Cultivating employee engagement in financial services

Notably, men respondents were as likely as women to prefer flexible or hybrid arrangements. They were twice as likely to prefer one to two days in office per week (27%) than three to four days (13%). Beyond gender, employers should consider other demographic attributes when developing their workplace models. Generationally, millennials and Gen X, who made up 91% of the survey population, were closely aligned in their workplace preferences: More than 30% chose flexible arrangements, followed by almost 25% choosing one to two days, and about 10% choosing fully in office.

Strict return-to-office mandates could backfire

Professionals—men and women alike—whose work and personal lives have been reshaped by remote work largely want to maintain flexibility even if it comes at a personal cost. Directives to return to the office full-time are likely to be met with some resistance and may lead to higher resignation rates. In fact, 66% percent of respondents who were remote at least part of the time say they would likely leave their current role if they were required to work in an office five days per week. Respondents who said they could leave in the next 12 months said they would do so for a job with more flexibility (35%), better pay or benefits (34%), and greater alignment with life goals (32%). Therefore, FSIs mandating strict return-to-office arrangements could face dual talent challenges: They could run the risk of losing their pipeline of leaders and have difficulty recruiting fresh talent.

Workplace models are inextricably tied to engagement levels

Respondents’ self-reported engagement levels are high (92%), which could be influenced by equally high satisfaction levels with their current working arrangement. Engagement levels can manifest in many ways, including employees’ commitment and sense of belonging to the organization; how likely they would be to recommend their employer to a friend or family; and to some degree, whether they pursue career advancement. Research also shows high engagement often leads to greater productivity.⁶

Among our survey respondents, more than 90% say they feel a strong sense of belonging to their organization and are motivated to, and feel confident that they can, advance their careers with their current employer.

An overwhelming 80% of respondents say they frequently or sometimes help a colleague with something that isn’t a part of their job, volunteer ideas to improve their organization’s processes or products, speak positively about their employer, learn a new job skill without being asked to, and persevere when things don’t go very well at work. These behaviors seem to reinforce the respondents’ self-reported engagement levels.⁷

Further, working remotely has positively affected most respondents’ sense of professional and personal well-being. In addition to engagement and commitment, nearly half of respondents report increases across factors that can support career advancement, such as the ability to influence important decisions, visibility and access to senior leadership, availability of career advancement opportunities, networking opportunities within their organization and broader industry, and recognition for work contributions. In fact, remote work may be an important lever in promoting professional development of those with caregiving responsibilities, whether for children, parents, or others. Respondents who are caregivers report greater increases in their sense of professional and personal well-being than noncaregivers.

There seems to be strong consensus on remote work’s positive impact on employees’ health, work/life balance, and relationships. Notably, three in four men feel remote work improved their relationship with their children, compared to 67% of women (figure 2). They also report slightly higher levels of improvement in relationships with their partner, spouse, other family members, and friends.

Feeling the pressure: Show up more or sacrifice your career?

However, more than half of hybrid workers surveyed feel pressure to go into the office more often. Further, the perception that remote work models put workers at a disadvantage may erode engagement and commitment levels over time. More than 50% of respondents feel in-office workers are paid more (52%), promoted more often (63%), hold more decision-making power (55%), put in more hours (52%), and are more likely to become a CEO (65%).

Meanwhile, surveyed men, who reportedly value flexibility as much as surveyed women, feel at a greater disadvantage when working remotely (figure 3). A higher proportion of men (68%) would prefer to work remotely more often but feel it would be bad for their careers. Similarly, surveyed men are more likely than surveyed women to believe they are missing out on networking opportunities. Perhaps more men, because of hybrid arrangements, could be feeling a push-and-pull of family versus work more acutely than women, who historically have had to deal with those tradeoffs more often.⁸

Caregivers—a highly engaged part of FSIs’ workforce—could leave if work-at-home options are eliminated

There’s an opportunity for FSIs to consider caregivers’ needs as their workplace models evolve. Three-in-four caregivers surveyed say they have trouble managing their work/life balance and have considered measures such as reducing work hours, changing roles, or taking a sabbatical to alleviate stress (figure 7). Among those working remotely or in hybrid arrangements, surveyed caregivers were 1.3 times more likely than noncaregivers to say they’ll leave their organization if their company eliminated their ability to work remotely.

In spite of being a significant demographic at risk of leaving, most caregiver respondents are highly engaged and carry a positive image of their organization and financial services industry more broadly, more so than those who are not caregivers. They largely feel connected to their managers and consider themselves to be valued contributors in achieving their organization’s purpose. They’ll likely recommend their company to their children or a relative for future employment. In fact, most caregiver respondents believe the financial services industry offers better flexibility, support for those with caregiving needs, and career advancement opportunities than other industries. Offering programs to support and retain the caregiver population may help to reinforce their positive image of their organization.

Yet 60% of respondents feel that at their company, employees with childcare or eldercare responsibilities are less likely to be promoted. When asked what their organization can offer to enhance their work experience, the need for more career advancement and learning and development opportunities topped the list.

As employers reevaluate their workplace arrangements, they have an opportunity to potentially mitigate attrition among employees with caregiving responsibilities.

How can workplace models work for employers and employees?

Less than 10% of respondents say they want to be fully remote. Returning to the office can be just as important as working remotely to achieve a holistic employee experience. But if the office environment is perceived as a solitary experience or employees feel they could do the same work more productively from home, many are likely to resist mandated return-to-office policies.

A win-win situation could emerge where returning to the office is a desirable state for employees. But how can leaders reach that goal and meet business needs without sacrificing high levels of employee engagement? Here are a few considerations:

• Take small steps. Any significant changes to the current working arrangements may be met with strong opposition. Starting with lesser number of days in office, before ramping them up, would allow employees time to soak in the benefits of an in-office environment. Our survey indicates a clear preference for 1–2 in-office days a week over 3–4 days. In some cases, employers are offering a combination of flex and core hours, where all employees are expected to work during specific hours (e.g., 11 a.m. to 3 p.m.), with full flexibility for remainder of the day. Offering team-based decisions on workplace arrangements is another option.¹³ This approach can empower employees to voice their flexibility preferences while still committing to the needs of the team.
• Capitalize on the benefits of being face-to-face. In-person interactions can promote trust and strengthen working relationships. Organizations should encourage a healthy mix of informal gatherings (e.g., watercooler chats) and formal networking sessions designed to reinforce the benefits of being in the office. More than one-third of respondents (38%) say having opportunities to connect with leaders above their level could positively impact their work experience, so perhaps instituting regular live, in-office sessions with leadership could improve employees’ attitudes about coming into the office.
• Focus on training and development. When asked what their organization can do to enhance their work experience, almost four in 10 respondents say they’d like more learning and development opportunities. FSIs can address this demand by offering in-person, role-based, or business-specific training programs as one of the measures that showcases the relevance of in-person connections. Consider bi-monthly or quarterly “in” days that bring local and remote workers together into a central office location for training and networking.
• Read the pulse of your workforce. Organizations should conduct regular pulse checks to measure employee engagement levels and their satisfaction with their working arrangements. Providing a forum to collect feedback can convey employers’ commitment to address employees’ needs. The results should guide leaders if adjustments are needed.

Organizations are unique and so are their employees. Employers should focus on enhancing the in-office experience to demonstrate the positive, career-enhancing opportunities as well as defining why it is important and beneficial to the organization to have employees connected, networking, and collaborating in-person.

By thinking about the ties between workplace arrangements, engagement, and advancement opportunities holistically, and designing policies accordingly, financial services leaders can help foster more equitable workplace cultures.