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Fostering trust in the hybrid work model: overcoming challenges and maximizing potential
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Global Banking & Finance Review®
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The banking and finance sector has traditionally relied on a centralized office environment for its operations. However, with the mass shift to remote working three years ago and the subsequent rise of hybrid work models, the industry faces unique challenges in establishing trust both among employee...
The banking and finance sector has traditionally relied on a centralized office environment for its operations. However, with the mass shift to remote working three years ago and the subsequent rise of hybrid work models, the industry faces unique challenges in establishing trust both among employees working remotely or in a hybrid setup, and clients whose accounts are now being managed remotely.
Since 2020, the world of work has been changing in real-time, and Teleworking has now become an irreversible reality. According to PWC, before the covid pandemic, less than 30 percent of financial services companies had employees working from home 60 percent of the time. This increased to nearly 70 percent by 2022 – with almost double the number of senior leaders dedicated to making remote working a reality.
Yet, despite the commitment to normalising hybrid working, there remains some key challenges faced in the sector that prevent better management of the hybrid workplace. Ultimately, many organizations still don’t have the required digital technologies and tools in place to face the breakdown of culture and collaboration required to attract and retain talent. Often too, relevant flexible workplace policies are not in place to manage employees working remotely and to support the leadership teams intended to supervise, organise and encourage them.
So how can the finance sector better manage a hybrid work environment, and build employee-employer trust within and without this model?
In recent months, we have witnessed companies like Twitter, Starbucks, Salesforce and Disney backpedal on the promise of permanent flexible working plans. Meanwhile, banks such as JPMorgan Chase & Co and Morgan Stanley are providing incentives to entice staff into the office more regularly and, most recently, Meta bosses have backtracked on the perceived benefits of remote working, emphasizing the belief that trust is easier to build in person.
This perception, while prevalent, fails to consider the advancements in technology and the evolving nature of work. Remote or hybrid employees who are highly productive may still not be trusted to perform their jobs effectively if they are not physically present in the office. But it is more crucial than businesses might realise to challenge this misconception. A new wave of employees expects a level of flexible working as part of their package and find value in working this way. In fact, according to LiveTiles’ latest study of teleworking professionals, carried out jointly with the OECD, over 80 percent of teleworkers said that they would be prepared to quit their jobs should they no longer be allowed to work remotely.
Consequently, it has become more important than ever to explore strategies that cultivate trust in remote and hybrid work environments.
The finance sector is not immune to the cost-of-living crisis, which affects both employees and employers. High living expenses in major financial hubs often push employees to relocate to more affordable areas. This geographic dispersion can exacerbate the trust deficit, as employers struggle to assess the commitment and productivity of remote workers.
However, it is essential to note that productivity isn’t – or at least shouldn’t be – in question. According to statistics from industry analysts, remote workers in the banking and finance sector have demonstrated remarkable productivity, debunking any doubts about their ability to perform effectively when not in a physical office environment. For example, 69 percent of executives surveyed by PWC reported that their employees were as productive or more productive than before the crisis drove them to begin working remotely. At the same time, more than 75% of employees said they were at least as productive as they were pre-pandemic.
In these instances, forcing staff into offices to do a job that they may be more productive and content doing from home, feels counterproductive. Hybrid working is in part about having a better balance between life and work and, whether they realise it or not, businesses need to go some way to facilitate that fact or face attrition. This requires business leaders to provide appropriate tooling and technologies and to integrate frameworks around teleworking professionals to get the best out of them.
Collaborating with industry organizations like the Banking Industry Architecture Network (BIAN) and leveraging its standardized architectural framework can provide a blueprint for building scalable and adaptable banking systems, ensuring compatibility and integration between different technology platforms. However, to build on this and continually address the challenges within a hybrid work model, leaders in the sector need to consider the following strategies:
The lack of trust, rather than productivity challenges, often drives employers to default back to in-office work. However, it is crucial to understand that trust can be established and maintained in hybrid work models. By implementing these key strategies, leaders can address the trust deficit and create an environment that nurtures trust, productivity, and employee wellbeing.
Furthermore, workplace teleworking policies are associated with higher levels of trust between teleworkers and their managers. 89% of teleworkers who are consulted about teleworking report the presence of workplace trust, compared to 59% of those who are not. Similarly, 86% of those who have a right to disconnect report workplace trust, compared to 67% of those not covered.
Evidence suggests that there may be mutually reinforcing relationships between teleworking policies, workplace trust, and remote working take-up. By challenging misconceptions, addressing the impact of the cost-of-living crisis, and implementing effective management strategies, leaders can begin to establish trust among remote and hybrid employees – ensuring the success of the banking and finance sector’s hybrid work model. In the shadow of the recent Silicon Valley Bank collapse and while on the edge of economic uncertainty, embracing these strategies will not only help to drive productivity but also attract and retain top talent in an unpredictable climate.
Hybrid work is a flexible work model that combines remote and in-office work, allowing employees to choose where they work based on their preferences and job requirements.
Employee engagement refers to the emotional commitment and involvement an employee has towards their organization and its goals, often leading to increased productivity and job satisfaction.
The cost-of-living crisis refers to a situation where the cost of essential goods and services rises significantly, affecting individuals' purchasing power and financial stability.
Digital technologies in the workplace include tools and platforms that facilitate remote work, such as communication software, project management tools, and cloud services that enhance productivity.
Trust in the workplace is the belief that colleagues and management will act in the best interest of each other, fostering a collaborative and supportive work environment.
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