Executive Outlook – Market Summary, Executive Market Trends and Predictions

Our Q1 2025 analysis of the executive market, reviews the UK and wider economies, recent performance, projections for the next few months and beyond, the market for c-suite and senior leadership positions and trends that executives need to be aware of to stay ahead of the curve and promote both organisational and personal professional growth.

Economic Outlook

It might feel as though storms have moved in permanently over the UK economy, casting a long shadow over prospects of growth in the near term but there are breaks in the cloud and some bright spots too.

Let’s start with the challenges, and then focus on the positives.

The October 2024 budget continues to weigh heavily with rising business costs stifling growth. Inflation, though nowhere near the double digit figures we saw in recent years, did not fall quickly enough in Q4 2024 to allow the hoped-for interest rate falls that might have triggered greater investment and lower operational costs. In April, companies may have to increase prices further to accommodate employer National Insurance contribution rises, risking further inflation hikes.

Latest data shows UK GDP flatlined at 0% in Q3, slower than the Eurozone, 0.4% in Q3 and the US, 0.8%.

UK government borrowing reached record highs, and all eyes are now on Chancellor Rachel Reeves’s next move: will she be forced to break her election promises and raise taxes, undermining consumer and business confidence further, or cut public services?

There was a shock drop in retail sales over Christmas and new export sales were down for the first time in more than 14 months at the end of 2024. The fact that this was felt hardest in trade with the EU is especially concerning when the second coming of US President Donald Trump threatens to bring in blanket international tariffs of up to 20%. Meanwhile, the Pound has been falling against the Dollar.

However, there are some green shoots, if you look hard enough. UK inflation did fall marginally, raising the prospect of an imminent interest rate cut, and economic output shifted upwards slightly.

A precarious truce (at the time of writing) in the Middle East could lift global markets and there is a chance Trump’s tariff threats will not come to anything. Most economists agree they would harm US economic interests in the long term, plus the UK’s service industry-based economy would be hit much less severely than manufacturing countries like Germany.

New IMF predictions published on January 17 projected UK growth at 1.6% for 2025, up marginally on previous forecasts, and higher than the Eurozone, but lower than the “steady” global growth it anticipates of 3.3%.

GfK’s Consumer Confidence Index, conducted on behalf of the European Commission, also rose a little in December.

Growth remains stronger than expected in the US and sentiment could pick up on this side of the Atlantic with some decent tailwinds, especially as more forward-looking organisations start to reap the returns on early and disciplined AI spending.

The government says its commitment to “mainlining” AI into the veins of the British economy, which includes seeking investment in datacentres and building a super-computer, will turbocharge the economy and cement the UK, already third behind the US and China, as a leading place to do AI-based business.

It is also seeking to fix the industrial bottlenecks that have impeded growth such as planning and infrastructure, which could attract more global investment and boost growth in the medium to longer term.

UK Job Market

That economic uncertainty and pessimism around the autumn budget translated into slow hiring in Q4 2024, with permanent jobs falling at the fastest rate in December since the Covid pandemic. Vacancies were down in all sectors, but the steepest decline was seen in executive and professional roles.

However, there is hope for those willing to reskill and repivot into new growth sectors, particularly AI and sustainability, as we shall see in our analysis of executive trends.

The pace of job cuts in December was higher than in 15 years (except for the pandemic) with a quarter of private sector businesses freezing hiring and cutting vacancies. January, traditionally a time for hiring to pick up, remains muted so far.  It is likely to remain so, as a general picture, until organisations have assessed the impact of those higher NI costs, inflationary trends and have a better idea of where interest rates and US trade are headed.

Two thirds of employers said the NI hike would make it harder to increase wages and offer bonuses, demonstrating the need for senior leaders and executives to upskill and increase their value proposition to stay relevant and competitively rewarded.

Candidates say securing the most senior positions is getting harder, competition is fiercer, and many are not sure exactly what companies are looking for and cannot understand why they are not getting responses from applications for jobs for which they believe they are qualified.

Those looking for new positions need to gain an understanding of how the job market has changed since they were last out there and look at areas of growth and key skills in demand.

However, the tension is exacerbated by the fact that 45% of HR professionals and employers admit they do not have a full grasp of what skills their organisations need to take them into an AI-first future.

It is, therefore, equally critical for HR and other team leaders doing the hiring to be literate in how AI is impacting roles so they can align talent acquisition and upskilling with technology-driven strategic objectives and budgetary considerations. To optimise and update workforce skills bases, they should be using the latest AI tools and platforms to gain data-driven insights.

Candidates who have thoroughly researched how they believe AI can support their target employers’ organisations will shine.

Salary inflation at the highest levels shows that while there may be fewer vacancies, especially in legacy c-suite and senior leadership roles, companies are willing to pay more to acquire and retain the right talent that are able to demonstrate in demand skills which include AI and digital literacy but also include complex problem solving and softer skills like social perspective and emotional intelligence.

Economic growth is forecast later into 2025, and organisations will need to boost hiring as it happens. Whether employer or potential candidate, constant awareness and analysis of, and adjustment to, emerging trends will be crucial to seizing opportunities that arise.

Executive Trends

The country is currently stuck in something of a hiring paradox. Two thirds of UK professionals plan to look for a new job this year, 61% say it is getting harder and 20% fear they lack the skills for the future. Meanwhile, HR professionals are finding it increasingly challenging to find qualified talent. So, the market is flooded with talent, just the wrong kind.

This can be largely attributed to the fast-changing landscape driven by the acceleration of Generative AI and its impact on all aspects of work, which is demanding entirely new approaches. In-demand skills that existed in 2016, when AI was first emerging as a realistic driver of business transformation, are expected to have changed by 65% in 2030, just five years away.

More than half of LinkedIn’s list of jobs on the rise for 2025 did not even exist 25 years ago. The top two, globally, are AI engineer and AI consultant. Sustainability credentials are also becoming more important and jobs that require these skills are more difficult to fill. The two sectors alone account for half the top 10 growing job roles in the LinkedIn UK list.

That does not mean candidates without hard technical skills are unwanted. Executives and senior leaders who can confidently and effectively oversee business transformation driven by emerging technologies are highly sought after. Keywords looked for include soft skills such as curiosity, agility, creativity and empathy.

Reskilling or upskilling to serve the green economy will also pay off in 2025. LinkedIn research showed global demand for talent in sustainability grew twice as quickly as supply in 2023 and 2024, with a 54% higher hiring rate than the average.

Janine Chamberlin, Head of LinkedIn UK, reflected what Rialto has been advising clients and followers: “Resilience, adaptability, and continuous learning will be key to navigating this rapidly changing landscape. And for businesses looking to make the most of the opportunities presented by new and emerging technologies, it’s clear that investing in upskilling initiatives, and AI tools to help their HR teams, will be vital.”

Employers are also struggling to negotiate the conflict between their wish to see staff fully back in the office while talent prioritises hybrid and flexible work. Another HR threat to organisational growth is rising levels of attrition and sickness. Executives need to implement data-driven predictive analytics to maintain productivity levels and keep workforce-associated costs down.

Rialto director Richard Chiumento said: “As we can see, AI and other emerging technologies, including those focussed on the green economy, are the areas seeing real growth as other sectors and legacy roles continue to struggle.

“It has been an especially difficult period for executives looking for their next role, but those who are open to upskilling and to repivot can exploit the increasing demand against limited supply in different growth areas.

“Meanwhile, all the evidence shows that executives and senior leaders wishing to improve their performance within their current organisation will accelerate their own positive career trajectories and organisational success by getting ahead and staying ahead in digital and AI adoption and scaling up. It’s the single most important area for leadership to be focusing on in 2025.”

See our last insight on AI spending strategies.

The pressure to act decisively is intensifying. Yet many leaders find themselves navigating incremental changes, unsure of how to transform their business models or confidently prove GenAI’s ROI.

Responding to feedback from our c-suite and senior leadership clients, Rialto are facilitating a virtual strategic collaboration programme between leaders from across the globe, to share experiences, perspectives, and best practices on GenAI adoption. It is designed to support leaders with the critical insights, tools, and actionable strategies needed to broaden their understanding of the complexities & opportunities of GenAI.

All participants in the programme will receive a personalised and group alignment report, to support them to lead their organisation more confidently in the GenAI era.

To find more details and register onto the Adoption of GenAI Global Virtual Dialogue click here.

It’s the most wonderful time of the year….to find inspiration in surprising places.

The festive season brings with it a host of traditions, both universal and personal to each household, friendship group and family. Among these traditions are the festive films enjoyed year after year. These movies don’t just warm our hearts and get us in the Christmas spirit, many also offer surprisingly astute lessons in leadership, strategy, and business acumen.

Watched through this lens, viewers can gain a whole new perspective and chance to reflect on their own leadership style – plus the perfect excuse to disconnect from work, switch off devices and settle down to spend quality time with loved ones. Here we look at a few of the classics and the insights we might glean from them.

Home Alone: Planning, Creativity, and Agility in Crisis

When eight-year-old Kevin McCallister is accidentally left behind as his family jet off on a Christmas holiday, he demonstrates remarkable ingenuity and courage defending his home against two bumbling burglars. The child gives a masterclass in quick thinking, resourcefulness, and resilience, qualities every executive needs in today’s unpredictable, volatile environment.

Kevin outthinks and outclasses his nemeses, innovatively deploying the resources at his disposal – including toy cars, an iron and paint cans – to stay one step ahead and protect himself and his home. Executives should adopt a similar mindset, making the most of existing assets and strategies to compete, even when rivals may appear to have the natural advantage. The themes of innovation and adaptability chime with business model transformation trends in today’s era of fast-moving Generative-AI driven developments.

Elf: The Power of Culture and Authenticity

Buddy the oversized Elf’s boundless optimism and commitment to spreading Christmas cheer might seem naive, but his authenticity and generosity of spirit transform those around him. For leaders, Elf offers a lesson in the power of staying true to your values, being prepared to show vulnerability and fostering an inclusive culture.

By creating a positive environment and being utterly genuine, Elf inspires a culture of collaboration and trust. Meanwhile, as an outsider, his unique perspective helps him bring fresh ideas to the table, illustrating the value of diverse viewpoints. His father, the buttoned up and authoritarian CEO played by James Caan, seems positively prehistoric next to Elf’s enthusiasm, openness and willingness to do things differently, a reflection of changing leadership styles today.

It’s a Wonderful Life: The Values of Community and Legacy

Many would call this the ultimate Christmas film. The 1946 Frank Capra-directed masterpiece sees James Stewart’s despairing banker, George Bailey, saved from the brink of suicide after giving his all to his business only to see it fail and potentially damage those he has sought to assist throughout his career. Two angels are sent to show him the positive impact he has had on his whole community and how different life would have been for so many had he never existed.

Bailey comes to understand that true wealth isn’t just financial or transactional, but also relational and communal. For executives, this underscores the importance of legacy and purpose in leadership and to maintain perspective and hope, even when things seem to have gone horribly wrong. It shows that honesty and transparency with stakeholders can help avert a reputational and financial crisis. The time, energy and thought Bailey has poured into his community is reciprocated when he is struggling. His customers, colleagues and friends remain loyal even through the most challenging times. The story teaches us to cultivate gratitude, take time to reflect on the sometimes-invisible positive ripples of our work, and build a strong corporate value based on trust and shared values, always considering the long-term impact of policies and actions. In business, nurturing strong relationships with employees, customers and the community can lead to enduring success. Recent trends indicate a shift towards work cultures that prioritise human well-being and organisational flexibility, recognising that strong relationships contribute to overall success.

The Muppet Christmas Carol: Embracing Change and Transformational Leadership

Last year, we presented the Rialto Executive Christmas Carol, exploring how senior leadership can learn from Dickens’ timeless story of redemption. This classic tale has inspired countless Christmas films, including many mentioned here..  Aside from the unsettling image of Kermit the frog and Miss Piggy having a brood of froglets and ringleted piglets, the Muppet version is as true to the original as any other, with Michael Caine as old Ebeneezer Scrooge going through a painful transition as he is confronted with the difficulties of his past and the impact it has had on his miserly behaviour in the present.

The story serves as a powerful reminder for leaders to embrace self-reflection and seek guidance from trusted mentors who can offer honest appraisals and actionable advice. Scrooge may be terrified of the realities revealed by his spectral visitors, but they give him the grace and humility to be able to rebuild sustaining relationships with those important to him in work and outside it. Scrooge also learns to value the people around him and show generosity, which will lead to strengthened business models and longevity and customer and employee loyalty and engagement.

Miracle on 34th Street: The Power of Trust and Reputation

When Kris Kringle is put on trial to prove he’s the real Santa Claus, he shows that belief and reputation can triumph over scepticism. Whether you watch the 1947 black and white original or the 1994 remake starring Richard Attenborough as the man in red and white, this sentimental staple reminds leaders to remain steadfast and believe in their mission and core values, even as they face multiple challenges.

Despairing the loss of the true seasonal messages of love and kindness amid the commercialism, greed and profit-making, Father Christmas comes to earth and gets a job as an in-store version of himself at a New York department store. In the more recent version, as he seeks to restore the spirit of Christmas, he gets caught up in a hostile takeover bid, a business rival’s campaign to twist the narrative in his favour through underhand means, and six-year-old Susan’s personal battle with her own faith.

Kringle unwaveringly insists that he is the real Father Christmas, despite facing a lawsuit and accusations of insanity. He is saved by the little girl’s demonstration of how people regularly place their trust in unprovable concepts, symbolised by the words In God We Trust on the back of a one dollar bill.. Between them, Kringle and Susan get the store owner, customers and community on board by staying true to their values of belief, hope, empathy, generosity, authenticity and understanding, all soft skills required increasingly by executives and senior leaders seeking to navigate through the complex business landscape where the practical and emotional needs of human stakeholders must be balanced with the demands of a fast-paced, high tech, competitive business landscape.

Die Hard: Strategic Thinking and Teamwork in High-Stakes Situations

The arguments can go on around whether Die Hard is truly a Christmas film (it is!), but what we can learn from Bruce Willis’s cynical cop, John McClane, are lessons in quick thinking, agility, strategy and the need to balance clear, independent thinking with trust and collaboration.

McClane gets caught up in a terrorist takeover of a company during its HQ Christmas Eve party and realises only he can save the day and the hostages, including his estranged wife who works there. It’s McClane versus a band of baddies, led by iconic high-cultured German Hans Gruber, played by a scene-stealing Alan Rickman.

Though he’s going solo vs the villains inside the gleaming high-tech skyscraper, he relies on the support and walkie-talkie guidance of an officer on the outside, Sergeant Al Powell, and must place his trust and his life in his hands. Nobody can do it all on their own.

Gruber’s men have planned their evil mission meticulously and know what they want and how they plan to get it – outnumbered McClane can only act by instinct, adapting to every move made by the tooled-up terrorists, showing how true leadership has the chance to shine when facing adversity and threat. McClane has to remain focused on his mission, alert to the changing risks and think on his feet. Of course, it all works out in the end and the shared experience reignites his relationship with his wife.

Executives will learn the most and develop fastest in highly charged, challenging situations and could learn from McClane by seeing potential catastrophes as opportunities for learning, change and building positive team dynamics. Through true collaboration and focus on a mission, organisations that are led by visionaries with courage, conviction and trust in their teams can get through almost anything.

How the Grinch Stole Christmas: Knowing It Is Never Too Late to Change.

Rubber-faced actor Jim Carey embodied the mean, green monstrous Scrooge in the film version of Dr Seuss’s Christmas classic. The Grinch chooses to live in isolation with his dog, Max, and hates the noisy, bright intrusion of Christmas from the nearby village of Whoville in the alley below, so decides to take it from them, removing every physical trace of the festival.

Of course, The Grinch has a backstory – he never had anyone special with whom to enjoy Christmas and therefore has been unable to understand its sentimental spirit or purpose.

But when the Whos rally together to salvage their celebration, even without the lost trappings of gifts, lights and general excess, the Grinch sees that it is so much more than indulgence and greed. So touched by the compassion, kindness and community he sees for the first time, his heart grows three sizes. He is big enough to admit he was wrong, return all the stolen gifts and join in.

As well as traditional Christmas messages which remind us every year to recognise what is truly important, family, friendship and sharing, the Grinch is a lesson for leadership in knowing when to admit you have been wrong or need to adjust or even abandon your strategy. No matter how far it has gone, how many resources you have devoted to a mission, executives must be open to change and really listening and responding to the views of the people it affects. Humility and compassion are keywords of modern-day leadership, not ivory towers and unilateral decision-making. Instead of looking down on those below, executives and senior leaders should be among the people upon which their organisations are built, truly understanding what makes them want to be part of their community, or they – employees, customers, partners – will move on and carry on.

It is all too easy to lose sight of our purpose, mission and even humanity amid all the commercial and organisational pressures and demands that rarely let up in today’s highly pressured and unpredictable business landscape.

Use the festive season to find inspiration in places you perhaps never thought to look. The very act of mindfully considering these lessons helps to ground us. Taking time to reflect on the weight of our responsibilities, the impact of our decisions on individuals and communities, and the reasons we do what we do—our motivations and rewards, both practical and personal—is not only restorative for the soul but ensures leaders stay relevant and focused on the purpose behind their work and their organisations.

As the year draws to a close, we at Rialto wish all our clients and partners a peaceful, reflective, and joyful festive season. May this time bring connection, renewal, and a fresh perspective for the year ahead. We also hope you find joy in watching your favourite seasonal films with a (post-ghosts) Scrooge-like sense of gratitude and inspiration.

We look forward to resuming our rewarding work with you in the New Year.

In the first part of this blog series Setting the Stage for Career and Organisational Success, we explored practical strategies for executives to establish a strong foundation for personal and organisational growth in the first half of the year. Goals were set, key relationships nurtured, and resources aligned with strategic objectives.

Here in part two, the focus is on building momentum. By evaluating progress, refining strategies, and embracing innovation, leaders can ensure they meet annual goals with a sense of achievement and readiness for further challenges ahead.

This blog outlines a framework for executives to consider in the second two quarters of an annual plan to consolidate achievements, enhance personal performance, and drive dynamic organisational growth.

Q3: Evaluate, Optimise, and Expand Leadership Impact

Opportunities come more quickly to those who stay ahead of the pack, adapt early and differentiate their approach.

Evaluate and Optimise Resources

The midpoint in any plan provides an ideal opportunity to step back and assess progress.  When evaluating your business priorities, review whether current resources are effectively aligned with strategic goals. Review the year-to-date performance against projections and identify areas that require rebalancing. Key considerations include:

• Resource Allocation: Are certain teams overburdened while others are underused? Can talent be redistributed to address shifting priorities?
• Talent Management: Have unforeseen departures created gaps? Are there rising stars who can take on greater responsibilities? Should hiring or upskilling plans be accelerated?
• Operational Efficiency: Examine supply chains, vendor contracts, and project workflows to address bottlenecks or inefficiencies.

By addressing these questions, executives can ensure resources are positioned for the greatest impact during the second half of the year.

Enhance Strategic Thinking with Data and AI

Strategic thinking is at the heart of effective leadership. Being able to think laterally, vertically and see the bigger picture is the hallmark of effective executives.  Focus on enhancing this skill by taking time to review and anticipate market trends, analyse data, and make informed decisions, leveraging data and analytics tools, particularly those powered by AI. These tools provide insights into market trends, customer behaviour, and internal performance metrics, offering a competitive edge.

However, the complexity of AI-generated insights requires careful interpretation. Engage in exercises to deepen your understanding, such as:

• Reverse-engineering AI insights to understand their rationale.
• Incorporating scenario planning and other strategic models to stress-test your decisions.
• Collaborating with teams of creative thinkers or mentors to explore innovative solutions to challenges.

Expand Leadership Impact: Mentoring and Board Roles

To stretch leadership skills and broaden influence, consider taking on roles outside your immediate organisation.

• Mentorship: Guiding emerging talent sharpens your own skills and can also add to your knowledge. It can provide fresh perspectives and bring to light additional strengths or areas to develop, particularly where mentees come from a different function or educational background or have specific skill sets and expertise.
• Non-Executive Directorships (NEDs): Serving as a non-executive director on a charity or start-up board can offer rich opportunities for networking and taking on a new role with different challenges. Anyone seeking a board position in their day job can gain valuable experience and boost their executive credentials. See our insight on how to get ahead as a NED.

These activities not only bolster your leadership credentials but also create a ripple effect of value within your professional network.

Q4: Review, Innovate, and Recharge

Review Performance and Refine Goals

As the year draws to a close, review progress against the objectives set earlier in the year. Think about team members and colleagues you have supported and the progress they have made. Equally, ensure core business imperatives are being met and evaluate.

• Are the original goals still relevant, or do they need refinement?
• Where have successes been achieved, and how can they be amplified?
• Which areas have fallen short, and what lessons can be used as opportunities to learn?

Encourage ongoing honest, blame-free evaluations within teams to foster a culture of learning and improvement. Recognise achievements and celebrate milestones to boost morale and maintain momentum into the final quarter.

This is where leaders earn their stripes and respect. How can a project or team be realigned with goals and get closer to desirable outcomes. What adjustments and corrections can reasonably be made at this time? Work with both stakeholders and teams to review and shift direction or create different collaborations to remain on course and deliver outcomes.

Drive Innovation and Prepare for the Future

With year-end within reach, hopefully the planning you have put in place all year is paying dividends, you have been able to negotiate any unforeseen challenges, you are on target to deliver year-end goals and you now have the resources and space to devote to more creative thinking before jumping ahead to plans for another year.

Q4 is the time to explore current and emerging trends in your sector and function. Actions include:

• Trend Analysis: Stay ahead by identifying emerging technologies and market shifts using free resources such as online magazines and expert professional think pieces and industry insights on LinkedIn and executive websites such as Rialto, BCG and Deloitte.
• Innovation Culture: Think about your ongoing approach to innovation and change: have you been risk averse or open to new ways of doing things? Foster an environment where teams and collaborations are designed to support experimenting with new ideas and approaches.
• AI Integration: In today’s fast-evolving Generative AI-led landscape, those who fear the new are most likely to be left behind. Evaluate how AI and other technologies can be further integrated to enhance efficiency and performance. What are your rivals doing? What is happening in your sector and comparable sectors? What are AI experts telling us about what may be possible in the near future? Are you ready for it?

Rest, Reflect, and Recharge:

Leadership requires resilience, and resilience requires rest. Use the end of the year and holiday period to step back and recharge. Reflect on the journey you set both for your business but also personally.  Look at what you have found most rewarding through the year and ask yourself these questions:

• Am I where I wanted to be when I started this 12-month plan?
• Am I satisfied with my professional growth and achievements?
• Have I maintained a healthy work-life balance?
• What adjustments can I make to ensure greater fulfilment and effectiveness next year?
• Is it time for a change? Or is there see scope for progress and fulfilment in your current organisation?

Consider feedback from trusted colleagues or family to gain additional perspectives on how you are navigating your responsibilities.

Preparing for the Next Stage of Leadership

The second half of the year offers a powerful opportunity to consolidate progress, address challenges, and set the stage for future success. Having a plan in place enables you to be more ready to evaluate and face new opportunities and challenges with clarity, confidence, and purpose.

Leadership, however, is a journey of constant evolution, and while careful planning is essential, adaptability, open-mindedness and reflection are equally critical. The higher one climbs, and the more responsibilities one takes on, the lonelier it can seem.  Working with a mentor or coach can encourage executives and senior leadership to step back and reflect, while providing invaluable guidance to navigate the day-to-day journey, offering perspective and accountability to help leaders reach their fullest potential.

“Planning without action is futile; action without planning is fatal.”

So said Cornelius Fichtner, a Swiss project management expert. Successful leaders understand that their careers and roles within organisations are ongoing projects that constantly needs to be consciously managed, adjusted, aligned with ever evolving strategic objectives, market forces, emerging trends and technological developments.

For executives looking to maintain their career on a positive, upward trajectory – whether pursuing a new role, growing within an organisation, or preparing for a significant step up – taking the time to reflect on personal goals and crystallising a structured vision of how to reach them by setting clear actions is key to success.

Breaking down that strategy into quarterly plans gives a practical framework to improve personal performance and retain a dynamic role in pushing for organisational growth and success.

The wind down to the end of the year and the run-in to Christmas can therefore provide the perfect opportunity for reflection and forward planning.  Executives who make this an annual practice gain clarity on what they aim to achieve, why those goals matter, how they intend to accomplish them, and what or who is needed to make them a reality. This intentional approach minimises wasted effort and maximises returns by focusing resources on meaningful priorities. Leaders who act with purpose and vision inspire confidence in their workforce and stakeholders alike.

In the first of this two-part blog series, we focus on practical steps that executives can consider to set the stage for personal and organisational success over the first two quarters.

Q1: Reflect, Assess, Set Goals.

Reflect: The start of the year often brings a renewed sense of energy and resolve. Teams return refreshed and focused from a break, making it an ideal time for leaders to refocus their efforts. The perfect time, then, to reignite and engage with key stakeholders to understand their expectations, challenges and opportunities and galvanise them into action and aligning objectives.

Asses: Reevaluate and carry out a SWOT analysis (strengths, weaknesses, opportunities, and threats).  Define both short-term and long-term career goals. Tools such as 360-degree feedback, personality assessments, and executive coaching can help shape a 12-month personal development plan with clear, actionable goals.

• Benchmark Skills: Compare existing skills against emerging opportunities and challenges. Identify areas for improvement, particularly in soft skills such as emotional intelligence, agility, and creativity, which are increasingly crucial in the AI-driven era.
• Schedule Development: Make time for training, conferences, or coaching. Populate your calendar with key events, manage conflicts, and work your projects around them
• Prioritise: Once you have a view of the coming months, you can set priorities and deadlines, Write a list of the most pressing demands on your time: what needs doing now, what can be delegated, what can wait?

Set Goals

Once objectives are defined, executives can lead team discussions to review successes and challenges from the previous year. Honest and active listening fosters collaboration, allowing teams to collectively identify potential roadblocks and opportunities.

• Explore New Markets: Evaluate how emerging trends, like AI, can enhance operations or open new avenues.
• Communicate Vision: Share objectives and inspire the team with a clear vision of the year ahead, ensuring alignment with organisational goals.
• Plan Talent Needs: Identify skill gaps and strategise whether to upskill current employees or bring in new talent. Build workforce confidence by highlighting how new technologies will enhance their roles and benefit the organisation.

Q2: Build Your Personal Brand, Communication Skills & Strengthen Relationships.

Branding

A strong personal brand is crucial for executives aiming to stand out. This involves defining a unique value proposition and aligning it with communication style, online presence, and professional networks.  Think carefully about how you wish to present yourself and the purpose of your communication. Are you looking to attract the right talent or partners? Gain a promotion? Stand out in your field? Attract or assure investors? Adjust your language content and tone accordingly with the end goal in mind. You may wish to work with a mentor or coach for an objective view.

• Online Presence: Do optimise LinkedIn and other relevant platforms by sharing thought leadership content. See our previous insights on elevating LinkedIn profiles and networking effectively.
• Networking: Stay active in professional organisations and leverage opportunities to expand influence and connections.

Whether you are in the market for executive transition, executive outplacement or you are seeking to establish yourself in a new or current position, stakeholders, employees and employers, current and potential, need to understand who you are, what you represent and why they should place their faith in you.

Communicate:

Effective communication is a cornerstone of leadership success. Plans, no matter how robust, can falter without clear articulation. Executives must refine both their digital and interpersonal communication skills whether seeking a promotion or a new opportunity, or presenting an organisational strategy to the board or other stakeholders.  The way you present and express yourself could mean the difference between success and failure.

• Transparency and Updates: Develop a plan for regular, transparent communication using emails, videos, or meetings. Provide updates and implement channels for feedback.
• Public Speaking: Hone skills in presenting to diverse audiences, both in person and online. In today’s business landscape, personality and likeability are more important than ever. While some have a natural affinity for public speaking and presenting, others may need professional coaching help improve confidence and delivery.
• Non-Verbal Skills: With increasing proportions of meetings held online, mastering the art of creating engaging presentations and holding the attention of people who may all be sitting separately in front of laptops in different time zones around the world is an additional challenge. Focus on body language, not just tone, to build trust and engagement.

Strengthen relationships:

Strong relationships are the foundation of effective leadership. Executives should prioritise key connections—whether with team leaders, clients, or stakeholders.

• Review and Follow Up: Revisit unresolved issues or recent communications to ensure alignment on next steps or actions needed. Schedule meetings with key stakeholders to maintain momentum and address emerging concerns.
• Support Teams: Collaborate with HR and managers to identify and support struggling employees, celebrate high performers, and mitigate risks of losing top talent.
• Encourage Feedback: Maintain an open dialogue to foster trust and identify challenges at the earliest opportunity, sharing your vision, identifying challenges and explaining how you plan to overcome them, to foster trust and openness. Invite feedback and respond positively.

By weaving these practices into their routine, executives position themselves for success going into the final two quarters of the year. They will have enhanced personal performance, strengthened relationships, and ensured their teams are aligned with strategic objectives. With clear KPIs in place, they can adjust plans to navigate challenges and capitalise on new opportunities.

Among all the competing critical challenges faced by CEOs on a daily basis it can be all too easy to manage with myopia – to only see what, and equally importantly, who, is directly in view. But failure to look further into the future can be costly and that includes neglecting to build a pipeline of future leaders who will ensure seamless transitions and continuous, dynamic organisational transformation. Direct costs associated with unplanned succession have been estimated at over ten times the price of an executive’s salary.

In the UK, almost half of businesses lack a formal succession plan even though by 2030, nearly a million businesses are expected to change hands due to retirement.  A fascinating Harvard Business Review study estimated that poor succession planning costs the S&P 1500 companies an eye-watering $1 trillion per year while, conversely, good planning could increase valuations of the biggest companies by up to 25%.

Prepare for handover: If the preferred successors have been identified and invested from within the organisation, they should work alongside the incumbent in the months before the transition and undergo assessment alongside the executive and HR to identify any gaps in skills, training and experience which must be filled before they take up the new position.

They should have been introduced to key stakeholders to establish working relationships and trust to ensure partnerships and teams are aware of the coming transition and confident in and familiar with the incoming leader.

If the organisation is looking for continuity and stability, the anointed successor should be fully briefed and working with HR and the board to gain full sight of all projects and responsibilities.

If the new appointee is coming in from outside of the organisation, there should ideally be a well-timed crossover where the successor joins the organisation, shadows the outgoing leader who will introduce their successor to relevant staff and partners. This period should not go on too long, or it will diminish the new appointee’s capacity to assert their own personal style and culture.

Of course, the board may be looking for a change of direction, which may come as a shock to key stakeholders. In such cases, the groundwork must be laid to prepare the workforce, customers, partners and if relevant, regulators.

Hopefully, the handover will be cordial, however there may be times when the situation is more hostile, for example if the incumbent has been fired or is going to a direct competitor, in which case key members of the teams around the outgoing leader will be key in helping smooth the transition while the CEO, other senior executives and comms teams will need to communicate with stakeholders to minimise any potential reputational damage.

Monitor and support: Once the new appointee is in place, it is essential to continue to evaluate and measure progress against KPIs and work with them to tweak any teething problems. Support them to build a team with future leadership potential to maintain the continuous cycle of development of  talent.

By taking these steps and committing to a structured leadership pipeline, organisations can plan further into the future with confidence and build adaptability and agility into business models to allow dynamic transformation while preparing for any economic or organisational shocks. None of us could have predicted the global disruption and human loss of the Covid pandemic. How many organisations have learned from it and would be able to replace stricken leaders or respond with structural and operational change to adapt models to seismic shifts such as that one? Succession planning should be loosely based on the cycle of churn for different positions, but with a pool of talent from diverse backgrounds who can step in at any time to ensure continuity and growth even as organisational objectives develop and change.

Once natural succession planning has been built into a business model it can be self-sustaining, with increasingly measurable and visible benefits. At Rialto, we find that talent that has been nurtured from within by partnering with us through  coaching or attending a  leadership development programme tend to demonstrate increased commitment and engagement minimising attrition costs and disruption. Any company that manages to keep a loyal, happy and aspirational workforce that understands hard work and impressive performance will be rewarded with meaningful promotion, will see their global reputation enhanced, productivity increase and a virtuous cycle of talent and growth. This should be balanced, however, with the introduction of fresh talent from other backgrounds, companies, sectors, industries and countries to avoid stagnation and promote dynamic cultural evolution, creativity, energy and innovation.

It is difficult to believe that just two years ago, only data scientists had really heard of Generative AI, the form of artificial intelligence that can create content, images and code; summarise vast amounts of data and extract insights according to prompts; identify patterns and illuminate concepts, stimulating creativity and filling vast gaps in our knowledge.

Below is The Rialto guide to the five stages of AI maturity – and actionable steps to help executives guide their organisations safely and strategically to a place of seamless integration and augmentation delivering growth, efficiency, improved services and products and innovation.

The arrival of the first open source ChatGPT in November 2022 led to a more dramatic transformation of the business landscape than any previous innovation and continues to evolve at a dizzying pace, offering unprecedented opportunities for growth and development.

For executives and senior leaders this has presented a new set of challenges – how to guide your organisation through this revolution at the right time, at the right speed, with the right platforms and end uses. Too fast and you risk destabilising your business model and workforce, buying into the hype, overspending on under-developed products and creating an expensive mess. Too late and you risk falling too far behind to catch up, allowing competitors to gain a defining edge.

At Rialto, we support executives to understand the five stages of AI maturity, creating a personalised roadmap aligned to their organisation’s strategic objectives, budget and culture. Those stages go from scepticism/ nascent awareness – the tentative first steps – to maturity, where AI is integrated into all relevant parts of the business, staff are trained and on board, business development and growth are driven by data and insights and a robust governance and ethics framework ensures Gen AI and other emerging technologies are being used safely.

Here is a brief outline of that map, the percentage of organisations at each stage of maturity in 2024* and some of the actions the Rialto team encourage executive teams to take at each stage.

Stage 1: Nascent awareness/scepticism. 26% in 2024

Organisations at this stage may be eschewing AI altogether or understand its potentially profound impact on growth and operations but lack a clear plan or strategy to move forward. Perhaps AI champions are meeting scepticism or fear from key leadership and stakeholders. According to various surveys, the percentage of organisations at this stage was anything between 43% and 65% in 2023, compared to the 26% figure quoted above in 2024 showing the speed at which organisations are moving on. To avoid losing ground and potentially destabilising your business’s future, our team recommend the following steps are taken as a wait and see approach in 2025 will be considered a high risk strategy.

Leadership Action

Prioritise Education and Vision: Leadership must start by educating themselves and their teams about AI’s capabilities and potential. Rialto works with c-suite leaders to support them through this vital first stage with confidence and ensure no wrong turns are taken.  Time is now at a premium, the journey into an AI-driven future must be clearly mapped out with strategic objectives at the fore to catch up with the field without rushing into critical mistakes.

Prepare your workforce: Bring in AI experts and facilitate open, two-way discussions across departments to ensure a smooth, carefully choreographed entry. Invest in training to increase awareness and understanding among employees. Invite feedback and act on it – only 17% of companies do so at this stage. Ensure your biggest asset, your people, are at the forefront of this journey throughout. Collaboration, confidence and co-operation are essential.

Evaluate the Market and Competition: Leaders should analyse competitors to identify how AI is shaping their industry landscape and assess their own position.  Rialto has partnered with a number of executive teams to build their business case for AI investment by highlighting both risks and opportunities to help ensure buy-in from all stakeholders.

Formulate a High-Level AI Vision: Leadership should articulate a clear vision of what AI could potentially achieve for the organisation. This doesn’t have to be fully fleshed out but should set the stage for future AI initiatives.

Assess Current Data Assets: Leadership should work with data teams to audit available data and build systems that can collect and analyse clean, relevant data aligned to strategic objectives as this will be key to future AI success.

Identify Low-Hanging Fruit. What are the best and least complicated first case uses? Seek repetitive, time-consuming, administrative tasks that could be streamlined; customer service portals that could be automated. You may seek external support as well as working with c-suite and data teams to build new AI-led systems that will show instant results with minimal risk to build confidence and demonstrate value.

Stage 2: Experimental/Activation. 41% in 2024

Two fifths of organisations assess themselves to be in this stage, experimenting with AI technologies to address specific opportunities or challenges. This phase is entrepreneurial and opportunistic with a focus on learning, testing agility of existing business models and data. More conservative, risk-averse companies might feel most comfortable at this stage now, trialling and preparing their organisations for more wide scale transformation in the next two to five years.

Leadership Action

Set Up Pilot/Proof-of-Concept Programmes: Identify and define high-potential, simple to run end uses and trial small, measurable projects within a controlled environment. Emphasis should be on analysing results and interaction with systems and employees, iterating and identifying areas which need to be adapted and developed before bigger, more risky projects are explored.

Foster a Culture of Experimentation: Leadership needs to encourage a mindset where small-scale failures are viewed as learning opportunities. Our project teams often find successful organisations treat their AI pilots as experimentation cycles rather than one-time projects. Ensure all learning is documented, analysed and applied to future projects and scaling up.

Identify Key Metrics for Success: To that end, establish clear KPIs to continually evaluate the success of these AI experiments, whether improved efficiency, growth, cost reduction or customer or employee satisfaction. Iterate based on feedback. Report to stakeholders, demonstrating transparency, feasibility and value.

Develop Cross-Functional Teams: Include IT, data scientists if you have them, business unit leaders, and compliance officers in pilot teams to ensure pilots are practical, scalable, and compliant. Smaller companies may wish to hire consultants.

Invest in AI Talent: As experimentation ramps up, recruiting AI specialists or upskilling existing employees will become crucial. Maintain open dialogue with existing staff and look for opportunities to upskill to foster trust.

Stage 3: Foundation Building, Investing in Infrastructure and Data, Wider Experimentation. 2024: 14%

This is where we start to enter the more advanced stages inhabited by earlier adopters.   These may tend to be enterprise and innovative and/or tech companies which have a clear understanding of how AI can benefit their operation and have defined processes for implementation across the organisation.  Leadership understands the need for robust infrastructure, data governance and AI talent.  According to a Gartner report, 80% of AI projects will fail to scale by 2025 if companies don’t build a solid AI infrastructure.

Leadership Action:

Introducing wider AI projects: Those low-hanging fruit identified in stage one should now be going live and being closely monitored for governance, security, quality, impact and ROI. Our clients have tended to scale up first in operational optimisation, customer support and marketing analytics and content creation. If your organisation does not have its own AI ecosystem in place, with a c-suite leader taking accountability and data leads in relevant teams, it might be an idea to bring in external consultants to maintain dedicated oversight and advise throughout this process.

Data Strategy & Infrastructure Investment: Leadership should prioritise building a scalable data infrastructure. This includes investing in cloud computing, data lakes and the tools necessary for managing large datasets. Test platforms for compatibility, robust compliance, cybersecurity, customer service and ease of use before scaling up.

Focus on Data Governance: As AI thrives on data, it’s imperative that leaders ensure that data collection, storage, and usage adhere to regulatory standards. Data governance frameworks must be implemented to guarantee AI models are ethical, secure, and transparent.

Recruit Specialised Talent: In this stage, it’s essential to have the right expertise to scale up and optimise AI use. Leadership should seek to build teams of data engineers, machine learning experts and AI project managers or bring in consultants.

Consider Establishing a Data Governance Committee: Form a committee to ensure data privacy, quality, and compliance are central to your AI operations. Ensure accountability and transparency.

Promote Data Literacy: As AI permeates every level of the business, leadership should invest in data literacy programs to ensure employees at all levels understand how to share relevant, clean data with the knowledge base and interact with and interpret AI outputs.

Stage 4: Strategic Scaling Stage, Deploying AI Across Functions, Optimisation. 12%

Just one in eight are at this stage and those that are here and beyond – having reached it carefully and in alignment with strategic objectives – are reporting promising results with efficiency savings, growth and vastly improved products and services.  At stage 4, AI moves from pilots to full-scale deployment across multiple business units. Agility is built into business models to continuously adjust and adapt. The workforce should be growing in confidence, with AI integrated into their routines and actions.

Leadership Action:

Consider Investing in AI Platforms and replacing some legacy systems: Seek advice on which platforms to use and look at what competitors are doing with them. You may wish to invest in a single Gen-AI powered CRM such as Amazon AWS, Salesforce or Hubspot, and bolt-on other application and tools – or have your data scientists build your own using open access Generative AI models. Continuously monitor ROI and build a relationship with the provider to ensure constant adaptation and improvement or consider alternatives.

Align AI with Business Goals: Always start with objectives, not the technology, to avoid buying into hype. New models and platforms and iterations are coming on to the market daily. In this second wave of adoption, consider prioritising high-impact areas such as supply chain management, customer personalisation and fraud detection.

Consider Creating an AI Centre of Excellence (CoE) and/or Data Governance Committee: Establish a centralised AI committee or CoE that drives AI strategy, oversees technology deployment, and ensures best practices across the organisation. An ecosystem should now be in place with c-suite responsibility and accountability and company policies, guardrails and training for anyone in knowledge-based or customer facing roles in risk and compliance issues such as data security, copyright infringement, GDPR, inaccuracy and bias.

Leverage Data: Use analytics to gain insights, drive decision-making and continuously improve your offering, operations and forward planning.

Stage 5: Maturity, 7%.

Organisations at Maturity stage will find that AI has become a core component of the organisation’s DNA, integrated into the very fabric of the company, driving every aspect of decision-making and enabling continuous innovation. According to a study by Accenture, the few businesses in this stage outperform their competitors by three times in terms of profitability. In the most extreme of AI streamlining exercises, Meta boosted net income by 201% and saw a 178% stock surge by focusing on AI operational efficiency. However this came at a cost of 21,000 jobs. Companies that have successfully reached the fifth stage of maturity find themselves in a virtuous cycle of continuous improvement while employees understand the value of data and are guided by AI copilots in everything they do. AI augments every task, function and team. Employees are 1.5 times more likely to view AI as a helpful colleague. This shift in perspective leads to increased AI usage, enthusiasm, and productivity gains. Impact is assessed and ROI and value are demonstrable and measurable.  Robust guardrails are in place to minimise and mitigate risks.

Leadership Action:

Foster Continuous AI Innovation: There is no time to rest on laurels. Other organisations are catching up and technology is constantly evolving. Leadership must keep pushing the envelope by encouraging teams to innovate continuously. This may involve AI-powered R&D initiatives or the adoption of cutting-edge technologies such as AI-generated content, AI-driven customer experiences and autonomous systems.

Evolve Organisational Structures: Leaders should ensure that the organisation is agile enough to respond to the fast-paced changes in AI technology. This may involve restructuring teams, constantly upskilling or creating new or hybrid roles.

AI in Strategic Decision-Making: Make AI a critical player in c-level strategic decisions, using AI-driven insights to predict market trends, customer needs, enhance supply chain and internal operational efficiencies.

Stay Ahead of AI Trends and New Tech Offerings: Leadership must stay abreast of the latest AI advancements such as generative AI, reinforcement learning, or edge AI, and adapt them to their current and future business models. Rialto supports c-suite leaders at this stage to maintain a bigger picture perspective, stay focused on future and personal/professional development.

Benchmark Against Industry Leaders: Continuously evaluate your AI maturity against the best-in-class organisations to identify new areas for AI-driven growth.

Maintain virtuous cycle of improvement: Ensure data analytics feed into continuous development and growth. Maintain a constant state of innovative evolution. Sustain and expand capabilities and use cases.

Ethical Considerations: Never lose sight of the governance and ethical risks and responsibilities. Build in continuous reviews and ensure continuing compliance with changing regulations in different territories.

Benchmarking your organisation against the above five stages will provide a clear indication of where you and your company lie on the path to AI maturity and the steps you may need to be considering accordingly. It’s clear that organisations are moving through this process at an ever-faster pace, reflecting the growing importance of AI in today’s business environment.  Yet with 41% of organisations now in the experimental stage and only 7% in full AI maturity, there remains a significant opportunity for competitive growth.

While cost reduction and efficiencies may be the primary goal of immature adopters, high performers are twice as likely to have shifted into a phase of innovation where they use Gen AI to create new businesses or offerings, expand into new sectors or regions armed with detailed insights and the confidence of likely success gained with reliable analytics extracted from vast lakes of data.

The shift from initial scepticism to full AI integration can happen faster than many expect with the right approach. Whether you’re just starting out or already experimenting with AI, having a clear roadmap and a focus on continuous innovation will enable your organisation to progress rapidly and stay ahead. The question isn’t whether you should move up the stages, but how quickly you can—and will—do so.

Whatever stage you are at, The Rialto team of experts can help guide you and your organisation to maturity at a pace that suits your culture, while ensuring a human-centric focus, bringing your people on this journey with you. Contact us for a free initial consultation if you would like to know more.

*Asana and Anthropic State of AI at Work study        

It’s difficult to imagine any business leader not yet open to the transformative possibilities of Generative AI. Most will already be exploring the potential or investing in it, to varying degrees.

But what impact is it having on employees and what exactly is the role of CEOs and HR heads in leading their people through this fast-evolving landscape of seemingly infinite opportunities and risks?

So far, the most cautious adopters have dipped their toes in, primarily viewing Generative AI as a tool for streamlining operations – summarising content, reducing human workforces, cutting costs. One analyst described this limited approach as an Ozempic-style organisational weight loss programme.

While that might make for a prettier bottom line in the short run, now is the time for beefing up, not slimming down. Underweight organisations will not have the agility, growth mindset or adaptive workforce to identify and seize the burgeoning AI-led opportunities to enhance, augment and strengthen their position, brand and future-focused growth and customer experience development.

There are few sectors, functions or roles that will not be affected by this revolution. Employers told a 2023 World Economic Forum survey they expect just under half of workers’ skills to be disrupted within five years. As GenAI develops at exponential speed, that estimate is looking highly conservative.

That means that companies of all sizes must prioritise their people to build agility and rapid learning systems into their business models.

How can CEOs and people leaders ensure they are priming their workforces to help them make the best uses of AI at the right time, pace and scale while minimising the risks?

Know when to automate and when to augment:

Generative AI is transforming workforces but not exactly in the way doomsayers had forecast. Yes, many roles will be displaced in the face of Gen AI’s ability to create content, code, marketing tools, conversational chatbots and data-driven insights.

The real transformative power of Generative AI, however, lies in both its accessibility – the open model means anyone who can write a question can use it – and its capacity to upskill and augment the work of humans.

Some forecasters predict that AI will do most jobs better, faster and cheaper. What does that mean for human workers?

Take the example of chatbots. They may replace the front line of call centre agents now that natural language processing has made their conversational skills so much more sophisticated.  However, their true value comes in the augmentation of bot and human. The bot can undertake the dull, repetitive tasks and work the unsocial hours while enhancing the experience of both the employee and customer. It can share personalised information and offers with the customer while enriching the data available to the human agent based on the customer’s history, wider trends and probabilities to guide the agent towards a conversation or transaction that satisfies all parties, whether through resolution of an issue or a sale.

If used properly, with training and guardrails, Generative AI can act as a highly informed and incredibly efficient co-pilot for almost all employees involved in work that involves using a computer or Smartphone which is why they all need to be confidently and actively engaged in the ongoing disruptive process affecting how work will be completed in the future .

Transforming your business model

This starts with investment in a Chief Data Office and/or a Chief Automation Officer or similar who can oversee the organisation’s customer and AI-based transformation, working closely with all c-suite leaders and especially the CEO to ensure that use and assimilation of new platforms, applications and processes are aligned with strategic objectives both in the short, medium and long term. End uses need to be defined in terms of cost and objective and ways to measure ROI identified; projects should be piloted before being scaled up and disrupted employees need to be fully informed and prepared.  The CDO/CAO will also be accountable for a robust data governance and adaptive regulation-adherent framework to minimise and mitigate inherent risks around AI such as data compliance, inaccuracy, poor data, security, privacy issues and intellectual property. They should also ensure a safe data-sharing mechanism to ensure insights, content generation and strategic scaling up of AI-powered projects are based on the most up to date, clean and complete datasets available.

Larger companies may wish to create a whole new ecosystem of data-trained leaders to ensure all teams are using their technology safely and effectively and to share data and insights vertically and horizontally.

Workforce optimisation

The CEO and people leaders will also need to work with the CDO/CAO to ensure processes are in place to constantly review their workforce’s skillbase and ensure staff are equipped, not just for the demands of 2024 or even the next fiscal year, but in alignment with strategic priorities for the known mid/long term

One way to do this is to leverage predictive analytics and data analytics to audit the workforce and identify functions , teams and even individuals who could increase their value – and job satisfaction – through upskilling.

Platforms including Gen AI-driven CRMs (customer relationship management systems) such as Salesforce Einstein have capabilities to create dynamic, upskilled workforces, identifying need and responding with personalised training or career advancement opportunities. This keeps the workforce agile and adaptable.

Introduce new skills

Generative AI’s potential for positive disruption depends on the quality of the data that goes in and the prompts used to extract insights. Employees who use it do not need to be data scientists, such is the beauty of the open model. However, the clearer and more refined their prompts, the greater the value of the Gen-AI insights that will enhance their productivity, efficiency and quality of work.

Those who upload clean data with an understanding of how that might be used will also add great value to their everyday work.

The more of this type of training provided to the workforce, the greater the ROI and employee satisfaction, creating skilled, stable, adaptable workforces, minimising attrition and attracting the best and most relevant talent. According to a PwC survey, two thirds of jobseekers considered a company’s use of cutting-edge technology when deciding where to apply. If they are looking for good use of AI, chances are they will come with a pro-tech attitude, willingness to learn and a level of skill.

Soft skills crucial to AI-based transformation such as adaptability, problem-solving, abstract thinking, creativity and empathy can be harder to teach. These are some of the skills employers should be looking for in new recruits if they are struggling to embed them into the existing workforce to fill the gaps and promote cultural change.

Foster trust to build resilience

While some employees, especially those trained in technology or science or younger recruits who have grown up around it, may embrace any opportunity to augment their own work with AI, there are sections of the workforce who may be more intimidated by technology and fearful of such a fast pace of change and the possible impact on their own careers.

Trust needs to be built from the top down to reduce these concerns. Offer flexible, human-centred training – not just digital – and ensure total transparency. Dispensing of teams or individuals whose jobs can be automated will have an unsettling ripple effect across your whole organisation.

The staff affected need a special type of transition assistance which guarantees to work with them until a new future is secure. This is an enhanced brand of transition support which only Rialto so far are pioneering globally.

Ensure any restructuring is designed openly, fairly, and with kindness. Explain the reasoning to the whole workforce and ensure they feel valued and understand the necessity and future value created by introducing technology, the security and opportunities for growth and, if you are able, explain that you are or will be offering upskilling to all employees who will be working alongside AI in the future. Open a dialogue, invite questions and answer them as honestly as possible.

Ideally, this should come directly from the CEO. Vacuums in knowledge will be filled by mistrust and misinformation. Take control of the messaging around AI, working closely with your operations and HR leaders.

We are only just starting to understand the true transformative potential of Gen AI. It’s no longer sufficient for CEOs and other c-suite executives to delegate responsibility for IT software and systems. They need to understand what is happening now, what is on the horizon and lead from the front, with compassion, confidence and strategic acumen.

If you require professional, structured support from our experienced team of AI, change and transition management experts, or would like to develop a greater personal understanding of Generative AI, its capabilities and risks, do get in touch.

It’s been another tumultuous year on the global stage with continued geopolitical tensions, the ongoing threat of conflict in Ukraine and the Middle East spilling over, half the world going to the polls and the looming threat of recession. On the bright side, inflation appears to be under control after two years of peaking in double figures.

But what can we expect for Q4 2024 and how will it all impact company investment appetite and demand for executive skillsets? Below, we take a look at the indexes and indicators.

The UK and Global Economies

The UK and the US find themselves on either side of their respective national elections, with economies on both sides of the Atlantic partially paralysed by a wait-and-see approach.

In the UK, the expected Labour Party landslide majority has seen a shift in hiring in different sectors as some, including technology, construction and renewable energy, anticipate a boost in line with policy priorities.

However, economists have called on Chancellor Rachel Reeves to tone down the gloomy messages around tough times ahead to fill that £22bn blackhole, warning they could become a self-fulfilling prophecy. The GFK’s confidence index, which measures UK consumer sentiment, was down 7% to -20% in September 2024, raising the spectre of a potential knock-on effect of consumers holding onto their savings and reducing consumer flow into the economy.

Already, the brief economic bump of Q3, when the UK saw 0.5% growth, is expected to tail off with 0.2% growth in Q4.

Meanwhile government borrowing matched the highest in any August outside the pandemic, which does not bode well for a loosening of the Treasury purse strings any time soon. With public sector pay rises and an increase in the Living Wage, lower earners will have more spending power, however employers may feel the pressure on having to pay the higher wages with the biggest impact on services, healthcare and retail industries.

The Chancellor’s package, to be announced on October 30, will be watched eagerly by business leaders for a clearer indication of potential areas and stimuli for growth and risks/challenges ahead.

Speaking in her first Conference speech as Chancellor, Rachel Reeves didn’t give much away but did strike a more optimistic tone, ruling out a return to austerity, any income tax or corporate tax rises and reinforcing that she would stick to manifesto promises, boost investment in the regions, launch a new industrial strategy in October and host a major global investment summit to send out the message that “Britain is open for business”.

“Growth is the challenge and investment is the solution,” she told delegates, raising hopes of changes to the debt rules to enable more public investment in capital schemes such as schools, hospitals and infrastructure.

Recent figures show the UK has the lowest investment as a proportion of GDP in the G7 while imports and exports are suffering still in the wake of Brexit, which has impacts several sectors including manufacturing and transport and logistics. Retail is the one bright spot. The new government is seeking to build stronger trade agreements, repair relations with the EU, encourage greater investment in British industry through pensions and attract international investment, especially into the green economy, technology and infrastructure.

Ben Jones, CBI Lead Economist said: “By doubling down on the recently announced planning reforms, introducing a Net Zero Investment Plan and implementing a clearer, fairer and more competitive business rates system, government has an opportunity to supercharge investment and UK growth over the next Budget period and beyond.”

Globally, India and Japan have seen growth and the US appears to have avoided a feared recession with recent payroll growth, rising household income, falling inflation and an anticipated programme of rate cuts offering potential stimulus of future growth which started with a surprise 0.5% cut in September, potentially easing the brakes on the engine house of the global economy.

However, the outcome of the US General Election in November and inauguration in January 2025 – after the policy shutdown of the two-month transition period – will reshuffle the deck and help determine different winners and losers. If Trump wins, expect aggressive trade wars which could have a particularly harsh impact on struggling China. A Harris victory could see a drag on policy with a divided Congress but a boost for renewables, lower unemployment, lower budget deficits and average historical 1.2% higher economic growth than under the Republicans.

The view of CEOs

KPMG’s latest CEO survey found company leaders confident about prospects for growth but feeling the pressure to deliver in challenging circumstances.

In the UK, most say they have already adapted their growth strategies to account for increased AI-driven transformation. They view cyber security and supply chain issues the biggest threats to growth, a reverse of the wider global response.

The Executive job market

There appear to be mixed messages on hiring as we go into Q4, reflecting hesitancy as employers await clearer signs of which way the UK and world economies are headed, plus growth in some sectors and stagnation or contraction in others.

The general picture appears to be that employers want to hire, know they need to hire, but are being restrained by a number of factors include wage pressures, uncertainty over interest rates – held again in September – economic inactivity and skills shortages.

Jon Holt, chief executive and senior partner of KPMG in the UK, said: “Recent government warnings that the UK’s economy may weaken further before improving add to the overall sense of uncertainty, affecting recruitment plans.”

The Recruitment and Employment Confederation (REC) recently reported permanent positions were still heading downwards and redundancy volumes up over summer while BDO said hiring in August overall was the worst month in a decade.

This is backed up by latest ONS labour market figures which show that in Q3, the estimated UK vacancies fell by 42,000 on the quarter to 857,000, the 26th consecutive quarterly drop.

However, there is hope for a pickup on the horizon, at least in some sectors.

Lloyds Bank UK Sector Tracker said 10 of the 14 sectors it monitors had increased their headcounts, month on month, with more hiring than at any time in the past 16 months. And global recruitment firm Manpower Group reports an increase in UK employer hiring confidence.

Manpower’s survey found estate agents were being hired fastest indicating a pickup in the property market which could be a positive signal for construction and related industries, especially with the government’s determination to press on with a mass housebuilding programme. This was followed by financial services, software services and technology equipment manufacturers.

When looking at intent to hire, UK net employment outlook, confidence was healthiest in information and technology, at 48%, industrials and materials, 32%, and financials and real estate plus health care and life sciences on an equal footing at 29%

There’s been quite a change on the third quarter, reflecting the priorities of the new government perhaps.

Information technology was at 29% just months ago, energy & utilities grew from -12% to +27% and Transport and Logistics was up by 24% over the quarter

Unsurprisingly, demand for hiring at c-suite level was lowest, according to Manpower, at 4% in a multiple choice survey, with senior management at 16%. So, employers are fired up and ready to recruit strategically to power up their Gen-AI driven growth strategies. But some may sit tight a little longer while others press ahead and risk delayed ROI to get ahead.

The Manpower survey found IT & Data the most in demand hard skills with collaboration and teamwork, reasoning and problem solving and resilience and adaptability the most sought after soft skills.

Globally, the picture appears to be a little less competitive, with a similar focus on the same areas of growth, largely around AI and other technologies.

92% of international CEOs said they planned to increase their headcount, but also emphasise the need to upskill their people and work hard to bring in the best talent in the most undersupplied functions, again, especially focussed on technology.

According to Manpower’s poll of more than 40,000 employers in 42 countries the global hiring outlook for Q4 2024 was slightly higher on Q3 but down 5% on the year. Strongest hiring was seen in India, Costa Rica and the US.

Executives looking for new positions may therefore wish to target growth sectors, specifically dynamic companies within those sectors. This may mean needing to repivot or reskill and refocus CVs and applications around the most in demand hard and soft skills to compete in the extremely challenging market.

Rialto can provide structured, professional support to help you understand current global, regional or UK trends and developments in the executive job market, benchmark and understand the skills you need to develop to ensure your brand and profile are strategically positioned to attract the right opportunities and make progress.

As we move towards Q4 and start thinking about end of year, is it just possible to detect an air of optimism that there could be some economic certainty ahead of us? While there is still a need for caution, Chief Human Resources Officers (CHROs) should be preparing for the fourth quarter by looking ahead at a relief on the hiring squeeze and preparing for more mobility in the market.

That means ensuring departmental strategic priorities are fully aligned with evolving demands, opportunities and challenges of both the organisation and the workforce and making adjustments which anticipate emerging trends. The final quarter is a time to review performance of team capability, plan interventions where necessary – including reskilling and upskilling – and think ahead to 2025 fiscal planning to ensure the workforce is agile and ready to evolve with AI and data-driven initiatives which will continue to be the biggest drivers of progress and growth.

Here are the priorities HR Directors should be considering to help steer their organisations through this final quarter.

Leader and Manager Development

Markets are in a more dynamic state than ever before, largely due to the phenomenal rate with which AI, and particularly Generative AI, continue to evolve and shape business processes.

Q4 is a good time for HR Directors to review how prepared their organisation is to fully realise the potential opportunities and defend against the risks. This change management starts at the top. What will differentiate companies that ride the wave of AI-driven progress from those left floundering in their choppy wake is decisive, informed, confident leadership.

Only then can they guide their managers and teams through this time of uncertainty and change and inspire and empower staff to rise to the challenges. New skills are needed for this new world. Check your leaders also are up to speed on appropriate management style with an emphasis on emotional intelligence, empathy and good communication over authoritarian command and ivory tower leadership. Now is a good time for HR to look at hierarchical structures and ensure the workplace remains open, inclusive and a safe environment in which to foster innovation and creativity.

Key actions: Audit your Board and SLT – decide how best to invest your remaining budget in development programs, executive coaching, digital fluency and continuous learning opportunities and/or plan for fiscal 2025 to help ensure they truly understand the complex new landscape and have the skills in place to constantly adapt and optimise.

Talent Acquisition and Retention

The labour market is anticipated to continue to present challenges with talent demand outpacing supply in many areas, especially around AI-led transformation. CHROs need to refine talent acquisition strategies by leveraging AI and other emerging technologies to streamline hiring processes and improve candidate experiences. How is your attrition rate looking so far this year? Are you losing valuable talent to advanced, more forward-thinking, inclusive and nurturing organisations?

In today’s market employees are far more willing to move around to ensure their needs are met, rather than consider a lifelong career at a single company. In order to retain valued talent and fill skills gaps, consider upskilling existing staff through continuous learning to help build their portfolios, keep them motivated and engaged to improve productivity and serve organisational need.

Key actions: Review your performance on Glass Door or any other company review site and conduct employee satisfaction surveys to learn what you are doing right and what you could do better. Investigate AI-driven recruitment tools and data-driven analytics to help monitor and improve employee experience. Consider how you might enhance internal mobility programs and making them more visible and accessible to current employees.

Foster Positive Organisational Culture and Employee Well-being

A vital element of talent acquisition and retention, every company’s success is closely tied to the well-being, loyalty and engagement of its employees. As the year comes to a close, it’s important to ensure that your workforce remains motivated and aligned with the company’s goals. Year end can see an ennui set in, especially with dark nights drawing in and the wind down to Christmas. How will you maintain energy levels and monitor and nurture the mental health and wellbeing of your staff?

Key actions: CHROs should prioritise initiatives that promote a positive work culture, address employee burnout, and recognise the contributions of their teams. Consider a mid-quarter initiative to lift and energise the workforce, for example, gamification of more mundane tasks, a new reward system, inter-departmental tournaments or team-building activities.

Drive Cost Efficiencies through AI-driven innovation

It’s been another tough year with economic uncertainty and budgetary constraints. CEOs and other stakeholders want to see evidence of cost efficiencies within HR functions without compromising the quality of services. Review the bottom line before the end of your financial year and ensure you remain on target.

Do you need to modernise recruitment methods using new technologies? Are you automating repetitive, time-consuming tasks such as payroll processing and benefits administration? Ensure your AI-led transformation is transparent and use internal communications effectively, including messaging from the top, to assure staff they are valued, explain how technology will benefit the organisation and ensure they do not feel alienated or fearful. All tech transformation should be people-centred. Take the opportunity of the next board meeting to ensure that all members are aware of the impact a likely acceleration of AI integration through 2025 might have on staff and put strategies are in place to mitigate and minimise this.

Key actions: If you haven’t already, ensure discussions around AI and automation are being held at C-suite level. Where can you make efficiency savings by bringing in AI to take on repetitive tasks and augment the more complex work of human employees? Look at what competitors are doing and pipeline technologies coming onto the market. Show initiative and take them to the board this winter. Audit your workforce skills: looks at training budgets and think about how that money could best be spent on futureproofing your organisation.

Diversity, Equity, and Inclusion (DEI)

Promoting DEI is not just a moral imperative but a business one. CHROs should continue to prioritise building diverse teams, especially at the leadership level. Implementing unbiased recruitment processes and fostering an inclusive workplace culture can help organisations attract and retain diverse talent, which in turn drives innovation and better decision-making.

Key actions: Review any changes to DEI laws and guidance in any territory in which your organisation operates before year end. Check you are compliant and look into any laws tabled for the future to ensure you are prepared. Look at what is happening in your market for inspiration on ways to differentiate your company and make its DEI credentials stand out and ensure they are visible to prospective talent.

Align the organisational skills base with evolving drivers for growth

Q4 is a good time to ensure your workforce is aligned to strategic objectives – have they changed since goals were set at the beginning of the year? Is it equipped to respond positively to current and emerging trends, opportunities and challenges? It is essential that HR builds agility and adaptability into its workforce and can constantly assess and adjust. A staff base that is concrete-footed will be too slow to pick up new technologies and ways of working. If your workforce is falling behind, what can you do to bring it back in step and prepare it for the near future?

Key actions: Audit your workforce skills base against current and future requirements based on your organisational objectives and wider market forces and developments, especially around AI. Look at budgets for training and career coaching for the rest of this fiscal year and next and plan upskilling to suit. Consider AI tools to help monitor performance and introduce automated continuous learning to keep your workforce agile, responsive and up to date.

Modern day boardrooms are increasingly recognising the need to have HR representation at the highest decision-making level. Many CHROs will be into only their first or second year so it is imperative that they use this time of year to demonstrate value and show they are as integral to the progress and growth of an organisation as any other department. Take time in Q4 to review the year to date, make any adjustments to policy, recruitment and skills and plan future growth and efficiency savings through technology-driven initiatives.

Prepare the case for increased budgets for training and development to ensure your workforce is AI-proficient and ready to adopt new technologies and working practices to leave the competition for dust.

As we approach the final quarter of 2024, executives and board directors find themselves at a pivotal juncture. Q4 is not just the culmination of the year’s efforts but also a critical period that sets the stage for the year ahead.

So, as we crunch back up through the gears following the summer slowdown, now is the time for all top tier leaders to look forward, evaluate priorities and ensure all functions and teams are strategically aligned to ensure resilience and growth.

Here we look at what should be top of mind for CEOs as they steer their organisations through the final stretch of 2024.

Almost two thirds of CEOs singled out growth as their top business priority for 2024 in a Gartner survey, the highest level for a decade and up from a half the previous year. This indicated a renewed confidence in the economy after years of uncertainty, stagnation and hesitancy.

The green shoots have been slower to emerge than many had hoped, however there are now definite signs that the most challenging times are behind us, barring any further disruptions such as an escalation of conflict in the Middle East or Eastern Europe.

How can senior leadership then optimise the last months of the year to set their organisations up to seize opportunities as we navigate the interplay of different factors that paint numerous possible futures for the year to come. This includes continued shifts in the global economic environment, how businesses organise themselves across sectors and the continued evolution of digital technologies, their adoption by consumers and the impact on business operating models.

Re-evaluate and Adjust Strategic Goals

This is the perfect time to reassess your company’s strategic goals set at the beginning of the year. Are they still relevant in the current market environment? What has changed in your sector, organisation or the wider economy in that time? Have new opportunities emerged around disruptive technologies, sustainability, for example, or have new markets come to the fore?

Key Actions: Conduct a strategic review with your executive team, focusing on KPIs, market dynamics, and potential pivots. If necessary, recalibrate your strategies to ensure alignment with the latest market realities.

Strengthen Financial Management

Q4 is traditionally a time for financial housekeeping. What are the potential economic challenges on the horizon and how can you best prepare? In what direction are market trends pushing you? Do you need to think about adjusting spending priorities to capitalise on any emerging opportunities and shore up any under-resourced, strategically important areas? Have inflationary pressures changed since your targets were set at the end of 2023? Do your end of year plans still reflect energy prices, transport, wages and any investment needed to bring your organisation up to date with evolving technologies?

Key Actions: Work closely with your CFO to monitor and optimise cash flow, reduce unnecessary expenses and ensure your company is in robust financial health. Review pricing models to ensure they reflect current market conditions and protect margins. Has Generative AI changed your sector and do you need to adjust spending priorities to stay ahead of the curve?

Enhance AI Transformation Initiatives

AI – and particularly Generative AI – transformation is displacing digital transformation as the keyword CEOs mention most as the major driving force behind business growth. AI is moving from the “peak of inflated expectations” in the hype cycle but it is essential that adoption is measured, carefully considered from the point of added value and ROI, and avoids buying into hype. Technology-based initiatives must also be continuously evaluated and updated to keep pace with technological advancements. Q4 is a critical time to assess the progress of your AI transformation efforts and identify areas that require further investment or adjustment. Whether it’s AI integration, cybersecurity, or cloud computing, ensuring that your tech infrastructure is robust, aligned with strategic objectives and future-proof is essential.

Key Actions: Audit your AI transformation progress and invest in key technologies that can drive efficiency and innovation. Look at what is happening in your sector – what is the competition doing? What technological advances are on the near and far horizon? Maintain a dynamic strategy to fully optimise all opportunities. Ensure your company’s cybersecurity measures are up to date to mitigate any potential risks.

Focus on Customer Retention and Engagement

With budgets being finalised for the next year, ensuring that your current customer base is satisfied and engaged can significantly impact your financial projections. Are you doing enough to ensure customer loyalty and meeting their evolving needs. In today’s competitive market, with access to high-quality instant customer service and highly personalised marketing and interactions powered by predictive analytics and data-driven insights, B2B and B2C customers and clients expect more than ever. What is the competition doing? Are you allowing your offering to slip behind? What can you do to accelerate your data collection, analysis and application to sales and customer experience?

Key Actions: Implement targeted campaigns to boost customer engagement leveraging data analytics to personalise outreach and offers. Consider customer feedback loops to continuously improve the customer experience.

Prepare for 2025: Strategic Planning

While Q4 is about closing the year in a position of strength and growth, it’s also about setting healthy foundations for continuing growth next year. CEOs should lead the charge in developing strategic plans for 2025, considering emerging trends, potential disruptions and growth opportunities. This includes evaluating market expansion possibilities, identifying new revenue streams, and planning for talent acquisition or development to support future growth.

Key Actions: Begin the strategic planning process for 2025 involving key stakeholders across the organisation. Focus on building a roadmap that balances short-term objectives with long-term vision, ensuring your company is prepared for the challenges and opportunities of the coming year.

Sustainability and ESG Initiatives

Environmental, Social, and Governance (ESG) factors are becoming increasingly important to every sector. In Q4, CEOs should assess the progress of their sustainability initiatives and ensure they align with both regulatory requirements and stakeholder expectations. This quarter is also an opportunity to set more ambitious ESG goals for the coming year. Failing to meet requirements can be costly, both financially and in terms of reputational damage.

Key Action: Review your company’s ESG performance and make necessary adjustments to meet or preferably exceed industry standards. Engage with stakeholders to communicate your sustainability efforts and future commitments and ensure they are onboard and, where necessary, compliant.

Mitigate Supply Chain Risks

Supply chain disruptions have been a significant challenge for many companies in recent years. Q4 is a critical period for reviewing that your supply chain is resilient, giving you value for money and can withstand potential disruptions. This might involve diversifying suppliers, increasing inventory levels or investing in supply chain technologies to enhance visibility and responsiveness. Again, CEOs should be looking at potential AI solutions to maximise efficiency of supply chain and logistics.

Key Actions: Evaluate your supply chain risks and take proactive measures to mitigate them. Consider building stronger relationships with key suppliers and investing in technologies that provide greater supply chain transparency, reliability and efficiency.

By prioritising these key areas with their Executive Team and using Q4 to review and adjust strategies and objectives, CEOs can confidently steer their organisations to year end on a high, with strong foundations laid for further progress and growth in 2025. As the business landscape continues to evolve, staying agile and proactive will be key to navigating the complexities of the complex modern market.

Rialto has a team of experts in Generative AI and other emerging technologies who can develop an action plan specific to your business and strategic priorities. Get in touch for a free initial consultation.