The 5 most common challenges of CEOs in 2024

As CEOs face the challenges of 2024, they’re grappling with geopolitical instability, a looming federal election, uncertain interest rates, and persistent inflation amidst a robust labour market. Navigating increasingly complex — and often conflicting — economic signals is now a key concern for today’s business leaders.

Vistage Worldwide’s latest survey of small and midsize businesses has identified the top challenges leaders are confronting. In a recent article, Joe Galvin, Vistage Worldwide’s Chief Research Officer, has highlighted the following biggest worries of CEOs that keep them up at night:

1. Talent

It’s no surprise that talent acquisition and retention consistently rank as the No. 1 challenge for CEOs. As we saw during the “Great Resignation” frenzy of 2022, people are the driving force behind organisational success. While hiring has slowed, the quit rate remains higher than pre-pandemic levels. Consequently, business leaders are shifting their focus from hiring to retaining employees.

With turnover, business leaders lose more than just individual employees. Perhaps more significantly, they also lose experience and historical knowledge, which necessitates time-consuming and costly training and coaching for new hires.

Keeping top talent on staff is a particularly unique CEO challenge in today’s always-connected world, with resources like LinkedIn and Indeed readily accessible to every employee.

2. Economic uncertainty

For business leaders, there’s no controlling the economy, which makes today’s chronic uncertainty particularly challenging to navigate. Factors such as geopolitical pressures and the upcoming U.S. election in November are making it increasingly difficult for leaders to forecast the economy’s trajectory.

CEOs are also contending with the two “I’s”: interest rates and inflation. While an interest rate cut may still occur this year, the economy won’t feel the effects until at least 2025. And despite inflation moderating, it remains significantly higher than pre-pandemic levels. In particular, talent acquisition and retention costs have risen, according to more than half (59%) of CEOs interviewed in the recent Q2 Vistage CEO Confidence Index.

3. Growth and scaling business

Customers are facing the same economic uncertainty as CEOs. As a result, they’re slowing down decisions and delaying investments, which makes it challenging to manage growth and scale. Many CEOs are trying to predict when the next growth cycle will start so they can increase their investments accordingly. No one wants to be caught off guard when the next cycle inevitably arrives, so leaders are tasked with finding the best time to act.

4. Succession planning

As the ageing Baby Boomer generation continues to retire rapidly, the topic of succession planning is becoming a higher priority. Leaders are focused on developing their next team of leaders and preparing their businesses for a smooth handover when they decide to step down. The changing of the guard has never been more pronounced, as the world’s largest generation turns 65 in large numbers, leaving leaders to plan out their executive team’s future in one go.

5. Employee engagement

During the pandemic’s “Great Resignation” era, employers emphasised employee experience and company culture. Workers were in the driver’s seat, and many received raises or even new positions due to the rapidly increasing workforce movement.

As the labour market softens, employers must now find new ways to keep employees motivated, focused, and connected to the organisation’s broader purpose. This will not only help the organisation achieve business success now but also ensure they are ready to accelerate when the next growth cycle begins.

Many leaders continue to face the added challenge of a tug of war with employees as they determine what flexibility and hybrid work should look like within their organisations — a back-and-forth that is not going away anytime soon as technology and a persistent and growing labour market continue to change how we work.

As CEOs enter the second half of 2024, they may be navigating uncharted territory, but the same challenges remain. They may shift in priority, but issues such as talent, growth, and the economy remain top concerns among CEOs.

Author: Joe Galvin, – Originally published on Vistage Research Center.