|JP Morgan has announced that its workers will retain an ability to work remotely on a part-time basis, cycling between days at the office and at home even after Work-from-Home mandates are lifted. The firm may shutter backup trading floors located outside New York and London as a result.|
“We are going to start implementing the model that I believe will be more or less permanent, which is this rotational model,”said Daniel Pinto, Co-President and Chief Operating Officer of JPMorgan Chase. “Depending on the type of business, you may be working one week a month from home, or two days a week from home, or two weeks a month.” This announcement could pressure other financial firms to offer similar arrangements, if only as a recruiting strategy.
The industry often moves in lockstep when it comes to perks and pay, so the decisions at JP Morgan may betoken a broader trend. But if remote working will become an established “new normal” post Covid-19, new technologies and tools will be needed to manage remote workers successfully.
Culture and conduct risk are key considerations in this context. Some may argue that such concerns are too “squishy” to worry about when near-term economic outlooks are so uncertain. That view is, in our opinion, shortsighted. Firms must act now, as current circumstances are likely to be nurturing undetected risk exposures.