Optimism about the economy for the year ahead has hit a four-year low among managers, a survey by the Chartered Management Institute has found.
The CMI surveyed 1,000 managers across the private, public and charity sectors on their outlook for 2018 and found that optimism has steadily fallen from 63 per cent when asked back in 2014, to just 57 per cent today.
Almost one in four said that they were pessimistic about the coming 12 months and one in five said that they were “ambivalent” about their businesses’ prospects. Overall, 26 per cent of the managers questioned reported a declined sense of job security following the Brexit referendum.
The highly cautious forecasts follow another uncertain year for employers. Almost two thirds, or 62 per cent, said that their business did not grow or even declined in 2017. Perhaps partially fuelled by this, 62 per cent said that their company would undergo a restructure during the coming year, and a total of 75 per cent of managers said that controlling costs was a top priority.
Only 39 per cent cited investing to grow as a priority and less than 23 per cent of all managers said that expanding into international markets was a priority for 2018.
“The decline in managers’ optimism in the UK economy for 2018 is unsurprising given Brexit uncertainties,” said Petra Wilton, director of strategy and external affairs at the CMI.
“Managers are battening down the hatches, prioritising controlling costs over investing in development – particularly in their staff. But this short-termism feeds a vicious downward cycle. We need to rebuild confidence and nurture growth through investing in people,” she said.
Ms Wilton said that great leadership and management are more important than ever to “lift the nation out of the productivity rut”.
The survey also revealed a lack of trust in senior management among some managers. A total of 42 per cent of those questioned said that they doubt the ability of senior management to oversee change. And recruitment appears to be proving a challenge too.
A total of 78 per cent said that they were having difficulty hiring new skilled talent – a figure that jumps to 82 per cent when it comes to hiring new leaders.
Ms Wilton said that, according to CMI research, a highly-skilled manager can add nearly £400,000 of value to their employer, and that leadership and management development can boost a company’s performance by up to 23 per cent.
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