ANZ Bank, one of the major Australian banks, has cautioned its employees that their bonuses may be reduced unless they dedicate half of their working hours to bring in office physically for duty.
Additionally, the employees were notified that their yearly performance evaluations and financial incentives will be tied to their presence in the office.
The internal email, sent to over 40,000 employees this week, conveyed the expectation that, on average, they should dedicate at least 50 per cent of their scheduled work time to being physically present in the workplace. The mail was reportedly directed towards employees in Australia, New Zealand, India and the Philippines.
Additionally, it emphasised that being present in the office would play a role in preserving the ‘excellent culture for which ANZ is renowned.’
Earlier in the year, ANZ urged employees to attend the office for a minimum of 50 per cent of their working hours. However, many have disregarded this request as the businesses have been unable to enforce it.
The bank has provided the employees with the option to request an exemption from the 50 per cent attendance rule for a two-month period if they are facing any exceptional circumstances. However, those seeking exemptions beyond this timeframe would need formal approval from senior leaders at the bank.
ANZ bank underwent a significant change in its bonus payout scheme in 2019. Prior to this, individual bonuses were a part of the compensation structure for employees. However, in response to a public inquiry examining the association between such incentives and misconduct as well as customer dissatisfaction within the financial sector, ANZ opted to discontinue individual bonuses.
In place of individual bonuses, the bank introduced a group performance dividend model, wherein employees’ bonuses are tied to the overall performance of the bank as a whole.