91 percent CEOs want to reward employees who work from offices, majority expect to end remote work in three years

During the coronavirus pandemic, offices around the world had to alter their way of working and make work from home the norm to keep people safe. For two years, almost all companies in the world offered remote work and there were reports that this would become the future of working. Employees enjoyed the new flexibility and realised how remote work can help them balance work and life with ease. However, contrary to what was perceived, companies began calling employees back to office as soon as it was safe.

CEOs want employees back in offices

In the last few months, there have been ample studies that show how employees are more productive while working from home or in a hybrid setup where they are required to come to office for 2-3 days in a week. Yet, companies are adamant on calling their employees back to offices. For instance, Amazon recently ordered its employees to return to office for five days a week, putting an end to remote work forever. Now, a new study by KPMG has revealed that majority of Indian CEOs are ready to incentivise employees who work from the office, marking a shift towards a more traditional work model post-pandemic.

According to the KPMG 2024 India CEO Outlook, 91 percent of Indian CEOs are considering linking rewards, such as promotions and pay raises, to office attendance. This figure is slightly higher than the global average of 87 percent, indicating a stronger push in India to encourage in-person work.

The report, based on responses from 125 Indian CEOs, highlights a growing belief that office-based work fosters better collaboration, innovation, and productivity. As many as 78% of Indian CEOs expect their entire workforce to return to the office within the next three years, a trend mirrored globally, though at a slightly higher rate of 83%.

Indian companies are increasingly focused on improving their employee value proposition—the set of benefits and incentives offered to employees. CEOs are prioritising a supportive and engaging office environment as key to attracting and retaining top talent. By linking rewards to in-office work, companies aim to align employee satisfaction with long-term growth objectives.

Understanding what employees want

Sunit Sinha, Partner and Head of Human Capital Advisory Solutions at KPMG in India, pointed out that in the post-COVID-19 era, it is crucial for businesses to understand the evolving preferences of employees. As workers reconsider their options, businesses need to adapt to remain competitive in the talent market. Sinha said that companies must use data to address employee needs, saying, “The power to shape the future of talent lies in staying informed and adapting proactively.”

In addition to in-office incentives, the KPMG report also talked about the increasing role of technology, particularly generative AI, in workforce development. Half of the CEOs surveyed are prioritising the enhancement of workforce skills alongside their investment in AI. Indian CEOs believe generative AI can help develop diverse skills and prepare their teams for a future where technology plays a central role in operations.

However, while CEOs are optimistic about the potential of AI, they also expressed concern over the lack of regulations governing the technology. Seventy-seven percent of Indian CEOs are apprehensive about the pace of AI regulation, higher than the global average of 69%. Despite these concerns, Indian business leaders remain confident in AI’s ability to enhance organisational performance and secure a competitive edge.