Over 4 in 5 Canadian CEOs expect full return to office within next 3 years: report

But most SMBs happy with hybrid model to attract, retain diverse talent

Over 4 in 5 Canadian CEOs expect full return to office within next 3 years: report

Remote and hybrid work arrangements could see their end in the coming years, if Canadian employers have their way, according to a recent report.

Overall, 83 per cent of Canadian CEOs expect a full return to office within the next three years, reports KPMG.

That number is up from 55 per cent in 2023, according to the survey of 1,325 CEOs between July 25 and Aug. 29, 2024.

And 90 per cent say they are likely to reward employees “who make an effort to come into the office with favourable assignments, pay raises or promotions,” up from 77 per cent last year.

These findings are part of  a KPMG report that also found that there is high optimism among Canadian business leaders when it comes to their company’s outlook and the prospective growth of the Canadian economy as a whole.

However, SMB leaders aren't convinced, with only 20 per cent expecting a full return to office within the next three years, finds a separate KPMG survey of 735 business owners or executive level C-suite decision-makers at small and medium-sized Canadian companies between August 13 and Sept. 4, 2024.

Even though they'd like people back in the workplace — 85 per cent agree they'd offer rewards to entice a return — nearly two-thirds (65 per cent) fully expect a hybrid workforce in three years, “acknowledging that flexibility may prove essential to attracting and retaining the diverse talent they need to drive growth and productivity,” says KPMG.

More employers push for return to work

Many employers have been calling workers back to the office more often. The federal government, for example, has been requiring workers to report to the workplace at least three days per week since September.

In 2023, more than 155,000 Public Service Alliance of Canada (PSAC) members working for the Treasury Board of Canada Secretariat and Canada Revenue Agency (CRA) held a strike after the Treasury Board required workers in core public administration to be on-site at least two to three days each week, or 40% to 60% of their regular schedule.

In July, TELUS told its workers to relocate or risk losing their job, according to a union. The employer recently told the United Steelworkers union (USW) Local 1944 that some 150 unionized call centre employees based in Ontario must relocate to Montreal by October or have their employment terminated with a severance package, according to the union.

Subsequently, TELUS announced that, starting in September, roughly 1,000 call centre workers nationwide who have been working remotely since the onset of the COVID-19 pandemic must report to the office three days a week.

Previously, KPMG reported that 64 per cent of CEOs globally predict a full return to in-office working by 202, based on a survey of 1,325 CEOs between Aug. 15 and Sept. 15, 2023.

How to get workers back to the office full-time?

When it comes to getting workers back to the office full-time, it’s important that employers explain to workers the reasoning behind the move and gather their feedback, says Johnny Warström, co-founder and CEO of Mentimeter, in an article published by Entrepreneur.

It’s also important to start by implementing a “flexible enough return-to-office policy,” and to have workers working on things that provide them with “opportunities that truly excite them,” he says.

“A company is only as successful as its employees are happy – and upheavals like a return to office risk adding to employee dissatisfaction. You can ease that transition by getting back to basics. Start by optimizing the feedback process, show empathy and flexibility during a period of change and allow your team to focus on the work that makes them happiest,” says Warström.”

“It's all about opening the right kind of dialogue and ensuring inclusivity and understanding in the conversation. After all, the first step to fixing any leadership mistakes is acknowledging that you've even made them.”

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