Is Formal Business Wear Back?
By Hannah Glover

Bear markets bring falling hemlines, or so goes one old adage. At Putnam Investments, that old saw seems to have translated into the return of formal business attire and the end of casual wear.

Starting Sept. 2, the Boston-based shop, which has been undergoing a massive makeover of its funds and image over the past few years, has reinstated a “traditional business” dress code.

Before the post-Labor Day policy change, suits and ties were expected for meetings and client engagements, but “at all other times employees could opt to wear ‘traditional business’ or ‘business casual’ attire,” writes spokeswoman Sinead Martin in an e-mail. “A slightly more relaxed ‘business casual’ continues to be an option for employees on Fridays,” she says.

Word of the change has sent many among the khaki-clad contingent of fund industry workers atwitter, wondering whether they might be the next to be asked to polish up their wing-tips and get their skirt suits pressed.

Professional image consultant and coach Jennifer Howard says that Putnam’s return to what she calls “business appropriate” marks a move away from the “business causal” revolution that took the American office by storm nearly 15 years ago. The migration back to traditional attire started about three years ago, she says. “Many companies are finding that more professional attire is giving them an edge,” she says. “A lot of businesses are recognizing that with a more casual dress comes a more casual attitude.”

In a recent survey of 9,100 workers across various industries, 49% of entry- and mid-level workers said they concurred, according to FPC, a recruiting firm.

But not everyone agrees. In the same survey, 60% of managers, directors and VPs believed that cutting casual in favor of more formal dress would be taking a step backward, and 40% thought the move might hurt productivity.

Some argue that allowing employees to dispense with the suspenders helps create a less rigid office atmosphere, thereby unleashing their productivity and even boosting morale.

American Century adopted business casual in 1999. Workers at Invesco AIM’s Houston office followed suit in 2000.

Even within the industry, policies are relatively evenly split between companies where business casual is always in fashion and those where more traditional attire is a better cultural fit.

At Boston-based Eaton Vance, it’s a little bit of both. Formal business attire is the norm Monday through Thursday for most of the year. But during inclement weather, on certain days before holidays and in the summer — officially Memorial Day through Labor Day — business casual is allowed. “We think it sends the right message to our employees and our clients,” says Mark Burkhard, director of human resources at Eaton Vance. “We want to present a professional image,” he says.

The business casual summers began about five years ago, he says. Before summer starts, employees who are unsure of what “business casual” means can go to the company intranet for the shop’s take on what not to wear.

Similarly, Vanguard “crew members” suit up most of the week and anytime there’s a meeting or out-of-office engagement. “On Fridays, the crew is able to dress in business-casual attire,” writes spokeswoman Rebecca Cohen in an e-mail.

At The Hartford, employees have no hard-and-fast rules. Employees are expected to exercise their judgment. “If any manager is having questions, they can reach out to HR,” says spokeswoman Heather Lodini.

None of the companies contacted indicated that their dress codes were under review in light of the Putnam decision. Most also agreed that dress code violations are something most managers know when they see them.

While no one detailed specific policies for reprimanding workers with inappropriate attire, most said the problem is generally solved between a manager and employee. “It’s usually a simple comment,” says Eaton Vance’s Burkhard.

Loosening standards is one thing, but repealing those allowances later can be tricky, says image consultant Howard. Employers who ask workers to adhere to a tighter code after allowing more casual dress should be prepared to defend and support their decisions. “If you’re going to ask people to dress differently, what are you going to do for them?” she says.

For a company hoping to revamp its image or revitalize performance, change has to be more than cosmetic. “You can dress someone up, but you can’t always take them out,” she says. “If you don’t change the things on the inside — management’s attitude and the way you run the company — it’s not always going to work.”