A recent survey by KPMG US revealed that there has been a shift in the expectations of US CEOs regarding remote work. In the survey, 34% of CEOs stated that they anticipate employees whose roles were previously office-bound to be back in the office five days a week within the next three years, down from 62% in 2023. This change indicates a growing acknowledgment among employers that jobs requiring in-office presence, but only part-time, are becoming more common.
Advocates of this hybrid work model argue that it can improve morale and contribute to a better work-life balance by allowing employees to skip the commute on certain days. On the other hand, larger corporations have been advocating for a full return to office (RTO). Paul Knopp, the chair and CEO at KPMG US, believes that the hybrid model is likely to persist.
The survey, which polled 100 CEOs of major US companies, found an increase from 34% to 46% in the number of CEOs expecting office roles to become hybrid by 2023. However, the percentage of CEOs supporting fully remote work decreased from 4% to 3% over the same period.
Additionally, the survey revealed that some CEOs are exploring alternative work schedules, such as a four-day or a four-and-a-half-day work week. Furthermore, 87% of CEOs expressed confidence in the growth trajectory of the US economy, with 78% sharing the same sentiment about the global economy and the prospects for their companies in the next year.
Looking ahead, a high proportion of CEOs (70%) anticipate increasing their hiring in the coming year, while only 4% expect to reduce their workforce during that time. However, the tight job market might pose challenges in recruiting the necessary talent, prompting nearly eight in 10 CEOs to focus on enhancing their workers' skills.
In response to the talent shortage, almost 70% of CEOs are considering using generative artificial intelligence (AI) to address staffing gaps. While some concerns have been raised about the potential job displacement by AI, CEOs generally believe in the transformative power of generative AI and are planning to expand its use within their organizations.
Furthermore, CEOs are increasingly inclined to disclose the use of AI, with 81% planning to flag content created with the assistance of AI, up from 19% in 2023. Almost all CEOs (95%) reported that their companies have procedures in place to ensure the responsible use of generative AI.
However, CEO outlooks are not entirely positive, as the upcoming US presidential election has prompted some caution in significant investment decisions. Sixty-two percent of CEOs indicated that they would wait until after the election to proceed with major capital spending and mergers. Additionally, concerns about high interest rates, geopolitical challenges, and inflation were reported.
Overall, the survey provides insights into the evolving attitudes of CEOs towards remote work, talent management, and the increasing role of AI in the workplace.