McKinsey&Company

Despite great uncertainty about the effects of the new US health care law on company finances and employee benefits, a majority of executives in the United States personally think reform was a good idea, according to the latest McKinsey survey, which was in the field just two weeks after the bill was signed.1 Moreover, among executives based outside the United States, 75 percent think reform was a good idea and only 5 percent think the new law will weaken the competitive position of non-US companies with a significant proportion of employees in the United States.

The results also show that while companies will continue to rein in operating costs, they are also planning a range of bold steps in the next 12 months to take advantage of improved economic conditions. Although the top priority on CEOs’ agendas for 2010 is stabilizing company finances, more companies will focus on increasing productivity and introducing new products or services than on reducing costs. Further, 42 percent of executives now expect their companies will hire at some point this year, up from 29 percent just two months ago.