Earlier this month, four accomplished business leaders came together to dissect the wide-ranging and often surprising findings recently published in . Throughout their discussion – which centered around ESG, the economy, talent and new technologies – a greater theme emerged: divergent expectations between CEOs and their employees, and the importance of bridging that growing gap.
The podcast episode, part of a series entitled Conversations powered by KPMG Luxembourg, featured Joe Garner, former CEO of HSBC and Nationwide; Claire Corbett, founder of Rightpoint Global; Ellie Doyle, founder of TalentHub; and Guenther Steiner, former Team Principal of Haas Formula One. Their conversation revolved around the tenth annual CEO outlook, which compiled responses from over 1,300 CEOs, all of whom have annual revenues of over US$500M and represent 11 major markets and the same number of key industry sectors.
Generative AI: employee job security fears vs. CEO plans to increase hiring
The divide between CEO and employee perspectives is best illustrated by the survey’s takeaways regarding artificial intelligence, talent and working models. For example, despite anxieties among the world’s workforce that AI threatens jobs, a narrative also supported by entertainment and media, the KPMG CEO Outlook found that 100 percent of Luxembourg’s CEOs expect employee headcount to increase within the next three years. Moreover, none of them expect generative AI to fundamentally impact the number of jobs.
Rather than echoing employee concerns over a lack of jobs, CEOs instead expressed the desire to hire additional skills and prioritize upskilling. Globally, 65 percent believe that talent will negatively impact their organization over the next three years. When ranking factors with the greatest impact on their companies, CEOs were preoccupied with the number of employees retiring coupled with a lack of skilled workforce to replace them, which landed in the number one spot globally and number two spot in the Grand Duchy.
According to Doyle, modern leaders can begin to close this gap in outlook and alleviate AI fears by doubling down on transparency, communication and AI training.
Like survey respondents, the group did not subscribe to the view that generative AI will threaten jobs. Garner cited historical precedent, noting that a few hundred years ago, 100 percent of people worked in agriculture, compared with less than one percent today. In this case, technology took over taxing and dangerous physical tasks without negatively impacting long-term employment.
Working environments: employee preference for flexibility vs. CEO return-to-office expectations
Another gap in viewpoints appears later in the survey: 83 percent of global CEOs and 100 percent of Luxembourg CEOs envision a return to in-office working environments within the next three years. This contrasts sharply with the preference of today’s talent, studies show.
Flexibility represents a fundamental requirement of new hires, especially Gen Z-ers and millennials. What was once a luxury has become the minimum, and, according to Corbett, leaders who fail to integrate flexibility into their business models face a potential fallout.
Notably, according to the study, older generations of CEOs are more likely to express return-to-office expectations.
It remains to be seen how far Luxembourg CEOs will stray from their in-office visions to win over and retain newcomers, given that 40 percent of these leaders listed talent as top of mind and 30 percent are concerned that talent will negatively impact their organization over the next three years. All of them noted the impacts of an aging workforce on recruitment, retention and culture.
Seventy percent of Luxembourg CEOs agree that organizations should invest in skills development and lifelong learning in communities to safeguard access to future talent. Actually appealing to that talent, however, presents a separate challenge that may demand the release of traditional working models.
CEO success today: bridging the gap via communication, support and a culture of change
During the discussion, the group asserted the importance of supportive leadership in driving employee productivity and well-being, particularly with the acceleration of new technologies and shifting working environments. It also acknowledged the perfect storm facing CEOs today, from the pandemic to AI implementation to ESG demands, creating a world in which change is constant and agility, a necessity.
Garner took a moment to reflect on the start of his career 35 years ago, when CEO responsibility centered around profit and shareholder return. Fast-forward a few decades to current leaders, who balance a long list of priorities that includes customer service, employee engagement, diversity, inclusion, sustainability, governance and beyond.
Given the growing responsibilities shouldered by today’s CEOs, this conversation suggests that perhaps none are more important than aligning the differing expectations held by employees and their leadership.
For the full discussion, listen to the podcast episode:
For more findings about ESG, talent, new technologies and economic outlook, check out our survey overview: