Can salary hikes really bring bankers back to the office?

Remote work became standard across UK banks during the Covid-19 pandemic. With offices shut, firms had to adapt quickly — and they did. Many banks were surprised to find that productivity didn’t drop. Instead, employees worked well from home, proving that flexible work arrangements could thrive even in high-pressure sectors like finance.

As lockdown restrictions eased, however, getting people back into offices wasn’t as simple as expected. Staff had become accustomed to the comfort and time saved by working remotely.

A 2023 CIPD study showed that 78% of UK finance professionals now expect flexible working to remain a permanent feature of their roles. This shift towards flexibility presents a challenge for banks trying to return to traditional office work.

Are banks using pay rises to entice staff back?

Yes — pay rises have become a key tool in banks’ strategies to bring employees back to the office. Major firms like Barclays and HSBC and other companies offering jobs in private equity have increased salaries, boosted bonuses, and refreshed benefits. The aim is straightforward: to make office-based roles more appealing to those who have embraced remote work.

Junior staff in particular have seen significant salary boosts. According to Dartmouth Partners, base pay for entry-level investment banking analysts in London rose from £50,000 in 2021 to £63,000 in 2022 — a 26% increase.

Many roles requiring physical presence, such as those in trading and risk management, now come with added perks to recognise the demands of being on-site. These efforts reflect how banks are using pay to incentivise employees to return to office-based work.

Is hybrid work a better answer than higher salaries alone?

While salary increases are helpful, they alone aren’t enough. Employees now place a higher value on flexibility, work-life balance, and autonomy. For many, the idea of spending five days a week commuting feels outdated.

That’s why banks and employees are increasingly adopting hybrid work models. Most now allow employees to work remotely for two or three days a week. This hybrid approach offers the best of both worlds — in-person collaboration when necessary, while also giving employees the freedom to manage their work-life balance. These models also support the retention of talent, which is key in a competitive industry.

A 2024 YouGov survey found that 62% of UK finance workers would consider quitting if forced back to full-time office work. Hybrid policies are helping banks keep their top performers while still meeting the need for in-person collaboration and team-building.

What does the future of banking work look like?

The future of banking work in the UK is likely to be shaped by a combination of pay, flexibility, and personal growth. While rising salaries show that banks are serious about attracting talent, they also recognise that culture and work-life balance are crucial to long-term employee satisfaction.

Some firms are even offering faster promotions or extra bonuses to those who spend more time in the office. But success won’t come from pressure alone. It will depend on how well banks balance tradition with change, listening to their employees and meeting their evolving expectations.