- 69% say they need higher pay to cover commuting costs
- 57% of employees say in-office requirements are increasing their desire to leave their role
- 67% say office attendance has increased stress or burnout
- 74% of females report increased stress and burnout compared with 55% of males
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 finds that 69% of employees need higher salaries to cover the cost of going to the office, while 57% say in-office requirements are making them more likely to leave their role. The findings come at a time when 77% 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, which surveyed professionals across accounting, financial services and banking, shows the three-day office week has become the dominant model, cited by 35% of employees. Both employers and employees expect this to hold, with 73% of employees and 78% 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% of female respondents said they were satisfied with current in-office expectations, compared with 66% of male respondents.
Female professionals were also more likely to report negative experiences linked to office attendance, with 74% saying it had increased stress and burnout, versus 55% of male respondents. Some 61% of women also reported lower productivity in the office, compared with 54% of men.
Flexibility remains a critical factor in workforce decisions, especially when nearly half (49%) of female respondents reported caregiving responsibilities compared with 41% of male respondents. Meanwhile, 66% rank hybrid working and flexible hours among the benefits they value most and 62% of jobseekers have rejected roles that do not offer flexibility.
These pressures are already starting to show up in hiring data. Some 43% of employers report greater recruitment challenges and 28% have seen resignations rise - a problem for firms already struggling to fill roles in a sector that employs hundreds of thousands across the UK.
Seb O’Connell, CEO of Org Group (Morgan McKinley) said: “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.
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.”
