14 Challenges Facing CEOs In Q2 (And How To Overcome Them)

Uncertain economic and industry circumstances could potentially hinder operational growth and threaten organizations’ resilience this year. While we’re only part of the way through the first quarter of the year, chief executive officers are working hard to prepare for upcoming challenges in Q2.

Anticipating and addressing these obstacles requires strategic foresight and creative solutions. Below, 14 Forbes Coaches Council members share key challenges facing CEOs in Q2, along with ways they can conquer these challenges to ensure ongoing success for the remainder of 2024.

1. Improving Recruitment

Recruitment is now a key challenge for CEOs, as employees’ attitudes toward work have changed significantly since the pandemic, particularly in terms of expectations regarding flexible hours, working from home and less pressure from employers. To navigate this challenge, CEOs need to prioritize the recruitment process, putting clear policies in place and treating recruitment as a key performance indicator for the business that is closely monitored. - Adam Stott, Big Business Events LTD

2. Hiring For Mindset

CEOs must shift away from talent acquisition strategies that aim to “hire for skill set” toward those that “hire for mindset.” The roles that companies are hiring for now won’t exist in two years due to aging populations and rapid technological advances. Keep your company nimble in Q2 with a long-term outlook. Vet and hire people who demonstrate adaptability, comfort with change and keen interpersonal skills. Train them on the rest of what they need to know. - Loren Margolis, TLS Leaders

3. Adapting To Shifting Consumer Buying Behaviors

Shifting consumer buying behaviors pose a challenge for CEOs, as they require strategies to be adapted. CEOs should stay keenly attuned to market dynamics so they can successfully navigate consumer changes well and not be surprised. They should embrace agility and boost customer engagement by updating their customer journey map and personalizing experiences as much as possible. - Kelly Byrnes, Voyage Consulting Group

4. Navigating Global Political And Economic Change

With rapid political and economic change and instability occurring worldwide, CEOs need to keep focus on how to match their workforce skill balance with customer expectations. This will be a volatile area going forward, with smarter competition. A potential approach could be to have service-focused teams create stable customer relationships and good communication with technical support teams. - Cellene Hoogenkamp, KokuaHub Inc Coaching

5. Managing Resistance To Returning To The Office

Covid sent the workforce home in 2020; 2024 will be the year employees are called back to the office, and CEOs can expect strong resistance from much of their workforce. The best approach will be to recognize the need to give productive and profitable employees greater control of their workday. Flexibility is key—hybrid models may be the solution, especially for critical roles. - Erica McCurdy, McCurdy Solutions Group LLC

6. Adopting And Integrating Artificial Intelligence

All companies will be faced with the adoption and integration of AI into workplace operations. If not managed and controlled, this can cause harm to a company. Learn about AI, examine potential uses and establish a company policy regarding the appropriate use of AI. Larger companies should establish an AI czar (and possibly a team) to evaluate, manage and control AI usage. - John Knotts, Crosscutter Enterprises

7. Staying Focused Amid External Noise

CEOs face the challenge of staying focused amid external noise, which can lead to anxiety and fear. Key advice: Read your mission and goals daily as your guiding star. Communicate this clarity to your team and make them realize that “we” are in the lead, not external factors. However, remain flexible in your strategy to adapt to changes if needed. - Pascal Bachmann, Strategy Achievers LLC

8. Deciding What Is Culturally Important

Make a decision about your culture. With the wave of CEOs mandating their employees come back to the office and the reduction of resources allocated to diversity, equity and inclusion, a decision about what is important looms for executive teams. Does culture matter? Do people matter? Or is our business all about getting results at all costs? This would be a great time to look at your values and align them to what matters most. - Alex Draper, DX Learning Solutions

9. Getting Out Of Their Own Way

The most significant challenge most CEOs face is getting out of their own way. CEOs are best served when they face the beliefs and behaviors that hold them back from being fully engaged and authentic at work. Finding a coach, a mentor or a therapist—someone to hold a safe space so a CEO can reflect on what’s in their way—will help CEOs unleash the full potential in themselves and everyone they lead. - Carol Sabia, SheerLine Associates

10. Managing Fallout From Geopolitical Uncertainty

The business fallout from the geopolitical uncertainty we’re seeing could be significant. The impact on the oceans alone, which carries the bulk of international trade, could force CEOs to consider alternative supply chain solutions. In this situation, business leaders would do well to strengthen their partnerships with their suppliers to innovate collaborative solutions. - Basav Ray Chaudhuri, Coach with Basav

11. Reskilling Crucial Employees

The CEO’s challenge for Q2 revolves around the effective management of individuals involved in critical projects. Only through personalized reskilling for each of them, which is essential for incorporating new technologies and artificial intelligence, can a company optimize its revenue and everything related to its operations. This approach is crucial to increasing productivity and performance. - Paula Vidal Castelli, Paula Vidal Castelli Intl., LLC

12. Adapting To Economic Uncertainty

CEOs may face the challenge of navigating economic uncertainty arising from global events, such as geopolitical tensions or market fluctuations. CEOs should diversify supply chains, monitor geopolitical developments and maintain financial flexibility. By fostering adaptability, CEOs can position their organizations to respond effectively to unforeseen challenges and capitalize on opportunities. - Adaora Ayoade, EZ37 Solutions

13. Navigating The Impact Of AI And Automation

A key challenge for CEOs could be navigating the impact of AI and automation on the workforce. To tackle this, they should focus on reskilling and upskilling employees to work alongside emerging technologies. It’s also crucial to invest in AI and automation ethically, ensuring transparency and fairness in how these technologies are implemented. - Andre Shojaie, HumanLearn

14. Improving Workplace Apathy And Turnover

When the C-suite loses its ability to see the work through the workforce’s eyes, the culture becomes one of apathy and job hunting. Many workplace studies tell us a majority of employees are actively job hunting—they are no longer buying into the song and dance coming from the top. It’s time for most C-suites to get feedback about their leadership style and approach. - Carry Metkowski, Carry Metkowski