The boardrooms are buzzing!
Remember when hybrid work was all the rage in 2024? Well, in a 2024 worldwide survey of 1,300 CEOs by KPMG, a startling shift in work culture was uncovered...
A whopping 83% of the 1,325 chief executives from across the globe (including 400 in the United States) expect a full return to office (RTO) within the next three years, a notable increase from 64% in just 2023. This suggests a major pivot in corporate strategy as 86% of global leaders plan to incentivize workers to come into the office with promotions, raises, and favorable assignments.
The majority (79%) of U.S. CEOs also expect a full RTO within the next three years (versus 34% earlier in 2024), 17% expect a hybrid arrangement (versus 46% earlier in the same year), and only 4% anticipate a fully remote work environment.
We are officially in the next phase of working folks - are you ready?
The Sudden Shift?
According to the insights gained in the survey, there are 3 major reasons for this shift:
Team Dynamics - CEOs indicated that in-office interactions create a sense of teamwork and promote friendship and collective ownership of success.
Innovation - they also felt that in-person collaboration often allows for real-time idea exchange and problem-solving sessions, sparking creativity and innovation.
Costs - a full return to the office presents an opportunity to reimagine and optimize unused office spaces that organizations are still financially responsible for.
The Amazon Effect
There is a phrase that has been coined for a few years now - The Amazon Effect - which was developed to explain the impact of e-commerce on traditional brick-and-mortar businesses. The Amazon Effect has recently morphed into talent management strategies.
When Amazon CEO Andy Jassy announced a full return to the office for employees, five days a week, by January 2025 in September of 2024, the domino effect was immediate. This caused this massive shift in the data that earlier in the year estimated this demand for a full return to office to occur by 2027. Many employees expressed unhappiness with this decision on social media, while others saw it as an opportunity to reconnect with colleagues and return to pre-pandemic normal with new skills gained through the experience of fully remote work.
However, it is important for organizations to remember that Amazon isn't the global standard—companies like Alibaba outsell them internationally. US based organizations may be quickly reacting (per usual), but the return-to-office trend may plateau as global markets push for more equitable solutions, especially for dispersed organizations.
Despite concerns about Amazon's return-to-office policies, there are opportunities for skill mobility and growth if one stays alert.
So, as much trepidation that exists about the return-to-office wave caused by Amazon, there is also a lot of opportunity that will be created and skill mobility to capitalize on!
Questions Leaders Should Consider
Return to Work Strategies for Employers
As companies prepare for a return to the office, it's essential to consider specific strategies to help employees reacclimate to the norm. Here are a few tips to get you started...
Change Readiness
Define your "why" for returning to the office and communicate it clearly to employees at various levels of readiness. Focus on confidence and commitment.
Motivation Differs
Some thrive on the energy of the office, while others find it draining. Emphasize the value of in-person connections for learning and development.
Consider the Personal Impact
Remote work has influenced work-life balance, from childcare to commuting. Explore adding benefits like commuter perks, elder care, or even onsite childcare to support employees.
Onboarding Refresh
In-person onboarding boosts performance and reduces turnover. It may be time to refresh your onboarding program.
A Return to Office plan has to be more than just strategic, it is imperative that it is also and data-informed
Latrice Torres, CEO, LeaderKeys Consulting
This is only the beginning; LeaderKeys can assist you in developing detailed steps throughout the process of crafting and implementing policies to successfully bring your workforce back to the office while boosting engagement and preventing attrition. Take a look at how to partner with us.
Schedule a Corporate Consultation to discuss your next steps with us today.
Thoughts, questions, insights? Get in touch with Latrice: Latrice@leaderkeysunlocked.com.
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