Rising commuting costs and stricter office attendance policies are driving finance workers closer to the exits across UK financial services, as firms face mounting pressure on pay, hiring and retention.
New research from Morgan McKinley found 69 per cent of employees need higher salaries to cover the cost of going to the office, while 57 per cent say in-office requirements are making them more likely to leave their role. The findings come at a time when 77 per cent of employers are already finding it hard to hire skilled professionals and office expectations are increasingly adding to that problem, alongside satisfaction with pay.
The report, From Hybrid to HQ: The Impact of Return to Office in Financial Services on the UK, surveyed professionals across accounting, financial services and banking. It shows the three-day office week has become the dominant model, cited by 35 per cent of employees. Both employers and employees expect this to hold, with 73 per cent of employees and 78 per cent of employers anticipating no change over the next year.
However, the findings suggest the impact of return-to-office policies is not being felt equally across the workforce, particularly among women. Only 54 per cent of female respondents said they were satisfied with current in-office expectations, compared with 66 per cent of male respondents.
Female professionals were also more likely to report negative experiences linked to office attendance, with 74 per cent saying it had increased stress and burnout, versus 55 per cent of male respondents. Some 61 per cent of women also reported lower productivity in the office, compared with 54 per cent of men.
Flexibility remains a critical factor in workforce decisions, especially when nearly half (49 per cent) of female respondents reported caregiving responsibilities compared with 41 per cent of male respondents. Meanwhile, 66 per cent rank hybrid working and flexible hours among the benefits they value most and 62 per cent of jobseekers have rejected roles that do not offer flexibility.
These pressures are already starting to show up in hiring data. Some 43 per cent of employers report greater recruitment challenges and 28 per cent have seen resignations rise – a problem for firms already struggling to fill roles in a sector that employs hundreds of thousands across the UK.
“The return to office debate in the UK Financial Services sector has moved beyond simple attendance level but about whether workplace policies are supporting firms to attract and retain talent, or actively working against that goal,” says Seb O’Connell, CEO of Org Group. “Our data shows employees still value time in the office for collaboration and development, but they are also clear about the trade-offs, particularly around commuting costs, flexibility and wellbeing. For UK employers, the challenge is increasingly about balance. The firms that get this right will be better placed to compete for scarce talent in a market where expectations have fundamentally shifted.”
