pay and bonus offer - consultative ballot prepared for: april 2012
DESCRIPTION
Pay and Bonus Offer - Consultative Ballot Prepared for: April 2012. Contents. Background and objectives How the ballot was conducted Voter profile Results Awareness of proposals Attitude to pay Attitude to bonus Attitude to whole package Summary. 2. Context. - PowerPoint PPT PresentationTRANSCRIPT
Pay and Bonus Offer - Consultative BallotPrepared for:
April 2012
Background and objectives How the ballot was conducted Voter profile Results
Awareness of proposals Attitude to pay Attitude to bonus Attitude to whole package
Summary
Contents
2
3
• Pay proposals were published on 6th December• 2.5% pay-pot for grade A-D; 2.0% for E-G• No increase in pay range for A-C; range for D-G increases by 2%• Very little reference to performance assessment; only market rate
• Bonus dependent on performance assessment, announced in March• Grades A-C: 0-9.5% • Grade D: 0-19% • Grades E+: devolved to manager
Accord now seeking member guidance on negotiation of this offer
Context
4
How the ballot was conducted• 25,126 Accord members were eligible to vote in this ballot• 4,307 valid responses received; a turnout of 17%, lower than previous years,
despite efforts to improve turnout
Approach• An introductory e-mail sent to all members with valid e-mail addresses to:
• alert them to the upcoming consultation• ensure email addresses were correct
• Members received either a letter (6,041) or e-mail (19,085) with voting instructions on accessing the secure ERS website using PINs to prevent abuse
• Reminder e-mails sent by both Accord and ERS (latter targeted non-voters)• Accord also sent out a text reminder to non-voters
• Fieldwork dates: 9th – 31st March; fieldwork delayed this year to assess opinion of full pay and bonus proposals
5
Method Sent Received TurnoutOverall 25,126 4,307 17.1%
Post 6,041 304 5.0%E-mail 19,085 4,003 21.0%
Home E-mail 11,116 1,509 13.6%Work E-mail 7,969 2,494 31.3%
Turnout higher among those receiving emails, particularly at work
6
AB C D E FG
Gender Male 25% 34% 46% 54% 64%Female 75% 66% 54% 46% 36%
Status Full time 57% 79% 87% 91% 95%
Part time 38% 20% 11% 9% 5%
Length of service
5 yrs or less 22% 8% 5% 6% 1%
6-10 24% 25% 21% 18% 10%11-15 16% 24% 24% 20% 15%16-20 10% 12% 15% 14% 17%21+ 27% 29% 34% 42% 56%
Voter profile: AB grades more likely to be female, part time and newer employees
Base: all voters (4,307)
Who voted
Base: All members (25,126) and all voters (4,307)
Older, male members, more likely to vote
8
Voters MembersNumbers
Gender Male 1614 37% 31%Female 2693 63% 69%
Age 30 or less 577 13% 29%31-40 1170 27% 26%41-50 1606 37% 27%51-60 872 20% 15%61+ 72 2% 2%No information 10 *
Base: All members (25,126) and all voters (4,307)
Longer serving members and those in Group Ops more likely to vote
9
Voters MembersNumbers
Length of service Less than 5 years 550 13% 25%6 - 10 years 943 22% 26%11 - 15 years 835 19% 17%16 - 20 years 536 12% 9%21+ 1413 33% 21%Not given 30 1% 2%
Division Retail 2361 55% 64%Wholesale 93 2% 2%Group Ops 1033 24% 18%Group Exec 480 11% 7%Insurance 200 5% 6%Wealth & Int. 113 3% 2%Not given 27 1% 2%
Base: All members (25,126) and all voters (4,307)
Higher grades, full timers more likely to vote
10
Voters MembersNumbers
Grade AB 1769 41% 57%C 803 19% 16%D 671 16% 11%E 742 17% 10%FG 281 7% 4%No information
41 1%
Status Full time 3188 74% 67%Part time 994 23% 26%Maternity leave
35 1% 2%
Young 13 * 2%Other 77 2% 3%
74% of members are good/top performers; would have seen reflection in pay in previous years
11
Q10: What was your most recent appraisal rating? Q9: Which pay zone are you in?Base: All voters (4,307)
AssessmentTop Performer
Strong PerformerGood Performer
Developing Performer Under Performer
Don't KnowPay Zone
Primary/belowMarket
Market PlusOver Maximum
Don't Know
524
5512
13
2025
178
30
%
30% of voters do not know which pay zone they are in; factor which will influence pay
Awareness of proposals
Base: All (4,307)
87% of members understand the proposals and their implications
13
Do you understand the proposals and
their implications for you?
87 13
Yes No
Awareness lowest in retail (82%) and AB grades (80%)
Attitudes to pay
2011 Q2 Taking everything into account should Accord sign an agreement to implement the bank’s pay proposals2012 Q2 Do you think Accord should sign an agreement on the Bank’s pay proposals for 2012 Base: All voters (2012 4,307; 2011 7,085)
In 2012 34% of voters said Account should sign an agreement to implement the bank’s pay proposals; lower than in 2011 (49%)
15
2011
2012
49
34
50
65
No Not Stated
Opposition to signing highest in retail (75%) and AB grades (80%)
16Q3a Which of the following best describes your reasons?Base: those not wanting Accord to sign pay proposals (2,810)
Proposed pay pot of 2.5% is too low
No link to individual performance assessmentMy role/responsibilities not properly reflected in
salaryPay range for A-C not increasing
Will not get pay rise as am above pay range for role
Still to far below the market rate of pay for my role
Other
57%
52%
44%
41%
32%
16%
6%
All reasons
Main reason for not wanting Accord to accept pay proposals is size of pay pot; no link to individual performance assessment
17Q3a Which of the following best describes your reasons?Base: those not wanting Accord to sign pay proposals (2,810)
• Highest in Market pay zone, under 30s, less 10 yrs servicePay pot too low
• Highest for Market Primary pay zone, top performers, full time, under 30s• Lowest for D,E,F,G grades, Group ops
Responsibilities not reflected in salary
• Particularly high for C grade, Market Plus/max pay zone, less 1% pay rise, part time, women
Pay range not increasing for A-C grades
• Higher among AB, over maximum, top performer, zero pay rise, part time, 51+ years, women ,21+ yrs service, retail
No pay rise as above pay range
Issues affecting those on lower pay zones and grades
18Q3a Which of the following best describes your reasons?Base: those not wanting Accord to sign pay proposals (2,810)
• Highest for D,E grades, top/strong performers, full timers
No link to individual assessment
• Highest for E grades, Market Primary pay zone, full time, under 30s, men, less 5 yrs service, wholesale
Below market pay rate for role
Issues affecting high performers and higher grades
Attitudes to bonus
Base: All voters (4,307)
44% of members say bonus is less than expected
20
Is your bonus.. 14 41 44 1
Do you think your bonus outcome for the 2011 financial
year was, all things considered,
fair?
49 50
Fair Not fair
Opinion divided as to whether bonus is fair
Base: All voters (4,307)
Who thinks bonus is less than expected and not fair
21
• A,B,C grades, developing performer, incentivised bonus scheme, retail/wholesale
Bonus less than
expected
• A,B,C grades, developing performer, incentivised bonus scheme, retail/wholesale
Bonus not fair
22Q6a Which of the following best describes your reasons?Base: those saying bonus not fair (2,165)
Bonus does not properly reflect my individual per-formance during 2011
Bonus payable for my grade too low compared to higher grades
Bonus does not fairly reflect performance of LBG
Individual bonus too low compared to peers
Other
61%
41%
25%
23%
15%
All reasons
Main reason given for thinking bonus is unfair is that it does not reflect individual’s performance in 2011
23Q3a Which of the following best describes your reasons?Base: those not wanting Accord to sign pay proposals (2,810)
• Highest among D,E,F,G; top & strong performers, wholesale
Does not reflect my individual performance in
2011
• C grade, Group, insuranceBonus for grade is too low
compared with other grades
• A,B grades, developing performer, retailBonus does not reflect the performance of LBG
• F,G grades, developing performerIndividual bonus too low compared to peers
Reasons for thinking bonus unfair
Attitudes to total package
25Q7Base: all voters (4,307)
38% say total package poor in current economic climate; particularly high among AB grades
Taking everything into account how would you...
5%
27%
31%
28%
10%Very poor
Poor
Neither
Good
Very good
Those more likely to say poor: AB grades (51%), over max pay zone (43%), developing performer (48%),part time (46%), 61+ yrs (56%)
Summary
27
Summary• Turnout lower for this ballot than in previous years• 65% opposed to Accord signing pay agreement; higher than last year. Retail
and AB grades most opposed• Size of pay pot main reason for being opposed (57%); followed by no link to
individual performance assessment (52%)• 50% say bonus not fair; 44% say it’s less than expected. A,B andC grades and
retail/wholesale less positive about bonus• Individual’s performance not reflected in bonus main reason for saying bonus
not fair (particularly higher grades). C grade more likely to say bonus unfair because bonus payable is too low compared to higher grades
• 38% say total package is poor even in current economic climate, particularly among AB grades
Project Director
Cynthia Pinto
Director and Head of Research
Direct line: 020 8829 8409
Switchboard: 020 8365 8909
Project Manager
Tim Robinson
Research Executive
Direct line: 020 8829 8412
Switchboard: 020 8365 8909
Contact Details
This report has been written to meet the requirements of ISO 20252, the International Standard for Market Research.