HSBC Allows Up to Four-Day WFH Option
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HSBC is the latest bank to allow extensive work-from-home options for workers as the pandemic continues to deeply uproot traditional business models.
The British lender has changed its human resources guidelines to allow home-based remote working for as many as four days a week, according to a «Bloomberg» report, depending on an employee’s role and discussions with managers.
This follows earlier prompting by HSBC chief financial officer Ewen Stevenson who said the bank was considering further digitization of operations and hybrid working models.
Remote working, according to Stevenson, could help reduce expenses as part of a broader overhaul to cut $4.5 billion of costs by 2022 and ax 35,000 jobs globally.
According to the new guidelines, a one-off allowance of up to HK$2,500 ($322) to purchase equipment will be made available for employees who commit to work at least two days per week from home for a minimum of 12 months.
The allowance can be used for items such as ergonomic work chairs, computer monitors and desks.
The wave of banks considering permanent work-from-home measures is growing due to continued uncertainty regarding the pandemic and growth outlook.
Earlier this week, DBS said it would allow its 29,000-strong workforce to work from home for up to 40 percent of the time as part of broader hiring and work measures announced. Last week, UOB said it would allow the majority of its 26,000 works the option to work remotely for two days a week. Similar measures are being rolled out at Standard Chartered globally.
But not all are convinced about the approach in the long-term with some Wall Street heavyweights underlining potential risks.
A J.P. Morgan spokesperson said that productivity was down and that younger employees could miss out on learning opportunities. The bank’s chief executive Jamie Dimon reportedly said last month that he expected serious social and economic damage from prolonged remote working conditions.
Separately, Blackrock CEO Larry Fink also expressed concerns about lacking productivity and collaboration.
Questions & Answers
Q.What is the primary reason HSBC is offering extensive work-from-home options?
What is the primary reason HSBC is offering extensive work-from-home options?
The bank is adopting these options as the pandemic continues to uproot traditional business models. HSBC's CFO previously noted that remote working could help reduce expenses as part of a larger cost-cutting overhaul.
Q.What financial support will HSBC offer to employees working from home?
What financial support will HSBC offer to employees working from home?
HSBC will provide a one-off allowance of up to HK$2,500 ($322) for equipment. This is available to employees who commit to working remotely for at least two days per week for a minimum of 12 months.
Q.Which other banks are also introducing new remote working policies?
Which other banks are also introducing new remote working policies?
DBS and UOB have both announced new remote working measures for their staff. Similar policies are also being implemented at Standard Chartered globally, reflecting a growing trend in the banking sector.
Q.What concerns have been raised about long-term remote working by other financial institutions?
What concerns have been raised about long-term remote working by other financial institutions?
A J.P. Morgan spokesperson cited concerns about reduced productivity and younger employees missing learning opportunities. Blackrock's CEO also expressed worries about productivity and collaboration among staff.
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