Staff are quitting Starling Bank following its RTO mandate

Starling Bank’s new RTO policy has sparked major upheaval, causing numerous employees to resign in response.

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Starling Bank has become the latest company to enforce return to office (RTO) mandates for its employees.

Raman Bhatia took over as chief executive of the neobank in March 2024, following the resignation of its founder, Anne Boden. Now, Bhatia has ordered all hybrid staff to travel to work for a minimum of 10 days a month.

However, staff were quick to oppose this “rushed” announcement, and some have already resigned as a result. Complaints included the lack of desk and parking spaces and disruption to flexibility and work-life balance.

Bhatia’s new leadership of Starling has been a rocky one, to say the least. Having been fined £29 million by the Financial Conduct Authority (FCA) in September 2024 for deficiencies in its financial crime control, this new policy has only added to its sullied reputation.

Starling offices don’t have the space to accommodate everyone

One significant problem with Starling’s new RTO policy is its lack of office space – something which the company itself has acknowledged.

Starling has around 3,231 staff, most of which are based in the UK. However, the neobank reportedly only has 900 desks altogether, including 260 in its Cardiff office, 320 in its London headquarters and 155 in Southampton. It also has 160 desks in its new Manchester office, which houses Santander and HSBC staff as well.

“We are aware that in some office locations, we may not be able to accommodate 10 office working days per month for everyone right now,” Starling’s human resources team said in an email. “We are considering ways in which we can create more space.”

Starling’s culture described as a “grey corporate hellscape”

This latest revelation has caused staff to hit back at Starling’s organisational culture and how its new policy will damage employee engagement – further adding to the UK’s ongoing problem with detached workforces.

Staff have accused Bhatia of creating a “bland grey corporate hellscape filled with dead-eyed zombies who care about nothing more than doing the bare minimum, clocking off and collecting a paycheque”. 

Another aggravated staff member said on the company’s Slack that the policy has been “rammed down everyone’s throats despite their legitimate concerns.”

Bhatia has refuted these accusations, and said that he was “surprised” by the negative reaction to the news, claiming that he had discussed getting staff back in the office “over the last few months.”

Bhatia said: “The leadership team has been thinking for some time about how to operationalise this because we share a conviction that working in the office is important for creativity, collaboration, problem solving, performance and engagement.”

Will Starling punish flexible employees?

Starling is far from the first company to introduce RTO mandates this year. In the last few months, we’ve seen the likes of Dell, ASOS and Manchester United rolling out RTO policies, and threatening punishment to those that don’t comply.

Technology company Dell warned that hybrid and remote workers would be less likely to get a promotion. Meanwhile, Manchester United took a much harsher stance on the matter – simply telling its staff to return to the office or quit.

Starling hasn’t announced whether it will punish uncooperative employees. However, given the commotion among employees, staff rebelliousness is likely to escalate, potentially leading to an even wider divide between Starling’s leadership and its workforce. The possibility of penalties for those refusing to comply has only added to the tension, raising concerns of more resignations and declining morale across the company.

Starling seems to be missing the mark on workplace culture. Find out if any other heavy hitters are getting it right with our guides on:

Written by:
With over 3 years expertise in Fintech, Emily has first hand experience of both startup culture and creating a diverse range of creative and technical content. As Startups Writer, her news articles and topical pieces cover the small business landscape and keep our SME audience up to date on everything they need to know.

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