Citigroup says flexible work gives it edge over US rivals

Bloomberg

Citigroup Inc joined rivals including UBS Group AG in touting its flexible work policies as a tool that will offer a competitive edge in recruiting and retaining top staff.
The lender’s employees will have the option of working from home at least part time, investment banking co-head Manolo Falco said at a virtual press briefing. That will set the bank apart from some US rivals that are taking a more hard-line approach to remote work, he said, naming JPMorgan Chase & Co and Goldman Sachs Group Inc.
Global investment banks are broadly falling into two camps on their approach to flexible-work policies. While many in the US are requiring staff to come back to the office, a growing number of European lenders, including UBS and Deutsche Bank AG, are saying that increased flexibility on a more permanent basis can improve staff morale and perhaps give them a hiring advantage.
Citigroup Chief Executive Officer Jane Fraser said in March, shortly after taking on the top job, that being in the office is important for competitiveness, collaboration and mentoring young staffers. But she said the majority of the lender’s roles will still be designated as hybrid, where workers are in the office at least three days a week and working from home for as many as two.
The plan is to open Citigroup’s offices in New York City’s Tribeca neighborhood to as much as 30% of its broader staff next month. The bank also shifted gears regarding its summer-intern program in recent weeks, saying it will allow some of them to visit the lender’s New York headquarters in July. It had said in March that the 10-week summer program would be entirely virtual.
Goldman Sachs’s policy is more rigid. It’s requiring almost all US employees to report to their desks. JPMorgan, similarly, is asking most of its US workers to start regular office schedules July 6.
At Bank of America Corp, the expectation is that all vaccinated employees will return to the office after the US Labour Day holiday in early September, CEO Brian Moynihan said earlier this month. The US bank will then focus on developing plans for returning unvaccinated workers to its sites.
Citigroup’s position is closer to many of its counterparts in Europe, where banks have been offering more flexibility once pandemic restrictions are lifted. Last month, Societe Generale SA signed an agreement with its domestic union representatives allowing staff to work at home up to three days a week. Deutsche Bank has unveiled a hybrid model letting employees divide their work hours between the office and home.

Citigroup to raise salary of junior bankers
Bloomberg

Citigroup Inc will increase annual base salaries for its junior bankers, the latest Wall Street lender seeking to retain younger staff facing burnout from working long hours
during the pandemic.
The bank is increasing salaries for program vice presidents, analysts and associates in its banking, capital markets and advisory unit, according to a memo to staff seen by Bloomberg News. The raises range from $15,000 to $25,000 and under the changes a first-year analyst base salary will now be $100,000.
The raises will apply to most locations, take effect from July 1 and be reflected in August payment dates, the bank said in the memo.
Citigroup follows Barclays Plc and JPMorgan Chase & Co. which have also lifted base salaries for first-year analysts to $100,000, in a bid to stem defections of younger staff inundated by work.
Bank of America Corp. has also said it would raise pay for its junior investment bankers, while others have been handing out bonuses, offering vacations and banning weekend work to ease the pressures.
A presentation from a group of Goldman Sachs Group Inc. analysts earlier this year shed light on 100-hour weeks and declining physical as well as mental health of staff battling with the work-from-home grind.
Citigroup will continue to focus on wellness initiatives in the division, ensuring staff have enough time off through its weekend exception policy and protected holiday weekends, according to the memo. The unit will also actively support the bank’s hybrid work model, it said.
Falco last month touted the lender’s flexible work policies as a tool giving the bank a competitive edge in recruiting and retaining top staff. It sets the bank apart from some U.S. rivals taking a more hard-line approach to remote work, he said, naming JPMorgan and Goldman Sachs Group Inc. which are requiring most U.S. staff return to the office.
Citigroup Chief Executive Officer Jane Fraser said in March, shortly after taking on the top job, that being in the office is important for competitiveness, collaboration and mentoring young staffers. But she said the majority of the lender’s roles will still be designated as hybrid, where workers are in the office at least three days a week and working from home for as many as two.
Insider, formerly known as Business Insider, reported the pay increases earlier.