Lloyds Bank (LYG.US) launches performance reform, 3,000 employees face risk of dismissal

According to reports from the financial news app Zhihui Finance APP, citing anonymous sources from the UK’s “Media” on Thursday, Lloyds Banking Group (LYG.US) plans to place approximately 3,000 employees ranked in the bottom 5% for performance on a “layoff risk list,” and these employees may face dismissal.

The report points out that this British bank intends to comprehensively reform its performance management system for its 63,000 employees. For the lowest-performing employees, the bank will clearly inform them: improvement in job performance is required, otherwise they will face dismissal.

A spokesperson for Lloyds Bank issued a statement saying that the group is in a “business transformation” phase and is “committed to building a high-performance culture.”

The spokesperson stated: “In line with common industry practices, we have always been exploring various ways to help employees perform at their best. We understand that change may bring discomfort, but we are full of anticipation for future opportunities—these opportunities will drive us to achieve our growth targets and provide an excellent service experience for our customers.”

The report also mentioned that this new performance management system has recently been discussed and approved at a group executive committee meeting. Currently, CEO Charlie Nunn is advancing the final phase of his cost-cutting and revenue diversification plan, and this performance reform is an important measure in this context.

The report adds that at this meeting, Sharon Doherty, the executive in charge of personnel and workplace affairs at Lloyds Bank, stated that the bank needs to increase the turnover rate of its lowest-performing employees.

Doherty further pointed out that high-performance companies typically conduct regular assessments of the bottom 5% of employees, about half of whom eventually leave—the approach Lloyds Bank plans to emulate.

The report analyzes that Lloyds Bank is currently facing the problem of excessively low employee turnover. Due to the current uncertain economic situation, employees generally prefer to keep their existing jobs and are reluctant to leave voluntarily. Data shows that the bank’s current annual employee turnover rate is only about 5%, while the historical average is close to 15%.

In January this year, Lloyds Bank announced that, in response to the trend of customers shifting to digital banking services, it would close 136 offline branches in the region, but at that time promised not to lay off staff as a result.