The Raiffeisen Bank group is currently facing significant internal unrest among its employees, primarily due to recent changes to its home office policies. Over 2,500 staff members headquartered at the St. Gallen base are unhappy with the newly stipulated requirement to return to the office for at least three days per week starting June, down from four days previously allowed under the flexible 'FlexWork' policy initiated during the pandemic.
According to sources, the new interim chief executive, Christian Poerschke, recently made this change which has caused numerous employees to express their frustrations on platforms like Kununu, where they rate their employers. Many feel this move contradicts Raiffeisen's image as a progressive employer committed to work-life balance.
“Expectably, the increase of the minimum office presence from 20 percent to 60 percent has led to negative reactions among some employees,” stated a spokesperson from Raiffeisen Bank, underscoring the challenges management faces amid divided sentiments. "Raiffeisen Switzerland believes increased office presence and personal interaction will strengthen teamwork and facilitate the exchange of ideas,” the spokesperson added, trying to justify the controversial policy shift.
Not all employees are convinced, with one anonymous staff member lamenting, “It feels like trust in management has been lost, and Raiffeisen is distancing itself from the image of being a forward-thinking employer.” The pressure on management is more pronounced as they now measure the effectiveness of these policy changes against employee retention and satisfaction rates.
Formerly, under the leadership of Heinz Huber, the bank had enjoyed success with the flexible work model. Daniel Morf, the bank's previous head of HR, had praised FlexWork saying, “We have experienced what mobile-flexible work brings. Our employees adapted quickly and became productive from home without losing contact with their teams. We wanted to exploit this even more and create an attractive working environment.” His optimistic assessment stands starkly against the current employee feedback indicating discontent.
All this turbulence is set against the backdrop of Raiffeisen Bank Oberfreiamt's notable success. This division reported significant growth with profits increasing by 3.2 percent, reaching 5.65 million Swiss francs this year. The bank also plans infrastructure updates, reflecting its business health even as the main organization grapples with workforce challenges.
Mark Jordan, the chairman of the Oberfreiamt board, highlighted their commitment to shareholders, stating, “With such strong financial performance, we can and want to offer our co-owners and clients additional financial value.” This stands as good news amid grim reports from headquarters.
Moving beyond internal strifes, Raiffeisen Bank also faces litigation issues involving its Russian subsidiary. Recent reports indicate the Raiffeisenbank Russia has lodged an appeal against the decision from a Kaliningrad court. The ruling mandated it to pay two billion euros to Rasperia Trading Limited, originally owned by Russian oligarch Oleg Deripaska, and to undertake other measures against Strabag, the Austrian construction company.
The court decisions are rooted in difficult sanctions related to EU policies impacting Raiffeisen's ownership structure, with the appeals filed recently making clear no potential sale of the Russian bank will happen until the litigation is resolved. Given the cyclical patterns of these legal cases, future sales appear distant and contingent upon successful appeals.
On the legal side, the spokesperson for the bank reasserted their commitment to navigate through the complex situation, confirming the appeal was filed timely on February 21. “The proceedings will remain active until we receive decisive rulings from the respective courts concerning the initial decisions,” they stated, keeping stakeholders informed about the bank's strategic responses.
Clearly, Raiffeisen Bank finds itself at the crossroads of internal morale challenges and serious legal disputes on the external front. How the organization progresses from this juncture will be pivotal for both its workforce harmony and its financial stability across international markets.