RBS 2005 Annual Report Download - page 114

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Report of the directors
Report of the directors continued
Group-wide co-ordination and access to recruitment and
interview skills training ensures recruitment complies with
internal and regulatory requirements. In addition, the Group
continues to ensure all appointees are appropriately
referenced and screened prior to joining the organisation.
Employee reward
The Group acknowledges that its continuing success is closely
linked to the performance, skills and individual commitment of
its employees. Significant focus is therefore given to offering an
exceptional reward proposition to all RBS Group employees in
order to attract, motivate and retain the best available talent at
every level.
In 2005, employee costs of £5,992 million, including National
Insurance and pension costs of £864 million, made up over a
third of total expenditure.
The Group’s remuneration and benefits package, Total Reward,
(consisting of salary, bonus, share scheme and competitive
pension benefits) is acknowledged as one of the most
comprehensive and flexible packages in the financial services
sector. Salary awards within the Group reflect individual
performance, offering greater increases for high performers,
as well as acknowledging market competitor movements.
RBSelect, the Group’s benefits choice programme, forms part
of the Total Reward package. It provides for UK staff in the
Group a flexible way of tailoring their reward to reflect their
own individual lifestyle needs. Options range from subsidised
childcare vouchers and discounted personal insurance
products to environmentally friendly bicycle purchases.
Employees can also participate in bonus incentive plans
specific to their business and share in the Group’s ongoing
success through profit sharing, Buy As You Earn and
Sharesave schemes, which align their interests with those of
shareholders. UK employees participate in profit sharing that is
directly related to the annual performance of the Group. For
the last seven years this has amounted to a further 10 percent
of basic salary.
To enable employees to get the most from Total Reward, a
wide range of information about reward and benefits has been
introduced through RBSpeople.com, an internet site offering
24 hour access from home or work.
The RBS group Charity Lottery was launched during 2005.
Employees contributing to the prize fund through a small
monthly entry fee have the chance to win up to 50% of the total
funds collected each month. The remainder, after payment of
a small lottery-operating fee, is donated to charity.
The Group continues to offer membership of its final pension
scheme, with the entire cost being met by the Group. The
largest scheme is the Royal Bank of Scotland Group Pension
Fund, with 80,000 employee members in the UK.
Employee learning and development
The Group actively encourages learning and development and
is committed to creating and providing opportunities both
inside and outside the workplace. These experiences are
provided through a variety of developmental initiatives,
technological innovations and learning networks and forums.
Creating and maintaining a talented network of people across
the Group ensures not only a strong leadership capability, but
also a high performing workforce.
In 2005 a new Group-wide approach to leadership
development was launched. Called the “Leadership Journey”,
it defines success at different leadership levels and the key
developmental challenges that employees face as they
progress within the Group. A suite of development
programmes has been designed and implemented to ensure
appropriate leadership development, supporting the
challenges that individual leaders face whilst completing
different stages of the Leadership Journey.
A core component of this ongoing activity is the Group’s
Executive Leadership Programme (developed in conjunction
with the Harvard Business School) and the establishment of an
on-site business school at the Group Headquarters at
Gogarburn, Edinburgh, which opened in January 2006. The
Business School is central to the Group’s commitment to
developing its leaders, and equipping them with the skills and
confidence necessary to lead in complex and challenging
environments.
Employee communication
Employee engagement is encouraged through a variety of
means including a corporate intranet, Group and divisional
magazines, team meetings led by line managers, briefings
held by senior managers and regular dialogue with employees
and employee representatives.
During 2005, the high quality of the Group’s internal
communications was reflected by success in a number of
prestigious external awards schemes. Awards were attained at
both Group and divisional level and included a Gold Award for
hub magazine, the Manufacturing division’s internal
publication, at the UK Communicators in Business Awards,
and a Gold Award for the Group Communications team in the
Regular Communications category at the International Visual
Communication Association Awards
The Group Chief Executive and other senior Group executives
regularly communicate with employees through ‘Question Time’
style programmes, broadcast on the Group’s internal television
network. An ‘Open Air’ debate chaired by the Group Chief
Executive on Diversity and Inclusion, seeking to ensure
equality of opportunity for employees and customers, typifies
this approach.