A majority of global executives do not expect business to return to ‘normal’ until 2022, according to the 2021 KPMG CEO Outlook Pulse Survey.

The study conducted by KPMG in February and March of 2021 asked 500 global CEOs about their response to the pandemic and the outlook over a three-year horizon.

According to the survey, nearly half (45 per cent) of global executives do not expect to see a return to a normal course of business until sometime in 2022, as opposed to nearly one-third (31 per cent) who anticipate returning to normal later this year.

Nearly, 76 per cent of CEOs globally see government encouragement for businesses to return to ‘normal’ as the prompt for businesses to ask staff to return to the workplace. In India, the number stood at 86 per cent.

Vaccination a priority

The primary concerns for CEOs include employee access to vaccines and the overall work model in a post-pandemic era.

Around 55 per cent of CEOs are concerned about employees’ access to a Covid-19 vaccine, “which is influencing their outlook of when employees will return to the workplace,” as per the study.

“A significant majority (90 per cent) of CEOs are considering asking employees to report when they have been vaccinated, which may help organizations consider measures to protect their workforce. However, one-third (34 per cent) of global executives are worried about misinformation on Covid-19 vaccine safety and the potential this may have on employees choosing not to have it administered,” the report said.

In terms of employee return to workplace, a majority of CEOs globally intend to wait for over 50 per cent of the population to be vaccinated before returning to the office. In India, this number stood at 76 per cent.

21 per cent of CEOs globally and 18 per cent in India are looking to take additional precautionary measures by asking clients and other in-person visitors to inform them of their vaccination status when employees can indeed safely return to workplaces, as per the report.

Bill Thomas, Global Chairman & CEO, KPMG, said: “Before any major decisions are made, CEOs want to be confident that their workforce is protected against this virus. The Covid-19 vaccine rollout is providing leaders with a dose of optimism as they prepare for a new reality. CEOs are scenario planning for difference across certain key markets that could impact their operations, supply chains and people, leading to uneven economic recovery.”

Future of the workplace

The changes brought about by the pandemic has significantly altered the business model for 24 per cent of CEOs. 66 per cent CEOs in India as opposed to 74 per cent CEOs globally also felt the pandemic has accelerated the digitisation of operations and creation of next-generation models, the report said.

With acceleration in digital transformation, global executives are also likely to “downsize their physical footprint” compared to six months ago. 17 per cent of global executives are looking to downsize their office space as a result of the pandemic as opposed to 22 per cent in India.

While 69 per cent of global CEOs surveyed in August 2020 said that they planned to reduce their office space over three years. This number stood at 48 per cent in India in 2020

“CEOs are considering what the new reality will look like, but post-Covid, only three in 10 (30 per cent) of global executives as compared to 32 per cent Indian executives are considering a hybrid model of working for their staff, where most employees work remotely 2–3 days a week,” the report said.

“As a result, only one-fifth (21 per cent) of businesses globally are looking to hire talent that works predominantly remotely. In India this number is at about 22 per cent This is a significant shift from last year (73 per cent in 2020 globally as compared to 77 per cent in India),” it added.

Cybersecurity, ESG practices in focus

Apart from this, cybersecurity and Environmental, Social, and Corporate Governance are also high up the corporate agenda.

“During the lockdown, remote working has become the norm, which poses new data security risks to organizations. As a result, global business leaders including in India have identified cybersecurity as the top concern impacting their growth and operations over a 3-year period. Cybersecurity was named ahead of regulatory, tax and supply chain concerns,” the report said.

Apart from this, 49 per cent of CEOs globally as compared to 28 per cent of CEOs in India are also planning to put in place more stringent ESG practices.

89 per cent of business leaders globally are bullish on sustainability and climate change gains their companies have made as a result of the pandemic. In India, this number stands at 92 per cent. Nearly all (96 per cent) global executives including India are looking to increase focus towards the social component of their ESG programs, the report said.

“Our research shows that some executives have taken strong measures during the crisis to transform their operating model and ways of working, accelerating the rollout of key transformational projects, some by choice, some out of necessity. The pandemic has also been a catalyst for CEOs to evaluate the role their companies play in society. Many have given voice to issues they may not have previously commented on publicly — from tackling climate change to supporting the diverse communities they operate in — and we need to keep hearing those voices. There is much more to be done,” said Thomas.