The state-owned development bank KfW is implementing a policy shift, mandating increased in-office work for its employees, signaling a broader reassessment of remote work practices within German public institutions. According to a report in the Handelsblatt, KfW now requires a minimum of 40% office presence for employees, with the executive board facing a target of at least 50%.
This move, driven by the bank’s Chief Financial and Personnel Officer, Bernd Loewen, represents a subtle tightening of remote work flexibility, reflecting concerns around collaboration, innovation and maintaining institutional culture. While KfW management insists on avoiding coercive measures like terminating existing home office agreements, fearing widespread employee dissatisfaction, the implicit pressure to return to the office is undeniable.
Instead of resorting to strict enforcement, the bank is opting for incentives to encourage office attendance. Loewen highlighted digital cafés offering subsidized pricing and monthly, company-sponsored after-work events as key initiatives. The possibility of future gym facilities is also being considered. These measures, however, raise questions about the effectiveness of “voluntary” incentives in altering ingrained working habits and whether they truly address the underlying reasons employees value remote flexibility.
Notably, KfW’s ambition to reduce its office footprint continues alongside the push for increased in-office attendance. The bank has already relinquished several thousand square meters of external office space in Frankfurt and is currently formulating a revised space strategy extending to 2029, anticipating further reductions in external premises. This apparent contradiction – simultaneously demanding more office presence and shrinking office space – exposes a complex interplay of cost-cutting objectives and a perception that post-pandemic, a new balance is needed between employee flexibility and institutional oversight. The situation highlights a wider debate within the German public sector regarding the long-term impact of remote work policies and the delicate balance between employee satisfaction and perceived operational efficiency.