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The more than half of employed Americans who currently work from home could soon face a move back to the office, as a new KPMG survey reveals that 79% of US corporate CEOs predict office-based work will fully return within three years.
It marks a significant increase from just 34% of CEOs holding that view earlier in the year. The shift, driven by corporate leaders’ growing confidence in a softening labor market, mirrors recent return-to-office (RTO) mandates from major firms like Amazon, which has announced its own plan to require office attendance five days a week starting next year.
In the survey, 86% of CEOs said they plan to reward in-office workers with better assignments, promotions, and pay increases, effectively sidelining those who continue to work remotely.
Despite the growing corporate momentum against remote work, this move comes at a time when remote working remains highly popular among employees, including many in senior management positions. Following Amazon’s announcement, some employees openly expressed their dissatisfaction, with several declaring themselves "open to work" on LinkedIn.
The shift back to office-based work is seen by some as a cost-cutting measure in disguise, designed to reduce headcount without formal layoffs. T he KPMG survey suggests, however, that CEOs are motivated more by a preference for traditional office environments rather than workforce reduction strategies. Many executives find remote employees harder to manage, though this opens the door for smaller companies and startups to attract talent by offering more flexible work options.
Flexibility demands could see talent leave
Elsewhere, other research indicates that companies clinging to rigid in-office practices may find themselves at odds with what workers want and risk losing top talent. According to a global workforce study by HR platform Remote, 72% of hiring leaders reported losing employees to organizations with more flexible working arrangements in the last six months. The survey, which covered over 4,000 business leaders globally, highlights a growing demand for remote and hybrid work, with 84% of respondents citing increased employee calls for flexibility.
The report found that businesses offering hybrid work are growing the fastest, with 87% currently hiring compared to 82% of fully office-based companies. The flexible firms also report higher productivity and improved company performance, with 38% citing increased output as a direct benefit of remote work. The ability to tap into a broader talent pool and reduce turnover were additional advantages noted by companies adopting remote models.
As corporate giants push for more in-office attendance, the demand for flexible work arrangements is unlikely to fade. Employers who fail to adapt may find themselves struggling to retain talent as workers increasingly prioritize work-life balance and the autonomy offered by remote positions.
Though managing remote teams and compliance with international labor laws are cited as challenges, many companies are finding the benefits of remote and hybrid work models far outweigh the difficulties. The ongoing trend toward flexibility could create opportunities for smaller firms to attract skilled workers who are unwilling to sacrifice their work-from-home lifestyle.
