This year’s HLB International Survey of Business Leaders reveals the key factors that top executives around the world are looking at in order to boost profitability for long-term success.

The report, titled “Powering up your profitability: efficiency over expansion”, is based on insights from over 1,200 leaders across more than 50 countries.

It found that, in a period of economic uncertainty and rapid technological change, there has been a move towards operational efficiencies, a more productive and engaged workforce, and customer-centric innovation.

While a significant 85 per cent of business leaders remain confident in business growth despite economic concerns, a large proportion (65 per cent) are prioritising improvements in operating efficiencies in the coming year, and 51 per cent are focussed on cost reduction. This reflects the current economic climate of slowing growth and greater global uncertainty, prompting businesses to look internally to leverage existing resources.

The three pillars of profitability

The HLB report identifies three pillars for boosting sustainable profitability.

The first is developing a ‘Fit-for-Future Operating Model’. Three-quarters of business leaders admit their operating model needs improvement. In particular, 37 per cent recognise weaknesses in operational effectiveness, 32 per cent in talent acquisition, and 30 per cent in cost management.

The second pillar to creating a more profitable business is creating a ‘Productive and Empowered Workforce’, with 51 per cent of business leaders planning to invest more in their workforce in 2025.

However, the survey reveals a very concerning statistic: 63 per cent of leaders do not consider their workforce to be high-performing and engaged. To address this, many are focusing on training and development to encourage continuous learning, recognising the rapid evolution of skills required in the modern workplace.

The third pillar of business growth is ‘Igniting Innovation’. Innovation has become a key metric for many businesses: it is no longer a luxury but a necessity for survival and growth. Yet only one-third (35 per cent) of business leaders stated that innovation is successful in their organisation. The majority (53 per cent) rate their efforts as “variable”.

Overall, this year’s report reveals that the most profitable companies stand out for their agility. It is clear that these organisations are more forward-looking and talent-centric, and they are more focussed on how technology can improve business outcomes. As a result, they enjoy higher profit growth and sustainability and deliver more to their staff and founders.

This article was first published in the Autumn 2025 issue of Financial Times.