Recession fears? 88% of CEOs eye a hiring freeze over the next 6 months

CEOs are considering halting recruitment due to the anticipated recession.

Over eight in 10 CEOs have either embarked on or are planning to freeze hiring over the next six months, KPMG's latest report has found.

According to KPMG, CEOs are mulling and halting recruitment due to the anticipated recession.

In the next three years, however, 92% of CEOs said they will eventually increase their headcount by up to 10% since they believe that quality talent is critical for growth in the longer term.

Nearly a third of CEOs said strengthening employee value proposition to attract and retain necessary talent will also be their top operational priority over the next three years.

Apart from hiring, the majority of CEOs (80%) also predict that a recession will impact up to 10% of their anticipated earnings.

More than half of CEOs, however, do not feel that the recession would upend their anticipated growth over the next three years.

CEOs still expect to see growth in company earnings over the next three years, but they have reined in their expectation, with 60% suggesting an earnings outlook of up to 4.99% per annum over the next three years.

"Compared to previous years, CEOs now feel better prepared to weather short-term challenges with resiliency measures such as boosting productivity, managing costs and reconsidering digital transformation strategies to manage impacts," Ong Pang Thye, managing partner, KPMG in Singapore, said.