THE 2020 CFO/CHRO SENTIMENT STUDY‘2 MINUTE READ’

© 2020. The CFO Alliance. All Rights Reserved.

PUBLISHED JANUARY, 2020

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2020 CFO/CHRO SENTIMENT STUDY ‘2 MINUTE READ’2 © 2020 ACHIEVENEXT PEER ADVISORY NETWORKS

IN THE FACE OF MODEST RISK OF RECESSION AND RISING TENSIONS IN THE MIDDLE EAST, U.S. FINANCE AND HR LEADERS ARE WATCHFUL, BUT NOT WAITING IN 2020.

More than 600 Finance and HR leaders from across North America participated in this year’s CFO/CHRO Sentiment Study, offering in-depth perspectives on how they plan to drive growth and performance for their enterprises in the face of modest risk of recession, escalating talent shortages, and increasing technology-driven disruptions to industry, business model, and cultural norms in 2020.

Following are some of the primary findings from the Study:

Increasing speculation regarding the timing of a recession, a presidential impeachment, increasing unrest in the Middle East, and global economic uncertainty/pessimism have not tempered optimism from over 600 Finance & HR leaders from across North America.

As world-renowned business advisor, author, and speaker, Ram Charan pointed out in 2016, “Businesses don’t create value; people do.” While many factors contribute to business success, including having a sound strategy, having a marketable and salable product or service, and having efficient and effective operational processes in place, it falls to the people to actually execute on these strategies, plans, and processes and to make the business whole.

With this in mind, Finance and HR leaders believe that enterprise success in 2020 will be defined in part by their ability to embrace and execute these five (5) critical areas of opportunity and issue:

1. Watchful, but Not Waiting: With the risk of recession expected to remain relatively low for the next 12 months, with trade war impact receding, monetary easing providing continued support, and the 2020 election noise lacking immediate implications, Finance and HR leaders continue their press to invest enterprise cash with growth and opportunities in mind.

2. As the new decade begins, four forces will drive both CFO and CHRO performance. Their value will be defined by how well they align and balance Strategy, People, Technology & Risk to drive enterprise performance in the midst of the Fourth Industrial Revolution.

3. In order to compete to win in the 2020s, all enterprises, regardless of their starting positions, will need to align their customer and employee experiences- and Finance & HR Leaders will need to work together to centralize the value in its people-centered functions: the people outside the enterprise (customers) with the people inside (employees).

4. Finance and HR Leaders share a critical directive in 2020: To upskill and enable their overall talent to win.

5. In the competitive environment of the 2020s, Finance and HR Leaders must work together to improve operational decision making by turning the rising tide of enterprise data into real-time insights that drive growth and performance across the business.

THE 2020 MANDATE: MAXIMIZING THE PERFORMANCE & VALUE OF YOUR MOST CRITICAL ASSET: PEOPLE

2020 CFO/CHRO SENTIMENT STUDY ‘2 MINUTE READ’3 © 2020 ACHIEVENEXT PEER ADVISORY NETWORKS

PROJECTED YOY PERFORMANCE; 2020

SURVEY PARTICIPANT DEMOGRAPHICS

TYPES OF ENTERPRISES

ENTERPRISE REVENUE REPRESENTATION

EMPLOYEE SIZES

INDUSTRY REPRESENTATION Agriculture/Farming: 1.82%Airlines/Aviation/Aerospace: 0.40%Automotive: 1.01%Banking/Investment Banking/Investing: 7.49%Biotechnology and Pharmaceutical: 2.23%Cannabis: 0.81%Chemicals: 1.62%Construction, Engineering and Architecture: 5.87%Distribution, Logistics and Warehousing: 5.26%Food & Beverage: 2.83%Government Contracting: 1.01%Hospital & Health Care: 3.85%Hospital & Health Care (Non-Profit): 1.01%Information Technology and Services: 3.64%Insurance: 2.23%Legal, Accounting: 4.45%Leisure & Entertainment: 0.20%Manufacturing - Consumer: 2.02%Manufacturing - Industrial: 4.86%Marketing, Public Relations & Communications: 2.63%Media: 1.01%Mining & Metals: 0.00%Non-Profit: 7.29%Oil & Energy: 2.63%Professional Services: 7.09%Real Estate: 4.66%Retail: 1.01%Software/SaaS: 6.28%Telecommunications: 0.61%Training and Education: 0.81%Utilities: 1.01%

2020 CFO/CHRO SENTIMENT STUDY ‘2 MINUTE READ’4 © 2020 ACHIEVENEXT PEER ADVISORY NETWORKS

ABOUT THE STUDY

AchieveNEXT, a leading provider of Peer Advisory Networks and specialized Career, Coaching, Training & Development Services conducted its 10th Annual CFO Sentiment Study and its first including CHRO Sentiment, to provide insights into the strategic planning, outlook and financial objectives for 2020 for the enterprises that they lead and serve.

This Study captures the sentiments and intentions of The CFO Alliance, the leading peer advisory network, powered by AchieveNEXT, they power for more than 8,000 Finance leaders representing middle market and emerging enterprises from diverse industries and markets, and adds the opinions and insights from the newest AchieveNEXT Network, The CHRO Alliance, a peer advisory network for senior HR leaders. This Study offers comparisons and contrasts between how modern Finance and HR leaders plan to best position their enterprises to address challenges and to capitalize on opportunities as a new decade begins.

To see additional results from The 2020 CFO/CHRO Sentiment Study, request to download a copy here or call 610-492-7400.

2020 CFO/CHRO SENTIMENT STUDY ‘2 MINUTE READ’5 © 2020 ACHIEVENEXT PEER ADVISORY NETWORKS

ABOUT INSPERITY Insperity, a trusted advisor to America’s best businesses for more than 32 years, provides an array of human resources and business solutions designed to help improve business performance. Insperity® Business Performance Advisors offer the most comprehensive suite of products

and services available in the marketplace. Insperity delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity through its premier Workforce Optimization® solution. Additional company offerings include Human Capital Management, Payroll Services, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Expense Management, Retirement Services and Insurance Services. Insperity business performance solutions support more than 100,000 businesses with over 2 million employees. With 2017 revenues of $3.3 billion, Insperity operates in 73 offices throughout the United States.For more information, visit http://www.insperity.com.