CEOs are doubling down on Return-to-Office plans by 2027

As the corporate world evolves post-pandemic, the debate over remote work and in-person office attendance continues to intensify. While the shift to remote work seemed inevitable during the pandemic, the KPMG CEO Outlook 2024 indicates that the tide may be turning and now more and more employees will return to office.

According to the report, 83% of CEOs anticipate a full return to the office (RTO) by 2027, a significant increase from 64% in 2023. This trend reflects a growing preference among global business leaders for in-office work, driven by concerns about collaboration, company culture, and long-term productivity.

The push for Return-to-Office

The pandemic led to a mass shift towards remote work, with many employees and companies adapting to the new model. However, as the immediate health concerns of the pandemic have subsided, CEOs are reconsidering the long-term viability of fully remote or hybrid work environments. 

The KPMG CEO Outlook 2024 report suggests that global business leaders are now doubling down on a full RTO approach, believing that physical office presence is essential for fostering collaboration, innovation, and maintaining a strong organizational culture.

For many CEOs, the office is seen as a hub for creativity and teamwork, something that remote work, despite its flexibility, may not fully replicate. The report highlights a shift in the mindset of CEOs, with 87% stating they are likely to reward employees who make an effort to come into the office with favorable assignments, raises, or promotions. 

This underscores a belief that being physically present can enhance career development opportunities and contribute to overall business success.

Generational differences in the RTO push

While the overall trend towards RTO is clear, there are notable generational and gender differences in how CEOs view the future of work. 

The report reveals that older CEOs, particularly those aged 60-69, are more likely to expect a full return to the office, with 87% anticipating this shift. In contrast, younger CEOs, particularly those between the ages of 40 and 49, are slightly more flexible, with 75% expecting a full RTO.

The employee perspective

Despite the strong push for RTO from CEOs, the employee perspective paints a different picture. During the pandemic, many employees became accustomed to the flexibility of remote work, enjoying the benefits of a better work-life balance, reduced commuting time, and increased autonomy over their work schedules. 

For these employees, a mandated return to the office may be met with resistance, especially if they feel that remote work is just as effective.

This creates a significant challenge for HR professionals and business leaders, who must balance the operational need for in-office work with the evolving expectations of employees. 

Nhlamu Dlomu, KPMG’s Global Head of People, points out that the “social contract” between employers and employees is changing. Employees increasingly desire flexibility, and many expect this to be a permanent feature of the modern workplace. 

Companies that fail to adapt to these expectations risk losing talent to competitors that offer more flexible work options.

Moreover, the report highlights that 92% of CEOs are looking to increase headcount over the next three years, meaning that talent acquisition and retention will be key priorities. This adds pressure on organizations to offer attractive working conditions, including flexible work options, if they want to remain competitive in the talent market.

Implications for HR and leadership

For HR professionals, the growing emphasis on RTO presents both opportunities and challenges. On one hand, there is an opportunity to reshape the work environment, creating spaces that encourage collaboration and innovation. 

On the other hand, HR teams must also address employee concerns about flexibility and work-life balance.

The KPMG report suggests that 87% of CEOs are likely to reward employees who return to the office, signaling that in-person attendance could become a key factor in performance evaluations and promotions. 

HR leaders will need to develop strategies that align with this shift, while also ensuring that employees who prefer remote work do not feel excluded or undervalued.

Long-term business strategy and RTO

From a strategic standpoint, the push for RTO reflects a broader concern among CEOs about maintaining long-term growth and stability. 

The report notes that 72% of CEOs feel an increased pressure to ensure the long-term prosperity of their business, and many see the office as playing a crucial role in achieving this goal. 

The physical workplace is viewed as a space where innovation happens, where teams can brainstorm, collaborate, and drive the business forward in ways that may not be fully possible in a remote or hybrid setting.

As we look ahead to 2027, the return-to-office trend will likely continue to dominate discussions about the future of work.

For CEOs, the office remains a critical space for collaboration, innovation, and career development. However, the challenge will be to strike the right balance between in-office expectations and employee demands for flexibility.