Almost a third of business leaders say their business model has been adapted for supply chain issues.
General inflation, wage inflation and supply chain issues are of concern to a majority of business leaders as their organisations face into 2022.
A survey by the Institute of Directors in Ireland 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.
“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”
The majority (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.
A similar amount (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.
Supply chain issues
Nearly a third (33%) of the business leaders say their business model has been adapted for supply chain issues.
Two-thirds (66%) of the business leaders are concerned (to a greater or lesser extent) with to their primary organisation and its supply chain issues for the end of 2021, while 34% of respondents say supply chain issues are impacting their ‘bottom line’ for 2021.
“These are conclusive findings that general inflation, wage inflation, and supply chain issues are sources of real concern for business leaders,” said Maura Quinn, chief executive of the Institute of Directors in Ireland.
“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.”
