British bank and financial services group HSBC has told staff in its UK high street and commercial banking division that failure to meet its in-office presence threshold in hybrid working arrangements could result in reduced bonus payments.
Employees were informed that performance reviews would take into account whether they were meeting the requirement to spend at least 60 percent of their time in the office or with clients.
In a memo sent to around 24,000 employees, the bank stated that “consistently not meeting 60 per cent office attendance will be considered in an individual’s overall performance assessment … which could lead to variable pay being impacted”. HSBC confirmed it would begin more closely monitoring attendance from September 2025, with managers receiving monthly updates on employees who are not coming into the office three days a week.
Risk of variable pay cuts
Managers will be expected to monitor attendance data and integrate it into performance reviews, introducing another metric into the appraisal process. The policy is also likely to prompt discussions around equality, particularly where employees have different capacities or reasons for remote working – including caring responsibilities, disabilities or health concerns.
The policy forms part of a post-pandemic tightening of in-office working requirements, as businesses re-evaluate flexible working arrangements. HSBC introduced its hybrid working model in 2023, with a clear expectation that employees would maintain a physical presence for at least 60 percent of their working hours.
UK workers resist full-time return to office
The move comes as other major employers have also begun revising flexible working arrangements. Earlier this year, JP Morgan Chase, mandated full-time office attendance to its UK staff. Amazon ended hybrid working for most roles from January. However, a recent study by the Global Institute for Women’s Leadership at King’s College London and King’s Business School suggests that employee sentiment remains firmly in favour of flexibility.
The research found that fewer than half of UK workers would comply with a full-time return-to-office mandate. A significant number of employees said they would be prepared to resign or look for alternative work if required to return to the office five days a week. The study indicated that homeworking rates have remained broadly stable since 2022, with no evidence of a widespread shift back to pre-pandemic patterns.
Rather than reverting to traditional models, most employers have adopted hybrid frameworks that allow for a mix of remote and in-office work. These models are now increasingly seen as the default, particularly among knowledge workers. Nevertheless, employers such as HSBC are beginning to enforce minimum in-office attendance requirements more strictly.