Australia’s corporate world is seeing a significant shift in attitudes towards remote work, with the majority of CEOs signalling an end to flexible workplaces. A recent KPMG chief executive survey revealed that 82% of Australian CEOs expect employees to be back in the office full-time within the next three years, a considerable rise from the 66% recorded in the previous year’s survey.

However, amidst this tide of opinion favouring a full return to the office, KPMG Australia’s CEO Andrew Yates is charting a different course. Unlike many of his counterparts, Yates does not foresee an end to flexible working arrangements at his firm, firmly standing by the benefits of a hybrid model.

The surge in office-first sentiment

The survey reflects a growing sentiment among Australia’s top business leaders that the era of work-from-home flexibility may soon be a thing of the past. High-profile executives, like Tabcorp CEO Gillon McLachlan, have already begun implementing stricter office return policies. McLachlan recently issued a directive to Tabcorp’s 1,000 employees, informing them that the new default is to work from the office, emphasising that in-person collaboration is crucial for driving success.

“This is a really important step-change – we are resetting Tabcorp,” McLachlan wrote in an email to staff. “Having us together as a team, focused and driving towards our goals, will deliver outcomes and success. Being connected as a team also drives a winning culture and supports us to collaborate and achieve our best.”

It is clear that many CEOs share McLachlan’s perspective, as 78% of respondents in the KPMG survey indicated they would reward employees who return to the office with pay raises and promotions. This emphasis on incentivising office-based work suggests a broader strategy to re-establish a pre-pandemic office culture, with executives believing that in-person collaboration and engagement are key to driving business outcomes.

Andrew Yates: The naysayer amidst a wave of office mandates

In stark contrast to the prevailing office-first approach, Andrew Yates is standing firm in his belief that flexible work is here to stay at KPMG. For Yates, the KPMG survey’s result may reflect the unique nature of the respondent pool rather than an industry-wide mandate. He emphasises that the push towards a return to office work may suit certain business models, but it is not a one-size-fits-all solution.

"I think it does depend on the business,” Yates said, reported The Sydney Morning Herald. “We’ve seen a number of CEOs come out more recently and mandate a return to the office, and that probably suits their business. But at KPMG, we feel the way forward will continue to be flexible working arrangements.”

Yates is convinced that the days of a fully office-based workforce are behind us, particularly in industries like consulting, where flexibility is not only a necessity but a competitive advantage. According to him, KPMG has no plans to revert to the pre-pandemic model of mandatory in-office attendance.

“I don’t think we’re going to see a fully back-in-the-office workforce. I think that moment has gone,” Yates added, reinforcing his belief that flexible work arrangements will remain an integral part of KPMG’s operational model.

A broader conversation: Flexibility vs. office culture

Yates’ stance opens up a broader conversation about the future of work in Australia. While CEOs like McLachlan argue that in-person office culture is essential for fostering collaboration, creativity, and a sense of unity, others, like Yates, believe that flexible work models can offer the same benefits when implemented thoughtfully.

The reality is that not all industries are the same. For many firms in the consulting sector, flexibility has become a key element of the employee value proposition, particularly in a competitive talent market. Allowing employees to balance remote work with office-based interactions can boost retention, attract top talent, and enhance overall productivity.

Yates’ outlook on flexibility is also influenced by the increasingly tech-driven workplace. As companies continue to adopt advanced technologies, including generative AI, the traditional model of office-based work is being challenged. Flexible work arrangements allow businesses to integrate these technologies more seamlessly, offering employees greater autonomy and adaptability in their roles.

The role of technology and AI in flexible workplaces

A major revelation from the KPMG survey was that generative AI has become the top investment priority for many businesses. Companies are increasingly focusing on how AI can be leveraged to optimise productivity and drive innovation, with many executives expecting a return on these investments within the next three to five years.

For KPMG and other forward-thinking firms, the integration of AI technologies is intrinsically linked to flexible work models. AI tools can help streamline workflows, enhance remote collaboration, and support hybrid teams in ways that traditional office setups cannot. Yates believes that flexible work and technology will be the twin pillars of the future workplace, empowering employees to perform at their best, regardless of location.

While some CEOs may see a return to the office as necessary for fostering innovation and growth, Yates argues that businesses can achieve these same outcomes through a balanced and flexible approach, supported by the right technological infrastructure.

Optimism amid economic uncertainty

Interestingly, despite differing opinions on the future of work, most Australian CEOs remain confident about the broader economic outlook. 88% of survey respondents expressed optimism about the future of the Australian economy, with 78% saying they were particularly confident about the prospects for their own industry sectors.

Yates shares this optimism, noting that while the next few months may be slow, the longer-term outlook is positive. “It is encouraging to see that business leaders in Australia are still generally upbeat,” Yates said. “It seems that most are looking beyond what may be a sluggish next few months to a brighter two or three years after that.”

One of the key factors underpinning this confidence is the belief that talent levels will rise in the coming years, even as the unemployment rate is expected to inch higher in the short term. CEOs are preparing for future growth by investing in workforce development, particularly in areas like AI and technology, which are seen as critical to the next phase of economic expansion.