Concerns, hopes and priorities of Swiss CEOs

While there was record pessimism about global economic growth among the Swiss study participants surveyed in the previous year, it is just the opposite in 2021: 67% are optimistic about it in the next twelve months. This figure is much higher than in previous years; in 2020, for example, it was only 23%. This is clear from the latest "Annual Global CEO Survey" of the auditing and consulting firm PwC. 

When it comes to the development of their own company, the CEOs surveyed are also positive: 84% expect sales to grow over the next twelve months, while 53% consider the outlook for the next three years to be fairly positive and 40% very positive. According to the study, 69% of respondents in Switzerland also expect the number of employees to increase over the next three years. Nevertheless, fears about the uncertainty surrounding economic growth remain high. 71% of respondents in Switzerland are concerned, while the global figure is as high as 83%. In addition, a large proportion (71% in Switzerland) would like to increase their long-term investments in the realization of cost efficiencies in the context of the Covid 19 crisis.

Basic trust despite some worries

The confidence of the CEOs surveyed in Switzerland as a domestic business location is high compared to other countries: They assess the general threat situation as significantly milder, even if they have concerns in some areas. The main concerns in Switzerland are considered to be cyber threats (93%), overregulation (81%) and pandemics and other health crises (77%). Populism is also perceived as a threat, more so in 2021 (66%) than in the previous year (57%). 

The greatest differences between the Swiss and the global assessment lie, among other things, in political and fiscal uncertainties, increasing tax obligations, economic inequality and social instability. Unemployment (37%) is also far less of a concern for respondents in Switzerland than it is globally (60%). And just under half express a lack of confidence in the economy. These results suggest that Switzerland's basic systemic constellation provides planning security even in challenging times. "Society, the economy and the state are not separate entities, as the Covid 19 pandemic has also made clear. Their interaction is the key to a successful business location, which is characterised by legal certainty, entrepreneurship, efficient infrastructures and qualified employees, among other things," explains Andreas Staubli, CEO of PwC Switzerland.

Accelerated transformation

That innovation is traditionally high on the agenda of Swiss CEOs has been accentuated by the Covid 19 crisis: 59% believe they need to do more in this area and 55% would like to increase their 3-year investment in R&D and product innovation as a result of the pandemic. At the same time, 92% of respondents in Switzerland would like to invest in digital transformation over the same period. "Swiss CEOs perceive the rapid pace of change and the resulting fast-changing technologies as an opportunity to address their transformation in a more focused way and successfully manage the impact of the pandemic," Staubli said. At 46%, decision-makers are significantly less concerned about the speed of technological change than is the case worldwide (68%).

Cyber risks move into focus

The CEOs surveyed seem to be aware that digitalization affects almost the entire value chain and harbors both opportunities and risks that need to be assessed prudently. It is therefore not surprising that decision-makers have reprioritized strategic risk management. At the top of the list are cyber threats (84%) - significantly fewer globally (59%). Pandemics are second (74%), followed by availability of key skills (64%) and speed of technological change (63%).

The pandemic, the associated digital changes and the numerous cyberattacks of the recent past have further fuelled the issue: 43% of the CEOs surveyed in Switzerland perceive cyber risks as a potential threat to their growth prospects, compared to only 26% in the previous year. The urgency is also evident in the fact that 77% of leaders want to increase their long-term investment in cybersecurity and data protection as a result of the COVID 19 crisis. There has also been a sharp increase in concerns about misinformation, from 29% in the previous year to 59% in 2021. This result may also indicate a fear that cybercriminals are tapping into and distorting information that will either impact business performance or lead to poor decisions.  

Availability of skills is a concern

The question of whether employees have the skills they need for the ongoing transformations seems to be a concern for CEOs. In Switzerland, this is a concern for almost two-thirds of decision-makers. Its relevance is confirmed by the fact that most leaders in Switzerland (65%) want to invest more in leadership and talent development in the long term because of the Covid 19 crisis. Upskilling is a possible way to do this. On the one hand, it allows to reduce capacities that are no longer needed and to retrain employees in such a way that the newly learned skills are better suited to the changing needs of the company. On the other hand, it is much more cost-effective than recruiting new talent. Cost efficiency is also of great importance to the respondents: 71% want to invest more in cost reduction initiatives in the long term. 

More value is placed on highly qualified employees in Switzerland than in the rest of the world. 79% of Swiss study participants consider competent, well-trained and adaptable employees to be one of the most important prerequisites for entrepreneurial success (compared to only 61% worldwide). 79% of Swiss CEOs see this issue as the responsibility of the government. The reason for this is certainly the strong cooperation between the private and public sectors in the development and provision of talent, as is the case with the dual education and training system, for example. 

Sustainability, a topic with a political and regulatory dimension

The issues of climate change and environmental damage have increased in relevance compared to the previous year (51%): 62% of the study participants in Switzerland are concerned about this. However, 45% of respondents consider the fight against climate change and environmental damage to be a matter for the government, while only a good third (35%) see it as a priority for economic actors themselves. This reflects the need for a clear regulatory framework that eliminates distortions of competition. While 30% of the CEOs surveyed worldwide perceive climate change as a threat to their company's growth prospects, only 16% in Switzerland share this view. Correspondingly, only 47% of Swiss decision-makers intend to increase their long-term investments in sustainability and ESG initiatives as a result of the Covid 19 crisis. Globally, this compares to 60% of respondents. This may indicate that Swiss companies have already been active in this area for a number of years and that, compared to other countries, there is less need to make major investments. In terms of transparency, however, the CEOs surveyed are definitely concerned that environmental impacts should be reported as a key area of impact and value (38%), only innovation has three percentage points more. 

To the study "Annual Global CEO Survey: The survey of study participants took place in January 2021. A total of 5050 CEOs in 100 countries worldwide were surveyed, 111 of them in Switzerland. In Switzerland, all questions were asked and answered in writing (online questionnaire). Of the 111 CEOs in Switzerland, 6 represent companies with sales of over CHF 10,000 million, 16 represent companies with sales of at least CHF 1,000 million and CHF 9,999 million, 51 represent companies with sales between CHF 101 million and CHF 999 million, and 32 represent companies with sales of up to CHF 100 million. 22% of the Swiss companies are listed on the stock exchange, 66% are privately owned and 12% represent the public sector. 42% of the study participants are Swiss family businesses with at least 32% of the shareholding in family hands.

Source: PwC