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HSBC has offered its London-based employees up to £2,500 to convince their coworkers to move to the new headquarters in Birmingham, United Kingdom.
The company’s transfer is a result of the new financial legislation, which requires UK banks to separate their retail banking operations from their investment banking operations by 2019. According to experts, this law will reduce the risk of financial losses because the banks’ critical services will be independent of each other.
HSBC intends to house its retail operations in its Birmingham office. However, the company is facing difficulties because majority of its staff are unwilling to move. Although the transfer was first announced in 2015, HSBC has only convinced around 53% of its staff to move to the new headquarters.
In order to entice the staff, the company will be giving a cash bonus of £750 to £2,500. Employees who want to qualify must convince their coworkers to join the transfer. The bonus also comes with financial support for housing and children’s schooling, in addition to a standard relocation package.
Although the new laws have prompted HSBC to fully separate its operations, other banks have dealt with it differently. Barclays Bank, for instance, established a new company called ServCo. This separate entity will provide support services to Barclay’s retail and investment operations. On the other hand, Santander will make Santander UK PLC, a new bank, which will serve all its retail clients. The Prudential Regulation Authority, which supervises UK banks, gave no statement about Santander’s move.