Marcum-Hofstra University CEO Survey Highlights Key Trends in Hiring, Retention, and Employee PTO Utilization

JULY 23, 2024 (New York, NY) – CEOs are reporting difficulty hiring in specific areas like mid-level and information technology positions, according to the latest CEO survey from Marcum LLP and Hofstra University’s Frank G. Zarb School of Business. The survey serves as an essential barometer for gauging the current business environment and anticipating the strategic focuses of companies.

Hiring and Retention Trends

• Employee Hiring: A significant majority (70.9%) of CEOs reported being able to fill most or all open positions within their companies. However, challenges persist in specific areas, with approximately one-third struggling to fill mid-level (30.3%), functional area professionals (33.1%), and information technology positions (33.5%).
• Recruitment Inducements: CEOs are employing various strategies to attract new talent, including flexible work schedules (45.3%), advancement opportunities (44.9%), enhanced compensation and benefits packages (40.9%), and remote work options (39.4%).
• Retention Strategies: Retaining employees remains a top priority, with flexible work schedules (61.0%) and advancement opportunities (60.2%) being the most critical factors. Additionally, augmented compensation and benefits (53.5%) and remote work options (52.4%) are vital to keeping existing staff engaged and satisfied.
• Internal vs. External Hiring: CEOs have a nearly equal preference for promoting from within (42.5%) versus hiring externally (41.7%).

“Given the current job market, where demand for skilled professionals is super high and talent is scarce, companies are really struggling to fill important positions,” said Brian Lucas, CEO of Marcum Search. “Our latest survey shows that offering flexible work arrangements, defined opportunities for advancement, and creative compensation packages are key to drawing in and retaining top talent. Our network gives us the leg up in identifying these key employees, which is exactly what sets Marcum Search apart in helping businesses get the expertise they need to grow and hit their goals.”

Survey Highlights

Outlook on Business Environment

• There has been an evident rise in CEOs’ optimism about the business environment. 44.1% of CEOs rated their outlook in the 8-10 range, up from 37.8% in April.
• The percentage of CEOs rating their outlook as “very positive” (a score of “10”) remains almost unchanged at 13.9%.

Industry-Specific Optimism

• Increased optimism (rating of “8” or higher) was observed in the construction (45%), healthcare (58%), and professional services (36%) sectors, while manufacturing saw a decline (18%).

Key Influences on Business Planning

• Economic concerns dominate business planning priorities, though their impact slightly decreased to 50.4% from 54.2%.
• The availability of talent remains a crucial issue, with 34.6% of CEOs citing it as a top-three concern.

External Concerns

• Economic slowdown remains the top external concern, cited by 54.3% of CEOs, up from 45.0%. Political uncertainty, interest rates, labor shortages, and rising energy costs are also prominent concerns impacting business strategies.

Employee Use of PTO

• A significant portion of CEOs (59.4%) observed that some employees are not utilizing their personal or vacation time.
• Reasons include the option to convert PTO into financial remuneration (29.4%), concerns over job security and advancement (27.6%), and high dedication to work (25.2%).

The survey is developed, conducted, and analyzed by Zarb School MBA students, led by Dr. Andrew Forman, associate professor of international business and marketing, and in partnership with Marcum.

“The data underscores significant hiring challenges, particularly in mid-level and IT positions, which are critical for operational efficiency and growth,” shared Dr. Forman. “The emphasis on flexible work schedules and advancement opportunities highlights a shift in retention strategies essential for maintaining a competitive edge. This survey provides a clear snapshot of the economic and operational concerns that CEOs must address to navigate today’s complex market dynamics.”

About the Survey
The Marcum-Hofstra CEO Survey is a periodic gauge of mid-market CEOs’ outlook and priorities for the next 12 months. The survey polled the leaders of companies with revenues ranging from $5 million to $1 billion-plus and was conducted the week of June 24, 2023. Two hundred fifty-four mid-market CEOs participated.

“The latest CEO Survey underscores the evolving challenges and strategic adaptations businesses must undertake to navigate the current economic landscape,” said Janet Lenaghan, dean of the Frank G. Zarb School of Business at Hofstra University. “Our collaboration with Marcum allows us to glean crucial insights directly from industry leaders, which informs our curriculum and ensures that our students are well-equipped to meet the demands of today’s dynamic business environment. The emphasis on flexible work schedules, advancement opportunities, and enhanced compensation speaks to the shifting priorities within the corporate world, and it’s imperative that we prepare our students to lead with innovation and resilience.”

About the Frank G. Zarb School of Business at Hofstra University
Hofstra University’s Frank G. Zarb School of Business prepares students to become tomorrow’s global leaders. Located just 25 miles from New York City, Zarb students have access to internships and networking opportunities across every industry. The Zarb School combines entrepreneurial, hands-on learning and research with real-world experience and mentorship in state-of-the-art facilities, including a Behavioral Research Business Lab, Institute of Innovation and Entrepreneurship, Core Skills Lab, and academic trading room. Our undergraduate and graduate programs in accounting, management and entrepreneurship, marketing and international business, finance, and business analytics are ranked and recognized by US News & World Report, Princeton Review, and Poets & Quants. Visit hofstra.edu/zarb for more information.

About Marcum LLP
Marcum LLP is a top-ranked national accounting and advisory firm dedicated to helping entrepreneurial, middle-market companies and high net worth individuals achieve their goals. Marcum’s industry-focused practices offer deep insight and specialized services to privately held and publicly registered companies, and nonprofit and social sector organizations. The Firm also provides a full complement of technology, wealth management, and executive search and staffing services. Headquartered in New York City, Marcum has offices in major business markets across the U.S. and select international locations. #AskMarcum.