The latest quarterly research (Q4 2021 ) by the Institute of Directors (IoD ) in Ireland has found that general inflation, wage inflation and supply chain issues are of concern to a majority of business leaders as their organisations face into 2022. The survey also finds that a majority of business leaders remains optimistic about the financial performance of their primary organisation in both Q1 2022 and, indeed, for the year 2022.
The advance findings of the IoD’s latest Director Sentiment Monitor survey for Q4 2021, to be published in January 2022, have found that:
86% of the business leaders are concerned (to a greater or lesser extent ) that general inflation will negatively impact the financial performance of their primary organisation in Q1 2022
83% of the survey’s respondents are concerned (to a greater or lesser extent ) that wage inflation will impact staff retention and staff recruitment in Q1 2022
Nearly a third (33% ) of the business leaders say their business model has been adapted for supply chain issues
66% of the business leaders are concerned (to a greater or lesser extent ) in regard to their primary organisation and its supply chain issues for the end of 2021
34% of respondents say supply chain issues are impacting their ‘bottom line’ for 2021
46% of the business leaders are concerned that there will be supply chain issues for their primary organisation in 2022
64% of the respondents think that the financial performance of their primary organisation will improve in Q1 2022
77% of the business leaders think that the financial performance of their primary organisation will improve for the year 2022.
Commenting on the findings, Maura Quinn, Chief Executive of the Institute of Directors (IoD ) in Ireland, said These are conclusive findings that general inflation, wage inflation, and supply chain issues are sources of real concern for business leaders.
“As businesses continue to grapple with the fallout from the pandemic and ongoing supply chain issues, inflation is casting a shadow over the short-term prospects for the financial performance of organisations as is, staff retention and recruitment.
“That said, while these potential implications are of concern, they are not necessarily certain and the business leaders in our research remain optimistic for 2022,” she said.