Grant Thornton’s February 2021 survey of more than 250 CFOs and senior finance executives at companies from $100 million to over $1 billion in annual revenues revealed noteworthy insights about unexpected upsides of the COVID-19 pandemic, as well as other topical issues such as concerns associated with the new administration, prioritization of DE&I and ESG, automation technology, and SPACs.
Pandemic-related findings include:
- More than 60% of companies (55% public | 66% private/self-employed) identified a flexible/remote work environment as a positive unexpected outcome of the pandemic; more than 40% of companies (38% public | 46% private/self-employed) noted improved collaboration within the company; and nearly 40% of companies (31% public | ~45% private/self-employed) reported improved business processes and better strategic focus.
- A reduced real estate footprint was also characterized as an unexpected upside. According to the release, 32% plan to permanently decrease their company’s real estate footprint and 31% plan to minimize real estate and facilities expenses over the next year.
- Near-term and longer-term reductions in travel expenses are planned. According to the release, 45% expect a decrease in travel expenses over the next year and 41% plan to decrease travel expenses permanently.
The report notes: “Survey questions around expense planning also reinforce that CFOs aren’t planning to return to old business models. Travel and real estate/facilities remain targeted for cuts by a significant number of respondents both in the coming year and permanently. It seems at least some of the shift to remote and virtual work environments is here to stay.”
See “JPMorgan, Salesforce Join Growing List of Firms Dumping Office Space” (WSJ) and additional information & resources on our Coronavirus (COVID-19) Resources page.