Providing a simple pay structure supports our employees to do the right thing for customers, and focus on providing excellent customer service.
We continue to make good progress in making sure employees are paid fairly for the work they do:
We have simple clear and transparent reward structures aimed at paying our employees fairly.
We have a consistent fixed pay approach which aligns with industry best practice in our key locations.
All our Clerical employees and the vast majority of our Appointed employees are remunerated through fixed pay only.
Where employees do receive a bonus, the average amounts remain relatively modest, with over half of all bonuses awarded amounting to £4,000 or less. Immediate cash bonuses continue to be limited to £2,000.
We continue to be a Living Wage employer in the UK, setting our rates of pay to exceed the Living Wage Foundation Benchmarks.
We continue to focus on colleague financial wellbeing with a strategy that focuses on: budgeting & planning, savings & investment, debt management, protection and saving for life after work.
More information on our remuneration policies can be found in the Annual Report and Accounts 2020 (PDF), and our Fair Pay Charter is noted in the Directors Remuneration Report section (page 119).
Regular performance conversations, coaching and development help our colleagues to do their best every day.
We manage colleague performance and development continuously. Goals are set and revised throughout the year in quarterly check-ins to reflect customer needs and what colleagues are working on. Progress, development and feedback are discussed in ongoing 1:1s and quarterly check-ins to help our colleagues achieve their personal and performance goals.
We measure colleagues’ performance not just on what’s been achieved but also how they’ve achieved it. The Critical People Capability Behaviours represent the ‘how’ and give us a consistent bank wide behavioural measure.
At the end of the year, colleagues are allocated a rating that reflects their overall performance.
During times of transformation and change our purpose is to help support our colleagues through what can be difficult and stressful times and to always let them know we’ll do everything we can to help and support them.
NatWest Mobility Hub
Given the level of change this year both internally and externally, we reviewed the services we offer to those facing the risk of redundancy and how people access them. We also needed to think differently about how we manage and allocate resource, focusing more on using existing colleagues where we’ve historically engaged resource externally. To enable this, in August 2020 we launched the NatWest Group Mobility Hub.
The Hub will primarily provide support to colleagues going through change this year, but going into 2021 and beyond, it will also become a key tool to help people move around the organisation, build different skills and support career plans.
The NatWest Group Mobility Hub incorporates our existing Redeployment and Outplacement services adding a further set of enhancements to further support colleagues at times of transformation and change.
The Hub is there to support colleagues who want to stay in the Group, but it also supports those who are exiting, helping them up to and long after their exit. We’ve added a suite of coaching, learning and networking options for colleagues to pick and choose from to suit their needs including access to LinkedIn Premium, 1:1 personal career coaching and virtual workshops. For colleagues who want help finding another role in NatWest Group, we now have a dedicated team to help to match them with other potential suitable opportunities. To help them be successful in their new role, colleagues are also supported with suitable upskilling/reskilling, and provided some with a range of health and wellbeing support.
We’ll continue to review and enhance the services we offer to our colleagues going through change and our purpose will remain at the heart of everything we do.
Engagement with employee representatives
Having ongoing discussion and engagement with our employee representatives such as trade unions, elected employee bodies and works councils is vital. We regularly discuss developments and updates on the progress of strategic plans. We are committed to respecting our employees’ right of freedom of association across all our businesses. Approximately 77% of our employees are covered by a collective agreement and/or employee representative arrangements.
In 2020 we made 2,659 redundancies. We offer an enhanced support service via the Mobility Hub to anyone put at risk with a number of options available to colleagues. 37% of those put at risk employees used our internal mobility hub service in the UK and Ireland.
Through our Colleague Advisory Panel (CAP), established in 2018, our colleagues can engage directly with senior management and the Board on topics which are important to them, thereby strengthening the voice of colleagues in the Boardroom. The panel, consisting of 26 colleagues, met with representatives from the Board four times in 2020 to discuss issues such as: Covid support for colleagues and customers, Remuneration including executives and the wider workforce, Inclusion, Innovation and Purpose. The Panel continues to be highly regarded by those who attend and has proven to be an effective way of establishing two-way dialogue between colleagues and Board members.