Lloyds Banking Group is preparing to put thousands of staff under review as part of a major shake-up aimed at creating what it calls a “high-performance culture.”
The bank, which employed around 61,200 people at the end of 2024, plans to step up how it measures and manages staff performance. About 3,000 employees – roughly the lowest 5% of performers – are expected to be put “at risk,” and around half of them could ultimately lose their jobs, according to reports first published by the Financial Times.
Those identified as underperforming may be placed on “structured support” plans to help them improve. But if progress isn’t made, they could be dismissed.
The Accord union, which represents thousands of Lloyds staff, said managers have not been told to rank employees against each other, but confirmed that performance monitoring has become more intense this year.
One factor behind the move is staff turnover. At Lloyds, only around 5% of employees leave each year, compared with closer to 15% historically and at other banks. Executives reportedly want to bring that figure more in line with the wider industry.
A Lloyds spokesperson said the changes are part of the group’s efforts to “transform” its business:
“As we build highly-skilled teams to move faster forward and deliver great outcomes for our customers, we are striving to embed a high-performance culture in the organisation". “To achieve this, and 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 shift comes at a time when the UK Government is encouraging banks to take on more “informed risk,” moving away from what it sees as overly cautious behaviour since the 2008 financial crisis. Chancellor Rachel Reeves recently said companies should focus more on growth and investment. Photo by Doyle of London, Wikimedia commons.