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Russell Reynolds Associates Identifies Talent Availability, Economic Volatility and Geopolitical Uncertainty as Top Threats Facing Global Executives

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Russell Reynolds Associates

08 Jun, 2022, 10:30 GMT

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NEW YORK, June 8, 2022 /PRNewswire/ -- Leadership advisory firm Russell Reynolds Associates (RRA) released today its 2022 Global Leadership Monitor, the second annual survey tracking threats to organizational health—and senior leaders' preparedness to face them. 

The Global Leadership Monitor surveyed 514 CEOs and board leaders, as well as 511 C-suite leaders and 565 next-generation Leaders (senior talent who sit one or two levels below the C-suite) across 46 countries in the Americas, Europe, Middle East, Africa, and Asia Pacific.

In the analysis of responses, three inter-related threats rise to the top: uncertain economic growth, geopolitical instability, and talent/skill shortages.

Coming off the back of a challenging labor market, 72% of leaders cited the availability of key talent/skills among the top five most pressing threats (from a list of 20 threats) to organizational health over the next 12-18 months (up 13 percentage points since 2021).  Uncertain economic growth and geopolitical instability were the next two most frequently cited threats, the latter rising seven places in the ranking.

These three top threats all rank among the issues that leaders say their organizations are least prepared to face.

"Our research makes clear the profound level of geopolitical and economic uncertainty with which global business leaders are dealing in the current operating environment," said RRA chief executive officer Constantine Alexandrakis. "These conditions are not expected to change any time soon, making it pivotal to have leadership in place that can navigate choppy waters effectively and inspire trust and confidence enterprise wide."

KEY GLOBAL FINDINGS 

Other global themes and findings from the survey include:

  • Half of leaders say their leadership teams are unprepared to face economic uncertainty. Those leadership teams that are well prepared are differentiated by their approach to digital and sustainability.


  • Consumers/customers remain the top stakeholder group over the next five years, while employees have climbed in importance. Ranked second, ahead of investors, the gap between employees and consumers as key stakeholders has narrowed by 18 percentage points.


  • While the great attrition risk experienced in 2021 has abated somewhat, fifty-six percent of next-generation leaders are still willing to make a move to another employer for the right opportunity. Importantly more than two-thirds are not confident in the leadership succession plans at their organization. "Career recalculation" is the key issue and organizations must focus on providing growth and development to retain their next-gen leaders.

To access the report, visit: https://www.russellreynolds.com/en/insights/global-leadership-monitor

Methodology:

Every year, Russell Reynolds Associates administers The Global Leadership Monitor, an annual survey of executives and non-executive directors, which tracks key threats to organizational health and leadership preparedness to face them, as well as indicators of confidence in leadership, and leaders' engagement and career aspirations.

In March 2022, we surveyed 1,590 business leaders, who represent 46 countries in Africa, Asia, Americas, Europe, Middle East and Oceania. 

All data has been weighted by GDP to create a more representative lens on share of business contribution from each market. Next-Generation executives are defined as those who are at an executive role level below the CEO and C-suite leaders.

About Russell Reynolds Associates 

Russell Reynolds Associates (RRA) is a global leadership advisory firm. Our 500+ consultants in 47 offices work with public, private, and nonprofit organizations across all industries and regions. We help our clients build teams of transformational leaders who can meet today's challenges and anticipate the digital, economic, and political trends that are reshaping the global business environment. From helping boards with their structure, culture, and effectiveness, to identifying, assessing, and defining the best leadership for organizations, our teams bring their decades of expertise to help clients address their most complex leadership issues. We exist to improve the way the world is led. 

www.russellreynolds.com

Media Contact
Diana Pastrana
Russell Reynolds Associates
Diana.Pastrana@russellreynolds.com

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