Dr Rasheed Al-Qenae, Managing Partner KPMG in Kuwait said: The rollout of the vaccine program in Kuwait has provided us all with a much-needed dose of optimism. Businesses in Kuwait welcomed the decision as we witness movement in sectors, which were otherwise stalled because of the pandemic. It is evident from the findings of the survey that CEOs want their workforce to be protected against the virus before making any strategic decision.
“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 major transformation is witnessed in financial services with a surge of digital payments and Fintech-related companies. A rise in the number of E-commerce companies in the last six months indicates that CEOs are considering online selling as a viable channel of sales as the majority of consumer are still staying indoors.”
Government and vaccination rates driving decision-making
Three-quarters (76 percent) of CEOs see government encouragement for businesses to return to ‘normal’ as the prompt for businesses to ask staff to return to the workplace. In addition, 61
percent of global executives said that they will also need to see a successful (over 50 percent of the population vaccinated) COVID-19 vaccine rollout in key markets before taking any action toward a return to offices. When employees can safely return to workplaces, one-fifth of companies (21 percent) are looking to institute additional precautionary measures by asking clients and other in-person visitors to inform them of their vaccination status.
Global CEOs are less likely to downsize physical footprint compared to 6 months ago The research finds that only 17 percent of global executives are looking to downsize their office space as a result of the pandemic. In contrast, 69 percent of CEOs surveyed in August 2020 said they planned to reduce their office space over 3 years, which demonstrates that either office downsizings have taken place or, as the pandemic has drawn on, strategies have changed.
Global executives remain apprehensive about a fully remote workforce
CEOs are considering what the new reality will look like, but post-COVID, only three in 10 (30 percent) of global executives are considering a hybrid model of working for their staff, where most employees work remotely 2–3 days a week. As a result, only one-fifth (21 percent) of businesses are looking to hire talent that works predominantly remotely, which is a significant shift from last year (73 percent in 2020).
Cyber security is now the top concern for CEOs
During lockdown, remote working has become the norm, which poses new data security risks to organizations. As a result, global business leaders identified cyber security as the top concern impacting their growth and operations over a 3-year period. Cyber security was named ahead of regulatory, tax and supply chain concerns.
ESG continues to climb up the corporate agenda
With COP26 taking place this year and the US re-joining the Paris Accord, 49 percent of CEOs plan to put in place more stringent ESG practices. A vast majority (89 percent) of business leaders are focused on locking in the sustainability and climate change gains their companies have made as a result of the pandemic. Nearly all (96 percent) global executives are looking to upweight their focus towards the social component of their ESG programs.
“Workforce retention was the primary concern for CEOs in our previous pulse survey. However, this quarter’s findings indicate that CEOs have overcome this challenge, and workforce retention is not among the top 5 concerns for CEOs. This transformation was possible because executives around the world focused on employee safety more than financial growth.
The pandemic has also been a catalyst for CEOs to evaluate the role their companies play in society. Today, many CEOs are talking about issues they may not have previously commented on publicly — from tackling climate change to supporting the diverse communities in which they operate,” adds Karen Watts, Partner Quality & Risk and Head of Corporate Affairs.
About KPMG’s CEO Outlook Pulse Survey
The 2021 CEO Outlook Pulse Survey asks CEOs from the world’s most influential companies to provide their 3-year outlook on the economic and business landscape, as well as the ongoing COVID-19 pandemic. This Pulse Survey looks at how their views have evolved since July/August 2020.
Five hundred CEOs from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the UK and the US) were surveyed from 29 January–4 March 2021. All respondents represent organizations that have annual revenue over US$500M and 35 percent of the companies surveyed have more than US$10B in annual revenue. NOTE: some figures may not add up to 100 percent due to rounding.
KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. We operate in 146 countries and territories and in FY20 had close to 227,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
For more information, please contact:
KPMG in Kuwait
© Press Release 2021