The second installment of the «Badenoch + Clark Barometer on Executive Leadership in Spain»Intends to continue his analysis of the keys to executive leadership in our country, now focusing on how business leaders are facing the digital transformation of their companies and the future of management.
One of the main conclusions of this installment is that 64.3% of the leaders surveyed have thought recruit staff throughout 2022 and 2023, after more than a year in which the health crisis has sent unemployment rates to unprecedented figures. In addition, those companies that have not already completed their digitization process should accelerate it to avoid being left behind by the new business reality.
In the words of Rémi Diennet, director of Badenoch + Clark in Spain: «The pandemic has meant a before and after in companies in many aspects, but especially in the technological field. Companies have had to bring to the fore, and in an accelerated way, many of the pending changes in the matter of digital transformation in which they were advancing slowly. The situation posed by COVID-19 has forced us to bet on innovation and intensify our commitment to new technologies in order to survive ».
“The so-called ‘new normal’ has brought with it a great increase in online business, process automation, data-based decisions, omnichannel, remote work and cybersecurity, among other aspects. Changes that managers and directors are being forced to rapidly implement in their structures and teams, to adapt their business model to the new world brought by digital technologies«, Continues Rémi Diennet.
«In addition, to emerge stronger from this crisis, it is essential to bet on talent, training and flexibility in the workforce, have a good digitization strategy, align the culture of the company with what the new times demand, and know stand out from the competition », concludes the director of Badenoch + Clark in Spain.
More hires by 2022 and investment in technology
This 2021 has been a year of transition and learning for the majority of Spanish executives. When asked in May of this year about the possibility of hiring staff, 47.1% said they had no plans to recruit new employees during 2021.
31.3% did consider that their company could make new hires, and 21.6% were not clear at the time if they would expand their workforce. Among those who were willing to hire during 2021, 44% clarified that they would only be specific hires.
But for the next two years, 64.3% affirm that they will incorporate new people to their workforce between 2022 and 2023, years in which they also expect the Economic recovery until reaching prepandemic values. 25.8% of managers say they will not hire in the next three years, and 10% think they will do so from 2023.
Asked what type of profiles they will hire in the coming years, 46.8% of managers opt for technical positions (especially in large and medium-sized companies) and 27.3% for middle managers (mostly for small and micro companies ).
Seven out of ten Spanish executives surveyed affirm that they do not plan to reduce their workforce in 2021. Among those who are going to cut staff (15.8%), more than half are going to make only specific layoffs or layoffs that will affect to between 1% and 5% of the workforce. 87.6% also do not plan to make layoffs in the next two years.
Regarding the investments that managers plan to make in the coming years, technology (59.5%) and employee training (49.1%) they will be the areas to which they will allocate the most resources. In the case of training, this investment will have a double objective: optimize the performance of the workforce (upskilling) and recycle them in new positions when necessary (reskilling). In third place, are the work-life balance and flexibility measures (33.7%).
29.9% also plan to allocate resources to improve the salaries of their employees, 19.9% want to improve their recruitment, selection and hiring tools, and 9.6% will invest in diversity policies. Other aspects in which they are going to make investments are in internal improvements, business diversification, equipment and tools and in reducing their indebtedness (4.8%).