'Come To Office Twice A Week Or Lose Your Bonus!': Major British Bank Cracks Down On WFH

A leading British bank has escalated its push for in-office work, warning employees that their bonuses could be impacted if they don't meet minimum office attendance requirements.

Lloyds Banking Group is set to cut bonuses for senior staff who fail to comply with the new office attendance policy, requiring them to work in the office at least twice a week. Lloyds Banking Group will factor office attendance into the bonus calculations for roughly 20% of its workforce, impacting approximately 12,000 employees.

Lloyds Bank Tightens Office Attendance

Lloyds Bank confirmed to Fortune that the new bonus system will apply specifically to senior bankers, not the entire workforce. Lloyds' decision comes shortly after the bank reopened its City headquarters following an 18-month renovation, with the newly refurbished Old Broad Street location now accommodating over 5,000 employees.

The Covid-19 pandemic significantly altered work patterns for many UK companies, with hybrid work becoming commonplace. However, Lloyds' move, as first reported by The Guardian, suggests a growing desire among some employers to return to more traditional office-centric models.

Initially a necessity during strict lockdowns, remote work enabled the continued function of the white-collar economy. However, it has evolved into both a standard practice and a valuable tool for attracting talent by offering the coveted benefit of workplace flexibility.

However, concerns about employee productivity, coupled with the need to justify substantial expenses on city office space, have prompted a wave of major employers to reverse course and re-emphasise in-office work.

The Office Comeback: Is Remote Work Dead?

Lloyds is not the first financial institution to oppose remote work. In 2023, Wall Street giant Goldman Sachs issued a directive mandating that all staff return to the office for five days a week.

Leading firms increasingly emphasise in-office work, citing the need to foster a stronger corporate culture and provide younger employees with valuable mentorship opportunities.

This past week, major corporations have doubled down on in-office work. JPMorgan Chase, America's largest lender, recently announced that all employees must return to the office five days a week starting in March. Similarly, at the beginning of this year, Amazon mandated a full return to in-office work for all employees.

The Metropolitan Police has issued a stark warning to thousands of its staff: adhere to the new office attendance policy or face a pay cut. These positions encompassed 999 call handlers, PCSOs, and child protection officers.

Flexible Working: Is it Really A Win For Everyone?

According to the Office for National Statistics (ONS), two in five UK workers currently enjoy remote working arrangements, and the number is significantly higher for management positions, reaching two-thirds.

Remote work opportunities are significantly higher for those with a degree, with almost 60% working remotely, compared to less than 10% of those without a tertiary education.

In response to the new hybrid work policy, a Lloyds spokesperson emphasised that the firm was 'proud to offer an industry-leading approach to flexible working which delivers many benefits for our colleagues while ensuring that we are well-placed to deliver on our ambitious strategy to transform our business and continue to deliver for our customers.'