Scotiabank Tightens Return-to-Office Policy
Canadian Banks Push for More In-Person Work
Bank of Nova Scotia is now requiring some employees to be in the office four days a week, joining a growing trend among major Canadian financial institutions to increase mandatory in-person work arrangements. The shift reflects a broader effort to revitalize downtown cores and boost collaboration.
New Mandate Details
Scotiabank informed its staff last week that the new policy will be implemented by September. Teams with adequate office space will adhere to the four-day requirement, while others will gradually increase their in-office presence as more room becomes available. Certain roles may continue to operate remotely based on specific needs.
Clancy Zeifman, a spokesperson for Scotiabank, emphasized the benefits of in-person collaboration. “We know having our teams working together in-person has many benefits – greater collaboration, higher engagement, more career development opportunities, and a stronger culture and sense of belonging – and we are already seeing the positive impact this is having across the bank as we focus on executing on our strategy,”
she stated.
Zeifman further added, “We will continue to build on this impact as we bring our teams onsite more often, with the goal of reaching four days onsite across the bank over time.”
This move follows a similar announcement from Royal Bank of Canada in late May, signaling a coordinated effort within the Canadian banking sector. According to a recent report by the Canadian Real Estate Association, office vacancy rates in major Canadian cities remain elevated, averaging 26.3% in the first quarter of 2024, highlighting the ongoing impact of remote work on commercial real estate. CREA Q1 2024 Report
Industry-Wide Trend
Royal Bank of Canada was the first of the major Canadian lenders to mandate a four-day in-office work week, also starting in September. Canada’s largest banks collectively employ hundreds of thousands of individuals, making these policies significant for the national workforce.
The trend extends beyond Canada, with U.S. banks like JPMorgan Chase already requiring a full five-day in-office schedule. JPMorgan Chase initiated this full return to the office earlier this year.
RBC initially began increasing mandatory office days in the spring of 2023, requiring employees to return at least three days a week. An internal memo at the time cited concerns about the bank’s long-term competitiveness without increased in-person interaction.
Impact on Commercial Real Estate
The widespread adoption of remote work during the COVID-19 pandemic led to a decline in commercial real estate valuations as office spaces remained largely unoccupied. While activity in Toronto’s financial district has shown some improvement, overall office occupancy rates have yet to fully recover.
These return-to-office policies represent a significant shift in workplace dynamics, as companies attempt to balance employee preferences with perceived benefits of in-person collaboration and the need to revitalize urban centers.
