The role of the office is changing, but it continues to be a vital asset as businesses face a more complex and competitive environment than ever before. While flexibility and hybrid models are now ingrained in workplace culture, the conversation is shifting from “Should we return to the office?” to “How do we optimize the office for business success?”

Executives recognize that in-person work drives innovation, fosters collaboration, accelerates career growth, and strengthens company culture. The office is no longer just about where we work; it’s about how we work smart and optimize the benefits of human connection to achieve better outcomes.

CEOs Are Reinforcing the Value of In-Person Work

The latest KPMG CEO Outlook survey highlights a sharp shift in leadership sentiment:

• 83% of global CEOs anticipate a return to full-time office attendance by 2026, signaling a potential end to hybrid work models. This is up from 64% in 2023.
• 62% of U.S. CEOs envision the working environment for corporate employees whose roles were traditionally based in-office to be back in the physical workplace in the next three years, a marked shift from 2022 (34%).
• 87% of CEOs say they are likely to reward employees who make an effort to come into the office with more favorable assignments, raises, and promotions.

As business leaders navigate economic uncertainty, they’re recognizing the office as a strategic advantage—a place for teams to collaborate effectively, respond quickly to disruption, and build stronger relationships with clients.

The Talent Equation: Why In-Office Presence Matters

For high-performing employees, especially those starting their careers, face-to-face mentorship, visibility, and organic networking opportunities remain essential. In today’s hybrid environment, the office plays a key role by:

• Creating opportunities for rising talent to connect informally with leaders.
• Facilitating natural, team-based learning that accelerates professional growth.
• Strengthening company culture and building a community that helps retain valuable talent.

While flexibility remains a priority for many workers, leading organizations are repositioning the office as a destination where employees want to be rather than where they are required to be. They are doing this through amenities, purposeful gathering, placemaking, and emerging hybrid design principles to create high-performing environments that are magnets rather than mandates.

AI and Automation: The Changing Workforce Dynamic

The rise of AI and automation is reshaping job functions, increasing the need for human-led problem-solving, creativity, and strategic thinking. As McKinsey predicts that up to 30% of work hours could be automated, the most valuable roles will require:

• Collaboration and real-time decision-making, which are best supported in an office setting.
• Cross-functional knowledge-sharing to help businesses stay competitive.
• Reskilling and adaptability; in-person environments foster faster skill development.

As AI takes over routine tasks, human connection and expertise become even more valuable, and the office serves as the hub for developing these critical skills. The office augments complex collaboration, generative work, and real-time decision-making, which are essential for innovation and growth.

Addressing Workplace Challenges: The Office as a Solution

Remote and hybrid work have brought new challenges to the forefront, including:

• Feelings of isolation and lower engagement among employees.
• Difficulty onboarding and effectively training employees early in their careers.
• Reduced mentorship opportunities, impacting career growth and progression.
• Rising burnout and struggles to maintain a healthy work-life balance.

Rather than being positioned against hybrid work, the office is an answer to these challenges: a key tool in helping organizations balance flexibility with business needs. Companies that take an intentional, experience-driven approach to their office strategy, focused on people as the greatest amenity, will win the war for talent and innovation. Building trust, a hallmark of high-performing teams, is also more easily fostered in person, further strengthening the case for the office.

The Future is Not About Office vs. Remote; It’s About Strategy

The debate is no longer office versus remote; it’s about creating balance and workplaces that drive success. The strongest companies are not eliminating flexibility but instead designing office environments that support the collaboration, mentorship, and innovation that remote work alone cannot replicate.

Executives are increasingly recognizing this shift. While the office is not obsolete, its role is evolving. Companies that embrace this evolution, focusing on creating environments where employees feel valued, connected, and empowered, will lead the way in talent retention, business growth, and long-term success.