Lloyds Bank: Bonuses, Redundancies, and agency staff.
Lloyds Bank has just paid 25 senior staff over £1 million pay packages , including bonuses. However, some staff, including a former chief executive, have had some of their bonuses clawed back.
The chief executive received £3.8 million in 2012, which included a bonus of £1.5 million. In 2011 he received £1.7 million, and waived his bonus. Below directors level large numbers of staff have had pay freezes; an annual increase of 1.5% for about 4,000 staff; and staff cuts of nearly 2,000 in 2013 alone.
Lloyds annual accounts for 2012 presents a much rosier picture, but without mentioning cuts or employing about 4,000 agency staff. The accounts do mention that 4 Unions are involved in these negotiations. Specifically, staff engagement in the bank’s strategy has risen to 68% in 2012, compared with 48% in 2011. This is a large numerical increase, and the harder to understand given an increase in agency low paid staff, and job cuts, and the fear of future job cuts.
A possible explanation of this staff enthusiasm for their employer comes from a figure of 78% of those promoted to executive roles, are from internal candidates. Add this to the 3,000 staff taking Open University courses in Leadership, and a policy of selecting staff for promotion and for redundancy, becomes clearer. The promoted, added to those who might expect promotion, goes some way to explain their loyalty. There is no data on those who are made redundant
Unite, one of the 4 unions involved, claims that there has been redundancies of about 35,000 workers in recent years in Lloyds. This has created much stress around future job losses. But there is also stress around an increased work load. This increase comes from 2 sources. A part of the increase is due to there being fewer workers to do the work. Another part is due to the need to train up casual agency staff, and with a possible high turnover of agency staff.