Compared to last year, more U.S.-based CEOs, who once resisted the concept of hybrid work, are now accepting that the work model is here to stay.
A study published by KPMG found that just 34% of CEOs expect a full return to the office in the next three years.
The change in perspective comes after a period of resistance. According to a report published by Fortune, 62% of CEOs previously anticipated a full-time return to the office by 2026. However, employee pushback and concerns over staff turnover have prompted a reconsideration among business leaders.
In the study, KPMG U.S. Chair & CEO Paul Knopp wrote, “The mental well-being of the workforce and preventing burnout remain priorities. In the ongoing future of work debate, the pendulum is swinging back to hybrid work as CEO expectations for a full return to office decline.”
Research published by Unispace last year has shown that nearly half, or 42% of employers who have mandated a return-to-office have experienced higher levels of employee attrition than anticipated. Additionally, a report called the 2023 Greenhouse Candidate Experience Report, reveals that 76% of employees say they would actively search for or be open to a new job if their company rolled back flexible work policies.
As a result, many CEOs are now realizing that the future of work is likely to be a compromise found in hybrid work arrangements. According to KPMG, all respondents in the survey had annual revenue over U.S. $500M and more than one-third of the companies surveyed have more than U.S. $10B in annual revenue.
The data suggests that accepting hybrid work is increasingly seen as important for attracting and retaining top talent — especially as Gen Z becomes a more influential demographic in the workforce, expected to surpass the number of full-time Baby Boomers in the workforce this year.
