The latest quarterly research (Q4 2021) by the Institute of Directors (IoD) in Ireland has found that general inflation, wage inflation and supply chain issues are of concern to a majority of business leaders as their organisations face into 2022. The survey 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.
The advance findings of the IoD’s latest Director Sentiment Monitor survey for Q4 2021, to be published in January 2022, have found that:
- 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
- 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
- Nearly a third (33%) of the business leaders say their business model has been adapted for supply chain issues
- 66% of the business leaders are concerned (to a greater or lesser extent) in regard to their primary organisation and its supply chain issues for the end of 2021
- 34% of respondents say supply chain issues are impacting their 'bottom line' for 2021
- 46% of the business leaders are concerned that there will be supply chain issues for their primary organisation in 2022
- 64% of the respondents think that the financial performance of their primary organisation will improve in Q1 2022
- 77% of the business leaders think that the financial performance of their primary organisation will improve for the year 2022.
Commenting on the findings, Maura Quinn, Chief Executive of the Institute of Directors (IoD) in Ireland, said:
“These are conclusive findings that general inflation, wage inflation, and supply chain issues are sources of real concern for business leaders. 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.”
The advance, key findings of the IoD’s Director Sentiment Monitor for Q4 2021 include:
General inflation – level of concern: When asked, 'Are you concerned that general inflation will negatively impact the financial performance of your primary organisation in Q1 2022?' the business leaders replied as follows:
- Extremely concerned: 4%
- Very concerned: 19%
- Of some concern: 63%
- Not concerned: 14%
- Not sure: 0%
Wage inflation – level of concern: When asked, 'In respect of your primary organisation, are you concerned that wage inflation will impact staff retention and staff recruitment in Q1 2022?' the respondents selected as follows:
- Extremely concerned: 11%
- Very concerned: 31%
- Of some concern: 41%
- Not concerned: 16%
- Not sure: 1%
Supply Chain issues – level of concern: When asked, ‘What level of concern do you have in regard to your primary organisation and its supply chain issues for the end of 2021?’ the business leaders replied as follows:
- Extremely concerned: 3%
- Very concerned: 21%
- Of some concern: 42%
- Not concerned: 29%
- Not sure: 0%
Supply Chain issues - 'bottom line' 2021: When asked, 'Are supply chain issues impacting your primary organisation’s bottom' line for 2021? the respondents selected as follows:
- Yes: 34%
- No: 57
- Don't know: 3%
- No opinion: 6%
Supply Chain issues - business model: When asked, 'In respect of your primary organisation, have you had to amend your business model to adapt to supply chain issues?' the business leaders replied as follows:
- Yes: 33%
- No: 63%
- Not sure: 4%
Supply Chain issues - concern for 2022: When asked, 'In respect of your primary organisation, are you concerned that there will be supply chain issues in 2022?' the respondents selected as follows:
- Yes: 46%
- No: 30%
- Too soon to tell: 21%
- Not sure: 3%
Financial performance - Q1 2022: When asked, 'Do you think that the financial performance of your primary organisation will improve in Q1 2022?' the business leaders replied as follows:
- Yes: 64%
- No: 23%
- Don't know: 13%
Financial performance - Year 2022: When asked, 'Do you think that the financial performance of your primary organisation will improve for the year 2022?' the respondents selected as follows:
- Yes: 77%
- No: 14%
- Don't know: 8%
The findings in this survey have been rounded up or down to the nearest decimal point.