Hartford Business Journal

Cybercrime, employee retention, digital transformation key trends for 2022 By John Turgeon W ith the fluidity of what we all experienced the last 20 months, it's almost impossible to call anything we see today a trend that needs to be studied. Instead, it's more like learning to pivot on a daily or weekly basis, as our time and attention need to be directed to something new. Nonetheless, beyond supply chain issues and rising costs, I think we all will agree there are a few significant challenges out there that will have a meaningful economic impact on just about every organization and sector if we don't remain vigilant in our efforts. Guarding against cybercriminals Cybercrime is highly-organized crime, and it's a profitable enterprise for the bad actors who are happy to put the rest of us out of business. Malware, disruption and ransomware have hit every industry and are taking a bite out of businesses' revenue streams when you can't continue operations for several days; when intellectual property is walking out the internet door; or when customers no longer trust that you are safe with their information and data. Addressing what is lurking in the shadows is not an IT issue. It is a business priority that must be at the top of the list. We're hiring: You get a job, you get a job, and you get a job OK, it's not quite like that. We can't let down our standards, but 20 months ago, the war for talent felt like nothing more than a small schoolyard fight compared to today's slugfest. With the ongoing "Great Resignation" in full swing, organizations are having to make decisions on what work can be performed, what products can be produced, and what has to be turned away or turned off. It's a tough call because you may be shutting down a revenue stream that you'd like to get back in the future. But now is just not the time to be all things to all customers. Unless you are a social services organization with a deep commitment to your mission, you have to direct your limited resources to where your margins are the greatest, perhaps just to survive. The need for a digital game The staffing crisis makes it important for organizations to have a clear, meaningful digital strategy. Finding ways to get more done with less sounds like a cliché, but it actually is an absolute. Small and midsize organizations have to focus on increasing their e-commerce presence. They need to look for ways to automate processes, take better advantage of the data and information they have at their fingertips for improved and more timely decision-making. They also need to ask themselves where and how artificial intelligence might disrupt their offerings or accelerate their delivery. By the way, today's youngest generation of workers are expecting that each of us will have a digital game. I'm thinking about you Since the early 1980s all we've ever heard is that we have to be prepared to retain tomorrow's workforce. Then a discussion ensued about the things employers should start doing, and programs they should start implementing, to hold on to the talent within their organizations. Recognizing the needs of your workforce is one of today's greatest challenges. Some aren't good at it because they keep hanging on to the ways their leaders treated them. But remember, it's not about you. It's about your employees. You've got to build trust with your employees. You've got to understand their needs and let them know you're thinking about them. High-performing organizations (HPO) are ones that have deep employee engagement throughout. As a result, for every $100,000 HPOs pay in wages, they receive $125,000 of value or more in return. On the contrary, if you have a disengaged workforce, count on receiving only 50% of value back. The math here is pretty simple. Surprise disruption COVID caught us all off guard. It hit hard. It hit fast. Its sting has been long-lasting. We also know it won't be the last major disruption we'll have to deal with anytime soon. For many, the lack of preparedness meant they couldn't and didn't survive. Just as the once-in-a-100-years storm has become more like an annual occurrence, another major disruption is just around the corner. Whether you are a small, midsize or giant organization, the key to your economic stability will be to have a plan for resiliency in your back pocket ready to go. John Turgeon is a CPA, client relationship executive and co- managing director for CohnReznick's Affiliated Companies. CohnReznick is a national advisory, assurance, and tax services firm with two Connecticut offices in Hartford and Stamford. Industry Outlook: Accounting John Turgeon Webinar: 2022 Economic Outlook: What's next for Connecticut? In this special webinar, the Hartford Business Journal will bring together a panel of thought leaders to discuss the short and long term economic outlook for the region and state. In addition to the panel discussion, we will highlight the recent findings from our annual Economic Outlook Survey. JAN 19 | 10:00AM • REGISTER NOW • HARTFORDBUSINESS.COM/HBJ-EVENTS/2022-ECONOMIC-OUTLOOK-WHATS-NEXT-FOR-CONNECTICUT Kenneth J. Entenmann, Chief Economist and Chief Investment Officer at NBT Wealth Management David Lehman, Commissioner, Department of Community and Economic Development PANELISTS: PRESENTED BY: 29 HARTFORDBUSINESS.COM | JANUARY 3, 2022

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