Report: How Businesses Are Really Optimizing Tax Cuts

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There is a lot of noise in the media and from politicians on the subject of Tax Reform. We want to help our readers rise above the noise and provide information on how exactly businesses are leveraging tax cuts to benefit their workplaces.

In a competitive and ever-changing environment, savvy HR and business leaders know to leverage every opportunity, including tax breaks, in order to become competitive, create jobs, raise employee engagement, and be able to attract and retain top talent.

PwC commissioned a leading market research firm to conduct an online poll of 404 senior level executives to research how businesses will optimize the 2017 US Tax Cuts and Jobs Act (TCJA).

Key findings of the survey indicate where companies have invested:

Growth Initiatives: 62% have invested in strategy and capabilities such as:

Digital capabilities (23%)
R&D (22%)
Long-term strategy (22%)
Cybersecurity (20%)
Merger and acquisition activity (19%)
New service/product offering (18%)

Workforce: 63% say they have invested in their workforce, including:

Hiring (24%)
Raising wages (24%)
Contributions to retirement plans (22%)
Expanding benefits (21%)
Reskilling (21%)
One-time employee bonus (18%)

Corporate Finance: 30% have invested in corporate finance, including:

Paying off debt (20%)
Executing share buybacks (15%)

Customers: 27% have invested in operations and prices such as:

Lowering prices for customers (16%)
Expanded geographic footprint (14%)

The survey also indicates that executives have plans to continue in these investments in future years as well. Clearly, reinvesting in organizations and our workforce will yield benefits for years to come. It's always smart to cut through the noise and find ways to take advantage of opportunities to reinvest in the workplace.

Head on over to PwC to find more information and additional findings, here: https://www.pwc.com/us/en/library/fit-for-growth/reformyourbusiness.html.

Find our additional ideas on reinvesting in your workforce here:

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Tresha Moreland

Tresha Moreland is a 30-year organizational effectiveness and strategic workforce planning expert. She partners with business leaders to develop workplace strategies that achieve best-in-class results. She has held key organizational leadership roles in multiple industries such as manufacturing, distribution, retail, hospitality, and healthcare. Tresha is the founder and principal consultant of HR C-Suite, LLC (www.hrcsuite.com). HR C-Suite is a results-based HR strategy resource dedicated to connecting HR with business results. She has received a master’s degree in human resource management (MS) and a master’s degree in business administration (MBA). She has also earned a Senior Professional in Human Resources (SPHR), Six Sigma Black Belt Professional (SSBBP) Certification. She is also recognized as a Fellow with the American College Healthcare Executives with a FACHE designation.