Save articles for later
Add articles to your saved list and come back to them any time.
Two thirds of chief executives see workers return to the office five days a week within the next three years as the hunt for talent slips down the list of management priorities against moves to protect businesses against cyber crime and investments in artificial intelligence.
KPMG boss Andrew Yates said the consulting firm’s global survey of more than 1300 CEOs showed nearly 80 per cent were optimistic about the short-to-medium term outlook for their companies even as a similar proportion said continued high-interest rates could prolong a downturn.
KPMG boss Andrew Yates said attracting and retaining talent isn’t the biggest priority anymore for CEOs.Credit: Edwina Pickles
The positive outlook is a big step change from last year’s survey, Yates said.
“People were seriously less optimistic, and I think the change reflects the fact that we’re coming to the end of what’s been a very disrupted three-year period,” he said. “The 18 months since [COVID] lockdowns finished have been really quite unusual in terms of the initial huge demand for products and services, and then the change in the economic environment with interest rates and inflation.”
Yates said Australian chief executives were slightly more bullish about their companies’ growth prospects than their global peers.”It feels like interest rates and inflation are getting to their top points, so that’s giving people more certainty about the future,” he said.
The survey suggests the balance of power is shifting away from employees as the skills shortage and the war for talent aren’t a main concern for chief executives anymore, with 22 per cent of Australian CEOs even seeing potential staff cuts of up to 5 per cent over the next three years.
“Last year, the shortage of talent was front of mind for everyone,” he said. “Demand has softened since then, and businesses are needing to make adjustment to their cost base, including labour settings.”
Yates said he was taken aback by the view of the majority of chief executives around the world that in three years time, traditional white-collar roles will be fully based in the office again.
“I think there’s a feeling that over time, things like productivity will suffer and that we’re returning to a more normal environment,” he said. “But I was surprised that there was such clarity around the return to the office. I would have thought, as we do that hybrid and flexible working would be here to stay.”
Despite 70 per cent of CEOs globally seeing artificial intelligence (AI) as the number one investment priority, Yates said enthusiasm for the technology was slightly lower in Australia, where two thirds of respondents believed there were ethical challenges in using the technology.
“It’s only been 12 months that generative AI has really been with us, and it’s now seen as a number one investment priority for CEOs globally,” he said. “But Australian CEOs feel the payback period around investing in AI is longer than where they could otherwise invest their money.”
Meanwhile, Yates said cybersecurity and environmental, social and corporate governance (ESG) issues remained critical for chief executives, with 80 per cent of Australian CEOs admitting their current ESG progress was not strong enough to withstand the potential scrutiny of stakeholders or shareholders.
“Cybersecurity is always right at the top of mind for CEOs, but there’s been a couple of high-profile issues in the Australian marketplace in the last 12 months, which have made people more anxious and perhaps left a feeling that we’re more exposed than we thought.”
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
Most Viewed in Business
From our partners
Source: Read Full Article