CEOs plan on adding fewer workers to their payroll despite cautious optimism about economic improvement, according to the second quarter 2015 Vistage CEO Confidence Index Survey.
“If the recession taught us anything, it’s that it’s better to be prudent than over-optimistic,” said Richard Curtin, an economist at the University of Michigan who analyzes the survey results each quarter. “We’re seeing a shift in attitude, and CEOs are not anticipating the same strong economic rebound that occurred in the second half of last year.”
According to Vistage, despite reports that firms do not plan on increasing the number of workers on their payrolls, there was no increase in the proportion of firms that expect to reduce their workforce, remaining at just 5 percent, the same as last year at this time.
It also reported that more than 70 percent of all small firms reported expected revenue gains, while profits were expected to increase by more than half of small firms (56 percent) in the second quarter of the year.
Two in three firms reported plans to offer more flexible work options to their employees, and among these firms, 30 percent reported cost savings due to these flexible options (across all firms, cost savings were reported by 19 percent), Vistage said.
The Vistage CEO Confidence Index is a quarterly survey of small- to mid-sized business CEOs about the U.S. economy. The Q2 2015 Vistage CEO Confidence Index includes responses from 1,434 U.S. CEOs, surveyed between June 8 and June 15, with a margin of error of 3.5 percentage points.
San Diego-based Vistage Worldwide assembles and facilitates private advisory boards for CEOs, senior executives and business owners.