When PNC asked 300 CFOs for their thoughts on economic and corporate challenges in the Inside the Minds of CFOs survey, much of their feedback reflected concerns that might be expected from business leaders operating in a high-cost, high-interest-rate environment – managing rising expenses, navigating a tight labor environment, dealing with supply chain issues, and the like. But it was also clear that another topic loomed large for business leaders: how to foster employee engagement and employee well-being.
When asked about the biggest challenges facing U.S. companies today, CFOs mentioned grappling with “an aging workforce,” “intergenerational workplace dynamics,” “remote work dynamics,” and “employee health and wellness programs.” Their feedback reflects an awareness among employers that today’s workforce has different needs than those of the past, and the effects of not investing in their employees can be far-reaching.
“Even in an environment where managing costs is increasingly difficult, it’s evident that employers are realizing that the health of their business and the well-being of one of their most important assets – their employees – are inextricably linked,” said Kaley Keeley, head of PNC Organizational Financial Wellness. “Businesses truly can’t afford not to invest in their people in the current environment, even as they contend with other challenges.”
The focus on employees and their well-being was pervasive throughout survey results. When asked how they would increase their company spending following a rate cut by the Federal Reserve, 70% of CFOs said hiring, while 65% said they would spend more on compensation/employee benefits. Results showed that the biggest challenges for U.S. companies today revolve around employees, with 31% of respondents citing concerns around retention, labor costs, and finding skilled workers.
Interest in employee engagement also showed up in one particularly surprising survey result. When asked how they expect their office space square footage to change in the next 12 months, 65% of the 300 surveyed CFOs said they thought it would increase. The finding was somewhat counterintuitive, given the economic pressures and the ongoing softness that has characterized the commercial real estate market in recent months. But it may reflect a growing interest on the part of business leaders to invest in workplace culture.
“It’s likely the best buildings in the best locations will benefit as companies consider investments in their workspace,” said Dan Mullinger, head of PNC Real Estate. “This could also be an indication business leaders are realizing there are measurable benefits to having people together in person, including efficiency in training and increasing levels of engagement. Investing in workplace culture can represent an important and visible way of investing in employees.”
The various challenges reflected in the CFO survey were also prominent in the results of the 2024 Financial Wellness in the Workplace Report, conducted by PNC Organizational Financial Wellness. In the survey, 54% of U.S. employers said worker retention has been a challenge in 2024, up from 43% in 2023, and 51% are also feeling more challenged in recruiting this year, versus 44% last year. To address these issues, many businesses are finding that optimizing their benefits packages beyond traditional offerings can play an important role in attracting and retaining employee talent, an idea supported by survey feedback from U.S. workers. Among all surveyed generations, the majority of workers said they were more likely to stay with an employer that offers more financial wellness benefits, with Gen Z at 92%, Millennials at 85%, Gen X at 72%, and Baby Boomers at 64%.
Survey Methodology
PNC Bank’s Inside the Minds of CFOs survey featured responses from more than 300 CFOs at U.S.-based companies. It was conducted by Bloomberg Media Studios immediately after the Fed meeting on June 12, 2024. The study included CFOs, ages 26+, employed full time as a CFO. Companies spanned 23 industries, with 61% of them having more than 1,000 employees and 31% with revenues of $1 billion or more. About 54% are publicly owned.
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