The acquisition of HBOS by Lloyds TSB in 2009 to form Lloyds Banking Group
created the largest retail bank in the UK, employing c 100k people and
carrying out c 15,000 hires per year. The implementation of a radical
resourcing change programme was one element of the on-going
organisational restructure of the bank following the acquisition, which began
in particularly challenging economic circumstances. Labour market
skills shortages, increasing competition for talent, greater regulatory
pressures imposed by the government and further scrutiny by the media and
consumers, made the creation of a transformational resourcing change
programme vital for successful integration.
- High spend on permanent recruitment with limited means to
- High spend on recruitment advertising with limited Management
Information to demonstrate success
- Inconsistent candidate experience
- An imbalance in the level of direct and in-direct hires
- Duplication of resource across Lloyds Banking Group Resourcing
- Lack of central performance measures and service levels
- No joined-up approach to resource planning and hiring from
temporary labour to executive recruitment
- No consistent employer brand
- No consistent set of tools and guidelines
These factors highlighted the need for a radical change in resourcing
methodology to create a single, cohesive approach that would improve quality
of hire, efficiency and make substantial cost savings. The new resourcing
approach had to act as a key enabler of both organisational change and
organisational performance, with the core purpose of providing the Group with
the right workforce to build enduring relationships with its customers.
Impacting all four business divisions across the Group and two major support
functions, the programme had a broad remit, encompassing people practices
and behaviours, the creation of a resourcing operating model, process
changes and new technology.
A key principle of the programme was to look for innovative ways of
implementing change. As a result, the Group deliberately chose to use a
number of smaller external consultants and third party suppliers rather than a
large generic consultancy which may have led to the implementation of stock
solutions that simply replicated other change programmes across the industry.
With this approach in mind, Lloyds Banking Group engaged Independent as
part of the group change team focussed specifically on building the required
organisational design and model for the transformed resourcing function.
– creating "a brilliant hiring experience"
- Independent worked collaboratively with the Group to transform the
operating structure, define resourcing roles and increase the pace of
change. This included leading change within the Wholesale division of the
bank, which employs over 18,000 people. With sponsorship from the
Group Resourcing Director this acted as a pilot for the operating model
and the successes achieved helped drive transformational change across
all the divisions.
- Lloyds Banking Group's new Resourcing Operating Model was defined
and phased-in throughout 2010 and into 2011. Under the system,
divisional resourcing teams operate in a business partnering capacity
with volume recruitment taking place centrally. This allows the
divisional resourcing teams to focus on consultancy, workforce planning
and thought leadership.
- The creation of two Centre of Excellence Teams; one defining group policy
and practice and the other defining the group approach to branding and
attraction. Both teams are tasked with providing guidance and support to
the divisional resourcing teams. The Centre of Excellence also includes
Recruitment Operations which is structured to deal with group-wide
volume recruitment and drive best practice in terms of employment vetting,
referencing and speed to hire.
- Process simplification, quality improvements and financial benefits
achieved without compromising the end-to-end process. Following a
critical review of current temporary resource management, Lloyds Banking
Group launched the Lloyds Temporary Resourcing system which
succeeded in simplifying the process and substantially improving
efficiency for hiring managers. Critically, the number of separate suppliers
was also reduced from 221 to a single, dedicated sourcing partner,
resulting in substantial cost savings.
- Intelligent use of technology. This began with the launch of a
new careers website:
This incorporated the various organisational brands in order to drive a
single, transparent hiring message and experience for all candidates.
Receiving over 225,000 visits in the first three months alone, it was the
first time the newly merged organisation had been viewed as a single
entity with a single employer brand.
- Introduction of a workforce planning toolkit, allowing key internal users to
access tools and templates via the web to assist in workforce planning
delivery. The tools have enhanced consistency and professionalism
across the Group and include regional forecasting maps, overall
manpower plans and templates, market intelligence reports and trend
- Consistent communication, training and embedding. Responsibility
for this was channelled through a Resourcing Steering Group which
included, amongst others, the Group Resourcing Director and the
Divisional Heads of Resourcing. This allowed for a strategic as well as
localised plan of action. Multiple approaches were adopted, from
Group wide communication via the Group intranet, to localised
campaigns via dedicated Divisional Implementation Partners who took
the broad messages and translated them to Divisional styles and methodologies.