The decline of offices set to define the future of the City of London

<!–[if IE 9]><![endif]–>

Office workers making their way to work in London

Photo courtesy of: Shutterstock

More than 85% of UK financial workers no longer see offices as their primary workplace, highlighting the challenges the industry faces when trying to convince bankers to return to pre-pandemic standards. ..

Demand for the new paradigm is evident in a YouGov survey of more than 500 financial executives entrusted from across the UK. Bloomberg News last month. Currently, only 14% consider the office to be their primary workplace, but 42% at home and 44% in hybrid configurations.

The rise of telecommuting is a challenge that all white-collar industries are addressing, but it poses certain financial challenges, especially given that transactions require fully staffed offices. Bring. This means that many companies, including Goldman Sachs Group and JPMorgan Chase, have called for staff reinstatement as the pandemic has eased.

Vincent Keaveny, Mayor of London, Ambassador of the UK Financial Services Industry, said: “There are many city roles where hybrid work does not work.”

Even that compromise may not satisfy most workers. When combining office and home, the recommended setup is heavily inclined to remote work. Only one-fifth of the surveyed people want to spend more than three days a week in the office. Placement in the office two days a week or less is preferred.

Bridging the disconnect between corner offices and regular workers is essential to maintaining talent. Banks have already struggled over the past few years to stop the outflow of tech companies, cryptocurrencies, or simply workers leaving for the beach.

According to a YouGov survey, most people planning to withdraw from the industry say they will withdraw due to quality of life factors. Attempts to force a return can brilliantly backfire in today’s tough labor market.

So far, financial companies have responded in different ways. Some offered the familiar temptation of cold and cash. Bonuses surged in 2021, and many major investment banks raised their salaries to junior staff altogether and to keep them.

Citigroup plans to spend more than £ 100 million (€ 118 million) to fully renovate a 42-story office tower in London’s Canary Wharf district to meet new work practices. Remodeled trading floor and office campus. Goldman Sachs, a bank with a harsh culture that is part of Wall Street folklore, has raised the vacation allowance for junior staff and said partners and managing directors can take unlimited vacations.

And hybrid work, however reluctantly, is now a financial fixture. Jamie Dimon, CEO of JP Morgan, may have been one of the loudest cheerleaders to return to the office, but in an annual letter to shareholders last month, 270,000 people We estimated that about 40% of our employees would work in the hybrid model.

Some small businesses, such as digital lender Atom Bank, are even more advanced and are switching to working four days a week. So far, Atom is outlier in that regard, but few companies have been successful in returning to their physical office five days a week. Instead, a common approach to judging by walking traffic in the city is for workers to come on Tuesdays, Wednesdays, and Thursdays.

It’s an uneasy ceasefire in an evolving landscape. Mayor Keaveny expects things to materialize in the next few years as both employer and employee thinking continue to evolve.

What is clear is that the hybrid work arrangement remains here, whether or not the boss likes it.

“Everyone needs to engage in remote work to some extent,” said Claire Tanley, Chief Executive Officer of the Financial Services Skills Commission, which focuses on building a pipeline of skills and talent in the sector. “It’s important to tackle that challenge.”

© 2022 Bloomberg LP

New to the Luxembourg Times Download the mobile app here! Deliver the Luxembourg Times to your inbox twice daily.Sign up for our free newsletter Here.. The decline of offices set to define the future of the City of London

Back to top button