Going to the office may be good for more than just free coffee and coworker gossip.
Amid the ongoing battle between employees and executives about return-to-office, 86% of CEOs say "they will reward employees who make an effort to come into the office with favorable assignments, raises or promotions," according to a KPMG survey of 400 U.S.-based CEOs. In other words, executives are admitting to holding a preference for in-office workers, reporting they have a better chance at raises and promotions.
But as is evident with the backlash to Amazon CEO Andy Jassy’s notice to employees demanding them to work full-time in the office, workers are less than content with returning to in-person work. While CEOs “increasingly favor a comprehensive return to office, the need for flexibility still holds,” KPMG CEO and U.S. chair wrote in the report.
It’s important to note, however, that KPMG’s study reflects statements CEOs said they would do—not what they’ve actually done yet. And especially considering the backlash some CEOs have faced for airing their feelings about in-office work, some may end up giving back into hybrid or remote work environments.
Why executives favor in-office workers
Serial CEO and entrepreneur Naeem Zafar told Fortune he favors employees who come to the office because they show a higher level of commitment.
“Those people deserve more opportunities, possible promotions, and rewards,” said Zafar, a lecturer at the University of California—Berkeley, who is also currently CEO of industrial IOT company TeleSense. He also co-founded and served as CEO of Bitzer Mobile, which was acquired by Oracle in 2013.
“Of course, it is more convenient for all of us to work from home and not have to deal with dressing up, driving to work, fighting traffic and other obligations that come from showing up,” Zafar said.
While he admits certain job functions—such as IT, sales or research and development—don’t require as much in person time, it’s essential for senior management to show face. But for employees who want to “become part of management, get promotions, and drive the company forward, that will be much harder unless they are physically in the office collaborating.”
Similarly, other executives want to get to know the people they’d be promoting and assigning to important projects in person.
“In-person interaction offers valuable relational investment, allowing leaders to better understand a person’s strengths, challenges and growth trajectory,” Jennifer Schielke, CEO of staffing firm Summit Group Solutions, told Fortune. “While technology bridges some gaps, it cannot fully replace the depth of human connection that comes from in-person collaboration.”
But not all companies have returned to office
While CEOs may say they would favor in-office workers for promotions, raises and better assignments, other companies remain steadfast in retaining remote work policies. In fact, some companies are reaping the benefits of fully remote work.
Take Zillow, for example, which recently reported job applications have quadrupled since going remote-first. Plus, several CEOs of large companies even work from home themselves, including Brian Niccol, current CEO of Starbucks and former CEO of Chipotle.
And CEOs of smaller companies still insist remote work can be just as successful as in-office work—and it can come with the same opportunities for advancement. Cathryn Lavery, co-founder and CEO of BestSelf Co., told Fortune that trust and output matter more to her than physical presence.
“Even in hybrid settings, promotion should be based on performance, not presence. While in-person collaboration can be beneficial for certain tasks like creative brainstorming, remote work can be equally effective when done right,” Lavery said. “The future of work is about flexibility, trust, and results—not about who spends the most time at a desk.”
