Talent attraction and succession planning seen as top risks in 2023

Business executives are anticipating a number of risks in 2023, according to a new survey, chief among them organizational succession challenges and the ability to attract and retain top talent.

The annual survey, released Thursday by the consulting firm Protiviti in partnership with North Carolina State University, polled a group of 1,304 board members and C-suite executives, including chief audit executives, along with CEOs, CTO, CIOs, chief risk officers, and chief digital and data officers, asking them to rate 38 macroeconomic, strategic and operational risks for 2023 and a decade from now, in 2032.

The top risks for 2023 included:

1. Organizational succession challenges and ability to attract and retain top talent;
2. Economic conditions (including inflationary pressures);
3. Increased labor costs;
4. Resistance to change in company culture; and
5. Uncertainty surrounding organizational core supply chains.

 The top risks for 2032 cited were:

1. Organizational succession challenges and ability to attract and retain top talent;
2. Adoption of digital technologies requiring reskilling and upskilling employees;
3. Speed of disruptive innovations enabled by advanced technologies;
4. Resistance to change in company culture; and
5. Ensuring data privacy and compliance with growing identity protection expectations and regulations.

The overall impression among the executives in general was that magnitude and severity of risks are increasing for 2023 over 2022. The increase in overall concern for 2023 compared to 2022 was especially notable for boards, chief risk officers, chief audit executives, and chief digital or data officers. CEOs, CIOs and CTOs were the only executive groups whose overall outlook about the risk environment is lower for next year than this year.
"This year's survey results should drive proactive leaders to take action," said Jim DeLoach, a Protiviti managing director and co-author of the report, in a statement. "Executives should weigh the current economic conditions to adjust their talent and risk management strategies. Employees are just as important as customers and should be treated as such in all decision-making in the coming months. Longer term, continued investment in succession planning, integrated upskilling and technology learning will help companies excel in employee engagement and broader corporate strategy, fulfilling the value proposition underpinning investments in new technologies and digital innovation."

Brian Jackson - stock.adobe.com