Banks grapple with remote work policies divide
LONDON, UNITED KINGDOM — As hybrid work patterns become the norm, banks are facing challenges in getting employees back to the office.
A stark divide has emerged between Wall Street lenders like Goldman Sachs, which requires bankers to be in the office five days a week, and European rivals with more relaxed policies.
JPMorgan has asked its 2,000 managing directors in London to be in the office full-time, while junior staff can work from home up to two days a week. In contrast, UK’s NatWest expects staff to come in just twice a month, with 95% adopting a hybrid approach, while British bank Lloyds requires staff to be in only twice a week.
Research by Scoop shows 93% of British finance companies offer hybrid work compared to 87% of their U.S. counterparts. Globally, 18% of banks offer full workplace flexibility, 50% have hybrid structures, and 32% require full-time office presence.
Some banks, like Bank of America, Goldman Sachs, JPMorgan, and HSBC, have sent reminders to staff about their obligation to return to the office more frequently, even threatening disciplinary action. Others, like BNP Paribas and Citigroup, are monitoring office access data and warning of docked bonuses and layoffs for non-compliance.
“Banks are having to come face to face with the fact that there are things that don’t work as well when no one is in the office,” said Mark Mortensen, associate professor of organizational behavior at Insead business school.
“They made promises to their employees about working from home, who then made significant life changes on the back of them. Now it is very hard to undo those promises.”
Experts suggest that enforcing mandates and tracking data may negatively impact staff relations.
“Rather than sending threats and monitoring staff, managers need to think about other ways of encouraging workers back to the office,” said Mortensen.
Nicholas Bloom, an economics professor at Stanford, encourages firms to focus on socializing within the organization. “What completely defeats the point is having a two-day policy where people come in when they want,” he said. “The most successful way is coordination.”
Meanwhile, for Clare Hart, chief executive of outsourcing company Williams Lea, “Does it make you feel good that everyone is in every day? The most important thing is we have the most productivity. We can do that in three days.”
Banks with strict return-to-office policies risk losing talent, as studies show flexibility is a top reason for employees considering leaving their company. Another survey reported that U.S. mandated office returns led to surging attrition rates.
