As we start the new year, businesses are strategically positioning themselves for the challenges and opportunities the first quarter of 2024 may bring. We recently surveyed clients and prospects across a diverse range of industries around our Midwest footprint in Illinois, Iowa, Kansas, Missouri, Nebraska, and Wisconsin. Our survey offers valuable insights into hiring expectations, business sentiment, pay and benefits changes, top concerns, and areas of optimism.
Hiring Expectations
When it comes to staffing, the survey suggests mixed expectations for the first quarter of 2024. While 50% of respondents plan to maintain their current staff levels, a significant 41% are gearing up for an increase in staff. On the flip side, 9% are anticipating a decrease in staff. This dynamic hiring landscape reflects the ongoing adjustments companies are making in response to evolving market conditions.
Business Sentiment
Business leaders are divided on their expectations for sales as the year kicks off. A notable 45% anticipate flat sales, while an optimistic 33% foresee a robust start to the year with strong sales. On the other hand, 22% express concerns about a sluggish beginning with weak sales. This diversity in sentiment highlights the challenges companies face in predicting and adapting to market fluctuations.
Pay and Benefits
In terms of pay and benefits, stability appears to be the prevailing theme. A mere 1% of respondents anticipate potential pay and benefits cuts. In contrast, a confident 28% are gearing up to increase pay and benefits. The majority, comprising 71%, plan to maintain their current compensation structure. This commitment to stability reflects a delicate balance between employee satisfaction and cost management.
Top Concerns
When asked about their primary concerns, survey respondents expressed a clear focus on labor-related issues. A significant 41% cited labor concerns as their top priority, highlighting the ongoing challenges in talent acquisition, retention, and workforce management. The economy closely followed at 20%, while sales concerns rounded out the top three at 17%.
Areas of Optimism
Despite the concerns, business leaders remain optimistic about specific aspects of their operations. A substantial 52% expressed optimism regarding sales, showing confidence in their products or services. Labor, despite being a top concern, still garnered optimism from 22% of respondents, indicating a belief in their ability to navigate the labor landscape effectively. The economy trailed behind with 9%, showcasing a more cautious optimism in this unpredictable environment.
Below is a full breakdown of each of our survey questions and responses.
What are your forecasted hiring expectations for the 1st quarter of 2024?
Decrease staff – 9%
Increase staff – 41%
Maintain staff – 50%
What is the overall sentiment for your business expectations in the 1st quarter?
Flat sales to start the year – 45%
Strong sales to start the year – 33%
Weak sales to start the year – 22%
Looking at budgeting in the 1st quarter, what pay/benefits changes are you anticipating?
Potential pay/benefits cuts – 1%
Increase pay/benefits – 28%
Maintain pay/benefits – 71%
What is the leading concern you have going into the 1st quarter of 2024?
Sales (17%)
Economy (20%)
Labor (41%)
What are you most optimistic about going into the 1st quarter of 2024?
Sales (52%)
Labor (22%)
Economy (9%)
As we navigate the uncertainties of 2024, these survey results underscore the need for flexibility and adaptability. Businesses are gearing up for changes in staffing, embracing a diverse outlook on sales, and maintaining a focus on stable compensation structures. The laser focus on labor-related concerns calls for innovative solutions in talent management and development.
In this dynamic landscape, successful leaders will be those who remain agile, strategic, and proactive in their approach. By staying attuned to market shifts and embracing a resilient mindset, businesses can position themselves to not only weather the challenges but also capitalize on the opportunities that the year ahead may bring.
