Why do investment banks hate staff working from home? Jo Keddie shares her views with The Banker
A recent article by The Banker explores the controversial return of full-time office-working in the banking sector. Despite the widespread adoption of hybrid work models in many industries, investment banks including JPMorgan, Goldman Sachs, and Barclays have mandated a full return to the office for their employees.
Jo Keddie, Head of our Employment and Partnerships team, shared her insights with The Banker on how the cost of offices; the weak employment market and the pressure on London investment banks to perform has impacted work from home practices. She says that ‘the pressure on London investment banks to perform is immense as other regions vie for new company flotations and London needs to retrieve its position.’ Jo added that due to the regular restructuring culture at banks, employees remain grateful for their jobs as the prospect of finding roles elsewhere is difficult.
Office space has also become increasingly expensive, and banks have invested heavily in prime office locations. For example, Goldman Sachs spent £1bn on its London headquarters in 2019. Jo Keddie points out, ‘with rising office costs in the Square Mile, where premium and new five-star office premises are now edging into the region of £100 per square foot, and with lease commitments making it difficult to surrender office space, there is every reason to ensure occupancy is maximised.’
The article concludes that while remote work may offer flexibility, the investment banking sector remains committed to in-office work due to productivity, security, and financial considerations.
Subcribe to news and viewswith rising office costs in the Square Mile, where premium and new five-star office premises are now edging into the region of £100 per square foot, and with lease commitments making it difficult to surrender office space, there is every reason to ensure occupancy is maximised.
https://www.thebanker.com/content/00f3c9b9-b701-456f-ac51-f21d290b7c32
