For two years now, we have been coping with the challenges that came along with the Covid-19 pandemic. In the beginning, companies had to quickly adapt to the “new normal” with most of their operations having been moved online. As we saw with the pandemic, it’s hard to predict what will come next. However, we can still beware of certain factors that can be critical for businesses to grow in the upcoming years and the ones that will come after that.
This week we looked at a very interesting article published by Forbes Magazine, in which they give us 4 factors to look out for during 2022.
1. Transforming the C-Suite
For years companies have been using traditional C-Suite roles such as Chief Executive Officer, and Chief Financial Officer, but a recent LinkedIn survey revealed that the highest level of leadership has now more than 50 new roles. These new roles are focused on integrating ideas across the entire company. In the upcoming year, they will be critical to maximize business growth as part of one whole business plan. One of the most sought-after roles this year was the Chief Diversity & Inclusion Officer, with an impressive growth of 111% as a proportion of C-Suite hires. Among the other in-demand job titles making LinkedIn’s Top 10 list are Chief People Officers (+61%) and Chief Talent Officers (+36%.). All these roles have one thing in common, talent development and HR best practices, so we can find another trend here.
Another popular C-Suite role is the Chief Digital Officer or Chief Data Officer since data analytics and the digitalization of businesses have become a fundamental pillar of the company’s growth strategies. Al Park, senior marketing director in FTI Consulting’s technology section pointed out that, “Over the past year, business leaders have come to fully appreciate data across the enterprise as a great resource and important asset.” In line with this, last year we saw the appointment of several Chief Digital Officers in both national and international public companies such as LG, Alsea and UNIFIN.
2. Aligning purpose with growth
According to Deloitte, having a purpose-driven strategy creates long term value, and therefore competitive advantage. Aligning purpose and growth into an integrated purpose strategy that focuses on the differentiated role a company serves in society can lead to what they call a “purpose premium”. It is generally thought that alienating the company’s purpose is at odds with growth and profitability; however, the opposite is true. Companies with a clear and consistent purpose can achieve greater brand recognition, new revenue streams from socially conscious offerings, 6.4% higher return on equity, employee attraction and worker retention, among other benefits.
Forbes mentioned in the article that in 2022 they expect to see more organizations make strategic investments in the things that allow them to deliver on purpose commitments and, consequently, build trust with stakeholders and expand competitive advantage.
3. Emphasizing well-being and transparency
Talent issues are still a top executive priority, thus emphasizing a human-centered approach to well-being and transparent management is a crucial competitive strategy in order to maintain and attract new talent. People looking for a job, value organizations that aligns with the new normal, as well as mental health support and transparency. Prioritizing flexibility and unique well-being offerings should be a high priority to achieve happier and more engaged employees, promoting retention and loyalty.
4. Prioritizing digital transformation investments
Since 2022 will most likely be the year of hybrid workspaces and events, organizations should invest in technology, including HR tools and improve cybersecurity measures. This can make the organization more productive, efficient, and secure. According to ‘The digital workplace reimagined’ analysis published by Deloitte, by 2024 25% of business meetings will involve online participants, up from 5% in 2022.
Learning about the new challenges and opportunities that lay ahead in 2022 can provide us with a clearer vision of what the companies should focus on to be more profitable and add more value for their investors and stakeholders. The pandemic undoubtedly revolutionized the way the world does business, accelerating the digital transformation of many companies and forcing them to generate efficiencies in production processes to remain profitable. We are starting to see recovery to pre pandemic levels in several industries, but those efficiencies remain, paving the way for a better future. As always, in Miranda IR we will be more than happy to help you plan your strategy for 2022 and find the best way to communicate it to the market and your different stakeholders.
Contacts at Miranda Partners