9 out of 10 CEOs in India want to tie employee bonuses, raises and promotions to returning to work: survey

According to a KPMG survey released on October 3, more than nine out of 10 CEOs in India want to tie rewards, raises or promotions to their employees' return to work when incentivizing office attendance.

“91% of CEOs in India compared to 87% of CEOs globally are willing to reward employees who come to the office regularly with promotions, pay increases and more beneficial assignments,” the KPMG 2024 CEO Outlook survey said, adding That CEOs are firming their stance on returning to pre-pandemic office work models.

Additionally, 78% of CEOs in India envision a return to an office work environment for their employees within the next three years compared to 83% of CEOs globally, the survey said. According to the survey results, improving the employee value proposition to attract and retain top talent will be their top priority.

“CEOs in India are committed to improving the employee value proposition to attract and retain top talent. By rewarding work in the office and fostering a supportive environment, companies can balance employee satisfaction with long-term growth goals, nurture talent, ensure well-being, and create a vibrant workplace culture,” the survey says.

Sunit Sinha, Partner and Head-Human Capital Advisory Solutions, Business Consulting, KPMG in India, said it is imperative for companies to re-hire as the trend of employees changing their work preferences in the post-COVID-19 Re-evaluating era, comprehensive understanding of the talent landscape in India is gaining momentum.

“By leveraging information such as talent availability, employee quality of life, and other such metrics, companies can position themselves strategically and attract top talent by ensuring their needs are met. The power to shape the future of talent lies in staying informed and proactively adapting.”

Regarding the impact of generative AI on skills development, the survey found that 50% of CEOs in India equally emphasize the importance of developing workforce skills and capabilities alongside technology investments.

CEOs in India are recognizing the potential of generative AI to improve workforce skills and readiness. By integrating AI into operations, companies can facilitate upskilling and promote different skills among their employees. Emphasizing inclusion in AI initiatives will empower all employees, regardless of background or seniority, to make meaningful contributions and ultimately drive transformation and growth within the organization, the report said.

For the tenth edition of the KPMG CEO Outlook, KPMG conducted a survey of 1,325 CEOs, including 125 from India, between July 25 and August 29, 2024.