Lloyds TSB group is the UK‘s biggest organisation. More than 66000 are working for this organisation in UK and in 27 countries around the globe. The business serves around 16 million customers operating in a range of financial markets, including personal and private banking, corporate banking, insurance and mortgages.
Lloyds TSB is working globally and competes within rapidly changing markets for the delivery of financial services to personal and business customers. Customers expect a high range of services to be available 24 hours a day and delivered with first class customers’ service. In order t remain top in this demanding market, Lloyds TSB has acquired the services of innovative human resource management policies to ensure Lloyds TSB is a great place to work and that its staff are happy, motivated and committed to give highest levels of performance to the organisation and its customers.
In 1998, the Group conducted reseach with employees, which showed that one of their main concerns was being able to balance a demanding job with outside commitments, such as family life, hobbies and leisure activities. This led to the Group designing and introducing a unique flexible working policy, called Work Options one year later. This gave a chance to workers to structure their working arrangements in a way that helps them to achieve a better Work Life Balance. According to this policy all staff has got the right to request a different working pattern form standard 9.00 am to 5.00 pm.
Lloyds TSB is widely recognised as one of the best employers for providing flexibility for its staff. Because of this positive and flexible approach, Lloyds TSB is able to attract, appoint, motivate and retain the best staff available, which in turn keeps customers happy and keeps the organisation at top of the financial services field.
The Changing Work Environment
Lloyds TSB has always given importance to change in work environment and this proves the key to drive the bank out from the crises Lloyds TSB has rejected the traditional. Work routine of the 20th century. Lloyds TSB has offered flexible work options to all of its staff and put into place it own procedures to allow every member of staff, not just with young children, the right to request to work flexibly. This Lloyds TSB stands out from other employers.
By 2010, it is estimated that 85% of the growth in the UK workforce will be women.
62% of the Lloyds TSB workforce is female and around 2,000 staff takes maternity leave each year. Of these, around 87% return to work for the company after their leave. This is an important statistic. In a tightening labour market, business must attract high calibre staff and then retain their services. Lloyds TSB’s reputation on flexible working is a very important factor in achieving this.
The Business case for Flexibility
Flexible working is not merely of benefit to staff but it makes excellent business environment too. Lloyds TSB believes its ability to deal efficiently and effectively with the need for flexibility strengthens its position as an employer of choice and enables the group to deliver levels of service that differentiate Lloyds TSB from its competitors. Customers take advantage by getting to deal with professional, friendly enthusiastic and well knowledgeable persons. In an increasingly competitive market place where retailers, supermarkets and other companies
can also offer financial services. Lloyds TSB needs customer service excellence around the clock to stay in competition.
Lloyds TSB developed its own flexible approach in 1999 to help attract and retain the best staff. The Group‘s own leaver surveys (questionnaires completed by people leaving the business) showed that flexibility was the main reason for them joining them initially. This is also supported by a national survey which showed that flexible working was a more important factor that pays for graduates in choosing an employer. Employees need motivation and commitment. Research shows that people are more productive and experience less stress when they have control over the hours they work.
So flexible working helps Lloyds TSB to gain the long term commitment and motivation of well qualified and experienced staff. It is far more expensive to recruit and train new staff than to retain existing ones. Flexible working generates cost savings too.
Traditional work patterns usually involved fixed hours between 9.00 am to 5pm. Work beyond these hours was paid by employers overtime rates like time and half or more driving up staff costs. With the introduction of flexibility, Lloyds TSB has been able to extend staff cover at no added cost. In today’s world, people with lifestyles require financial services at any time. Peak customer demand does not follow a traditional 9.00 am to 5pm working day either. For Lloyds TSB flexible arrangements allow employees personal benefits to suit their own lives and deliver a more complete service to customers.
So from the above it is clear Lloyds TSB was ahead of the game when it came to introducing flexible working patterns. The Group was aware that economic and social changes meant that people often live complex lives in and out side of work. Far sighted management at Lloyds TSB saw the benefits to the business of recruiting and keeping excellent people, who would be willing to build a career in the Group.
The impact of credit crunch on Lloyds TSB
The phase means a severe shortage of money or credit and this comes about when banks and other lenders lose confidence and are no longer wiling to lend to each other or to other borrowers. According to report published at Yorkshire Post dated 06 May 2008, Lloyds TSB revealed a further £387 million hit from the credit crunch but signalled there would be no need for a cash call to investors.
In a another report published in Herald Scotland dated 30 July 2008, writes that credit crunch hammers Lloyds TSB as bank profits drop 70 %
But Lloyds TSB has worked according to a certain plan faced the situation well.
Continuous Improvement and Lloyds TSB
Lloyds TSB believes in excellent customer’s service and smooth and transparent banking. Lloyds TSB has introduced online banking, provided numerous ATM machines to their customers and made the banking relatively easy and convenient.
Lloyds TSB and IT transformation
Realizing that the effort to improve its IT capabilities would require faster, deeper change than it could manage in-house, Lloyds TSB partnered with Accenture to create an IT competency that aligns IT delivery with the bank’s strategic priorities. Processes, tools and methodologies were brought closer to best practise, and the skills and experience of IT staff were improved.
Lloyds TSB is making significant progress towards creating a high performance IT environment that aligns IT delivery with the bank’s strategic priorities. The Accenture/ Group IT team is confident that the improving IT initiative will help Lloyds TSB create a high performance business propelled by consistent increase in customer satisfaction and competitive differentiation.