Business Survey Shows Half of LI Employers Expect to Expand Their Staff in 2023

While Long Island employers are worried about issues like inflation, supply chain issues, and hiring and retaining employees, a new survey of more than 200 executives found that half of them still expect to increase their headcount this year.

The Long Island Economic Review 2023 was conducted by Adelphi University and accounting firm Citrin Cooperman. It was organized by HIA-LI, one of the largest business advocacy organizations in the region.

The results of the survey were discussed by a panel of leading regional executives at the recent 29th Annual HIA-LI Business Summit held at the Hamlet Golf & Country Club in Commack.

When asked to name up to three of “the most important issues facing Long Island today,” inflation and taxes were named by 22 percent of respondents. A third of executives cited talent issues as a top issue: 17% cited retention of young professionals and young families, and the same 17% cited having workers with the right skills.

Yet despite their workforce concerns, nearly half of respondents (49 percent) expect their total workforce to increase in 2023. are hiring more employees outside of Long Island, and 14% plan to expand their workforce both in and out of Long Island. Forty-three percent do not expect an increase in headcount. Eight percent were not sure.

Respondents were fairly optimistic about projected revenue and net income for 2023. 39% expected revenue growth this year, and 50% expected level growth. Ten percent expect revenue to decline this year.

More than a third (38 percent) of members plan to expand their business to Long Island in 2023. The leaders in this category were healthcare, followed by restaurants and hospitality.

When asked how concerned they are about inflation and its impact on their business, the majority of participants (62%) answered “very concerned”. Thirty-one percent were “somewhat concerned” and seven percent were “slightly concerned.”

Sixty-five percent of respondents said they were affected by disruptions in the global supply chain. Most respondents expect supply chain problems to persist for another six months to two years.

In her opening remarks, Terri Alessi-Miceli, President and CEO of HIA-LI, highlighted the region’s need to retain young professionals.

“From a HIA-LI perspective, 2022 has been a recovery year for many of us,” she said. “Our members tell me they are cautiously optimistic about the future but still struggle with the availability of skilled workers.”

The attendees were greeted by newly elected Rep. Nick LaLota, who promised the audience that he would work on behalf of the Long Island business community.

“I know the government doesn’t always help you guys get paid and run a successful business,” Rep. LaLota said, “but I can tell you we’re here to make it work.” for you.”

“Inflation is a major concern for most businesses,” said Michael Sabatini, partner at Citrin Cooperman and panel moderator. “More than half of those surveyed said they had taken some sort of anti-inflation action, taking steps such as raising prices, increasing labor costs and considering automation.”

Panelist Kevin O’Connor, CEO of Dime Community Bank, said he attended a keynote the day before by John Williams, chairman of the New York Federal Reserve.

“Some people are predicting that the Fed will end its rate hikes or even start cutting rates in the second half of this year,” Mr. O’Connor said. “But I don’t think anyone walking out of this room yesterday thought this was really what was going to happen.”

Panelist René Daniel Flager, Executive Director of Girls Inc. from Long Island, said inflation and economic uncertainty have affected the nonprofit sector’s fundraising efforts.

“Unfortunately, we are seeing less discretionary income and less funding from the business community, which is our biggest supporter of getting into the nonprofit world,” Ms. Flager said. “They are more careful with donations.”

“One big challenge was attracting and retaining young professionals,” said panelist Rich Humann, president and CEO of H2M architects + Engineers. “To address this issue, we are implementing strong agility programs and trying to meet the needs of our employees and understand what they are looking for in their careers.”

MaryAnn Hyland, dean of the Robert B. Willumstad School of Business at Adelphi University, drew attention to the need for higher education to help students build strong careers.

“Many of our students are locals and they want to stay here,” said Dean Hyland. “So we have to look at regional industries that are growing, like healthcare. We develop degrees and programs in both the clinical and non-clinical areas of the sector.”

“We are very focused on engaging community members in the healthcare industry,” said panelist Dr. Patrick O’Shaughnessy, President and CEO of Catholic Health Services. “So, over the last two years, we’ve invested over $30 million in paying our employees fair and competitive wages. We also understand that people need a career, not just a job, so we build careers for our employees.”

Nearly half (46 percent) of respondents identified themselves as either presidents or chief executive officers. The rest were senior figures in their organizations. The survey was conducted in November-December last year.

The vast majority of respondents receive less than $100 million in income. More than three-quarters of the participants have been working for 20 years or more. While respondents were from many industries, professional services (21 percent) and manufacturing, distribution and retail (17 percent) are the most widely represented. The majority of respondents (52 percent) lived in Suffolk County. Ten percent were located in Nassau County and 32 percent were located in both counties.

“Long Island Economic Review 2023” can be found at: