New York-based, top-tier banks Goldman Sachs, Citi and JPMorgan, along with other financial services firms, have pushed harder than other sectors to get their people back into an office setting. While the mighty banks have money, power and clout, they are not immune to Covid-19 and its omicron and delta variants.
Although New York is once again the epicenter of the virus, it’s not just the banks delaying return to office plans. The sudden mass spreading of the omicron variant, along with the fear it instilled in the psyche of people, is pressuring companies and executives to reconsider their in-office mandates.
A survey initiated by Gartner found that 44% of companies have changed their timelines on requiring workers to return to their respective offices. Nearly 30% of business executives responded that they are delaying reopening plans or shutting down offices, and almost 20% are decreasing the amount of people that can be at the worksite at any given time.
Goldman Sachs, a staunch proponent of having bankers back in the office, informed their U.S. employees on Sunday to work from home for the first couple of weeks of 2022. In an email to employees, they were told to work remotely until January 18 because of the increase in infection rates.
David Solomon, CEO of Goldman, is a strong advocate of working in the office, calling remote work an “aberration.” For the investment bank’s 43,000 employees, Goldman’s offices will continue to remain open. The global financial powerhouse will call for vaccine and booster requirements, bi-weekly testing and mandatory mask wearings.
JPMorgan, another top New York City-based bank, has a stop-and-go history of trying to initiate a return-to-office program. On several occasions, it tried to get everyone back, only to alter start dates, due to surges in the virus outbreak. JPMorgan will offer it’s U.S. staff flexibility to work from home for the first two weeks of the year, but would like the traders, loan officers, compliance, audit, banking and other professionals to eventually return to in-office schedules no later than February 1, according to a corporate memo.
The note to staff added, “Across the U.S., we are seeing a rapid rise in Covid-19 cases related to the Omicron variant. With the increase in holiday travel and gatherings, we are allowing for more flexibility during the first two weeks of January.” To ensure future clarity, the esteemed bank reiterated that it’s “not changing [its] long-term plans of working in the office.” The memo said, “We expect everyone to return to their in-office schedule.”
Wells Fargo is holding off on its U.S. return to the office. Bank of America encouraged staff to work from home the week of January 3 and will provide updates, as it monitors the virus’s spread. The financial institution will offer on-site booster clinics. Insurance giant MetLife reported last week that it will postpone plans for its nearly 14,000 to return to the office to March from January 10 previously, a spokeswoman for the company said.
Citi also requested its U.S. staff to work remotely for the next few weeks of 2022. The bank acknowledged the rapid “rise in Covid-19 cases across the U.S. due to the omicron variant.” Citi told employees, “We will continue to monitor the data and provide an update in January on when we expect to be back in the office in a similar manner as we have been,” Bloomberg reported.
Morgan Stanley CEO James Gorman said in a CNBC interview last Monday, “We are in transition period still.” Gorman added, “I thought we would be out of it by Labor day, past Labor day. We’re not. I think we will still be in it through most of next year. Everyone is still finding their way.”
Morgan Stanley said that workers who are not required to be in the office can work remotely and spend more time with their families, but it is not sending staff home and doesn’t have a work-from-home policy. Morgan Stanley is, however, requesting employees, contractors and visitors to show proof of vaccination before entering its New York headquarters.
Forbes previously reported on firms that pushed back or held off making a final determination on having employees return to their offices. Tim Cook, CEO of Apple, told employees that the company is pushing back its return to office plan until February, according to an internal email. Beginning in March, the leading tech company will offer a hybrid work model with staff coming into the office Mondays, Tuesdays and Thursdays.
Credit card and banking company Capital One said, “It will not reopen its U.S. offices on November 2, as previously shared. Given the continued fluid nature of the situation, a decision was also made not to attempt to forecast a specific date for a full-scale reopening of U.S. offices. Associates will be provided 30 days advance notice before any decision to fully reopen U.S. offices in 2022—moving into a destination hybrid work approach— is made.”
A Ford Motor spokesperson said, “The state of (the) Covid-19 virus remains fluid, and despite the success of our ongoing safety protocols and increased vaccination rates, we are shifting the start date of the hybrid work model to March.”
Chris Cherry, DoorDash director of global safety and security, said about navigating the new variant and bringing people back, “In light of Omicron, the company was taking a wait-and-see approach,” Cherry continued, “This is a dynamic situation that we’ll continue to evaluate, making educated decisions based on the most up to date guidance and information we receive.”
The Washington Post reported Google and ride-hailing app Uber both announced they plan to indefinitely push back its return to the office into 2022. Google security vice-president Chris Rackow said in a note to full-time employees that it will take the time to assess when U.S. offices are in a position to allow a safe return and a “stable, long-term working environment.” Previous plans for U.S. locations to institute a hybrid model won’t commence on January 10, he added.
In an email to employees last week, Uber said, “Since things keep shifting, we’ve decided to no longer have a global [return-to-office] target date for the time being.” Offices may remain open for people who are comfortable coming in, but it’s not mandatory to return.
Meta, formerly known as Facebook, will have an open headquarters at the end of January. However, professionals can defer returning up until June. Janelle Gale, vice president of human resources for Meta, empathetically said, “Some aren’t quite ready to come back.”
Lyft is offering its people another year to work remotely. The ride-hailing company said it won’t require its staff to return to the office until 2023. Ashley Adams, a Lyft spokesperson, said, “We’ve heard from our team members that they value continued flexibility in determining where they work and would benefit from additional time to plan.” Adams added, “We want to give people a choice for all of next year.” Although the offices will reopen in February, employees won’t be told to return in 2022.
The stop-and-go trend could cause chaos for people, especially working parents. Although it’s not the fault of the companies, the constant changes make it exceedingly difficult for families. They are forced to cancel and later set up new arrangements for their young children. The shifting schedules are harmful for employees’ mental health and emotional well-being, as it continually disrupts their social and life commitments.
Hopefully, the pandemic turns into an endemic and then businesses will need to figure out how to manage a workforce in a continued state of flux with virus outbreaks—albeit, not as lethal as the initial wave.
Source: Forbes
