The Swiss multinational investment bank UBS Group plans to implement a new working model for employees combining working remotely and in the office. On the contrary, other leading banks like Morgan Stanley, Goldman Sachs, etc., are planning to restart the offices from July and September. Furthermore, the bank plans to implement the hybrid working model in all the counties based on the pandemic situation.
An analysis of the 72,000 bank’s staff marks a shift to the hybrid structure of nearly two-thirds of them. The new work transformation boosts the bank’s image as a flexible employer in the banking industry. The bank said the employees in supervisory, trading, and branch roles would not have the flexibility.
Due to the pandemic, most companies are planning to shift to work from home model. A survey says, nearly 75% of the large corporations intend to offer remote work for a minimum of 10% of the staff. The future of work will be remote work as it provides benefits to the employers to cut the overhead costs, reduce perks for the employees, and hire from anywhere, amplifying the talent pool. Additionally, industry experts suggest that a hybrid working model creates a happier work culture as the employees get work-life balance, flexible location, and cost-saving benefits. Also, a survey conducted by the HR consulting firm Mercer and a Gartner study shows that above 70% of the companies want to institute a hybrid model to maintain and promote innovation, social cohesion, teamwork, and employee engagement.
The economic perspective finds the urban centers are likely to see adverse effects with low revenue generation from transportation. Moreover, with fears of higher virus spread due to over-crowding, public transit has been hit hard in the pandemic. The Public Transportation industry’s market size is $77 billion in 2021, which rose from 75.3 billion in 2020.
The ILO’s World Employment and Social Outlook – Trends 2021 outlines the “jobs gap” to reach 75 million in 2021, even with new models like a hybrid in place. Yet, Bloomberg Economics expects U.K., Japan, and the U.S to see a drop in the unemployment rate by 4.8%, 4%, and 4% in 2022, respectively.
The banking sector’s transition to digital services, automation, and workforce reshaping is prevalent in 2021. Also, with new trends, the industry leveraged business and sustainability by combining technology into the banking infrastructure.