The European Central Bank is extending a hybrid work policy that allows staff to work remotely for about half the year as the world’s second-largest central bank moves to retain talent in the competitive banking sector.
Based in Frankfurt, the central bank will prolong by two years a “teleworking” policy that lets staff work remotely for up to 110 days per year, with up to 90 days anywhere in the EU and a further 20 days outside the EU.
Staff are allowed to work outside the office up to 10 days a month or up to 10 days in a row, while a special dispensation allows them to work remotely 20 days in a row in the summer.
The bank introduced the policy in 2023, formalizing a gradual return to the office following the COVID-19 pandemic. The extension means staff will continue with the current dynamic until 2027.
The central bank says 95% of staff took the option to work remotely at least some of last year, with the average employee taking 57 days of remote work.
An internal survey of employees found overwhelmingly positive feedback for the hybrid model. Four out of five employees (80%) saw no impact on how their managers perceived their work, while 88% reported positive effects on their work-life balance.
The ECB competes with private banks for top talent but is unable to match salaries or bonuses paid by those banks. Minimum salary bands at the ECB range from €36,000 to €212,000, vastly lower than in the private sector.
The central bank’s hybrid work policy could, however, offer it an advantage. JPMorgan recently became the latest bank to mandate a five-day return to office mandate, while last year Deutsche Bank removed the option for employees to work a remote Friday followed by a consecutive remote Monday. Goldman Sachs is another that implemented a five-day RTO policy.
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As more banks clamp down on employees and enforce full RTO mandates, the availability of hybrid work is becoming an attractive feature for companies that retain flexibility. Job market analysis from LinkedIn shows the share of remote openings has fallen on its site while the share of applications for remote jobs has stayed stable.
Indeed, Carlos Bowles, chair of the ECB staff committee, suggested the decision was part of a bid to attract and retain employees, Bloomberg reported.
“The possibility to work from home matters a lot to ECB staff as it helps make work obligations more easily compatible with their private constraints,” said Bowles.
“It is also an essential element to attract and retain a future oriented workforce, while further building the institution’s resilience.”
The bank may also hope continued flexibility can help arrest a reported increase in burnout among employees. An internal survey, reportedly seen by the Financial Times, showed the share of staff at risk of burnout had increased from 33.2% in 2021 to 38.9% in 2024.
ECB staff reportedly said they experienced exhaustion and alleged practices of favoritism among bosses.
