Deloitte Private Survey: Cash Flow May Limit Private Company Hiring in the Year Ahead

Companies surveyed prioritize training and reskilling to meet talent needs

NEW YORK, Dec. 12, 2023 /PRNewswire/ -- According to the report, "Private Company Outlook: Talent," 60% of private company C-suite executives surveyed anticipate cash flow may limit their ability to hire in the next 12 months. The survey, from Deloitte Private, asked C-suite executives of private businesses in the U.S. about their hiring outlook, factors impacting talent acquisition, and strategies to compete in the talent marketplace.

Key Findings:

• Increasing productivity (45%) and investments in technology (36%) lead private companies' list of business priorities in the next 12 months. Respondents ranked information technology (excluding AI and cybersecurity) (36%), sales/marketing (32%) and supply chain (32%) as the top three skills the organization needs most to meet its business priorities.
• Smaller private companies surveyed expect greater hiring challenges due to cash flow. Nearly twice as many companies (78%) with annual revenue of $100 to under $200 million report cash flow limits their ability to make new hires compared with those earning more than $1 billion (41%).
• In the face of hiring challenges, private companies plan to rely heavily on reskilling in the next 12 months. Training/reskilling employees (43%) is the primary approach among companies surveyed to meet their talent needs in the coming year, ahead of hiring (26%), engaging contract workers (19%) or automation (12%).  
• Skills-based hiring and hybrid work are top strategies to compete for talent. More than half of respondents (51%) said their organization is increasing skills-based hiring to be more competitive, followed by hybrid work (48%), and implementing a new compensation strategy (47%).

"As private companies juggle limited cash flow, aspirations for digital transformation and efforts to increase productivity, they're relying on their own workforce to meet their business priorities," said Wolfe Tone, vice chair, and U.S. Deloitte Private leader. "Private companies are leaning into reskilling in combination with skills-based hiring and hybrid work as part of a broader portfolio of talent strategies."

About the survey

Deloitte's "Private Company Outlook" is a pulse survey intended to gauge private company leaders' perspectives on opportunities and risks to business now and in the near future.

The survey of 100 private company executives was conducted online by an independent research company between Nov. 7 and 9, 2023. Respondents represented C-level, president, board member, partner/owner roles at private companies in the US with annual revenues of $100 million to more than $1 billion.

Deloitte Private serves the unique needs of private companies and their stakeholders by leveraging the full depth of Deloitte's technical experience and industry capabilities to serve private enterprises, family-owned businesses, private equity portfolio companies and emerging growth companies. Visit us at https://www2.deloitte.com/us/private or follow us on LinkedIn.

About Deloitte

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's approximately 457,000 people worldwide connect for impact at www.deloitte.com.

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SOURCE Deloitte