HSBC warns employees of the link between office attendance and pay

HSBC employees in the UK were told their pay would be reduced if they did not come to work at least three times a week.

A memo sent to staff at the financial giant warned that failure to meet 60% attendance in the office would be taken into account when assessing an individual’s performance. This could affect their variable pay.

The employees were told that the attendance of their colleagues would be closely monitored starting in September. Managers would receive monthly data on those who failed to show up at least three times a week.

The warning was sent out to employees of HSBC UK’s high street and commercial bank division, which employs approximately 24,000 people. In 2023, they were told that as part of the hybrid working policy of the bank, 60% of their time would be spent in the office with clients or in meetings.

Many firms in the banking and finance industry have pushed for increased office attendance due to concerns about a lack collaboration, training deficits and problems with team-building and onboarding new recruits. KPMG released a survey at the end of 2024 that showed leaders were becoming increasingly concerned about the slow pace in which employees returned to their offices. Many preferred two days per week as opposed to four or five.

Karim Haji is the global and UK head for financial services at KPMG. He said that leaders see the value of hybrid models in attracting and retaining talents, but still expect more office attendance to maintain collaboration with clients and colleagues.

A study found yesterday that less than half of UK employees would adhere to a mandate for full-time office return. Researchers at King’s College London found that the average number of days allowed to work from home has increased slightly.

The Global Institute for Women’s Leadership, at KCL, found that despite the “great return” of many high-profile leaders and CEOs to their offices, there was no evidence.

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