The bank will shortly announce its pay proposals. Given that TSB staff have seen their pay decline relative to other financial services organisations over the last few years and the lack of progression for staff, we are demanding an inflation busting pay pot.
Santander, the bank closest in size to TSB, has announced a two-year pay deal with staff getting increases of up to 3% for 2020 and 2021, depending on position in salary range. But that only tells half the story. Santander have put in place a unique pay progression mechanism which means that lower graded staff are moved quickly to 100% of their pay range. In some customer facing roles, 100% of the pay range, or rate for the job, can be achieved in 12 months. Staff eligible for pay progression, get annual pay increases and progression increases to make sure they are in the right position. Why can’t TSB put in place something like that, especially for staff in its lowest bands? Those staff have seen their pay stagnate over the last few years. We hear stories of members having to take second jobs or rely on tax credits to make ends meet. For staff working in a bank, that’s unacceptable. And now, because of changes to overdrafts, in April many of those same staff are going to see their bank charges increase significantly. TSB is doing nothing to help those staff.
The bank must address pay stagnation and progression when it announces the 2020 pay pot. If it doesn’t, then staff engagement, which is already at an all-time low, will drop even further. Disengaged staff leads to disengaged customers and TSB can’t afford to lose any more customers.
‘On-Track’ or ‘Off-Track’ – That Is The Question?
The HR Director said recently that “For 2020 we are improving our Performance Management process, providing you with a simpler journey, increasing focus on development and improving performance rather than measuring”. We have been arguing for a long time that TSB, like Lloyds, should get rid of all performance ratings and instead focus on regular discussions and development. In our recent sales survey, 69% of staff said that the bank should remove ratings all together. We agree.
The worst thing in the world TSB could do – but something we think they will do – is move to two ratings. Staff will be either ‘On-track’ or ‘Off-track’. In that world, sales performance will be the only factor which determines whether lots of front-line staff are ‘On-track’ or ‘Off-track’. ‘Off-track’ will be the dumping ground for all those staff who don’t do enough referrals, account upgrades, mortgages or personal loans. It’s a recipe for disaster and no union should ever agree to such an unsophisticated approach to performance management.
Members with any questions on this Newsletter can contact the Union’s Advice Team on 01234 716029.