British lender Lloyds Banking Group will put about 3,000 people deemed among the bottom 5% of performers at risk of dismissal, the Financial Times reported on Thursday, citing unidentified sources.
The British bank intends to overhaul how it manages the performance of its 63,000 employees, with the bank’s lowest performers set to be told their work must improve or they face the axe, the newspaper said.
A Lloyds spokesperson told Reuters in an emailed statement that it was “transforming” its business and “striving to embed a high-performance culture”.
“In line with wider industry practice, we continuously look for ways to help our colleagues perform at their best. We know change can be uncomfortable, but we are excited about the opportunities ahead as we propel forward to achieve our growth ambitions and delivering exceptional customer experiences,” the spokesperson said.
The new approach was discussed at a recent meeting of the bank’s group executive committee, and comes as CEO Charlie Nunn enters the final phase of his plans to cut costs at the lender and diversify its sources of income, the FT report stated.
At the meeting, Lloyds chief people and places officer Sharon Doherty said the bank needed to see higher turnover among its lowest performers, the report added.
Doherty added that high-performing organisations routinely review their bottom 5% of staff, with about half of those employees leaving – an approach the bank intends to emulate, the report said.
The bank is struggling with low turnover rates as workers avoid leaving their jobs amid economic uncertainty, the report said, adding current turnover at Lloyds is barely 5% each year compared to an average of closer to 15% historically.
In January, Lloyds said it will shut 136 branches in the region to match customers’ transition to digital banking but will not cut jobs.
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