Lloyds Banking Group plans to cut some if its lowest performing staff, employing Workday HR software to help it identify staff members to let go.

Around 3,000 staff seem to be at risk in the review, with the potential for half of all the lowest performing staff to lose their jobs.

The potential job loss comes as Lloyds transforms is people management, relying in Workday software to monitor the performance of employees. Lower-performing employees will be put on “structured support” plans, but could lose their jobs if enough improvement is not made in a certain spat of time.

The independent union for Lloyds workers, BTU, said that the software will not rate employees, but will place pressure on line managers to identify low performing employees and manage them more closely.

“And those who don’t meet the required standards will be ‘yanked’ out of the bank,” BTU said in a newsletter to its members. “Lloyds will deny that’s happening, of course it will, but over the next few months we’ll see more staff being managed through ‘structured support’, which means action plans, formal review meetings and eventually dismissal on grounds of capability.”

BTU expects that the new management regime will continue until Lloyds achieves its 5% job cut target.

However, a banking group spokesperson has denied that there are job cut targets, as reported by Computer Weekly.

The push however be in an effort to address lower turnover rates at the company – the company historically saw an annual turnover rate of about 15%, but it sits at just 5% now, as reported by the Financial Times.

Recommended reading

• Lloyds Bank to Close 136 High Street Branches
• Lloyds Bank Reshuffles IT Department Affecting 6,000 Jobs
• Lloyds Banking Groups Set to Close 60 More Branches

A Lloyds Banking Group spokesperson said: “To achieve the ambitious strategy and deliver brilliant service to customers, we are transforming our business. As we build highly skilled teams to move forward and deliver great outcomes for our customers, we are striving to embed a high-performance culture in the organisation.

“To achieve this, and in line with wider industry practice, we continuously look for ways to help our colleagues perform at their best. We know change can be uncomfortable, but we are excited about the opportunities ahead as we propel forward to achieve our growth ambitions and deliver exceptional customer experiences.”