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CEO’s: The negatives effects of midterms on business

Posted on Nov 29, 2018

Business doesn’t care about politics, sounds strange, doesn’t it? Contrary to popular belief, many business executives hate working during any election cycles, midterms or presidential alike. However, to say that politics doesn’t play an important in the role in the decisions of executives and CEO’s would be a very ignorant thing to proclaim, in fact, more than 500 executives proclaimed that their decision to hire or no would be determined until after the midterms. A recent op-ed in The Hill from Nels Olson of Korn Ferry explored the topic in more depth. Why? because business owners like to have some clarity of the future of the economy, and if policies that support business growth are implemented then they, in turn, will become more confident in opening the hiring pool or investing on a project. Recently, CEO’s have warned about the dangers of making quick decisions right after elections, this is due to the trend of election cycles becoming shorter over the years. Before, a business could make at least a 3-year decision, however, with the increasing takeover of social media, 24/7 etc. those cycles have been cut down to about two or fewer years before the typical political rhetoric begins to rear its head in society.

An increasing smaller election cycle is not the only issue plaguing CEO’s, recent data shows that over 60% of executives do not like the environment that campaigns cause within their business. Political polarization has never been so large and the division within business detours, not employees and CEO’s from running a smooth effective business.

Surely these executives and CEO’s have their own bias, and they do. For an executive their business is their life, therefore when it comes to deciding which comes first there is no competition, their business goals and progress will always be their top priority. For these executives, these years midterms and their divisive effects cannot end any sooner.