CHRO Business Outlook: CHROs Feel More Positive About Employment Conditions But Brace for Uncertainty

Overall, CHROs feel generally positive regarding employment, but are bracing for future uncertainty. The report covers critical topics, including:

• Economic conditions: Chief human resources officers’ (CHROs’) perceptions of the current economic conditions are increasingly positive in the second quarter of 2024, with nearly 3 in 10 (30%) viewing economic conditions as “good” or “excellent,” a 5-percentage-point increase from Q1 2024 and the highest level since tracking began in Q4 2022. 
• Business revenue prospects: CHROs remain optimistic about their organizations’ revenue prospects. However, concerns about profit growth have emerged, which is likely driving the more cautious approach to capital expenditures. Only 38% of CHROs anticipate an increase in spending, the lowest level since tracking began and reminiscent of conditions in Q4 2022.
• Employment conditions: While optimism is increasing, a significant portion of CHROs (48%) still expect “fair” employment conditions over the next six months, reflecting a more balanced view. Furthermore, although 45% of CHROs rate current employment conditions positively, only 41% expect similar conditions in the near future, indicating a slight disparity between present assessments and future projections.
• Workforce talent pool: Consistent with previous quarters, just over half of CHROs anticipate an increase in full-time employees over the next six months, yet nearly half also expect higher costs-per-hire. Additionally, 42% of CHROs foresee increased talent scarcity, indicating that while hiring is expected to grow, finding qualified candidates may prove costly and difficult.

While CHROs express growing optimism about the current economic and employment landscape, they remain cautious about the challenges ahead, particularly in managing talent acquisition costs and addressing potential profit growth concerns in an evolving economic environment.