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RGP Pulse Survey Highlights Impact of Lower Interest Rates on Corporate Investment

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RGP's recent survey reveals significant shifts in corporate investment strategies following the Fed's September interest rate cut. 51% of financial decision makers anticipate increased investments by end-2024, rising to 81% by first half of 2025. Business process optimization, automation, and digital transformation are top investment priorities.

The survey shows 88% of organizations plan to increase workforce strategy investment in 2025, with 39% focusing on reskilling existing employees and 24% planning to invest in outside talent. Regarding AI impact, 65% expect less than 10% job elimination, while 47% anticipate 11-30% job creation in the next two years. 71% of organizations are spending $5 million+ on digital transformation in 2024.

Il recente sondaggio di RGP rivela significativi cambiamenti nelle strategie di investimento aziendali a seguito del taglio dei tassi d'interesse della Fed di settembre. Il 51% dei decisori finanziari prevede un aumento degli investimenti entro la fine del 2024, che salirà a 81% nella prima metà del 2025. L'ottimizzazione dei processi aziendali, l'automazione e la trasformazione digitale sono le principali priorità per gli investimenti.

Il sondaggio mostra che l'88% delle organizzazioni pianifica di aumentare gli investimenti nelle strategie per la forza lavoro nel 2025, con il 39% focalizzato sulla riqualificazione dei dipendenti esistenti e il 24% pronto a investire in talenti esterni. Per quanto riguarda l'impatto dell'IA, il 65% si aspetta una riduzione occupazionale inferiore al 10%, mentre il 47% prevede la creazione di posti di lavoro tra l'11% e il 30% nei prossimi due anni. Il 71% delle organizzazioni spenderà oltre 5 milioni di dollari per la trasformazione digitale nel 2024.

La reciente encuesta de RGP revela cambios significativos en las estrategias de inversión corporativa tras la reducción de tasas de interés de la Fed en septiembre. El 51% de los responsables financieros anticipa un aumento de las inversiones para finales de 2024, que se elevará al 81% en la primera mitad de 2025. La optimización de procesos empresariales, la automatización y la transformación digital son las principales prioridades de inversión.

La encuesta muestra que el 88% de las organizaciones planea aumentar la inversión en estrategias de fuerza laboral en 2025, con el 39% enfocándose en la recualificación de empleados existentes y el 24% planeando invertir en talento externo. En cuanto al impacto de la IA, el 65% espera una eliminación de puestos de trabajo de menos del 10%, mientras que el 47% anticipa la creación del 11% al 30% de empleos en los próximos dos años. El 71% de las organizaciones gastará más de 5 millones de dólares en transformación digital en 2024.

RGP의 최근 설문조사는 9월 연준의 금리 인하 이후 기업 투자 전략의 주요 변화를 보여줍니다. 재무 결정 권한자가 있는 51%가 2024년 말까지 투자가 증가할 것으로 예상하며, 2025년 상반기에는 81%로 상승할 것입니다. 비즈니스 프로세스 최적화, 자동화, 디지털 혁신이 주요 투자 우선 순위입니다.

설문조사에 따르면 88%의 조직이 2025년에 인력 전략에 대한 투자를 증가시킬 계획이며, 39%는 기존 직원의 재교육에 집중하고 24%는 외부 인재에 투자할 계획입니다. AI의 영향에 대해 65%는 10% 미만의 일자리 감소를 예상하고, 47%는 향후 2년간 11-30%의 일자리 창출을 예상합니다. 71%의 조직이 2024년에 디지털 혁신에 500만 달러 이상의 예산을 계획하고 있습니다.

Le récent sondage de RGP révèle des changements significatifs dans les stratégies d'investissement des entreprises suite à la réduction des taux d'intérêt de la Fed en septembre. 51% des décideurs financiers prévoient une augmentation des investissements d'ici fin 2024, chiffre qui pourrait atteindre 81% au premier semestre 2025. L'optimisation des processus commerciaux, l'automatisation et la transformation numérique sont les principales priorités d'investissement.

Le sondage montre que 88% des organisations prévoient d'augmenter les investissements dans les stratégies de main-d'œuvre en 2025, avec 39% se concentrant sur la requalification des employés actuels et 24% prévoyant d'investir dans des talents externes. En ce qui concerne l'impact de l'IA, 65% s'attendent à moins de 10% de pertes d'emploi, tandis que 47% anticipent la création de 11 à 30% d'emplois au cours des deux prochaines années. 71% des organisations envisagent de dépenser plus de 5 millions de dollars pour la transformation numérique en 2024.

Die jüngste Umfrage von RGP zeigt signifikante Veränderungen in den Unternehmensinvestmentstrategien nach dem Zinsschnitt der Fed im September. 51% der Finanzentscheidungs-träger erwarten bis Ende 2024 eine Erhöhung der Investitionen, die bis zur ersten Hälfte von 2025 auf 81% ansteigen wird. Die Optimierung von Geschäftsprozessen, Automatisierung und digitale Transformation sind die Hauptinvestitionsprioritäten.

Die Umfrage zeigt, dass 88% der Organisationen planen, 2025 die Investitionen in Strategien zur Arbeitskräfteentwicklung zu erhöhen, wobei 39% sich auf die Umschulung bestehender Mitarbeiter konzentrieren und 24% in externe Talente investieren möchten. Bezüglich der Auswirkungen von KI erwarten 65% eine Jobverlagerung von weniger als 10%, während 47% in den nächsten zwei Jahren mit der Schaffung von 11-30% neuen Arbeitsplätzen rechnen. 71% der Organisationen planen, über 5 Millionen Dollar in digitale Transformation im Jahr 2024 auszugeben.

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Poll of U.S. financial decision makers shows how digital transformation and AI are impacting workforce strategies and investment priorities

IRVINE, Calif.--(BUSINESS WIRE)-- RGP® (Nasdaq: RGP), a global professional services firm, today released new research around how ongoing labor market challenges, growing digital transformation spend and the Fed’s September interest rate cut are impacting workforce strategy decisions for U.S. companies.

More than half of financial decision makers (51%) polled after the Fed’s September meeting expect their organization to increase some investments before the end of 2024, while four in five (81%) expect to increase investments by the first half of 2025. Respondents cited business process optimization and automation as the top area of increased investment if a lower interest rate environment were to unlock new capital in 2025, followed by digital transformation and AI.

“Many organizations entered the first quarter of the year with the expectation that they’d be operating in a lower interest rate environment and our research shows that last month’s rate cut is having a rather immediate impact on corporate investment,” said Kate Duchene, Chief Executive Officer of RGP. “Skills gaps have widened or remained the same for two in five organizations that we surveyed. We’re seeing that talent shortages and growing investment in change and transformation projects are driving organizations to rethink and increase their investment in workforce strategy in 2025.”

Shifting Workforce Strategies

Nine out of 10 financial decision makers (88%) said their organization is currently planning to increase overall investment in workforce strategy development in 2025. While 39% of organizations are focused on increasing resources to reskill and upskill existing employees, 24% are planning to increase investment in outside talent to fill skill gaps. One in five (22%) respondents reported plans to increase investment in internal headcount.

Half of financial decision makers (49%) said that a growing urgency to better leverage AI and automation could have the biggest impact on their investment in workforce development in the next 12 months. Most respondents (65%) believe that AI will account for less than 10% of job elimination within their organization in the next two years, while half (47%) expect AI to account for 11-30% of job creation in the same period.

Digital Transformation and AI Investment Remains Significant

RGP’s latest research illustrates the extent of digital transformation spending, which is expected to grow to a $9.15 trillion market by 2033.1 Nearly three in four respondents (71%) said their organization is spending $5 million or more on digital transformation projects in 2024, while 42% reported that their organization is spending more than $10 million this year.

Financial decision makers cited IT operations and security as the top priority within their organization’s AI investment over the next 12 months, followed by product development and innovation, and HR and talent management.

Growing Importance of ERP

The enterprise resource planning (ERP) software market is projected to grow to $238.79 billion by 2032, as cloud migration remains a top priority for organizations readying their data management for AI adoption.2 More than half of respondents (53%) said their organization either completed a cloud migration within the last 12 months or is currently going through a cloud migration. However, 13% of financial decision makers reported that their organization has not yet gone through a cloud migration.

Organizations are also placing greater emphasis on ERP within their M&A plans. Among organizations that are considering M&A over the next 12 months, 85% said ERP and data are important or critical factors in their search criteria.

The findings are based on a poll of 204 U.S. full-time professionals conducted between September 19 and October 2, 2024. The poll consisted of respondents at the director level or above who influence finance decision-making at organizations with $500 million or more in annual revenue.

ABOUT RGP

RGP is a global professional services firm that powers the operational needs and change initiatives of its client base utilizing a combination of three distinct brands:

  • On-Demand by RGP™: Our on-demand talent solutions, providing businesses with a go-to source for bringing in experts when they need them;
  • Veracity by RGP™: Our consulting arm, driving transformation across people, processes & technology; and
  • Countsy by RGP™: Our outsourced services for accounting, human resources and equity, helping startups, scaleups and spinouts focus on their growth.

Regardless of engagement model, we Dare to Work Differently® by leveraging human connection and collaboration to deliver practical solutions and impactful results. We offer a more effective way to work that favors flexibility and agility as businesses confront change and transformation pressures amid skilled labor shortages.

Based in Irvine, CA with offices worldwide, we annually engage with over 1,700 clients around the world from 43 physical practice offices, multiple virtual offices and approximately 3,300 professionals. RGP is proud to have served 88% of the Fortune 100 as of August 2024 and has been recognized by U.S. News & World Report (2024-2025 Best Companies to Work for) and Forbes (America’s Best Management Consulting Firms 2024, America’s Best Midsize Employers 2024, World's Best Management Consulting Firms 2024).

The Company is listed on the Nasdaq Global Select Market, the exchange’s highest tier by listing standards. To learn more about RGP, visit: https://rgp.com. (RGP-F)

1 Precedence Research: Digital Transformation Market Size, Share and Trends 2024 to 2034 https://www.precedenceresearch.com/digital-transformation-market
2 Fortune Business Insights: Enterprise Resource Planning (ERP) Software Market Source: https://www.fortunebusinessinsights.com/enterprise-resource-planning-erp-software-market-102498

Investor Contact:

Jennifer Ryu, Chief Financial Officer

(US+) 1-714-430-6500

jennifer.ryu@rgp.com

Media Contact:

Pat Burek

Financial Profiles

(US+) 1-310-622-8244

pburek@finprofiles.com

Source: RGP

FAQ

What percentage of companies plan to increase investments after the Fed's September rate cut according to RGP's survey?

According to RGP's survey, 51% of financial decision makers expect to increase investments by end-2024, with 81% planning increases by first half of 2025.

How much are companies spending on digital transformation in 2024 according to RGP's research?

71% of surveyed organizations are spending $5 million or more on digital transformation projects in 2024, with 42% spending over $10 million.

What is the expected impact of AI on jobs according to RGP's survey?

65% of respondents believe AI will eliminate less than 10% of jobs in their organization within two years, while 47% expect AI to create 11-30% new jobs in the same period.

What percentage of companies are planning to increase workforce strategy investment in 2025?

88% of financial decision makers reported their organizations are planning to increase overall investment in workforce strategy development in 2025.

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