ARTICLE
24 January 2025

Return To Work: To Mandate, Or Not To Mandate?

HC
Herrington Carmichael

Contributor

Herrington Carmichael is a full-service law firm offering legal advice to UK and international businesses. We work with corporate entities of all sizes from large PLCs through to start-up businesses.
A number of high-profile businesses have announced the end of their hybrid working policies and have mandated their staff return to the office full-time.
United Kingdom Finance and Banking

A number of high-profile businesses have announced the end of their hybrid working policies and have mandated their staff return to the office full-time. Businesses in financial services were some of the first to make the move. These announcements have sparked considerable debate, as firms seek to balance operational needs with employee expectations in a post-pandemic world.

The rise and decline of hybrid working

The hybrid working model gained significant traction during the pandemic, as lockdown and social distancing measures forced companies to embrace remote working on an unprecedented scale. Both employers and employees demonstrated their ability to adapt in unfamiliar circumstances and many companies have retained a level of hybrid working after the restrictions were lifted. However, there has been considerable discussion around the impact of hybrid working on employees' productivity, collaboration and development, office culture and overall delivery of client service.

KPMG UK conducted a survey of 150 industry leaders which revealed that more than three quarters of financial sector bosses want office attendance to increase and more than one third want employees in the office at least four days a week. Despite what these statistics suggest, the survey also found that over half of leaders see hybrid working as an opportunity and a fifth recognise it as a significant advantage. But when so many espouse the personal benefits of hybrid working, is it possible to return to the pre-pandemic set up?

What has prompted the change?

  1. Collaboration, innovation and productivity: some argue that in-person working encourages better and more collaboration and innovation, allowing for spontaneous conversations which would be trickier to achieve behind a screen from home. Many employers also have concerns that their staff are not working at optimum productivity levels with many possible distractions at home that would not be present in the office.
  • Maintaining company culture: some express concerns that a lack of office presence may result in corporate culture becoming diluted. It has long been thought that shared, open-plan office spaces are vital for the building and maintaining of relationships, mentoring and the promotion of organisational values.
  • Client expectations: the financial services sector often relies on fostering close client relationships, this becomes more difficult where employees are not in the office and are taking client calls from home, rather than attending in-person meetings. Firms often feel that a strong physical presence in an office demonstrates professionalism and builds trust with clients who require services to be delivered seamlessly.
  • Training and development: this is of particular importance in relation to junior employees or those who are in training. The physical presence in the office of all levels of seniority allows for others to learn by osmosis, learning by overhearing conversations and asking questions of those around them with ease.

What is the impact on employees?

The return-to-work mandate has not been welcomed by all. Many employees made lifestyle decisions during the pandemic which do not fit as easily into a traditional work week. Employees have also realised a time and cost saving in terms of reduced travel, also enjoying an increased work-life balance and a less formal working day. In another study from KPMG UK, it was found that all age groups of employees consider flexibility around hybrid working a key consideration when choosing a job. This is not the case for all, however, some employees struggled with the isolation during the pandemic and prefer working in a traditional office environment.

Broader implications and practical steps

The move by big corporates within the financial services sector demonstrates a shift away from previous working practices, and many will follow suit. However, it will be important to consider how to handle this transition to ensure that talent is retained, and business continues as normal. There is no one-size-fits all approach, but where do you start if you want to successfully manage the return to work?

  1. Review contracts: are the employees' contracts home based, are the number of days required in the office specified or are the contracts office based?
  2. Update flexible working policies: review what your policy says and update it in line with your new approach to office working.
  3. Communication, clear expectations and an open dialogue: clear communication is key. Consider circulating a return-to-work policy which sets out the company's approach and their guidelines. There will undoubtedly be some employees who do not react well to the announcement of change and the best way to handle the confusion and upset will be by making it clear what the new requirements are and how support will be offered through the change.
  4. Consider offering incentives: some firms are offering incentives such as offering increased office amenities, subsidies for travel and wellness programmes or spending allowances to assist with the transition.

What next?

The decision to return to office working reflects broader strategic priorities within the financial services sector, the continuing need to foster innovations and remain competitive in an ever-evolving industry. However, as this trend continues to grow, firms must be conscious of their employees and avoid alienating those who value their increased flexibility. The ultimate challenge lies in creating an optimum workplace model that works for the business and its employees.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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