Banks in Hong Kong remain cautious on return to office as US, UK colleagues reopen workplaces
- Many banks continue to split and rotate teams to avoid shut down by a coronavirus outbreak
- Hong Kong’s strict quarantine requirements make executives leery of fully reopening offices
Global banks in Hong Kong are taking a cautious approach and continuing to limit the number of people coming into their offices, even as their counterparts in the US and other “high risk” countries prepare to invite more employees back to their desks as soon as next month.
“We continue to monitor the situation closely and all our decisions are focused on the safety of our employees within the workspace and are in line with health authorities and government guidelines,” a JPMorgan spokeswoman in Hong Kong said.
01:52
‘Vaccine bubble’ allowing Hong Kong bars and party rooms to reopen leaves many confused
The measured approach in Hong Kong comes as many bankers in the US and Europe prepare to return to the office for the first time en masse since the World Health Organization declared Covid-19 a pandemic in March of last year.
Both banking groups are at about 50 per cent capacity in their Hong Kong offices and have been rotating teams for more than a year in the city.
Top banking executives are keen to fully return to the office when it is safe to do so, concerned that a lack of in-person contact is preventing culture-building with younger employees and potentially costing them business.
Speaking at a Credit Suisse virtual forum in February, Goldman CEO David Solomon called working-from-home “an aberration that we are going to correct as quickly as possible.”
Jamie Dimon, the chief executive officer of JPMorgan, said most employees will ultimately return to the office, with some still working from home part-time and only about 10 per cent working from home full time.
Speaking at The Wall Street Journal CEO Council summit this month, Dimon said he expects the number of people in the office “will look just like it did before” by September or October. The biggest US bank by assets lost business to rivals in some cases because of remote work, he added.
“Bankers from the other guys visited, and ours didn’t,” Dimon said at the forum. “Well, that’s a lesson.”
Business leaders also have criticised the lengthy mandatory quarantines for returnees to Hong Kong even if they are fully vaccinated. For example, fully vaccinated persons have to spend a minimum of two weeks in a quarantine hotel upon returning from the US, which is still deemed “high risk” by the government.
“We believe many businesses will have strong opportunities to thrive in the future,” AmCham President Tara Joseph said in a statement. “Right now though, it’s easy to worry about a brain drain of top talent and skills in a gateway city that is fuelled by trade, international capital flows and global connectivity.”
The number of employees who have been vaccinated is one factor being considered by banks in Hong Kong as they evaluate the risks of a fully reopening local offices.
Another factor complicating the office return: several banks have embraced more flexible working policies as a way to reduce costs – and their real estate footprint – after seeing large swathes of staff forced to work from home for months on end.
Standard Chartered CEO Bill Winters turned his London office into a meeting room as the bank converts executive offices into spaces for client meetings and team gatherings. The bank expects to reduce its office space globally by about one-third in the next five years as part of its embrace of flexible working.
“Around two-thirds of our staff are back to the office while we remain flexible in terms of work arrangement, subject to individuals’ needs and job nature,” a Standard Chartered spokeswoman said. “We remain vigilant and continue to monitor the pandemic situations closely. Precautionary controls are still in place to ensure the health and safety of our clients and staff.”