Two recent reports indicate CEO optimism is slowing down. The Vistage CEO Confidence Index was 87 in the fourth quarter of 2012, down from 89 the previous quarter. Vistage, a peer advisory organization for CEOs and other executives, found company leaders have little faith in the economy's potential to improve. Among the 1,601 respondents, roughly one-fourth of represented firms reported concerns about the fiscal cliff led them to reduce investments and hiring.
While Washington has managed to avoid the fiscal cliff, ongoing uncertainty about raised taxes on high-income earners and expected regulatory shifts are expected to keep CEOs' ambitions minimal, Vistage explains. In the fourth quarter, planned hiring dropped to 45 percent from 49 percent in the third quarter.
Meanwhile, a separate recent survey of CEOs, CFOs and senior managers conducted by the Siena College Research Institute found similar conclusions, according to The Business Review.
The study measured optimism from more than 1,000 individuals from private-sector companies on a scale of 200. A score of 100 represents equal levels of optimism and pessimism. The score in 2012 was 86, down from 98 in 2011.
As many companies head into 2013 facing uncertainty, they should consider the benefits of outsourcing payrolling tasks to ensure they are complying with recent complex changes.
