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Despite a sometimes turbulent past year, the overwhelming majority of the nation’s business leaders are bullish about the outlook for 2026. Ninety-five percent of CEOs surveyed are optimistic about the coming year, and 84% expect economic conditions to improve, according to the 2026 State of the U.S. C-Suite report from the International Workplace Group.
Every CEO surveyed agreed that cost control is essential, and CFOs are trimming budgets by an average of 10%. One way they are doing this is by leveraging the power of artificial intelligence and flexible work solutions to operate more efficiently, which will enable investments in other parts of their business. More than 4 in 5 C-Suite executives say they will prioritize investment in AI and automation (82%) and productivity (82%) in 2026.
Companies of all sizes are empowering their employees to work across multiple locations, dividing their time among local workspaces, a central office and home. This is not simply a change in how people work but a rebalancing of where economic value is created, the report said. The primary reasons cited are shorter commutes (43%); wider talent pools (37%); employee happiness and preference (37%); workforce productivity (37%); and the ability to obtain office or coworking space in areas with lower real estate costs (37%).
“There is no longer a binary choice between work from home and work from the office,” said Mark Dixon, the organization’s founder and CEO. “By reducing daily, costly commutes to faraway offices and empowering people to spend more time working closer to where they live and want to be, leaders can cut costs, maximize productivity, increase employee satisfaction and retention, and drive better ROI.”
The top five objectives that C-Suite executives believe are important to the success of their business in the coming year are:
- Long-term talent retention: 42%
- Recruitment of quality candidates: 41%
- Adopting and understanding technology: 40%
- Workplace wellbeing: 39%
- Profitability: 39%
Even as they further integrate AI and other technology, successful executives also understand the importance of putting people first.
“Productivity and performance come down to good management of people,” Dixon said. “As leaders navigate AI, cost savings and retention -- noting the high costs of attrition -- the benefits of flexible work are allowing them to shore up their businesses and prepare for growth.”
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