveyed, 40 percent reported no layoffs or reductions as a result of strain economic conditions.

Despite workforce reductions, 61 percent of Trendsetter CEO’s believe their companies’ current workforce is well aligned to business objectives that must be met over the next 12-24 months. Thirty-four percent believe they are only somewhat aligned, and only two percent believe their company is not well aligned. Sixty-one percent believes their organization has the right skills at the management level to effectively lead their company over the next 12-24 months. However, 35 percent believe they will have skill gaps.

Interestingly, among the 35 percent of leading private companies that believe they will have to fill in some skills gaps, 82 percent are planning to fill the gap by hiring new talent. Additionally, 68 percent plan to train/develop existing talent, 32 percent plan to redeploy talent and 22 percent plan to use contractors as means to fill skills gaps at their companies.

Over the next 12 months, 39 percent of private company CEOs also plan to invest or are currently investing in talent management programs, while approximately 54 percent reported they have no plans to invest. The goal of the talent management programs as highlighted by 88 percent of those currently investing or planning to invest in these programs, is to better capitalize on existing workforces. One-in-five (20 percent) reported their goal is to better position their company from a recruiting perspective as an employee of choice as the economy recovers.

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