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Cipd employee outlook - Rebuilding trust in the city

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Our recent survey of more than 1,000 employees in the financial sector finds that 75% agree that some people in their organisation are still paid excessively. Overall, the research suggests we still …

Our recent survey of more than 1,000 employees in the financial sector finds that 75% agree that some people in their organisation are still paid excessively. Overall, the research suggests we still have a long way to go in transforming culture in this sector to create long-term value for the customer and wider society.

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  • 1. Employee OutlookFocus on rebuilding trust in the CitySummer2013
  • 2. Chartered Institute ofPersonnel and DevelopmentThe CIPD is the professional bodyfor HR and people development.It has over 130,000 membersinternationally – working in HR,learning and development, peoplemanagement and consulting acrossprivate businesses and organisationsin the public and voluntary sectors.As an independent and not forprofit organisation, the CIPD iscommitted to championing betterwork and working lives for thebenefit of individuals, businesses,economies and society – becausegood work and all it entails is goodfor business and society at large,and what is good for businessshould also be good for people’sworking lives.The CIPD brings together extensiveresearch and thought leadership,practical advice and guidance,professional development andrigorous professional standardsto drive better capabilities andunderstanding in how organisationsof all kinds operate and perform,and in how they manage anddevelop their people.A Royal Charter enables the CIPDto confer individual chartered statuson members who meet the requiredstandards of knowledge, practiceand behaviours.cipd.co.ukAbout us
  • 3. cipd.co.uk/employeeoutlook 1Employee OutlookFocus Summer 2013Employee OutlookFocus Summer 2013ContentsSummary of key findings 2Employee attitudes to working in the sector 5Trust in the banking and financial services sector 9Values in the finance sector 11Changing the culture of the banking and 18financial services sectorProfessional standards and qualifications 22Reward and culture change 23Conclusions 26Background to the survey 28Focus on rebuilding trust in the City
  • 4. 2 Focus on rebuilding trust in the CityEmployee attitudes to workingin the sectorSalary is the most commonlyidentified factor that attractedrespondents to work in thebanking sector, cited by 32% ofrespondents, closely followed bycareer opportunities (31%) andchallenging and interesting work(27%). In all, 20% of respondentssay they were attracted to thebenefits package available on topof salary, while 12% identifiedbonuses as one of the reasons theyare working in the profession.Employees working in the bankingand financial services sector aremore likely to be proud thanembarrassed to say they work inthe banking sector. In all, 35% ofrespondents say they would beeither proud, or very proud, totell someone they met for the firsttime that they work in bankingor financial services, comparedwith 15% who say they would beembarrassed or very embarrassed.In all, half of respondents workingin banking and financial servicessay that the negative publicperception of the banking sector isa fair reflection of what has goneon in recent years.However, a third of employeesbelieve ‘problems in the bankingsector are overblown by the media,based on the wrongdoings of asmall minority of organisations’.Just 8% of respondents agree that‘problems over banking culture arein the past but people’s perceptionstake a long time to change’.Almost a third of respondents(29%) think failing seniorexecutives should be imprisonedwhere there is evidence of grossnegligence or misconduct. A further13% of employees would like tosee failing bankers banned for lifefrom being a company director,while 36% say that failing bankersshould be removed from theapproved persons list and barredfrom working in the sector inthe future.TrustThe findings suggest fairly highlevels of trust, particularly relatingto whether their employer has,in general, good motives andintentions (65% agree or stronglyagree), treats them in a consistentand predictable manner (63%) andbelieves that employees themselvescan be trusted (58%).Summary of key findingsAlmost a third of respondents (29%)think failing senior executives should beimprisoned where there is evidence of grossnegligence or misconduct.
  • 5. cipd.co.uk/employeeoutlook 3Employee OutlookFocus Summer 2013The majority ofemployees believethat the decisionsmade by their chiefexecutives (62%) andthe board (57%) arealways or mostly inline with the valuesof the organisation.Respondents were less confidentthat their employer has highintegrity (54%), with 21%disagreeing/strongly disagreeing, isopen and upfront with them (46%),with 30% disagreeing/stronglydisagreeing, is not always honestand truthful (37%), with 41%disagreeing/strongly disagreeingand does not treat them fairly(25%), with 51% disagreeing/strongly disagreeing.Just under half of the sample (46%)agreed or strongly agreed thatwhen trust had been breached, theirorganisation worked actively to tryto restore working relationships.Encouragingly, a high proportionof employees feel trusted at work:92% said they feel trusted to a greator to some extent. Senior managersare more likely to agree to a greatextent (53%) that they feel trustedat work compared with individualsat other job levels (41%).ValuesThe majority of respondents in thesurvey said they were aware of theirorganisational values – to a great(38%) or to some (52%) extent.However, there are limitations inthe communications reaching lowerjob levels: 61% of senior managersare well aware of the organisationalvalues, compared with only 36% ofstaff at other levels.The survey also shows that there issignificant misalignment betweenthe values of staff and those of theorganisation they work for.Across the sample there is aconcern over the strength oforganisational values in guidingthe behaviours of individualsaround the organisation. Overall,54% of the respondents rate theirorganisational values as strongor very strong, however 33% ofrespondents said that their valuesinfluence behaviour amongstcertain teams/levels but are ignoredat others.More than one in ten employees(13%) say that their organisation’svalues are weak or very weak,with some people, or the majorityof people, in the organisationbehaving in ways that don’t reflectits values.The majority of employees believethat the decisions made by theirchief executives (62%) and theboard (57%) are always or mostlyin line with the values of theorganisation. However, respondentsare more sceptical about whetherjunior managers and their owncolleagues make decisions that arein line with organisational values,with just 50% saying this is the case.Changing the culture of thebanking and financial servicessectorUnder half of respondentsrank customers first as theirorganisation’s most importantstakeholders, with a thirdidentifying shareholders as theirmost important stakeholders.One in ten respondents citeregulators as their organisation’smost important stakeholders, 9%rank employees first, while 7% rankthe investment community as mostimportant.Senior managers are marginallymore likely to identify customers astheir organisation’s most importantstakeholders (53%) than employeesat other levels of seniority (47%).
  • 6. 4 Focus on rebuilding trust in the CityLess than four in ten respondentssay there has been any initiativeled by senior executives to changeculture in the organisation over thelast 12 months, with 45% saying theopposite and 16% who don’t know.There is a fairly even split betweenrespondents who think the cultureof their organisation has becomemore customer focused (43%) in thelast 12 months and those who thinkthere has been no change (39%).One in ten respondents think theirorganisation’s focus on shareholdersand making profits has increasedover the last 12 months.Professional standards andqualificationsThe survey suggests that moreprogress could be made inprofessionalising the sector, withthe majority of employees workingin banking and financial servicesnot holding any professionalqualifications. Of the 47% who do,senior managers are the majority.Just 30% of respondents aremembers of any industry body withprofessional standards, rising to 57%of senior managers and falling to27% of employees below that level.Reward and culture changeThe survey suggests there is significantdissatisfaction with how people arerewarded and incentivised in thebanking and financial services sector.Respondents are more likely todisagree (39%) than agree (36%)that rewards are generally fair, basedon people’s efforts and achievements.Almost two thirds (65%) ofemployees agree that some people intheir organisation are still rewarded ina way that incentivises inappropriatebehaviour, with little differencebetween the views of senior managersand those of other employees.A similar proportion of respondents(64%) agree that how peopleare rewarded and what they arerewarded for is not clear, comparedwith 14% that disagree.In all, 67% agree there is still toomuch secrecy around what seniormanagers earn. Senior managersare less likely than employees atother levels to agree this is the case,however 54% of senior managersagree with this statement and just23% disagree.In all, 32% of respondents say thatif the rules and regulations limitedhow much they could earn then theywould leave the sector, rising to 46%of senior managers.The biggest area of agreement isover whether some people in theirorganisation are still paid excessively,with 75% of respondents agreeing thisis the case. Employees at levels belowsenior management are most likely toagree (79%) but even 66% of seniormanagers agree that some people intheir organisation are paid excessively.75% agree peoplein their organisationare paid excessively.
  • 7. cipd.co.uk/employeeoutlook 5Employee OutlookFocus Summer 2013Why the debate about bankingculture is importantThis survey was conducted againstthe backdrop of an ongoing publicdebate about the need to changeculture in the banking and financialservices in the aftermath of a range ofhigh-profile and catastrophic failings.These include excessive risk-takingand poor lending practice in therun-up to the 2008 financial crisisand government bailout, mis-sellingof payment protection insurance andthe fixing of LIBOR rates.These failings are being investigatedby the Parliamentary Commissionon Banking Standards which isexploring, among other issues, theprofessional standards and cultureof the UK banking sector.However, little is known abouthow banking culture is perceivedby those employed in the sectorand whether banking is, in fact,becoming more focused ondelivering long-term value and first-class customer service, rather thanshort-term gains in the service ofshareholders looking to maximisereturn on their investment.This survey attempts to shed somelight on these issues to provide astate of play on whether bankingculture is on the mend or whether,behind some fine words from somechief executives in the sector, it isbusiness as usual.Identification with theprofessionSalary is the most commonly citedfactor that attracted respondentswho chose to work in thebanking sector, cited by 32% ofrespondents, closely followed bycareer opportunities (31%) andchallenging and interesting work(27%). In all, 20% of respondentssay they were attracted to thebenefits package available on topof salary, while 12% identifiedbonuses as one of the reasons theyare working in the profession.Overall, a greater proportion ofrespondents in large organisationswere attracted by pay (34% vs26% in SMEs) and benefits (24%vs 10%), while SMEs fare betteron providing challenging andinteresting work.Just one in ten respondents say theywere attracted to the professionbecause of what the organisationthey joined stood for, or its values.Senior managers are nearly twiceas likely to say they were attractedby challenging and interesting workon offer as respondents workingat other levels, who are morethan twice as likely as their seniorcolleagues to have ended up inbanking by accident (see Table 1).Employee attitudes to working inthe sectorAllSeniormanagerOtherlevelThe salary 32 35 32Bonuses on offer 12 18 12Benefits package (on top of salary) 20 17 22Recommended by family or friends 10 10 9Values/what the organisation stands for 11 17 10Career opportunities 31 34 31The role the organisation performs in wider society 5 9 5Challenging and interesting work 27 43 26I ended up in the profession/organisation byaccident – I applied for a job and got it40 20 42Status 10 20 9It was something I always wanted to do 7 15 6The company had a respected graduate trainingprogramme5 5 5Other 10 14 8Don’t know 3 2 3Table 1: Reasons given by employees for what attracted them to work in thebanking and financial services sector (%)
  • 8. 6 Focus on rebuilding trust in the CityEmployees working in the bankingand financial services sector aremore likely to be proud thanembarrassed to say they work inthe banking sector. In all, 35% ofrespondents say they would be eitherproud or very proud that they workin banking or financial services,compared with 15% who say theywould be embarrassed or veryembarrassed.Senior managers (51%) are morelikely than employees working atother levels (32%) to say they wouldbe proud to tell someone they metfor the first time that they worked inbanking (see Table 2).In all, half of respondents workingin banking and financial services saythat the negative public perceptionof the banking sector is a fairreflection of what has gone on inrecent years.However, a third of employeesbelieve problems in the bankingsector are overblown by the media,based on the wrongdoings of a smallminority of organisations.Just 8% of respondents think thatproblems over banking culture arein the past but people’s perceptionstake a long time to change.Senior managers are less likelythan more junior members of staffto agree that the negative publicperceptions towards the sector are afair reflection of what has happenedin recent years.Senior managers are also significantlymore likely to think that problems inthe banking sector are overblown bythe media based on the wrongdoingsof a small minority of organisations(42%) compared with employees atother levels (32%).AllSeniormanagerOtherlevelVery proud 10 22 8Proud 25 29 24Neither embarrassed nor proud 49 38 52Embarrassed 12 7 12Very embarrassed 3 5 3Don’t know 1 0 0Table 2: The proportion of employees that would feel proud to tell someone theymet for the first time that they work in the banking/financial services sector (%)AllSeniormanagerOtherlevelIt is a fair reflection of what has gone on in recentyears.51 46 51Problems in the banking sector are overblown bythe media, based on the wrongdoings of a smallminority of organisations.33 42 32Problems over banking culture are in the past butpeople’s perceptions take a long time to change.8 6 9Table 3: Employees views on the negative public perception of the banking/financial services sector (%)V8%Just 8% of respondentsthink that problems overbanking culture are inthe past but people’sperceptions take a longtime to change.
  • 9. cipd.co.uk/employeeoutlook 7Employee OutlookFocus Summer 2013V17%One in six (17%) say thatthey have personally hadexperience of being bulliedor put under excessivepressure to behave ina way that was eithercounter to their personalethics or to the interests oftheir customers.One in six (17%) say that theyhave personally had experience ofbeing bullied or put under excessivepressure to behave in a way thatwas either counter to their personalethics or to the interests of theircustomers (see Table 4).Employees below seniormanagement level are more likelythan senior managers to say thisis the case. Employees working inbanking are significantly more likelythan those in insurance, brokerageor investment to say they have beenput under excessive pressure orbullied within the last two years tobehave in ways that are counter totheir personal ethics or the interestsof customers.Respondents are more likely tosay they have been bullied or putunder excessive pressure to behavein ways that are counter to theirpersonal ethics when they are askedto look back more than two yearsago. Nearly a quarter of respondents(23%) said this had happened, withsenior managers (30%) more likelythan respondents at other levels(21%) to say this was the case.Looking back more than twoyears, 22% of respondents saidthat they had been bullied or putunder excessive pressure to behavein ways that were counter to theinterests of their customers. Again,senior managers were most likelyto say this was the case, as wererespondents working in banking,as opposed to those in insurance,brokerage or investment.AllSeniormanagerOtherlevel Banking InsuranceBrokerageandinvestmentbehave in ways that arecounter to their personalethics, within the lasttwo years17 15 18 20 16 14behave in ways that arecounter to the interestsof customers, within thelast two years17 16 17 21 14 13behave in ways that arecounter to their personalethics, more than twoyears ago23 30 21 29 15 19behave in ways that arecounter to the interestof their customers, morethan two years ago22 24 21 27 16 19Table 4: Respondents views on whether they have felt bullied or put underexcessive pressure to... (%)
  • 10. 8 Focus on rebuilding trust in the CityLooking ahead, a significantproportion of respondents workingin the banking and financialservices sector would like to seegreater penalties imposed againstsenior executives whose decisionslead to banks or other financialservices organisations failing andfor example needing governmentfinancial support.Almost a third of respondents (29%)think failing senior executives shouldbe imprisoned where there is evidenceof gross negligence or misconduct. Afurther 13% of employees would liketo see failing bankers banned for lifefrom being a company director, while36% say that failing bankers shouldbe removed from the approvedpersons list and barred from workingin the sector in the future.One in ten respondents think thatlosing their job is punishmentenough for failing bankers and afurther 5% say they should lose anypublic honour they hold.Senior managers are marginallymore likely to believe that failingsenior executives should be bannedfrom working in the sector in thefuture, while respondents at otherlevels are more likely than their moresenior colleagues to believe thatfailing senior executives should beimprisoned where there is evidence ofgross negligence or misconduct.AllSeniormanagerOtherlevelThey should be removed from the approvedpersons list, and barred from working in thesector in the future.36 40 36They should be banned from being a director ofany company for life.13 13 12Losing their job is sufficient punishment. 10 9 10They should lose any public honour they hold butbe allowed to work in the sector.5 5 4Where there is evidence of gross negligence ormisconduct they should be imprisoned.29 24 30Table 5: What employees working in the banking and financial services sectorthink should happen to senior executives whose decisions lead to banks or otherfinancial services organisations failing and for example needing governmentfinancial support (%)V36%36% say that failing bankersshould be removed from theapproved persons list andbarred from working in thesector in the future.
  • 11. cipd.co.uk/employeeoutlook 9Employee OutlookFocus Summer 2013Employees’ perceptions of theiremployerWe asked employees in the financesector to respond to a number ofstatements relating to trust in theiremployers in general. The findingssuggest fairly high levels of trust,particularly relating to whethertheir employer has, in general, goodmotives and intentions (65% agreeor strongly agree), treats them in aconsistent and predictable manner(63%) and believes that employeesthemselves can be trusted (58%).Respondents were less confident thattheir employer has high integrity(54%), with 21% disagreeing/strongly disagreeing, is open andupfront with them (46%), with 30%disagreeing/strongly disagreeing,is not always honest and truthful(37%) with 41% disagreeing/stronglydisagreeing and does not treat themfairly (25%) with 51% disagreeing/strongly disagreeing. Respondentswere also more likely to agree thandisagree that their employer cannotbe fully trusted (39% vs 38%).Differences in senior managers’ viewsand other employees’ views canbe observed in perceptions of theiremployer. Senior managers ratedtheir employer higher on integrity,consistency, benevolence andtransparency. They were also morelikely to trust their employer.At the same time, there was broadagreement between senior managersand employees in their assessmentof organisational fairness, honestyand the extent to which the employertrusts employees.Employees’ perceptions of theirsenior managers, line managersand colleaguesAfter gathering respondents’perceptions of their employers ingeneral, we wanted to explore theextent to which trust levels varyaccording to different groups in theV65%The findings suggestfairly high levels of trust,particularly relating towhether their employer has,in general, good motivesand intentions (65% agreeor strongly agree).Trust in the banking and financialservices sectorAllSeniormanagerOtherlevelhas high integrity 54 (21) 63 (17) 53 (21)treats them in a consistent and predictable fashion 63 (19) 75 (11) 62 (20)is NOT always honest and truthful 37 (41) 37 (48) 37 (35)in general, has good motives and intentions 65 (15) 73 (8) 64 (15)does NOT treat them fairly 25 (51) 25 (59) 26 (47)is open and upfront with them 46 (30) 61 (21) 45 (34)cannot be fully trusted 39 (38) 31 (50) 40 (33)believes that employees can be trusted 58 (19) 61 (17) 58 (21)Table 6: Proportion of respondents agreeing or strongly agreeing (disagreeing orstrongly disagreeing) that their employer... (%)
  • 12. 10 Focus on rebuilding trust in the Cityorganisation – senior managers, linemanagers and colleagues.The overall scores here are morepositive than general perceptions ofemployers, suggesting that when youpersonalise trust relations, ratingsincrease. Colleagues receive thehighest scores across the board, withline managers being the second mosttrusted group.The biggest perceived gap betweensenior managers, line managersand colleagues is in relation tobenevolence (concern for othersbeyond their own needs), integrityand transparency (being open andstraight talking).Confidence and trust in seniormanagersWe also asked respondents tocomment specifically about theconfidence and trust they have in theirsenior managers. Overall respondents’confidence (+21 net agreement)is higher than their trust (+17 netagreement) in senior managers. Netscores for confidence (+36 vs +17)and trust (+33 vs +12) are also muchhigher in SMEs compared with largerfinance organisations.Overall, these scores reflect well onthe finance sector when comparedwith the CIPD’s Employee Outlookscores for the private sector in general,which were +12 for trust and +14 forconfidence in Spring 2013.Breaches of trustWe also asked respondents aboutbreaches of trust in their organisationsand whether, when trust had beenbreached, their organisation workedactively to try to restore workingrelationships. Just under half of thesample (46%) agreed or stronglyagreed that this was the case.That means that over half work inorganisations where, when trust isbreached, attention is not given torestoring it. As might be expected,senior managers (57%) were morelikely to say their organisation activelytried to restore trust after a breach thanemployees working at other levels andemployees in SMEs (51%) were morelikely to agree than those working inlarger organisations (45%).Employer trust in employeesHowever, when it comes toorganisation trust, perceptions ofemployer trust in employees is justas important as employees’ trust inthe organisation. Trust needs to bereciprocated. Encouragingly, a veryhigh proportion of employees feeltrusted at work: 92% said they feeltrusted to a great or to some extent.Senior managers are more likely toagree to a great extent (53%) that theyfeel trusted at work compared withindividuals at other job levels (41%).SeniormanagersLinemanagers Colleaguesare competent 84 88 92have concern for others beyond their own needs 65 80 83have high integrity 74 83 88are open and straight talking 73 82 88behave in a way that reflects the values of theorganisation83 86 87are consistent in their behaviours 77 81 88Table 7: Proportion of respondents saying that their senior managers, linemanagers, and colleagues to a great or some extent... (%)AllSeniormanagersOtherlevel SMELargeorganisationsNet agree 46 57 46 51 45Neither agree nor disagree 24 21 24 20 25Net disagree 20 19 20 17 21Don’t know 10 4 10 12 9Table 8: ‘When trust has been breached, my organisation works actively to tryand restore working relationships’. (%)
  • 13. cipd.co.uk/employeeoutlook 11Employee OutlookFocus Summer 2013Awareness of organisationalvaluesHigh awareness of organisationalvalues reflects the importancethat organisations attach tocommunicating values to employees.The majority of respondents in thesurvey said they were aware of theirorganisational values – to a great(38%) or to some (52%) extent.However, closer look at the datareveals that there are limitations inthe communications reaching lowerjob levels: 61% of senior managersare well aware of the organisationalvalues, compared to only 36% ofstaff at other levels. There were nostatistically significant differencesbetween individuals of different agegroups or job tenure. However, thosewho agree or strongly agree that theyare satisfied with their current jobwere also more likely to be aware oforganisational values.We also asked the respondents torecord their organisational valuesin their own words. Those whodid frequently mentioned focus oncustomer, quality of service delivery,and efficiency in achieving targets.See word cloud overleaf.However, when quoting integrity andresponsibility as part of the corporatebrand, some noted a differencebetween espoused values and theiractual enactment.Values in the finance sectorAllSeniormanagerOtherlevelTo a great extent 38 61 36To some extent 52 31 55Not at all 6 5 6Don’t know 2 – 2Not applicable - my organisation doesnt haveany values1 3 1Table 9: Proportion of individuals aware of their organisational values (%)61%%54%82%AgreeAwareAwareAgree%Agree36%ware%%AgreeAwareness of theorganisational valuesSenior managersOther levels
  • 14. 12 Focus on rebuilding trust in the CityRespondents were also asked torate between 1 and 10 the extentto which they agree or disagreethat their personal values matchtheir organisational values, with 1representing totally disagree and10 totally agree. This shows thatthere is significant misalignmentbetween the values of staff andthose of the organisation they workfor. Respondents were more likelyto disagree (58% of respondentsrating between 1 and 5) that theirviews matched the values of theirorganisation than agree (42% ratingbetween 6 and 10) (see Table 10).Value-based behavioursAcross the sample there is a concernover the strength of organisationalvalues in guiding the behaviours ofindividuals around the organisation.Overall, 54% of the respondentsrate their organisational values asstrong or very strong, however 33%of respondents said that their valuesinfluence behaviour amongst certainteams/levels but are ignored at others.(% of respondents)1 (Totally disagree) 82 113 174 105 126 87 128 129 510 (Totally agree) 5Mean 5.06Table 10: The extent to which respondents agree or disagree that their personalvalues match their organisation’s values and ideals (where 1 equals totallydisagree and 10 equals totally agree).
  • 15. cipd.co.uk/employeeoutlook 13Employee OutlookFocus Summer 2013More than one in ten employees(11%) say that their organisation’svalues are weak or very weak, withsome people, or the majority ofpeople in the organisation, behavingin ways that don’t reflect its values.The majority of employees believethat the decisions made by their chiefexecutives (62%) and the board(57%) are always or mostly in linewith the values of the organisation.However, respondents are moresceptical about whether juniormanagers and their own colleaguesmake decisions that are in line withorganisational values, with just 50%saying this is the case.There is a notable difference betweensenior managers and other levelsof staff regarding the extent towhich they believe values positivelyinfluence decisions at variousorganisational levels.Senior managers rate all stakeholdershigher than other employees do.Interestingly, 82% of senior managersrated themselves as acting in line withorganisational values, while only54% of employees thought the sameof their senior managers.AllSeniormanagersOtherlevel SMELargeorganisationsVery strong: our valuesare played out ineverything everyone does7 17 6 10 6Strong: most people inour organisation behavein line with values47 51 47 53 45Neither strong nor weak:our values influencebehaviour amongstcertain teams/levels butare ignored at others33 19 33 26 35Weak: some people inour organisation oftenbehave in ways that don’talign with our values11 11 12 9 12Table 11: Proportion of respondents rating the strength of organisational values ininfluencing the behaviours of people in the organisation (%)AllSeniormanagerOtherlevelChief executive 62 74 62Executive board/board of directors 57 73 57Senior managers 54 67 54Middle managers 53 67 52Junior managers 50 56 50Staff without management responsibility 50 57 48Myself 68 82 66Table 12: Proportion of respondents who believe that the decisions made bystakeholders at various levels of organisations are always or mostly in line withorganisational values (%)54%82%AgreeAgree%Agree%AgreeSenior managers actin line withorganisational valuesSenior managersOther levels
  • 16. 14 Focus on rebuilding trust in the CitySimilar disparity between seniormanagers’ views and otheremployees’ views can be observed intheir assessments of the presence ofcertain values in the organisationalcontext. Senior managers ratedtheir organisation higher in terms ofintegrity, consistency, benevolence,and transparency. They are alsomore likely to trust the employer.At the same time, there was broadagreement between senior managersand employees in their assessmentof organisational fairness, honestyand the extent to which the employertrusts the employees.The more values were perceived tobe influencing behaviours acrossthe organisation, the more likelyrespondents were to be engaged.AllSeniormanagerOtherlevelhas high integrity 54 63 53treats them in a consistent and predictable fashion 63 75 62is NOT always honest and truthful 37 37 37in general, has good motives and intentions 65 73 64does NOT treat them fairly 25 25 26is open and upfront with them 46 61 45cannot be fully trusted 39 31 40believes that employees can be trusted 58 61 58Table 14. Proportion of respondents agreeing or strongly agreeing that theiremployer... (%)EngagedNeither engagednor disengaged DisengagedStrong or very strong values 81 37 5Weak or very weak values 3 19 78Table 13: Engagement level of employees, by strength of values reportedThe more values were perceived tobe influencing behaviours across theorganisation, the more likely respondentswere to be engaged.
  • 17. cipd.co.uk/employeeoutlook 15Employee OutlookFocus Summer 2013Values and engagementAs all of these beliefs correlatedpositively with employee engagement,it is unsurprising that seniormanagers in the banking sectorappear to be more engaged overall,despite 95% of them working morehours than they are contracted to do,compared with 73% of staff at otherlevels. Senior managers are also lesslikely to say they achieve the rightwork–life balance than staff at otherlevels (41% compared with 54%)and more likely to report they areunder excessive pressure everyday(27%) than other employees (16%).Nevertheless, a higher proportion ofsenior managers say they go the extramile at work and are satisfied withthe content of their job role and theirjob overall.What can be done to reinforcevalues/make them meaningfulfor staff?Respondents who said that thevalues of their organisationwere evident in some employees’behaviour and decisions were askedwhy they thought organisationalvalues influenced employees’behaviour and decisions.The most commonly identified reasonfor why employees thought theirorganisational values influencedemployees’ behaviour and decisionswas that values were reinforcedthrough staff appraisals andperformance reviews, with 50% ofrespondents identifying this as a factor.AllSeniormanagersOtherlevel SMELargeorganisationsgo the extra mile (agree/strongly agree) 68 75 68 70 67often work more hours than they are contracted (agree/stronglyagree)74 95 73 72 74achieve the right work–life balance (agree/strongly agree) 53 41 54 54 53are under excessive pressure every day 17 27 16 12 18have positive relationships with colleagues (agree/strongly agree) 84 84 84 80 85find their job as challenging as they would like it to be (agree/strongly agree)61 74 60 63 61have opportunities to learn and grow (agree/strongly agree) 52 62 52 52 52are satisfied with content of job role 57 75 56 63 55are satisfied with their job 58 72 57 64 56would recommend their employer (likely/very likely) 55 64 54 58 54know very clearly what the core purpose of their organisation is(agree/strongly agree)80 86 79 79 80are motivated by core purpose (agree/strongly agree) 42 59 40 49 39Table 15: Proportion of respondents who… (%)V41%Senior managers are also lesslikely to say they achieve theright work–life balance thanstaff at other levels (41%compared with 54%)
  • 18. 16 Focus on rebuilding trust in the CityThe next most commonly identifiedreasons for values positively affectingemployee behaviour was the easewith which employees could translatethem into their day-to-day activities(37%), that the values are meaningfulto employees (35%) and that valuesare role-modelled by line managers(30%) and senior managers (27%).In contrast, placing profit ahead oforganisational values (45% of thosewho believe values are not evidentmentioned this), inconsistency ofrigour in adherence to values (41%)and lack of recognition for behavingin line with values (34%) were topthree reasons for the organisationalvalues not being evident fromemployees’ behaviours .A significant concern among therespondents is the lack of consequencesfor those individuals whose behaviourconsistently goes against organisationalvalues. Only 53% believe thatviolations of written rules andprocedures are punished.These beliefsstrongly correlate with trust invested inthe organisation: those who don’t seeviolations of values punished also trusttheir employer less.AllSeniormanagersOtherlevel SMELargeorganisationsValues-based behaviours are reinforced through staff appraisalsand performance reviews.50 35 54 35 54Employees can easily translate them into their day-to-day activities 37 40 36 40 36Our values are meaningful to employees. 35 37 34 37 34They are role-modelled by your line manager (your line managerbehaves in a way that reflects our values).30 25 31 25 31They are role-modelled by senior managers (senior managersbehave in a way that reflects our values).27 30 27 30 27They are role-modelled by the chief executive/managing director(the chief executive/managing director behaves in a way thatreflects our values).27 27 27 27 27Table 16: Reasons for organisational values being evident in some employees’ behaviour and decisions50% of employees thought theirorganisational values influenced employees’behaviour and decisions because they werereinforced through staff appraisals andperformance reviews.
  • 19. cipd.co.uk/employeeoutlook 17Employee OutlookFocus Summer 2013According to employees in the financesector, those who breach values areequally likely to be reprimanded orget away with undesired behaviours.In all, 31% of respondents saythat individuals whose behaviouris consistently at odds withorganisational values are reprimanded.However, a similar proportion saynothing happens (31%) and 6% evensay that these individuals seem to berewarded or promoted.Worryingly, 7% of respondentsin large organisations believe thatindividuals who behave inconsistentlywith the organisational values arerewarded or promoted. In contrast,27% of respondents in SMEs areunaware of behaviours that areinconsistent with organisationalvalues in their organisations.AllSeniormanagersOtherlevel SMELargeorganisationsThey are reprimanded. 31 37 31 31 31Nothing seems tohappen to them.31 27 32 29 32They seem to berewarded or promoted.6 6 6 2 7Don’t know 15 7 15 10 17I am not aware ofthis situation everhappening.17 23 16 27 13Table 18: Proportion of respondents indicating particular consequences for thoseemployees whose behaviours consistently go against organisational valuesAllProfit is placed ahead of organisational values. 45There is one rule for senior managers and anotherfor everyone else.41There is no recognition of behaving in line with ourorganisational values.34The values are not meaningful for employees. 29People are not disciplined or dismissed for failing toadhere to organisation values.28People dont really understand them. 24Table 17: Reasons for organisational values NOT being evident in someemployees’ behaviour and decisionsV7%Worryingly, 7% ofrespondents in largeorganisations believe thatindividuals who behaveinconsistently with theorganisational values arerewarded or promoted.
  • 20. 18 Focus on rebuilding trust in the CityWho are the most importantstakeholders for the bankingand financial services sector?The survey suggests there is a widerange of views among employeeson who are the most importantstakeholders for banks, suggestingthere is some way to go before moreorganisations in the sector adoptcustomer-centric cultures.Under half of respondents rankcustomers first as their organisation’smost important stakeholders, with athird identifying shareholders as theirmost important stakeholders.One in ten respondents cite regulatorsas their organisation’s most importantstakeholders, 9% rank employeesfirst, while 7% rank the investmentcommunity as most important.Senior managers are marginallymore likely to identify customers astheir organisation’s most importantstakeholders (53%) than employees atother levels of seniority (47%).Initiatives to change bankingcultureLess than four in ten respondents saythere has been any initiative led bysenior executives to change culturein the organisation over the last 12months, with 45% saying the opposite.Respondents working in banking aremuch more likely to say there hasbeen a culture change initiative led bysenior executives in the last 12 months(53%) than respondents in insuranceor brokerage and investment.Changing the culture of the bankingand financial services sectorAllSeniormanagerOtherlevelCustomers 47 53 47Shareholders 33 27 34Regulators 10 9 10Employees 9 13 9Investment community 7 6 7Members of the public 5 5 3Other 7 0 8Table 19: The proportion of respondents who ranked the following stakeholdersas their organisation’s most important stakeholder (% of respondents)Table 20: The proportion of respondents who say there has been a culturechange initiative led by senior executives in the last 12 months (%)AllSeniormanagerOtherlevel Banking InsuranceBrokerageandinvestmentYes 39 36 40 53 29 24No 45 59 44 32 55 59Don’t know 16 5 16 15 16 17Under half ofrespondents rankcustomers first astheir organisation’smost importantstakeholders, witha third identifyingshareholders as theirmost importantstakeholders.
  • 21. cipd.co.uk/employeeoutlook 19Employee OutlookFocus Summer 2013Among employees who say therehas been a culture change initiativewithin their organisation in the last12 months led by senior executives,opinions are split over how effectivethese initiatives have been. Just 17%of respondents agree culture changeinitiatives have been very effectiveand that they can see a real change inhow most people in their organisationbehave. Just over half of respondentsjudge culture change initiatives tohave been moderately successful, withsome people starting to change theway they behave.A fifth of respondents say thatculture change initiatives have beenan ineffective and superficial exercise,with no change achieved as a result.There is a fairly even split betweenrespondents who think the culture oftheir organisation has become morecustomer focused (43%) in the last12 months and those who think therehas been no change (39%). Onein ten respondents think that theirorganisation’s focus on shareholdersand making profits has increasedover the last 12 months.Senior managers are less likely thantheir more junior colleagues toagree that there is a greater focus oncustomers.Respondents working in banking aremuch more likely to say that theirorganisation’s culture has become morecustomer-focused in the last 12 months(51%) than those in insurance (34%)or brokerage or investment (34%).Table 21: How effective employees judge culture change initiatives to havebeen to date (%)AllSeniormanagerOtherlevelVery effective – I can see a realchange in the way most peoplebehave.17 18 16Moderately effective – some peopleare starting to change the way theybehave.52 48 53Ineffective – nothing has changed, ithas been a superficial exercise.21 20 22It is too early to judge theeffectiveness.11 15 9AllSeniormanagerOtherlevel Banking InsuranceBrokerageandinvestmentYes, thereis morefocus oncustomers.43 36 43 51 34 34No,thefocus onshareholders/makingprofits hasincreased.11 10 12 9 15 12No, therehas not beena change.39 53 37 33 42 47Don’t know 8 1 7 8 9 7Table 22: Proportion of respondents who think the culture in their organisation hasbecome more focused on meeting the demands of customers as opposed tothe demands of shareholders/making profits in the last 12 months (%)Senior managersare less likely thantheir more juniorcolleagues to agreethat there is agreater focus oncustomers.
  • 22. 20 Focus on rebuilding trust in the CityRegulatory reform, enhanced whistle-blowing protection for employees andgreater consultation and engagementwith staff are the three mostcommonly identified ways of achievingeffective culture change in the bankingand financial services sector.In all, four in ten respondents identifyregulatory reform as an effective meansof culture change, while 38% citeenhanced whistle-blowing protectionfor staff and 36% say greaterengagement and consultation withemployees would affect culture change.Just under a third of employees believea different type of leadership at boardlevel would change organisationalculture, while a quarter of respondentscite improved line management and afifth greater diversity on the board.Senior managers are more likely thanmore junior members of staff to thinkthat a different type of leadershipat board level would changeorganisational culture.Employees at levels outside seniormanagement are more likely to thinkthat culture change will be achieved bygreater consultation and engagementwith staff and through enhancedwhistle-blowing protection.Almost four in ten respondents areconfident or very confident that theright steps are being taken to improvethe image or status of their profession,with just over a fifth of respondentsdisagreeing (see Table 24).Table 23: Respondents views on which of the below changes would be mosteffective in changing the culture of the banking and financial services sector (%)AllSeniormanagerOtherlevelRegulatory reform 41 44 41Different type of leadership at board level 32 42 32Greater diversity on the board 21 22 21Greater consultation and engagementwith staff36 26 37Enhanced whistle-blowing protection toprotect people in the organisation whochallenge when something is not right38 34 37Improved line management/supervision 26 29 26Other 7 7 7Not applicable – I don’t think theculture should change9 7 8Table 24: The proportion of staff that are confident the right steps are being takento improve the image/status of the banking and financial services professions (%)AllSeniormanagerOtherlevelVery confident 7 9 7Confident 31 32 31Neither confident nor not confident 32 31 32Not very confident 13 12 13Not at all confident 8 10 8I’m not aware of any steps that arebeing taken8 6 8V4/10Almost four in tenrespondents are confidentor very confident that theright steps are being takento improve the image orstatus of their profession,with just over a fifth ofrespondents disagreeing.
  • 23. cipd.co.uk/employeeoutlook 21Employee OutlookFocus Summer 2013In terms of what activity ishappening within organisations,the most commonly reportedchange likely to have a bearing onorganisational culture which hasoccurred over the last two yearsis the inclusion in training anddevelopment programmes of agreater focus on ethical behaviourand improving customer service.Four out of ten respondentsidentified this as a change. This wasfollowed by changes to performancemanagement/appraisal systems torecognise and reward behaviourlinked to values and ethics, identifiedby 35% of employees.Almost a third of respondents saythat awareness of procedures fordeterring/disciplining poor behaviourhas increased and 17% report theintroduction of new procedures tosupport whistle-blowing.One in ten respondents identifychanges in the composition ofmanagement to encourage moreethical decision-making.Respondents working in the bankingsector are more likely to report mostof these changes than those workingin insurance, brokerage or investment(see Table 25).Table 25: Respondents views on what changes have been made in their organisation in the last two years (%)AllSeniormanagerOtherlevel Banking InsuranceBrokerageandinvestmentThe composition of management has been changed toencourage more ethical decision-making.11 14 11 15 8 5Incentives for good behaviour for senior staff havebeen introduced.9 13 8 10 9 6New procedures to support whistle-blowing wherethere are instances of inappropriate behaviour havebeen introduced.17 17 17 20 16 14Training and development programmes now includea greater focus on ethical behaviour and improvingcustomer service.41 42 41 45 36 40Awareness of procedures for deterring/discipliningpoor behaviour has increased.31 38 30 31 32 30The performance management/appraisal processeshave been changed to recognise and rewardbehaviours linked to values/ethics.35 31 36 43 31 26The size of bonuses has fallen. 0 0 0 0 0 0More of my bonus is now paid in shares. 0 0 0 0 0 0None of these 9 8 9 6 11 11The most commonly reported change likelyto have a bearing on organisational cultureis the inclusion in training and developmentprogrammes of a greater focus on ethicalbehaviour and improving customer service.V1/10One in ten respondentsidentify changes in thecomposition of managementto encourage more ethicaldecision-making.
  • 24. 22 Focus on rebuilding trust in the CityThe survey suggests that moreprogress could be made inprofessionalising the sector, withthe majority of employees workingin banking and financial servicesnot holding any professionalqualifications. Of the 47% who do,senior managers are the majority’.Among those working in banking,only just over four in ten employeeshold any professional qualifications.Just 30% of respondents aremembers of any industry body withprofessional standards, rising to 57%of senior managers and falling to27% of employees below that level.Respondents working in banking aresignificantly less likely to belong toany industry body with professionalstandards than those working ininsurance or brokerage and investment.Professional standards and qualificationsTable 26: Proportion of respondents holding any professional qualifications for thesector or profession they work in (%)AllSeniormanagerOtherlevel Banking InsuranceBrokerageandinvestmentYes 47 69 46 42 46 56No 52 29 53 57 51 43Don’t know 2 2 2 1 3 1Table 27: Proportion of respondents who are members of any industry bodies withprofessional standards (%)AllSeniormanagerOtherlevel Banking InsuranceBrokerageandinvestmentYes 30 57 27 24 33 37No 68 42 71 74 64 62Don’t know 2 1 2 2 3 2V30%Just 30% of respondentsare members of anyindustry body withprofessional standards.
  • 25. cipd.co.uk/employeeoutlook 23Employee OutlookFocus Summer 2013The survey suggests there issignificant dissatisfaction with howpeople are rewarded and incentivisedin the banking and financial servicessector – although these findingsno doubt reflect perceptions andconcerns about executive pay andpay differentials across sectors andwider society.Respondents are more likely todisagree (39%) than agree (36%)that rewards are generally fair, basedon people’s efforts and achievements.Senior managers are more likelythan more junior members of staff toagree that rewards are fair and lesslikely to disagree.Reward and culture changeTable 28: The extent to which respondents agree or disagree with the followingstatements about how people are rewarded and incentivised in the bankingand financial services sector (%)AllSeniormanagerOtherlevel Banking InsuranceBrokerageandinvestmentRewards are generally fair and based on people’s efforts and achievements.Net agree 36 46 35 36 31 41Net disagree 39 30 41 41 41 35Some people are still rewarded in a way that incentivises inappropriate behaviour.Net agree 65 61 66 65 65 65Net disagree 12 19 12 12 12 12How people are rewarded and for what is still not clear.Net agree 64 62 65 63 67 64Net disagree 14 15 13 16 12 11There is still too much secrecy around what senior managers earn.Net agree 67 54 68 69 67 63Net disagree 12 23 12 13 12 13The new rules and regulations around rewards is a disincentive.Net agree 32 46 30 35 23 35Net disagree 20 20 20 22 20 15If rules and regulations limited how much I can earn then I would leave the sector.Net agree 25 37 24 26 24 25Net disagree 39 36 39 39 37 42Some people in the organisation are still paid excessively.Net agree 75 66 79 79 73 71Net disagree 9 19 8 8 9 11%%%%%%%%65%Agree%AgreeDisagree12%%23%Neither%Respondents’ views onwhether some peopleare still rewarded in away that incentivisesinappropriate behaviour
  • 26. 24 Focus on rebuilding trust in the CityAlmost two thirds (65%) ofemployees agree that some people intheir organisation are still rewarded ina way that incentivises inappropriatebehaviour, with little differencebetween the views of senior managersand those of other employees.A similar proportion of respondents(64%) agree that how peopleare rewarded and what they arerewarded for is not clear, comparedwith 14% that disagree.In all, 67% agree there is still toomuch secrecy around what seniormanagers earn. Senior managersare less likely than employees atother levels to agree this is the case,however 54% of senior managersagree with this statement and just23% disagree.A third of respondents agree thatthe new rules and regulations aroundrewards is a disincentive, with a fifthof respondents disagreeing. More thanhalf of senior managers agree the newrules and regulations around rewardare a disincentive, compared with just30% of employees at other levels.In all, 32% of respondents say that ifthe rules and regulations limited howmuch they could earn then they wouldleave the sector, rising to 46% ofsenior managers.The biggest area of agreement isover whether some people in theirorganisation are still paid excessively,with 75% of respondents agreeing thisis the case. Employees at levels belowsenior management are most likely toagree (79%) but even 66% of seniormanagers agree that some people arepaid excessively.There are mixed views amongrespondents over whether the ways inwhich people are rewarded supportefforts to build long-term value andserve the customer.A fifth of respondents say that theways in which people are rewarded intheir organisation support efforts toensure that employees at all levels arebuilding long-term value and servingthe customer – and always have done.A further 22% say reward policieshave been updated recently to achievethis, while 11% say they haven’tbeen, but there are plans in place tochange them.Table 29 Employees’ views on whether the ways in which people are rewardedsupport efforts to build long-term value and serve the customer (%)AllSeniormanagerOtherlevelYes, and they always have done. 21 32 21Yes, reward policies have recently beenupdated in this way.22 29 21No, but there are plans to change them. 11 11 11No, and I know of no plans to change them. 26 22 27Don’t know 20 6 20V32%In all, 32% of respondentssay that if the rules andregulations limited howmuch they could earnthen they would leave thesector, rising to 46% ofsenior managers.
  • 27. cipd.co.uk/employeeoutlook 25Employee OutlookFocus Summer 2013A quarter of respondents say thathow people are rewarded does notsupport efforts to ensure employeesare building long-term value andserving the customer – and theyknow of no plans to change this.Employees working in the bankingand financial services sectorare marginally more likely toreport that their overall level ofremuneration has increased overthe last two years (33%) thandecreased (27%), with 41% sayingthere has been no change.Respondents working in bankingare less likely than those working ininsurance, brokerage or investmentto report their overall level ofremuneration has increased in thelast two years and more likely to sayit has decreased.Across the whole sector, respondentsare more likely to report that theproportion of their total remunerationpaid through a bonus has decreased(30%) than they are to say that it hasincreased (17%). However, nearlyfour in ten respondents say there hasbeen no change.Employees working in banking aremore likely to say the proportionof their total remuneration paidthrough a bonus has decreased overthe last two years (39%) than thosein insurance (23%) or brokerage andinvestment (19%).Table 30: The proportion of respondents saying their overall level of remunerationhas increased, decreased or stayed the same over the last two years (%)AllSeniormanagerOtherlevel Banking InsuranceBrokerageandinvestmentIncreased 33 30 34 26 39 38Decreased 27 28 27 35 19 19Stayed the same 41 42 39 39 42 43Table 31: Respondents reporting whether the proportion of their totalremuneration paid through a bonus has increased, decreased or stayed thesame over the last two years (%)AllSeniormanagerOtherlevel Banking InsuranceBrokerageandinvestmentIncreased 17 19 17 14 19 21Decreased 30 28 30 39 23 19Stayed the same 38 40 39 35 43 41Not applicable,I don’t receivea bonus14 14 14 13 15 19V33%Employees working inthe banking and financialservices sector are marginallymore likely to reportthat their overall level ofremuneration has increasedover the last two years (33%)than decreased (27%).
  • 28. 26 Focus on rebuilding trust in the City‘The change will take place whenthe leadership of the providers [thebanks] is about being focused onwhat customers want and need. And Idon’t think there has been a great dealof change so far’. This was the viewof Benny Higgins, the Chief Executiveof Tesco Bank and a former Head ofRetail Banking at the Royal Bank ofScotland, speaking in May 2013 tothe Daily Telegraph.Higgins’ views will no doubthave interested members of theParliamentary Commission onBanking Standards, which isexploring, among other issues, theprofessional standards and culture ofthe UK banking sector – and is dueto report its findings shortly.Higgins’ concern that progress onchanging the culture of the bankingand financial services sector has hadlimited success to date is reflectedin many ways in the findings fromour survey.The survey finds that amongrespondents working in the bankingsector, just over half agree there hasbeen any initiative led by seniorexecutives to change culture in thelast 12 months. Among employeeswho say there has been a culturechange initiative, less than a fifthagree this has been very effective andthat they can see a real change, whilejust over half of respondents judgeculture change initiatives to havebeen moderately successful. A fifth ofrespondents say that culture changeinitiatives have been an ineffectiveand superficial exercise with nochange achieved as a result.These findings suggest that whilesome senior leaders in parts of thebanking sector are having at leastpartial success in changing cultureto become more customer focused,some parts of the industry are largelyoperating as before.This is reinforced by the surveyfindings that a third of respondentsstill identify shareholders as theirorganisation’s most importantstakeholder, with only about 50%identifying customers as their mostimportant stakeholder.One potential obstacle to changingbanking culture is the extent towhich organisational values, whichare often refreshed and referencedto provide a framework for culturechange, actually influence howpeople in the organisation behave.Encouragingly more than half ofrespondents say their organisationalvalues are strong, with most peoplebehaving in line with the values.However, a third of respondentssay the organisation’s values onlyinfluence the behaviour of somepeople, while 11% report that valuesare frequently ignored.Senior managers are more likely tobe convinced that values are guidingbehaviour than employees at morejunior levels, which highlights theneed to find ways of measuring andassessing how values are impactingon behaviour from the top down.Among employees who said theorganisation’s values were evident inat least some employees’ behaviour,the most commonly cited reason wasthat values-based behaviours arereinforced through staff appraisalsand performance reviews.Barclays is an example of a bankwhich is addressing this issue bydeveloping a ‘balanced scorecard’to measure staff against its fivenew core values: respect; integrity;service; excellence and stewardship.Among respondents who saidorganisational values were notevidenced in employees’ behaviourand decisions, nearly half said thatthis was because profit is placedabove organisational values, while41% said that there was one rulefor senior managers and another foreveryone else.The impact of organisational valuesis also undermined because ofperceptions among employees thatstaff whose behaviours are at oddswith stated values are not punished.Just under a third of employees saidstaff whose behaviours are at oddswith their organisation’s values arereprimanded. However, a similarproportion said nothing seems toConclusions
  • 29. cipd.co.uk/employeeoutlook 27Employee OutlookFocus Summer 2013happen to them and 6% said suchindividuals seem to be rewarded orpromoted.Another key issue which influenceshow people working in bankingview the prevailing culture in thesector is the controversial matter ofreward. Our survey shows there aresome significant concerns amongemployees over how and how muchsome staff in banking are rewardedand incentivised – findings thatno doubt reflect concerns aboutexecutive pay and pay differentialsacross sectors and wider society.Overall, respondents are morelikely to disagree (39%) than agree(36%) that rewards are generallyfair and based on people’s effortsand achievements. Even moreconcerning is the finding that twothirds of employees agree that somepeople in their organisation are stillrewarded in a way that incentivisesinappropriate behaviour, with littledifference between the views ofsenior managers and those of otheremployees. A similar proportionof respondents (64%) agree thathow people are rewarded and whatthey are rewarded for is not clear,compared with 14% that disagree.In all, 67% agree there is still too muchsecrecy around what senior managersearn. Senior managers are less likelythan employees at other levels to agreethis is the case, however 54% of seniormanagers agree with this statement andjust 23% disagree.Three-quarters of the survey sample,including two-thirds of seniormanagers, agree that ‘some people inthe organisation are paid excessively.These findings highlight theimportance of ensuring that job andwork design enable reward policiesto be better aligned to rewardingappropriate behaviours.The survey findings also emphasisethe need for employers in thesector to make it clearer across theworkforce how people at differentlevels are rewarded and what for,as well as making sure that rewardsare proportionate to individualperformance and long-termorganisational performance.Overall, the survey suggests much stillneeds to be done to transform culturein the banking and financial servicessector to ensure it becomes morefocused on creating long-term valuefor the customer and wider society.This is why the CIPD has beensupporting the work of the CharteredBanker Institute Professional StandardsBoard (CB:PSB) which aims to restorepublic confidence and trust in theindustry and promote a culture ofprofessionalism amongst individualbankers. It is doing this by developingand supporting the implementation ofindustry-wide professional standardswhich set out the knowledge, skills,attitudes and behaviours expected of allbankers. The CB:PSB aims are to:• develop a series of professionalstandards to support the ethicalawareness, customer focus andcompetence of those working inthe banking industry;• facilitate industry and publicawareness and recognition of thestandards;• establish mechanisms for theimplementation, monitoring andenforcement of the standards; and• help build, over time, greaterpublic confidence and trust inindividuals, institutions and thebanking industry overall, andenhance pride in the bankingprofession.The CB:PSB’s Chartered BankersCode has now been subscribed to bybanks employing about 75% of theUK banking workforce. In addition70,000 individuals will have theFoundation Standard by July.Of course, professional standardscannot be effectively embedded unlessthe right leadership and managementand HR practices are in place,beginning with buy-in from the board.To help organisations achieve this,the City Values Forum and City HRAssociation are developing trainingprogrammes, guidance and toolsto support effective culture change.These initiatives include:• the development of a Governingfor values toolkit to provideboards with a practical resourcethat clearly signposts best practicein the governance of values andhighlights the tools available toassess the executive processeswhich integrate values into thebusiness’s day-to-day operations• a Leadership with integrityleadership and managementprogramme with a heavy emphasison embedding values• best practice guidelines andframeworks to demonstrate howorganisations can integrate acommitment to values throughtheir formal appraisal process,and other aspects of performancemanagement and HR practice –for example recruitment• the creation of Integrity resources – aone stop shop website, which bringsresources together on this work• the development of gold standardHR policy and practices, supportedby the production of guidance andtoolkits.The CIPD will be supporting thepromotion and use of these resourcesto ensure HR practitioners have theright knowledge and tools availableto them to effectively supportattempts to transform, over time, theculture of the banking and financialservices sector.
  • 30. 28 Focus on rebuilding trust in the CityYouGov conducted the online surveyfor the CIPD of 1026 UK employeesworking in banking, brokerage andinvestment and insurance between26 and 30 April 2013.This survey was administeredto members of the YouGov PlcUK panel of more than 400,000individuals who have agreed totake part in surveys. Panellists whomatched the sample profile (asexplained above) were selected atrandom from the YouGov Plc UKpanel and were sent an email invitingthem to take part in the survey.Size of organisation was classified inthe following way: micro business(2–9), small business (10–49),medium (50–249) and large (morethan 250).Background to the survey
  • 31. Employee OutlookFocus Summer 2013CIPD Outlook SeriesEmployee OutlookThis is the focus report for the Summer 2013 Employee Outlook. Each quarterthe Employee Outlook focus report concentrates on topical data from thequarter’s main report.The Employee Outlook is part of the CIPD Outlook series, which also includesthe Labour Market Outlook and the HR Outlook. Drawing on a range ofperspectives (and with the opportunity to compare data across our regularsurveys), this triad of research enables the CIPD to offer a unique insight andcommentary on workplace issues in the UK.Labour Market OutlookThe Labour Market Outlook, published in partnership with SuccessFactors,provides a quarterly update on key HR, economic and labour market statistics.The aim of the survey is to produce an industry-valued benchmark of key HRstatistics that can be used by CIPD members, as well as those in government,policy and wider business circles.cipd.co.uk/labourmarketoutlookHR OutlookThe HR Outlook provides valuable insight and expert commentary on theHR profession. It explores the size and shape of HR functions, comments onthe capabilities of HR professionals and outlines emerging trends and futurepriorities.cipd.co.uk/hroutlookOthers in the series
  • 32. Issued: June 2013 Reference: 6214 © Chartered Institute of Personnel and Development 2013Chartered Institute of Personnel and Development151 The Broadway London SW19 1JQ UKTel: +44 (0)20 8612 6200 Fax: +44 (0)20 8612 6201Email: cipd@cipd.co.uk Website: cipd.co.ukIncorporated by Royal Charter Registered charity no.1079797

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