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We are at a critical juncture, but with some of the biggest opportunities for leaders to challenge the norm and shape best practice in a period of significant change. 2024 is a landmark year with some of the biggest elections around the world. There are bold decisions that can be made for the years ahead and I am confident in the value of working together to achieve this as we enter a new era built for resilience, to better serve people and communities.
Peter Cudlip
Partner and Group Head of Public and Social Sector at Forvis Mazars Group
- Executives in the public and social sector are generally optimistic: 58% expect funding to increase in the next financial year, but this is a significant drop from 85% last year.
- Economic factors, including high inflation and cost of living (27%), and increased demand for services and political change (each 26%) are three of the top external trends impacting organisations most in the coming year. The emergence of new technologies (23%) and scarcity of talent (22%) are also expected to impact organisations significantly and only 25% are confident they’re prepared for this.
- Meeting demand for services is a potential issue for a quarter of organisations stating they will likely fail to achieve this.
- Boosting investment of time, money and resource, averaged across all business activities and operations, is expected by 50% of organisations. While maintaining IT and digitising operations are at the top of this list, funding/financing issues or concerns is at the bottom, second only to reducing headcount.
- Scarcity of talent is one of the top five external trends leaders say will impact the sector in the next three to five years, with nearly two thirds (63%) of executives confirming a difficulty in hiring talented people. Yet, crucially, talent strategy is only positioned at number nine in their strategic priorities for the year ahead.
- Transformation through IT or emerging technology is the top strategic priority for leaders for the second year running. 79% of public and social sector organisations are already using generative AI in some form and, of those who don’t, 44% say they will in five years’ time. Yet, 69% of those already using generative AI in their organisation say they have ethical concerns.
- Generative AI will not replace people according to 64% of leaders, proving that human skills are still very much valued within such a people-orientated sector.
- Sustainability responsibilities are a clear focus for sector leaders – 76% of public and social sector executives say they already produce a sustainability report or plan to in the next 12 months. Over 50% of leaders say new regulations would be more effective than internal or external pressure in accelerating reporting.
- ENDS -
Notes to editors
Forvis Mazars has gathered the views of executives in the public and social sector throughout Europe. The 2024 study delivers insight into the market trends and transformations expected to impact public sector and not-for-profit organisations, the strategic priorities on the agenda, the challenges and opportunities influencing delivery of services, with in-depth insights to help prepare for the year ahead.
Mazars (Forvis Mazars effective 1 June 2024), in partnership with Peter McLeod AS, surveyed around 400 executives in the public and social sector across Europe for its annual study. This independent research captures the views of leaders at public sector and not-for-profit organisations with annual budgets of up to €5 million as they prepare for and share insights on the outlook for the year ahead. Fieldwork was conducted via online panels between May and June 2024.
Total sample: N=392 respondents sourced via online panel and in direct response to promotion of the study across the firm’s digital channels.
Contacts
Heather McMaster, Group Head of PR and Content, Forvis Mazars
Heather.McMaster@mazars.co.uk
Rosa Mejia Banks, Group PR and Content Officer, Forvis Mazars
rosa.mejia-banks@mazars.co.uk / +44 (0) 20 7063 4934
About Forvis Mazars
Forvis Mazars Group SC is an independent member of Forvis Mazars Global, a leading professional services network. Operating as an internationally integrated partnership in over 100 countries and territories, Forvis Mazars Group specialises in audit, tax and advisory services. The partnership draws on the expertise and cultural understanding of over 35,000 professionals across the globe to assist clients of all sizes at every stage in their development.
Visit forvismazars.com to learn more.
