UK giant Schroders tells staff they can work from home for ever

Looking after other people’s money is about to become a lot more comfortable for investment giant’s staff.

The example set by Schroders may also encourage other businesses to allow staff to work from home so they can save costs by reducing expensive office space. Picture: Istock

Looking after other people’s money is about to become a lot more comfortable for employees of Schroders, one of Britain’s best-known asset management companies. The wealth manager has told its 5,000 staff worldwide that they no longer need to come to the office to work for a certain number of days each week.

In a revolutionary move for a prominent City of London institution, Schroders has declared “a new approach to flexible working”, allowing staff to work from anywhere they choose as long as they work the days and hours set out in their contract. Before the coronavirus pandemic struck, employees were expected to come to the office at least four days of the week.

An internal memo informed staff there would be “no mandated requirements to be in the office a certain number of days”. Staff will be expected to co-ordinate with their teams and continue to support customers, but are free to arrange their working lives to suit their personal needs.

Peter Harrison, chief executive of the 216-year-old investment firm, said in a recent interview that Covid-19 had “changed society irrevocably”.

“The contract between society and business has changed forever,” he said. “The office will become a convening place where you get teams together, but the work will be done in people’s homes.”

The change was immediately praised by union leaders, who urged politicians to help more businesses follow suit. “Flexible working should be a day one right that’s available to everyone,” said Frances O’Grady, general secretary of the TUC.

“And not just for the length of this pandemic. That’s why we are calling on ministers to change the law so that people can work flexibly, regardless of what job they do or what type of contract they are on.”

Not everyone is likely to be happy with the idea. Sunday Times research found that female employees working from home were six times more likely than men to claim responsibility for the bulk of the domestic chores.

The study found that household tasks were still split according to traditional gender roles, with men doing the lion’s share of DIY while women are cleaning and cooking. Although most female respondents did not complain, one woman in the study noted: “Too many jobs are assumed to be mine.”

The Schroders move may also upset government efforts to restore normal office life as a way of boosting Britain’s stalled economy. Boris Johnson announced last month that people could return to their workplace in August, at the discretion of their employers.

“Covid is resulting in 10 years of economic and social change occurring in a few short months,” said Julian Knight, chairman of the digital, culture, media and sport select committee of MPs. He added: “I can see large amounts of office space lying empty, which will cause huge short-term damage to the centre of London and other cities.

“No tourists and far fewer office workers mean businesses going bust.”

The example set by Schroders may also encourage other businesses to allow staff to work from home so they can save costs by reducing expensive office space.

However, Schroders is not planning to abandon its vast eco-friendly London headquarters, complete with 11 garden terraces and 200 basement bicycle parks. The building at Wall Place near the Barbican was opened by the Queen in 2018.

Schroders manages pounds 526bn of its customers’ money and is the largest UK-listed fund manager, with 2,500 of its staff working in the UK.

Other businesses are drawing up similar flexible working regimes. Rival fund giant Aviva Investors is considering a “2-2-1” approach under which employees can work from home for two days, be in the office for two days, then have a choice or travel on the remaining day.

“People are sensitive about it,” a fund manager said. “If you’ve got a nice big house, you can work from home; but if you’re strewn with three others, it’s more difficult. You have to let people into the office . . . running money for people, things happen, you need to be together.”

NatWest said last month that its 50,000 staff would stay at home until 2021. The British arm of Google has told its 4,500 employees that they do not need to return to the office until next July.

The Sunday Times