Conference Board Report/C-Suite Outook for 2024: Concerns Ahead

The Conference Board, a renowned non-profit research organization, has recently released a comprehensive report that sheds light on the business outlook and concerns of CEOs for the year 2024. This study offers valuable insights into the minds of top executives, highlighting their attention towards the economy and organizational talent. In this post, I’ll delve into the key findings of this report, emphasizing the significance of CEOs’ focus on these areas and their implications for businesses worldwide. The full report is available here: TCB-C-Suite-Outlook-2024-final

CEOs across the globe are placing significant emphasis on the economy and organizational talent. Regardless of the country they operate in, these areas are of paramount importance for CEOs in shaping their business strategies. The Conference Board’s study reveals that CEOs worldwide are closely monitoring economic indicators and market trends to make informed decisions. Additionally, they are actively investing in talent acquisition, development, and retention to ensure their organizations possess the necessary skills and capabilities to thrive in a competitive landscape.  Sound familiar?  This is a significant theme for healthcare providers, regardless of their industry sector (hospital, post-acute, senior living).

An economic downturn is a high-impact issue that keeps CEOs awake at night. The potential consequences of such a downturn on businesses are far-reaching, ranging from reduced consumer spending to increased market volatility. The Conference Board’s CEO study highlights the concerns and strategies of top executives in the face of economic uncertainty. CEOs are actively diversifying their revenue streams, exploring new market opportunities, and implementing cost-saving measures to mitigate the impact of a potential downturn. 

I’ve written often about revenue diversification, especially for senior living organizations.  Revenue risk concentration around occupied units and rent or fees per month can be somewhat mitigated by having other complimentary revenue sources. Service lines such as personal care/home care, home health (licensed, accredited), hospice, adult day care all can make sense and provide incremental margin and economies of scale (spread overhead).

CEOs recognize the importance of labor conditions in driving organizational success. The well-being and satisfaction of employees directly impact productivity, innovation, and overall business performance. The Conference Board’s report reveals that CEOs are increasingly prioritizing labor conditions and investing in initiatives that foster a positive work environment. This includes offering competitive compensation packages, promoting work-life balance, and implementing diversity and inclusion programs. By addressing labor conditions, CEOs are not only enhancing employee satisfaction but also attracting and retaining top talent.

Yesterday’s post with the accompanying presentation is one series of strategies, a framework, that can be developed (and implemented) to improve recruitment and retention efforts. For most providers, go forward occupancy and caseload improvement in 2024 and beyond will hinge on the ability to attract and retain the right amount and qualification of staff, especially direct care staff.

Inflation has emerged as a top focus area for CEOs, given its potential impact on businesses and the economy as a whole. Rising prices can erode profit margins, increase operational costs, and reduce consumer purchasing power. The Conference Board’s CEO study indicates that executives are proactively tackling inflation by implementing pricing strategies, exploring cost-saving measures, and closely monitoring supply chains. CEOs are also seeking innovative solutions to mitigate the impact of inflation on their organizations, such as adopting technology-driven efficiencies and forging strategic partnerships.

The inflation issue when it comes to healthcare often is less today, commodity costs, but labor costs.  Labor is typically 50% of more of a provider’s budget and with rising wages and enhanced benefits necessary to recruit and retain labor, expense control is a challenge.  Cutting or attempting to reduce expenses too much can easily impact patient quality and experience, ultimately leading to hire costs via litigation and adverse regulatory actions due to patient complaints. My message is to take a long view of the economy and especially, the labor market. Gains need to be thought of as incremental and then, accretive.  Taking a build block approach is better than trying to achieve large gains quickly, that result in diminished service quality and in turn, reputation/market image. 

The Conference Board’s report on the CEO business outlook and concerns for 2024 provides invaluable insights into the mindset of top executives worldwide. The study emphasizes the significance of CEOs’ attention towards the economy and organizational talent, as well as their proactive strategies to address potential challenges. As business leaders, it is crucial to stay updated with the latest research and studies conducted by The Conference Board. By doing so, organizations can navigate the ever-evolving business landscape and make informed decisions that drive sustainable growth and success.

While the report covers business and CEO/C-Suite outlooks globally and without a particular focus on any industry, the knowledge is transferrable to healthcare providers and post-acute and senior living organizations.  Most of the issues reviewed in the report are agnostic of any industry or business model, certainly in the U.S.