Economic risk is becoming the driving factor for executives in large firms making business decisions over the coming months, according to a survey from Aon.

Aon’s Business Decision Maker Pulse received 228 responses from senior business decision makers across the country, with 81 mid-sized SMEs, 86 large SMEs and 123 enterprises with over 250 employees taking part in the October and November 2022 research.

Economic slowdown is seen as the top risk facing companies (40%), followed by inflation (26%) and failure to attract or retain top talent (16%).

When considering the steps that will be needed to mitigate the impact of inflation on their organisation, half the respondents are considering decreasing day-to-day spending.

Almost a third say they will consider reducing headcount, while a quarter of the survey cohort are looking to optimise supply chains and increase efficiencies.

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One in three of the firms surveyed have enhanced their employee benefits and rewards packages in the past six months in order to attract and retain top talent.

Three out of four of the responding executives see company culture as more critical in attracting and retaining talent than a competitive salary or employee benefits.

Aon Ireland CEO Rachael Ingle commented: “Inflation and rising energy costs are having a tangible impact on Irish businesses and their plans for the coming months. Many leaders are now actively considering ways in which they can manage costs while continuing to build a workforce that attracts the very best talent who can help foster innovation.

“Businesses will need to be agile in the face of current uncertainty and look at ways in which they can enhance their competitiveness. Despite the economic headwinds we now face, Irish businesses should not lose sight both of the need to invest in the future and continue advancing their sustainability journey.”