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Is the end of home office near? CEOs of large companies, inspired by Elon Musk, are ordering the return to the office. A KPMG study reveals that leaders prefer in-person employees, offering promotions and exclusive benefits.
The home office is at risk. Top CEOs are following Elon Musk's vision, seeing in-person work as necessary and rewarding.
O remote work, a practice that exploded during the pandemic, may have its days numbered.
In the most recent study by the consultancy KPMG, the “CEO Outlook“Executives at major global companies have revealed growing support for employees returning fully to the physical office environment.
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The survey, which polled more than 1.300 CEOs, highlighted a clear trend: the work-from-home era is under threat, with many leaders following the example of figures like Elon Musk.
And the reasons for this pressure? The search for greater control and engagement, in addition to a surprising reward policy for those who are present daily.
The survey indicates that 79% of US CEOs believe that work that was previously mostly office-based will return to being done physically by 2027.
This number jumped significantly from the 34% recorded at the beginning of the year.
The focus on hybrid models fell from 46% to 17%, while only 4% expect roles to remain fully remote.
Pressure to return to in-person work has intensified, and some giants, such as Amazon, Dell and Salesforce, are already requiring employees to be in the office at least some days a week.
Elon Musk and the end of the home office
Elon Musk's critical view of the remote work seems to have inspired other business leaders.
The CEO of Tesla and SpaceX went as far as to say that working from home is “nonsense” and demanded that Tesla employees return to the office, threatening to fire anyone who insisted on working remotely.
Musk's attitude, known for being incisive, not only shook the market, but also resonated among other CEOs, generating a wave of returns to the office among large corporations.
In Musk's case, his decision reflects a belief that physical presence is essential to performance and teamwork, and now many other business leaders appear to share that view.
For these CEOs, the office is still the most efficient place for collaboration, innovation and direct supervision of teams.
Rewards for those who work in the office
According to the KPMG study, 86% of CEOs said they will reward employees who choose to work in the office with promotions, raises and new opportunities.
In an unexpected twist, these rewards may not be awarded based on results or productivity, but rather on physical presence.
The plan is to ensure that those who contribute in person receive better opportunities in their careers, while those who choose to work from home may see their chances of promotion reduced.
In Europe, some companies are even suggesting a salary differential for those who work remotely.
In other words, working from home can not only limit the chances of professional growth, but also reduce the earnings of those who choose to do it.
Why does returning to the office matter so much?
KPMG’s research also examined the concept of “compound volatility,” which includes economic and political risks and increases management costs and challenges.
Amid this context, CEOs are seeking greater control over their teams to face risks and challenges in an uncertain scenario.
Cybersecurity issues and the use of artificial intelligence also weigh on decisions, with fears that remote working could expose companies to vulnerabilities.
Additionally, corporate leaders view the physical work environment as more suitable for training, monitoring and developing essential skills among employees.
Personal contact can facilitate faster exchanges and create an environment of mutual learning.
Is the hybrid model losing steam?
The hybrid model, which has established itself as an intermediate solution during the post-pandemic period, is facing a decline in preference among CEOs.
Flexibility, which was essential during the pandemic adaptation, is starting to lose ground, with only 17% of US CEOs planning to adopt a hybrid model, compared to 46% in early 2024.
Well-known companies like Amazon and Salesforce have recently abandoned hybrid work arrangements and required employees to return to the office.
Companies that were born in the home office, such as Nothing, also began to demand a more in-person model.
CEO Carl Pei, for example, restructured the company's routine, requiring employees from important sectors to be present at least some days a week.
The future of remote work in Brazil and the world
While adoption of the return to the office varies globally, the movement is gaining momentum in the US and Europe, which could impact practices in Brazil and other countries.
Remote work, which promised to become the new normal, is now facing growing resistance, and executives’ desire for proximity and control is likely to prevail.
The question now is: to what extent will home office have a place in the future of large corporations?
For many workers, the ability to work remotely has provided unprecedented freedom, and the move to a full return to the office can be seen as a step backwards.
However, for CEOs, the need to have engaged and supervised teams in controlled environments appears to be a priority.
What do you think? Is it fair to reward only those who are in the office, or should remote efforts also be valued?
The market is concerned about the devaluation of real estate funds. Companies working from home do not require buildings, commercial spaces, etc. And the funds live off the rental of these spaces.
So the real concern is this, and not having control over employees.
They are much more productive at home, have fewer distractions, are more willing because they don't waste hours a day commuting and can use these hours gained to take care of their health, spend time with their family and other benefits that end up making them happier, healthier and more productive.
Perfect analysis!
I was about to make a similar comment, Elon knows this too, he just has more “armor” to support this on top of him. You summed it up perfectly.
Without a doubt, those who do not correspond as men should return or be fired from the company. Each case is different. I don't understand why those who are doing well shouldn't benefit equally...
You got it right, but that's not all. The ego is one of the greatest enemies of human beings. And yes, control over the team is necessary! At home, you don't know when the employee is flying or doing other things. In the office, the firewood is bigger and guaranteed. You can see the suffering of the slave in the trunk.
The slave is confined at home and deprived of social interaction and on top of that he thinks it's beautiful. Isolated people, without REAL friends, of flesh and blood, happy in their **** r ral and oblivious to what's going on in the world.
And life is running wild… lol
I wrote ku rral…sack…
I don't make friends at work, I make friends at the bar and I certainly don't invite anyone from the company there. The only one who wants to be isolated is me and not you.
Unfortunately, I believe in this reality. They do not want to lose control over others and thus continue to massify the long-suffering working class. The sugar mill owners will never lose the sovereignty of remote control. He who can, commands; he who has sense, obeys.
I am totally in favor of in-person!! We should also think about the other side, restaurants depend on in-person businesses. I totally support it!! Working families CLT
Restaurants can serve both in-person and remote customers, they just need to know which target audience they want to serve. Crowding people in one place and making them waste time commuting is a huge setback.
Your ****
People who work from home also eat restaurant food and generate revenue for delivery drivers. I speak for myself. The fact is that they want to be in control. These people in high places think they work too much and others don't.
Correction: You think you work too much…*
Of course. Let's all go back to using lamps for energy so that the market for kerosene streetlights can return. There are people who only think about regression and don't use their brains to think.
Exactly, associated with the most evident demonstration of human control over another.
Exactly
The comment is perfect, I am a manager in the area of Occupational Medicine in a large multinational, I have 10 subordinates, 4 in a hybrid system and 6 in home office, there is no drop in productivity due to home office, on the contrary, the reduction in the need to travel is combined with a decrease in absenteeism and an increase in productivity.
Managers who feel the need to keep employees under their personal supervision, with the excuse that direct supervision is necessary to increase productivity, need to update their management practices with their subordinates. Unproductivity does not occur due to working from home, but rather due to a lack of adequate leadership and communication with the team.
Direct savings in reducing leased spaces to keep employees on-site, investing in training and employee appreciation is also an attractive option for having an engaged and quality team.
Perfect!!
Big city, traffic chaos and high fuel prices, I prefer to stay in Home Office, I save myself from all that and have more time with my family!
A competent manager is one who knows his team, knows individual skills and abilities and fully conducts his leadership, controlling the imposed goals and making sure that the team works. If something goes wrong, he already knows who is to blame, redirects things or fires incompetent and lazy people.
It's that simple, face-to-face work is an excuse for old-fashioned managers who are afraid of having their management inability discovered.
That's right Manuel.
Good point! And I see it as a setback because working from home has made the job market more inclusive for people with disabilities, for example. As an autistic person, I have great sensory sensitivity and places with a lot of exposure (noise, air conditioning, people moving around, doors opening and closing) make me very uncomfortable. Autistic people have hyperfocus and working remotely without distractions further enhances this ability. And because I am autistic, this does not diminish my cognitive capacity; on the contrary, there are many positive things, such as: I am self-taught, passionate about numbers, I learn easily and I pay attention to details. I am much more productive and efficient working remotely.
I'm also autistic and what you said is our reality.
Sorry… Wrong analysis. The problem lies in the generational mindset. The real estate market adapts well, with the exception of the lazy old heirs who live off passive income. But the fact is that one market does not control another. Musk is an opinion maker and is part of my generation that tries at all costs to stop the behavioral changes of this generation. The problem is that this model of control, which we inherited from our parents (babeboomers), does not work today and in fact has never been effective, since it generates sabotage, lies, dissimulation, and reaches the most critical point of human behavior at work… Presenteeism!
This trend will reduce production efficiency and generate rework, in addition to other occupational illnesses, with a strong increase in the likelihood of mental illnesses.
The solution is not to change the location but to understand how to charge for delivery... After all, when outsourcing came, it led to leaving control of production and focusing on delivering quality, negotiating deadlines and demands. In other words, home office follows a similar management process, but with stubborn people who want to win by force, we will only see wear and tear and losses.
So you think that the decision by Amazon, Tesla, and Google is to benefit “real estate funds,” when they could reduce their office costs by working from home? What nonsense.
Those who will be harmed will be women who, through home office, are able to work from home, take care of their young children and help with the family income.
The market is concerned about the devaluation of real estate funds. Companies working from home do not require buildings, commercial spaces, etc. And the funds live off the rental of these spaces.
So the real concern is this, and not having control over employees.
They are much more productive at home, have fewer distractions, are more willing because they don't waste hours a day commuting and can use these hours gained to take care of their health, spend time with their family and other benefits that end up making them happier, healthier and more productive. *excellent comment*
Exactly 👏👏👏
The real estate market may be, but what interest do these companies from other areas have in the real estate market?
I think there is more distraction in the Home Office.
With the lack of satisfactory urban transport, face-to-face work is a ****. The time wasted on commuting can be used for production, with a better quality of life!
Buy Musk's electric cars to go to work and you will also need to buy the Optimus to take care of the house.
Kkkk kkkk
So it is!