In a world where hybrid work became the norm during the pandemic, many business leaders are now predicting its decline. According to a recent survey conducted by KPMG, 83% of top global CEOs expect employees to return to working full-time in the office within the next three years, a sharp rise from 64% in 2023. These leaders, representing 11 major global economies such as the USA, UK, Germany, and China, are willing to offer rewards—such as pay raises, promotions, and more desirable assignments—to entice workers back into office settings.
Incentives to Bring Employees Back
An overwhelming 87% of CEOs indicated they would incentivize employees who prioritize working in the office, as hybrid work is losing appeal. Many leaders see in-person collaboration as key to achieving organizational goals and improving productivity.
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AI as the Future of Growth
The survey also highlighted the significant role of artificial intelligence (AI) in driving future growth. Over three-quarters (76%) of CEOs believe AI will not dramatically impact overall job numbers, yet only 38% of those surveyed felt their employees currently possess the skills needed to fully leverage AI's benefits. The top investment priority for 64% of respondents in 2024 will be AI, with a majority expecting returns on these investments within three to five years. AI is seen as a tool to enhance operational efficiency, improve innovation, and upskill the workforce, although concerns over the ethical use of AI, regulatory gaps, and skills shortages persist.
Concerns for the Global Economy
While CEOs express optimism about AI and technological investments, their confidence in global economic growth is waning. In the 2023 KPMG survey, only 72% of CEOs were optimistic about global economic progress over the next three years, a significant drop from 93% in 2015. European business leaders, particularly in France, Spain, and Italy, expressed even less confidence, with only 68% feeling positive about economic growth.
Supply Chain and Geopolitical Risks Loom Large
CEOs also identified supply chain disruptions and geopolitical risks as significant threats to their businesses. The closure of the Red Sea trading route, due to terrorist activities affecting global trade, has intensified these concerns. Supply chain bottlenecks are forcing companies to bear additional costs, creating ripple effects on consumers. Ethical challenges related to AI implementation were also cited, with 61% of respondents highlighting concerns in this area.
The Road Ahead
Despite these challenges, KPMG’s global CEO, Bill Thomas, believes that the future of the global economy lies in bold, strategic investments. According to Thomas, the ability to embrace innovation, adapt quickly, and invest in the right technologies will be crucial for sustainable growth in the coming decade.
Source: Euronews
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