Lloyds Banking Group has announced a performance evaluation that may put thousands of jobs at risk. The firm plans to identify the bottom 5% of its workforce, informing these employees that they could face redundancy if their performance does not improve.
This initiative marks the second occurrence of mass job concerns at Lloyds in under two years, following a reduction of 1,600 roles in January 2022. The BTU union has expressed concerns about the potential for employees to feel pressured to leave the company. In response, a spokesperson for Lloyds stated that the company aims to foster a high-performance culture, highlighting the importance of continuous improvement in employee performance.
The spokesperson further noted the challenges associated with organizational change but expressed optimism about future growth and enhanced customer experiences. It is estimated that around 3,000 staff may be classified as underperforming, with approximately 1,500 employees likely to be let go, according to reports from the Financial Times. Management intends to utilize data from an HR software system to assess employee performance.
Lloyds reportedly does not have a fixed number of job cuts in mind at this stage, focusing instead on addressing a trend of low voluntary departures from the organization. This performance review approach is reminiscent of the “rank and yank” system, which gained notoriety under former General Motors CEO Jack Welch. This method involves ranking employees based on performance and dismissing those deemed the least effective.
Accord Union, which represents over 22,000 employees, has urged Lloyds to maintain integrity in its performance management processes. Meanwhile, the BTU union, which claims to represent 17,000 Lloyds staff but lacks formal recognition, has publicly objected to the company’s performance evaluation strategy.
Source: https://www.bbc.com/news/articles/cx209gzg71wo?at_medium=RSS&at_campaign=rss