The state-owned development bank KfW is implementing a shift in its working policy, mandating increased in-office presence for its employees, a move signaling a broader political debate on the future of work within Germany’s public sector. A new requirement stipulates a minimum 40% office presence for all employees, with the executive board facing a more stringent target of “at least 50%”. This decision, revealed by board member for Finance and Personnel, Bernd Loewen, to Handelsblatt, represents a perceptible curtailment of the flexible home-office arrangements prevalent since the pandemic.
While KfW leadership is eschewing punitive measures such as contractual termination for employees who fail to meet the mandated presence, the policy shift highlights the increasing pressure from within government circles to reinforce traditional workplace dynamics. Loewen acknowledged the potential for employee dissatisfaction, stating the bank was acutely aware of the likely backlash, even amongst those already prioritizing in-office work.
Instead, KfW is relying on voluntary incentives to encourage greater office attendance. The bank is promoting initiatives such as subsidized “Digi-Cafés” and monthly, free after-work events across all locations. Future considerations include the establishment of an on-site fitness facility, a tactic intended to soften the perceived rigidity of the new policy.
Critically, the move towards increased in-office presence is occurring in conjunction with a planned reduction in KfW’s physical office footprint. The bank has already relinquished several thousand square meters of office space in Frankfurt and is currently developing a revised space strategy for implementation from 2029 onwards, forecasting further reductions in external office needs. This paradoxical strategy – demanding increased employee presence while simultaneously downsizing office space – raises questions about the long-term sustainability and effectiveness of KfW’s approach. Observers speculate the bank is responding to broader political signals indicating a desire to curtail the expanded remote work models embraced during the pandemic, potentially mirroring similar pressures faced by other German institutions. The efficacy of voluntary incentives and the potential impact on employee morale remain to be seen, particularly given the wider context of fluctuating economic conditions and evolving workforce expectations.
