Lloyds Bank's Bold Move: Performance Overhaul Sparks Job Uncertainty

Lloyds Banking Group plans to put 3,000 employees in the bottom 5% of performance at risk of dismissal, aiming to overhaul its performance management. This strategy aligns with CEO Charlie Nunn's cost-cutting and income diversification plans amid economic uncertainty and low staff turnover.

Lloyds Banking Group is set to initiate a major overhaul of its performance management system, with approximately 3,000 employees, considered the bottom 5% of performers, facing potential dismissal according to sources cited by the Financial Times.

The British bank's decisive move aims to foster a high-performance culture amid plans to streamline costs and diversify income streams under the leadership of CEO Charlie Nunn. According to a statement from Lloyds, the initiative is part of their ongoing transformation strategy to enhance both employee performance and customer satisfaction.

In a recent executive committee meeting, Sharon Doherty, Lloyds' chief people and places officer, emphasized the need for a higher turnover among low performers, a practice seen in high-performing organizations. The move comes amid Lloyds' struggles with low turnover rates during uncertain economic times and their shift towards digital banking solutions.

(With inputs from agencies.)