Hybrid Working and the 40% Rule: Issue 8 - January 2025 | Accord Magazine

Hybrid Working and the 40% Rule

The introduction of Lloyds Banking Group’s hybrid working policy in 2023 sparked significant debate among colleagues.

Under the policy, employees not in remote-first roles are expected to work from an LBG office for at least two days a week or 40% of their contracted hours if working part-time. While many have adapted, others are still struggling to comply.

We’ve had lots of queries recently from members unsure about:

the period over which 40% is measured
the data being used to calculate adherence
how to plan office attendance when unplanned events occur
the link to Grade F+ managers’ Group Performance Share awards

While we can't cover every individual situation, we hope the following will help members understand what’s expected of them, why, and how they can challenge the policy if they feel it’s being applied unfairly

It’s probably best to start with the question – why does in-office working matter to LBG?

We understand that some colleagues don’t see the value in travelling to a site where few, if any, of their team are based. They feel they can work more productively from home without the interruptions and distractions of the office.

Many have told us that commuting reduces their productivity, adds stress, increases personal costs, and negatively impacts their carbon footprint. We completely recognise this perspective.

Countering it, LBG has consistently highlighted the importance of hybrid working for fostering collaboration, innovation, and connection within the organisation. It says it continues to invest heavily in creating modern, collaborative office spaces designed to support these goals.

According to LBG, the benefits of in-office working include:

Networking and Relationship Building: Offices provide opportunities to connect with colleagues from across the business, helping to foster a collaborative culture.
Social Connection: For many, the office environment supports better mental well-being and stronger team dynamics.
Reinforcing LBG’s Culture: Being present on-site is seen as a way to contribute to the wider LBG community and maintain a shared sense of purpose.

While these aims are clear, LBG acknowledges that achieving them must be balanced against practical realities, including individual circumstances and the ongoing challenges of adapting to hybrid models.

Let’s explore what ‘exceptions’ are allowed under the policy, which also involves examining how the 40% figure is calculated.

To begin, it’s important to remember that working 2 days per week or 40% of contracted hours in an office is the minimum requirement, not the maximum.

How is the 2 days / 40% in-office time measured?

Line Managers are expected to measure and manage in-office attendance over time rather than on a weekly basis and are encouraged to take a pragmatic approach, ensuring colleagues are not unfairly penalised for circumstances beyond their control.

Planning Office Attendance

It’s understood that there will be exceptions to why colleagues can’t meet the minimum threshold from time to time. For example, taking blocks of holiday or being unfit for work for more than the odd day. These should be logged in Workday.

For short-term events like bad weather that prevent a colleague from attending the office, they are encouraged to adjust their plans and work from the office on alternative days when it’s safe to do so. In such cases, colleagues should discuss their plans with their line manager, explaining any individual circumstances that impact their plans.

Exceptions for ongoing issues, such as prolonged strikes or extended severe weather, can be logged in Workday via the exception request process. This process is not intended for one-off events, like missing a single day due to snow, but rather for longer-term situations where adjusting office attendance is impractical.

The business expects all colleagues to make genuine efforts to plan their attendance and meet the minimum threshold over time.

How is the data tracked?

In-office attendance is tracked through the People Leader Dashboard, which relies on up-to-date Workday records for all absences.

If you believe the data being used to monitor your attendance is inaccurate, speak to your line manager in the first instance. Situations like forgetting your swipe card can’t be logged on Workday so It’s important that they know why your data may show less than the minimum in-office attendance on the People Leader Dashboard.

Linking Bonuses to Hybrid Working

LBG’s decision to link senior managers’ bonuses to hybrid working stems from the belief that leadership plays a crucial role in embedding cultural change. By requiring Grade F and above colleagues to meet their own attendance targets, the business aims to ensure leaders model the behaviours they expect from their teams.

Importantly, the bonus metric focuses on individual attendance rather than team-wide compliance. Managers are not expected to enforce attendance day-by-day but are encouraged to support their teams in understanding the value of hybrid working and achieving the overall targets.

Accord's General Secretary Ged Nichols speaking at meeting - credit Jess Hurd — Ged Nichols, Accord's General Secretary

Accord's Position

We recognise that hybrid working represents a significant adjustment for many colleagues, particularly those who became accustomed to remote working both before and during the pandemic.

At every step of the way, we have provided sound advice and guidance to our members, including legal advice where necessary. And we’ve supported hundreds of members in their applications for flexible working arrangements leading to agreed long-term exceptions.

While we understand LBG’s rationale, we continue to advocate for fairness and flexibility in the application of the policy.

We encourage members to:

Communicate Openly: Discuss concerns with line managers and ensure any exceptions are recorded appropriately.
Apply Flexibility: Where challenges arise, work collaboratively with managers to find reasonable solutions.
Reach Out for Support: If you feel the policy is being applied unfairly or unreasonably, contact Accord for guidance.

While LBG’s hybrid working policy has its challenges, the business remains committed to encouraging in-office working as part of its vision for the future. Accord will continue to support members in navigating these changes and ensuring their concerns are heard and addressed.