Pay in a high performance organisation: Lloyds TSB

Like all large organisations whose success depends on the quality of their staff, Lloyds TSB's approach to pay has changed over the years. Managing pay effectively means striking a balance between remaining competitive in the employment market, complying with equal pay principles and rewarding high performance. A number of reward initiatives are currently underway, designed to create a compelling offer that really helps reinforce core business goals.

This in-depth case study investigates how, during the past decade or so, Lloyds TSB has redefined the entire premise of how it rewards, recognises, recruits and retains employees. We explore:

  • how the bank used the opportunity presented by the merger between Lloyds Bank and TSB to rethink strategic reward in the two banks

  • the impact of the 1994 strategic vision on reward strategies and compensation practices and how they serve to reinforce the corporate strategy

  • the move towards local pay management and the development of new performance management and equal pay policies

  • the approach to total reward and why the group integrates financial and non-financial rewards

  • how the newly-launched flex package works and take up so far

  • the structure of the share incentive plan.

For more details see our review, published in the 'News' section of, 11 March 2004.