We will invest mainly in innovation and people, say CEOs
CEOs: We will invest mainly in innovation and people
In the next 3 years, Slovak companies plan to target their investments in innovation, including new products development, said almost three-quarters of the Slovak top managers. According to regular KPMG survey among CEOs from the CEE region Pulse of Economy two-quarters of executives consider investment in the training of their current employees a priority.
Investing in innovations, including development of new products, is at the top of the CEO´s personal agenda both in Slovakia and the Czech Republic. The second most frequently mentioned area, 72% of respondents in the Czech Republic and 64% in Slovakia, is digital infrastructure.
Managers operating in local companies also want to maintain high-quality employees. This factor has been at the forefront in Slovakia for the past three editions of the Pulse of Economy Survey and its importance has been growing over time. When comparing 2015 and 2017 results, an increase of 9 percentage points has been recorded on this issue to the current 83% of respondents. Improving qualification and investing in continual education, besides salary, is one of the ways to keep experienced people. Three-thirds (67%) of Slovak companies are planning to invest in the training of their current employees over the three-year horizon.
Labor force and, in particular, its shortage on the market dominates among the problems that, according to the CEOs, prevent their companies from increasing their turnover. The lack of qualified workforce is perceived as a major obstacle by 62% of Slovak and 72% of Czech managers. Hence, six out of ten Slovak companies are planning to invest in the recruitment in the next three years, of which 14% significantly.
"Our CEOs agree with the views of global business executives that a combination of an excellent team of people, innovation, and the implementation of new technologies is needed to make their companies competitive and growing at present, with a clear focus on customer needs," said Ľuboš Vančo, Chairman of the Partner Council, KPMG in Slovakia.
From the business risks perspective, the regulatory risk is the most important for representatives of Slovak (45%) and Czech (40%) companies. The second most important is the operational risk in Slovakia (37%), the third is the strategic risk and risk associated with the lack of talent (both mentioned by 32% of the respondents). Nevertheless, 55% of Slovak companies do not consider new investments in control systems and risk management over the next three years.
About the Survey
The Pulse of Economy Survey was conducted for the 4th time. The data collection in the form of an online questionnaire took place between October and November 2017 on a sample of nearly 700 managers and business owners in eight Central and Eastern European countries. Respondents expressed their views on topics such as the direction of national economies, tax environment, remuneration and staff policy, innovation or new technologies.
For further information, please contact:
KPMG Slovensko spol. s r.o.
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