UK
Since the pandemic, hybrid working has become deeply ingrained in investment banking. However, the conversation has evolved. Initially seen as a necessary compromise, hybrid work is now under scrutiny as banks weigh its long-term impact on productivity, culture, and employee satisfaction.
Investment banks have taken different approaches, but a pattern is emerging - while hybrid work is here to stay, many banks are subtly tightening their policies. Some have introduced more structured office days, while others are increasing in-office requirements.
So, what does this mean for hybrid work in investment banking? Are employees embracing the shift back to the office, or is there still resistance? Our latest survey of London-based investment bankers provides critical insights into the reality of hybrid work in 2025.
A significant 31% of the investment bankers we surveyed are working full-time in the office, not in a hybrid arrangement. This figure underscores a broader trend, with major banks increasingly abandoning hybrid models in favour of a traditional five-day work week.
The remaining 69% identify as hybrid workers, with the following breakdown:
These figures indicate a clear trend: most bankers are now in the office at least three days per week.
Interestingly, this shift is not entirely imposed by leadership. 62% of respondents said they would prefer working in the office three or more days per week, suggesting that many bankers recognise the benefits of in-person collaboration, client engagement, and career progression opportunities.
Yet, a significant proportion (38%) would still prefer two or fewer days in the office, illustrating the continued demand for flexibility.
Despite the push for more in-office days, employees continue to see both advantages and disadvantages in hybrid work.
The Benefits of Being in the Office
For mid-to-senior level professionals, visibility and collaboration are crucial for career progression. Younger employees, particularly Analysts and Associates, benefit from the informal learning and networking that happens in the office, something remote work struggles to replicate.
The Benefits of Working from Home
While hybrid work is largely seen as beneficial, 65% of respondents feel that office mandates are a sign of leadership's lack of trustor micromanagement, highlighting an ongoing tension between autonomy and corporate policy.
Overall, 61% of respondents are satisfied or very satisfied with their bank’s hybrid working policy. However, satisfaction levels appear to correlate with the number of required in-office days.
Banks requiring three days in the office seem to have struck the best balance, while those mandating four or more days face greater resistance. The data suggests that three days may be the ‘sweet spot’ - offering both flexibility and the in-person engagement that banks want to maintain.
However, policies that exceed this threshold come with risks: 42% of investment bankers would actively seek a new role if required to be in the office more often, with an additional 25% considering it a factor in their job decisions.
For banks, this is a critical finding. As hybrid work expectations tighten, institutions must consider whether their policies could drive talent elsewhere, especially given that 78% of respondents say an employer’s hybrid policy is important when evaluating new opportunities.
One of the key concerns for leadership teams has been whether hybrid work impacts productivity. Our survey found that 65% of bankers believe hybrid working does not negatively affect individual productivity.
However, perceptions of productivity vary depending on role and seniority. While Managing Directors and senior executives may feel that in-person collaboration is crucial for decision-making and strategic discussions, junior and mid-level employees often find that remote work allows them to focus without distractions.
There is also an emerging trend where younger professionals, particularly Analysts, prefer to be in the office more frequently. This is driven by a desire for learning opportunities, networking, and career visibility. In contrast, more senior professionals, who have already built their networks, are more likely to push for flexibility.
Looking ahead, investment banks face a balancing act. Hybrid work has become an expectation, yet banks remain wary of its impact on culture, mentorship, and long-term career development.
Several key trends are likely to shape hybrid policies in the coming years:
Ultimately, the investment banking sector must balance employee expectations with business imperatives. Banks that get this right, offering flexibility while maintaining high performance, will be best positioned to attract and retain top talent.
Hybrid work in investment banking is no longer a short-term response to the pandemic; it is a permanent shift. While banks are gradually increasing in-office requirements, employees still value flexibility - and they are willing to change jobs to maintain it.
The challenge for banks is clear: How can they ensure that hybrid work policies support both business success and employee satisfaction?
With 78% of professionals considering hybrid work policies when evaluating new roles, banks that fail to find the right balance may face a talent exodus. Conversely, those that strike the right equilibrium between office presence and flexibility will strengthen both their culture and their ability to attract and retain top-tier talent.
The hybrid work debate is far from over. But one thing is certain: investment banking’s future will not be fully remote, nor fully in-office. The challenge now is defining what comes next.
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Richard has over 20 years of recruitment experience and joined Goodman Masson in 1999. Richard has been a pioneer in setting up and managing our Front Office offering at Goodman Masson, and specialises in sourcing Front Office professionals across Banking, Advisory, Lending and Investment Management businesses both in the UK and abroad. Specific areas Richard recruits into include Distressed Debt, Corporate Credit, Direct Lending & Private Credit, Private Investing, Real Estate, Securitisation & Asset-Backed Finance and Leverage & Acquisition Finance.
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