A global recession is the main problem everyone is worrying about. Entrepreneurs are now thinking about changing the way things work to save costs. The fear of recession comes with a rise in inflation, which means the costs would increase for the companies. Remote workers are now being seen as an added cost to the company’s structure. Most entrepreneurs in America are now thinking about cutting down their workers. CEOs and executives fear that a recession will come sooner or later, so it's better to prepare accordingly.
According to a report from KPMG on the expectations of entrepreneurs, nine out of ten CEOs in the United States (91%) believe that a recession will hit the U.S. in the coming 12 months. 86% of CEOs globally expect the same way because of the findings from international tax, auditing, and consulting firms. This scenario reflects the worries of big names, such as Wall street, etc.
Recession And Remote Workers
Amidst the situation, 51% of CEOs said they are considering reducing their workforce in the next six months. In a global survey, eight out of ten CEOs shared the same view. One caveat of people which is likely to be most affected by this situation are remote workers. It’s about time remote workers should think about showing up at their jobs.
When CEOs will think about laying off workers, remote workers may top the list. According to 60% of 3000 managers that were surveyed by Beautiful, a software company, they would lay off remote workers first. Although 20% of the managers were not sure, and the remaining 20% said they were unlikely to lay off. Nevertheless, the situation is still pretty alarming for remote workers.
It makes sense that on-site workers are likely to be more responsive as direct control can be maintained. On site, workers are always present to boost one another’s morale. Digital disruption can always cause communication to get affected and also work. With remote workers, it’s also difficult to maintain confidentiality. Most remote workers may not be available during work hours due to digital disruption. Hence, the priority for all the CEOs would be to lay off the remote workers first.
When most of the CEOs were asked about their company’s three-year working arrangement for traditional office jobs, nearly 45% of CEOs in the U.S. said they would think about laying off hybrid and remote workers first. A third of the CEOs said jobs would remain in the office as this way, it would be easier to communicate and deliver orders. CEOs around the world seemed more interested and keen on personal work. Most felt that office work is an ideal way for the future.
Global results were obtained from business leaders and CEOs from the United States, Canada, China, Australia, Japan, India, some countries from the European Union, and the United Kingdom. CEOs globally felt the same way, as all of them have the same fears and expect a recession.