Image credits: Drew Beamer
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News Article

64 Percent of CFOs Plan to Make Home Office Permanent

By Cas Biekmann | Fri, 05/08/2020 - 17:41

Home office’s introduction in Mexico was a ‘necessary evil’ originally. The government closed offices to slow the spread of COVID-19, meaning that companies had to adapt to working remotely or not work at all. Now that companies have leveled up their operation to match the situation, the clear benefits of home office are starting to show but not without consequences: a rather convincing majority of CFO’s in Mexico are now planning to make this a stalwart of company strategy.

In fact, up to 64 percent of CFO’s are planning to make remote work a key component for certain positions within their company, reported El Economista, based on a survey organized by PwC. What is more, PwC said that automation within companies would be accelerated because of this as well.

Compared to the US, CFOs in Mexico are less inclined to take steeper measures regarding worker safety once offices open again. Fifty-eight percent say they will implement a supply of facemasks and COVID-19 tests; this is 19 percent less than CFO’s in the US.

Mexico’s financial directors from SMEs are worried about not being able to keep their staff. In fact, PwC reports that investment in a company’s workforce is among three types of resources that CFOs plan to either defer or cancel in the coming months, below investments in facilities, capital goods and operations. Eighty percent of financial executives are concerned about challenges in operation results, future planning, liquidity and capital resources.

Nevertheless, two key words arise: flexibility and resilience. With added flexibility, companies hope to respond to newly created client needs. If companies are more flexible, they will also be more likely to adapt home office and other modernizations. Only a small percentage of CFOs is considering to stop their investment in the sphere of digital transformation. Furthermore, PwC observed adjustments in the supply chain to meet changes in demand and consumption related to this. Resilience might sound like a buzzword but really does provide companies with the core attitude needed to overcome a slowdown in activites or even a global economic recession, as is feared by 73 percent of CFOs in Mexico.

Productivity is seen with increasing confidence: where 55 percent of CFOs dreaded a loss in production on April 8, this was reduced to 24 percent by April 22. This suggests that convincing performances by employees, despite working remotely, convinces CFOs to be willing to adopt working from home.

The data used in this article was sourced from:  
El Economista, PwC
Photo by:   Drew Beamer
Cas Biekmann Cas Biekmann Journalist and Industry Analyst