Last week we saw 2 very public announcements from the the world of banking in regards to their visions of the future of work. Seismic announcements not just in their sentiment, but in their differing perceptions of workplace culture, and experiences their employees can expect post pandemic.
HSBC announced it would be cutting back its global office footprint by some 40% to capitalise on a new hybrid working model, after seeing teams flourish in a remote working capacity since the pandemic struck. Admittedly, part of a wider cost saving exercise too of course(!), on top of already shaving off a cool 11,000 jobs in 2020.
We're increasingly seeing this measured approach to footprint reduction from businesses holding on to a significant amount of real estate. It's sad it's taken a global pandemic to do it, but witnessing leaders finally see sense in trusting their employees to work remotely - shifting towards a success model based on results, not time sat in the office - is encouraging. Whilst simultaneously making for much happier employees and CSR managers. What's not to like about it?
I feel this was an important announcement, as the Finance sector has historically been a slow adapter when it comes to implementing flexible policies for its employees. The Guardian reported HSBC would be focussing more on its Asian markets (despite continued civil unrest in the region), so look to see the real estate in these areas remain, whilst tailing off elsewhere in the likes of Europe. Which makes a lot of sense, considering the strong cultural attachment Asian countries have to daily office life, compared to a more fluid approach in the West. So don't expect the flagship site in Canary Wharf to be going anytime soon!
This was followed on Thursday by the announcement from David Solomon, head of Goldman Sachs, who labelled remote working an "aberration" and something that "we’re going to correct as soon as possible” (he said as he slid off his dinosaur à la Fred Flintstone). Investment banking has long been notorious for its strict protocols on in-office presence, and therefore culturally, the announcement didn't come as much of a surprise.
Having said that, when probed further, Solomon said “I do think for a business like ours, which is an innovative, collaborative apprenticeship culture, this is not ideal for us."
Now I'm not an expert on investment banking or Goldman Sachs culture, but considering its widely accepted the future of work points towards a hybrid model - with agile working methods and increased flexibility for employees - this stance doesn't sound particularly innovative to me. In fact, it feels like a huge opportunity missed to hit the reset button.
This was an opportunity to put a marker in the ground for the investment banking world to embrace the change, invest in (oh the irony) new technologies - of which there are a plethora - to offer its employees the best of both worlds.
Flexible working, coupled with providing the right environments to best enable productivity, is the cornerstone of workplace experience. It makes life easier for parents to see their children; for apprentices to avoid increasingly excessive commuting costs; for employees who help care for someone outside of work...or even for that top executive to make it to the polo club in time for a hack round.
Increased flexibility and an integrated work/life balance make for happier employees, employee retention rates and host of other benefits. There have been countless studies to show this. And with the workforce getting younger, and the clear trend of its importance to Millennials, Gen X etc.. why not get ahead of the game now?!
Yes there will always be roles and industries more curtailed to office life, but we shouldn't prescribe to the historic expectations of these just because 'that's the way it's always been done'. But clearly there are early signs of an increased focus on workplace experience from the Finance sector - let's hope for the sake of all its employees, and the industry itself, it's a permanent one.