'We are striving to embed a high-performance culture in the organisation,' spokesperson says
Thousands of employees at Lloyds Banking Group are at risk of losing their jobs under the company's new plan to eliminate its lowest performers, according to reports.
About 3,000 employees are considered in the company's bottom five per cent, The Financial Times reported, with about half of them at risk of losing their jobs.
The measure is part of the company's plan to battle low turnover rates, as its more than 61,000-strong workforce holds on to their jobs amid economic uncertainty.
According to The Financial Times' report, turnover at Lloyds is barely five per cent each year, significantly lower than the average of about 15 per cent historically.
Managers have already been instructed to start ranking staff performance, with underperformers to be placed on "structured support" programmes.
Under the programme, poor performers who will not improve despite getting manager coaching will be dismissed.
Executives at Lloyds will be reviewing data from the company's HR software programme to monitor progress, according to The Financial Times report.
Achieving a 'high-performance culture'
A spokesperson from the bank told the media that the company is seeking to "embed a high-performance culture."
"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," the spokesperson said as quoted by The Guardian. "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 deliver exceptional customer experiences."
Accord, the banking union for Lloyds Banking Group (LBG), acknowledged employees' concerns over the bank's plan.
"We don't recognise any system of forced ranking or arbitrary targets at LBG, and we've asked the Group to publicly reassure colleagues that performance management will remain fair and transparent," the union said on its website.
Lloyds' approach to achieving a high-performance culture is similar to the one employed by Meta earlier this year, where five per cent of the tech giant's lowest performers were also warned of being dismissed.
Microsoft also said earlier this year that it would cut underperforming employees to focus on "high-performing talent."
