Barclays 2013 Annual Report Download - page 130

Barclays’ implementation of the Salz Review recommendations
continued
16
Strengthening Human Resources
The Group HR Director was appointed to the Group ExCo in 2009 and
this remains an ExCo level role to contribute to strong and effective
governance. Irene McDermott Brown was appointed as the Group HR
Director in July 2013 following consultation with the Chairman,
members of the Board Corporate Governance and Nominations
Committee and Board Remuneration Committee. As a member of the
Group ExCo and the leader of the HR function, Irene has championed a
number of initiatives to embed our Purpose, Values and Behaviours and
introduce a new performance management approach.
17
Employee engagement
We introduced a new policy in early 2014 outlining how we will help
colleagues build their skillset and take ownership of their careers.
For example, for new joiners we have developed a Global Induction
Programme, ‘Being Barclays’ which combines face to face training
supported by an online portal. We have also established leadership
development programmes such as the Barclays Leadership Academy,
further detail can be found on page 86. For top performers we will
encourage mobility through secondments and placements and offer
mentoring and NED exposure opportunities. Further, our global
recognition plan to be rolled out in 2014 will allow us to recognise
colleague contributions with a simple thank you or monthly awards.
18
Improving the performance management process
Our new performance management approach aligns to our Purpose,
Values and Behaviours. It measures both ‘what’ a colleague delivers
and also ‘how’ they achieve their objectives. This new approach
reinforces the relationship between performance, pay and other key HR
decisions. To support this guidance has been issued to managers on
how to set objectives aligned to a Balanced Scorecard and deliver clear
and honest feedback; this will be supplemented by further training in
2014. Performance audits will be undertaken in 2014 to ensure the
effectiveness of performance management outcomes.
19
Recruiting and induction
Our recruitment process for Leaders now includes an assessment
against Values; this will be rolled out to all colleagues. For a significant
number of MD opportunities, we have supplemented the process with
a Values assessment by an external partner specialising in business
psychology. Our ‘Being Barclays’ induction programme is compulsory
for new joiners, including MDs and Directors, and supports
engagement with our Purpose, Values and Behaviours within the first
90 days of joining Barclays.
20
Developing Barclays’ future leaders
In 2013, we designed and implemented a global approach to talent
identification and Group ExCo conducted a review of Senior Leaders
across the organisation. During 2014, we will put in place mechanisms
to improve transparency in identification of talent across all levels and
opportunities for mobility and development to support our leadership
and diversity initiatives. Promotion at all levels now includes
assessment against the Values. For MD promotion, this is conducted by
an external partner.
21
Pay principles
Our new Remuneration Policy on pages 100 to 110 reflects common
pay principles across the bank and expressly links remuneration
decisions to sustained performance, risk-alignment and our Purpose
and Values. At a group and business level, the Remuneration
Committee (RemCo) considers financial and non-financial measures
including risk management and Balanced Scorecard outcomes in
assessing performance. At an individual level, the performance-pay
linkages have been further enhanced, incorporating the new
performance approach which considers both ‘what’ and ‘how’
the colleague delivers. All colleagues are required to have risk
and control objectives.
22
Retail incentives
We have removed retail sales incentives which may encourage
behaviours that conflict with meeting customer needs in UK retail
branches, with similar changes to be introduced in Africa. In 2014, all
UK retail colleagues, across the customer network, working in the same
customer-facing role will be rewarded with an equal share of the overall
performance reward as measured through a Balanced Scorecard unless
individual performance standards, based on appropriate behaviours,
are not met.
23
Discretionary pay
When determining the discretionary incentive pool, financial and
non-financial measures including risk management and Balanced
Scorecard outcomes are key considerations for the Remuneration
Committee in assessing performance. The Remuneration Review Panel
has been established to focus on making recommendations to the
RemCo on risk adjustment to incentive pools and individual malus
outcomes. The Panel has also issued guidance to ensure consistency in
getting risk based decisions right the first time. We made significant
improvements in disclosure in the 2012 Remuneration report, and have
adopted the same approach in the 2013 report.
24
Long-term awards
Our Long Term Incentive Plans (LTIPs) are now restricted to Group
ExCo only and will be further limited to Executive Directors in 2014.
The new LTIP is a Group-wide plan that is calibrated to financial
performance adjusted for risk on a group wide basis. RemCo gives
careful consideration to value at award to ensure that LTIPs are
appropriately considered in the wider context of pay awards and
disclosures. The annual Directors’ Remuneration Report on pages 111
to 121 sets out full details of the ‘value at award’, maximum potential
face value and actual pay outs from LTIPs.
25
Control functions’ incentives
As of February 2013, control functions now have solid reporting lines
into the Group CEO rather than business heads to avoid conflict of
interest. Separate functional incentive pools are now in place, the size
of each is influenced by performance against a function Balanced
Scorecard. Individual performance objectives and reward are now
aligned to the relevant function Balanced Scorecard and will be
independent of the financial performance of businesses they support.
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128 Barclays PLC Annual Report 2013