How Evolving Markets Will Shape Executive Leadership Strategies
Slayton Search Partners
Delivering executive talent that drives organizational success.
Market turbulence is finally beginning to ease. While the recent years of instability continue to affect every industry, businesses have gained breathing room to act proactively and reflect on the road ahead. The final months of 2023 mark a critical time to establish a long-term, strategic direction. Solidifying a leadership team that can stay agile and capitalize on trends will be critical to a new year of success.
This month’s newsletter will explore what’s ahead for the insurance, financial services, and R&D sectors.
How Insurance Leaders Must Address Growing Regulatory Oversight
With over 1,700 insurance regulation changes in the last year, insurance leaders must grapple with staying compliant while remaining competitive. Driven by consumer protection, climate change, and emerging technologies, increasing regulatory oversight has created a deeply complicated landscape for insurers to navigate.
The insurance industry is no stranger to the shifting tides of government regulation. The goal has always been to protect consumers, mitigate economic impact, allow for healthy and fair competition, and safeguard the interests of insurance companies themselves. But the rate at which these regulations are increasing in number is astonishing. The first half of this year saw an 8% annual increase—over 1,700 changes in state insurance regulations.
Because regulatory oversight of the insurance sector belongs to individual states, insurers are already familiar with the complex juggling act required to stay compliant and manage the challenges and opportunities that come with every change. But as the coming months and years will likely see even further increase in insurance regulation, companies will be forced to adapt with a hyper-agile approach to navigating this dynamic landscape.
While it’s easy to cast regulation in a negative light, as just another challenge that creates untold amounts of work, insurance leaders must remain sensitive to the reasons why regulation exists in the first place. And as they guide their organizations through ongoing changes, an agile, principled, visionary approach is the only way to succeed.
Why Strategic Leadership is Key in the Future of Financial Services
Restructuring executive teams and filling leadership gaps will enable firms to escape survival mode and jumpstart strategic initiatives.
Economic stability is continuing its modest progress around the globe, but the growth of the financial services sector remains stunted by turbulent events. Every win has appeared to come with a significant, unexpected blow—from bank runs to rising interest rates—turning the future of financial services into unknown territory.
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Firms in this sector have, understandably, been hesitant to increase headcounts. However, even in a slow market, calculated talent strategies will be key to long-term success.
Prioritizing R&D Talent in the Quest for Innovation
R&D is at the core of many organizations’ growth initiatives, but attracting and retaining R&D talent amidst burnout requires equal attention from leaders.
Innovation has always been a key catalyst for exponential business growth. The past few years have only emphasized this relationship. The pandemic presented a make-or-break opportunity to pivot and innovate in response to extraordinary circumstances. Similarly, the evolution of consumer expectations and habits due to social and environmental issues as well as inflation and economic uncertainty, has prompted companies to innovate in order to stay relevant and competitive.
At the core of this focus on innovation is, of course, R&D.
The future of R&D, especially in the CPG industry, is optimistic. The majority of food and beverage leaders anticipate robust sales growth throughout the year. With concerns about continued supply chain disruption and inflation, nearly three-quarters of them are looking to product expansion and innovation as their top business strategy.
As a result, R&D leaders recognize the need to focus their efforts on a few specific priorities. Topping the list is attracting and retaining the best talent. However, 81% of leaders expect that filling open R&D roles will be difficult, and only half of surveyed leaders expect to fully achieve this goal in the next 12 months.
Being able to recruit top R&D talent is critical. Research shows that a majority of R&D costs are the people themselves—indicating just how crucial and influential they are in the process. Labor economist Mark Regets comments that, “without access to the best scientists and engineers, much of this research would not get done or would go elsewhere.” In short, he says, “it is people that matter most.”
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Insurance, financial services, and R&D are just three areas of many that we strive to keep a pulse on at Slayton Search Partners. For more news, trends, and insights, discover more of our articles here.