RGP Releases Latest Pulse Survey on Workforce Investment Priorities

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RGP (Nasdaq: RGP), a global consulting firm, unveiled a new survey highlighting workforce investment priorities amidst macroeconomic challenges. Conducted by YouGov, the survey reveals that 81% of financial decision-makers plan to increase workforce development investments despite high interest rates. However, 62% are halting or delaying new investments due to factors like the presidential election and interest rates. Key investment drivers include leveraging AI and automation (47%) and tackling hiring challenges (45%). The survey also underscores an accountant shortage prompting increased investment in automated accounting (43%) and consulting talent (31%). Talent acquisition remains a significant concern, with 26% prioritizing it and 30% focusing on digital strategies.

Poll of financial decision-makers shows companies remain committed to workforce development amid higher-for-longer interest rates

IRVINE, Calif.--(BUSINESS WIRE)-- RGP (Nasdaq: RGP), a global consulting firm, today released new research around the macroeconomic factors and labor market trends that are impacting workforce decisions in the second half of 2024.

The findings show that financial decision makers remain focused on investing in their employees. Despite the higher for longer interest rate environment, 81% of this group is planning to increase investment in workforce development—consistent with RGP’s January poll.

Nearly two-thirds (62%) of financial decision makers said their organization is pausing or delaying some new investments due to macroeconomic conditions ranging from the presidential election (23%) to high interest rates (11%). The top factors that could have the biggest impact on investment in workforce development include a growing urgency to better leverage AI and automation (47%) and hiring challenges in a tightening labor market (45%).

“The latest jobs data illustrates a normalizing yet resilient labor market, and we’re seeing through our own research that companies remain committed to investing in their workforce through training, headcount and outside talent,” said Kate Duchene, Chief Executive Officer of RGP. “We’ve seen some stagnation in the market as the quits rate has remained low for the past seven months, and our findings show that skill acquisition remains a key challenge for employers. These challenges are being amplified by the volume of work that needs to get done, as four out of five companies we surveyed told us they are currently executing digital transformation initiatives.”

Impact of the Accountant Shortage

The ongoing shortage of CPAs has resulted in greater investment in technology, as 43% of financial decision makers said their organization is investing more in end-to-end automated accounting processes and AI tools. Meanwhile, 31% said they are using more consulting talent to transform their finance function and 27% said they are using more interim staffing solutions due to the ongoing accountant shortage.

Nearly half of respondents (45%) said their organization would benefit from additional resources and tools to better leverage fractional work arrangements.

Skill Acquisition Remains a Challenge

One in four (26%) financial decision makers said talent acquisition and retention is their biggest concern in the second half of the year, second only to the integration of more digital strategies, including AI and automation (30%). Nearly 30% of respondents said that it has been more difficult to acquire new skill sets since the start of the year and one in five said their organization has experienced widening skills gaps since the start of the year.

The findings are based on a poll that YouGov conducted on behalf of RGP in the first half of June 2024. Respondents included 213 U.S. full-time professionals at director level or above who influence finance decision-making within their organizations. Read more about the findings here: https://rgp.com/insights/pulse-survey-workforce-investment-priorities.

ABOUT RGP

Named among Forbes’ America’s Best Management Consulting Firms for 2024, RGP is a global consulting firm focused on project execution services that power clients’ operational needs and change initiatives utilizing on-demand, expert and diverse talent. As a next-generation human capital partner for our clients, we specialize in co-delivery of enterprise initiatives typically precipitated by business transformation, strategic transactions or regulatory change. Our engagements are designed to leverage human connection and collaboration to deliver practical solutions and more impactful results that power our clients’, consultants’ and partners’ success.

We attract top-caliber professionals with in-demand skill sets who seek a workplace environment characterized by choice and control, collaboration and human connection. The trends in today’s marketplace favor flexibility and agility as businesses confront transformation pressures and skilled labor shortages even in the face of macroeconomic contraction. Our client engagement and talent delivery model offers speed and agility, strongly positioning us to help our clients transform their businesses and workplaces, especially at a time where cost reduction initiatives drive an enhanced reliance on a flexible workforce to execute transformational projects.

We serve over 1,800 clients around the world with approximately 3,600 professionals collectively engaged from 38 physical practice offices and multiple virtual offices. Headquartered in Irvine, California, we are proud to have served 88% of the Fortune 100.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20240711825819/en/

RGP Investor Contact:

Jenn Ryu, Chief Financial Officer

(US+) 1-714-430-6500

jennifer.ryu@rgp.com

RGP Media Contact:

Pat Burek

Financial Profiles

(US+) 1-310-622-8244

pburek@finprofiles.com

Source: RGP

FAQ

What did RGP's latest survey reveal about workforce investment priorities?

RGP's survey showed that 81% of financial decision-makers plan to increase workforce development investments, despite macroeconomic challenges like high interest rates.

How are financial decision-makers responding to high interest rates according to RGP's survey?

According to RGP's survey, 62% of financial decision-makers are pausing or delaying new investments due to high interest rates and other macroeconomic factors.

What are the top factors influencing workforce investment according to RGP's survey?

RGP's survey highlights leveraging AI and automation (47%) and hiring challenges (45%) as the top factors influencing workforce investment.

How is the accountant shortage affecting investment strategies according to the RGP survey?

The RGP survey indicates the accountant shortage is driving greater investment in automated accounting processes (43%) and consulting talent (31%).

What percentage of financial decision-makers are finding it difficult to acquire new skills according to RGP?

Nearly 30% of financial decision-makers surveyed by RGP reported difficulty in acquiring new skill sets since the start of the year.

What is the primary concern for financial decision-makers in the second half of 2024 as per RGP's survey?

Talent acquisition and retention is the primary concern for 26% of financial decision-makers in the second half of 2024 according to RGP's survey.