Employment, sales and capital expenditures are expected to increase over the next six months according to the results of the Business Roundtable Survey. CEOs of the nation’s leading companies expressed economic optimism when responding in the fourth quarter 2010 CEO Economic Outlook Survey.
80% expect their company’s sales to increase; 59% expect capital spending to increase; and 45% expect more hiring in the next six months. While this is tempered by a GDP growth of only 2.5%, this is still very positive news for the economy.
As the economy rebounds, employers should position themselves for the expected growth. Here are four strategies:
1. Evaluate your workforce, identify your talent and skills gaps, and begin recruiting for star performers who can immediately and positively impact your organization. Hire only the best. Make sure you have in place a comprehensive recruitment plan and managers who have the know how to make it work.
2. Hold onto your key employees. As the economy improves, lots of job opportunities will emerge and recruiters will attempt to poach your stars. Don’t let them.
3. Reevaluate your sales compensation plans. Make sure it is focusing your sales team like a laser on the business you want and need.
4.Cost pressures will continue and labor and health care costs lead the list of CEO concerns. Continue to look at ways to keep your costs in check while still keeping yourself competitive. Don’t cut so much that you drive your stars into the hands of your competitors.
2011 looks to be a better year than the previous two. Position yourself to take advantage and move fast. There’s reason for optimism.