With concerns high over a recession, companies are examining changes in how they view investment strategies, technology, and staffing.

Earlier this year, Clearwater Analytics surveyed companies about concerns with inflation. As is typically the case, inflation and recession go hand in hand, so we followed up this summer with another survey on the topic of recession. More than 90% of the 130 institutional investor respondents expressed concerns over a prolonged recession. However, there is some indication of hope; 44% said they were just somewhat concerned, signaling optimism in our ability to navigate through this period of uncertainty without too much additional pain.

Here are three things you should know:

‘Part of the journey’

Recessions come and go, and markets will eventually rebound. One respondent remarked that the challenge in dealing with such market conditions is “part of the journey.”

For many companies, investment strategies take center stage as they figure out how to respond to the market. Confidence in the stock market appears to have fallen since February, when 40% of poll respondents said they would favor stocks; that number fell to 18% in July. Surprisingly, interest in floating rate securities has also fallen from almost 50% all the way down to around 20%. Half of the respondents in our February poll said their fixed income risk reduction was focused on duration, but that also dropped to 33% of investors in our latest poll.

However, depressed market valuations can lead to opportunities in some areas. Many corporate respondents noted the opportunities in acquisitions available right now.

Considering technology

We asked respondents to tell us how they view their investments in technology, especially whether they thought it was worth it. Half said their investments in technology have paid off, while the other half noted a need to invest in updated technology or they will continue to struggle.

Given the condition of the market, it is not surprising that companies value certain capabilities of their investment technology platforms. Respondents said they value features that help them understand their portfolio exposure and transparency.

Staffing strategies

Companies are making adjustments to how they approach their workforce in light of labor shortages and inflation. More than 20% of respondents said they are raising compensation, while 30% are considering changes. About 20% do not intend to make changes, while 12% of companies said they are reducing staff to pay for overall business cost increases.

This survey included responses across various investor types. When focused on just corporations, it was interesting to see that a majority of companies are primarily focused on increasing compensation for junior employees and new hires.

To learn more about this survey, download the flash poll report here.