Portugal is experiencing various economic, political, and social challenges which contributed to the change in their business environment. Some of the factors worsening the country’s problems are the inflating economic stagnation, trends related to the adoption of the digital technologies, and the general absence of a skilled workforce. In such environments, consulting services within the company have become absolutely essential, for example, for those organizations trying to survive in these difficult economic circumstances. By virtue of specialization in executive search, companies are able to appoint and employ competent and capable personnel who can add value, make effective decisions, and achieve desirable outcomes.
Challenges Facing Portugal’s Business Sector
Portugal’s economy has been showing signs of strain in recent years. In 2023, Portugal’s GDP growth slowed to 1.7%, down from 3.5% in 2022, reflecting broader European economic deceleration. The country is facing the twin pressures of rising inflation (currently hovering around 6%) and high energy costs. Concurrently, aging demographics and talented youth emigrating abroad in pursuit of better opportunities are worsening the acute labor shortages troubling Portuguese businesses.
Furthermore, aside from the aforementioned macroeconomic challenges, business professionals in Portugal have to deal with increased regulation, new patterns of telemetry consumption, and the introduction of new technology. All these forces require businesses to have a competent proactive board which bails them out during these difficult times.
Possibilities in Advisory Board Services
As firms strive to be competitive in a continuously changing environment, the importance of board advisory services in Portugal has grown tremendously. The increasing complexity of organizations implies the need to have a board with the appropriate blend of skills, experience, and vision.
The greatest opportunity stems from the increasing supply of expertise in digital transformation. In this regard, businesses will need to move with the times, and that means forward-thinking, innovative-driven, and data-changing technology savvy people with deep understanding must sit on the advisory boards. Furthermore, with the global focus on sustainability, businesses in Portugal are seeking board members with expertise in environmental, social, and governance (ESG) issues.
According to a 2023 report by the Portuguese Chamber of Commerce and Industry, over 60% of businesses plan to invest in digital transformation in the next three years, with many citing the lack of internal expertise as a key challenge. This is where executive search firms specializing in board advisory can provide a strategic advantage by helping organizations recruit individuals who can guide them through the complexities of technological change.
How Executive Search Supports Board Advisory in Portugal
An executive search firm plays a crucial role in the process of building an effective board of directors. The right board advisory services ensure that companies can access a diverse pool of talent with the necessary skills to handle the specific challenges of today’s business environment.
Executive search firms help businesses identify and recruit executives with expertise in key areas such as digital transformation, ESG, finance, and international expansion. Moreover, these firms can provide insight into the evolving landscape of corporate governance in Portugal, helping companies align their board structure with current best practices and regulatory requirements.
In Portugal, where the demand for experienced and qualified board members is on the rise, executive search firms are invaluable in ensuring that companies are positioned to make informed, strategic decisions that will drive growth. By utilizing a tailored approach, these firms not only fill gaps in expertise but also create boards that foster innovation and agility.
Insights and Stats in Portugal:
- A 2023 survey by PwC revealed that 72% of Portuguese businesses plan to increase their investment in sustainability initiatives, highlighting the growing demand for ESG expertise in the boardroom.
- In 2022, Portugal’s unemployment rate stood at 6.3%, but labor shortages in sectors like technology, healthcare, and manufacturing remain a major concern.
- 50% of executives in Portugal report that digital transformation is their top strategic priority, according to a 2024 Deloitte report.
Board advisory services are crucial for companies in Portugal to stay competitive amidst a rapidly changing business environment. As challenges such as economic instability, talent shortages, and digital transformation loom, the need for strong, knowledgeable boards is more pressing than ever. By partnering with an executive search firm, organizations can recruit top-tier talent with the expertise necessary to navigate these challenges and seize new opportunities.
With the right advisory team, companies in Portugal can position themselves for long-term success and growth in the evolving market landscape.
To learn more about our services click here: CEO & Board advisory Worldwide – Zavala Civitas
