Managing from the echo chamber Employee dismay and leadership detachment in the British banking and insurance crisis

Purpose - This paper aims to explore the culture of working life in British financial services multinationals in the period leading up to the financial crisis of 2007-2008. Design/methodology/approach - Informed by labour process theory, the paper is based on a questionnaire survey and in-depth interviews with technicians and junior managers in British insurance and banking MNCs. Findings - The data demonstrate widespread employee disaffection with a new culture of corporate life that has emerged in the last two decades. Employees faced work intensification and were highly critical of what they saw as detached, ruthless, and often incompetent top leadership. Senior management is described as operating in an echo chamber, insulated from the realities of the workplace. Research limitations/implications - The paper argues that the unpleasant work culture experienced by employees at middle and lower levels closely mirrors the broader excesses and failings of banks and insurance firms during the recent financial crisis. Excessive risk-taking, short-termism, and inattention to detail are widely given as causes of the crisis. This paper argues that senior leadership failings are also manifest in short-sighted, undignified, and ethically unsound treatment of staff, leading to severe problems with staff morale. Originality/value - The paper provides detailed qualitative data on the realities of working life in financial services before the recent financial crisis, and suggests ways for labour process theory to consider how restructuring is not only challenging for employees but can also be debilitating for the organisation itself.