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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.<\/p>\n
KPMG boss Andrew Yates said the consulting firm\u2019s 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.<\/p>\n
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KPMG boss Andrew Yates said attracting and retaining talent isn\u2019t the biggest priority anymore for CEOs.<\/span>Credit: <\/span>Edwina Pickles<\/cite><\/p>\n The positive outlook is a big step change from last year\u2019s survey, Yates said.<\/p>\n \u201cPeople were seriously less optimistic, and I think the change reflects the fact that we\u2019re coming to the end of what\u2019s been a very disrupted three-year period,\u201d he said. \u201cThe 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.\u201d<\/p>\n Yates said Australian chief executives were slightly more bullish about their companies\u2019 growth prospects than their global peers.\u201dIt feels like interest rates and inflation are getting to their top points, so that\u2019s giving people more certainty about the future,\u201d he said.<\/p>\n The survey suggests the balance of power is shifting away from employees as the skills shortage and the war for talent aren\u2019t 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.<\/p>\n \u201cLast year, the shortage of talent was front of mind for everyone,\u201d he said. \u201cDemand has softened since then, and businesses are needing to make adjustment to their cost base, including labour settings.\u201d<\/p>\n 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.<\/p>\n \u201cI think there\u2019s a feeling that over time, things like productivity will suffer and that we\u2019re returning to a more normal environment,\u201d he said. \u201cBut 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.\u201d<\/p>\n 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.<\/p>\n \u201cIt\u2019s only been 12 months that generative AI has really been with us, and it\u2019s now seen as a number one investment priority for CEOs globally,\u201d he said. \u201cBut Australian CEOs feel the payback period around investing in AI is longer than where they could otherwise invest their money.\u201d<\/p>\n 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.<\/p>\n \u201cCybersecurity is always right at the top of mind for CEOs, but there\u2019s 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\u2019re more exposed than we thought.\u201d<\/p>\n The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion.<\/i><\/b> Sign up to get it every weekday morning<\/i><\/b>.<\/i><\/b><\/p>\nMost Viewed in Business<\/h2>\n
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