Co-Op Bank: Support employees in the cost of living crisis

In a recent study, HireVue found that 54% of UK employees would consider quitting a poor-paying job to pursue a pay rise. On top of that, almost a quarter of employees were considering leaving their job in the next six months.

Providing comment on the research, Richard Matthews, head of talent, resourcing, and employee relations at The Co-operative Bank, noted that retention was more complex than just pay; even in a cost of living crisis.

To get more information on how the Co-Op Bank retains and attracts staff in a turbulent world, we caught up with Matthews in an illuminating interview. 

Attracting diverse talent

Before diving into the complexities of retention in the modern job market, Matthews discusses attracting talent. Interestingly, Matthews notes that a top priority for the Co-operative Bank and its talent acquisition is diversity, equity and inclusion (D,E&I).

Richard Matthews, head of talent, resourcing & employee relations, The Co-operative Bank

He comments that: “D,E&I sits at the heart of our recruitment strategy and it’s something we review frequently. 

“All of our executives have their own D,E&I targets they need to meet when building teams. These targets are consistently monitored, analyzed, and updated as and when we make a new hire.“

While the best candidate for the role is hired, “setting targets helps us ensure diverse shortlists, while also motivating and supporting our executives in achieving our company-wide diversity goals”.

To do this, Co-Op Bank uses HireVue because it reduces potential bias and assesses a candidate on job relevant skills; not just their CV. This has enabled the bank to achieve a 50/50 gender split in its call centers. 

In terms of how D,E&I helps attract candidates, Matthews says: “We engage with our people weekly via internal networks, discussing relevant and important topics relating to how we can improve D,E&I in our workforce. 

“We’re also female leadership advocates and we recently promoted one of our leading female employees, Aileen Mcgarry, to chief technology officer.”

Overcoming attrition

Attracting talent has become important for every organization in the wake of the ‘Great Resignation’ which has seen millions leave the workforce.

Reflecting on Co-Op Bank’s experience, Matthews says: “Just as every company across the UK has experienced attrition issues, so too has The Co-operative Bank. The cost-of-living crisis is definitely putting a strain on employees.”

In an effort to reduce possible employee attrition “we make sure our people are supported, especially when they first join. Our onboarding processes are built to help them hit the ground running.”

On top of that, “we also have development programs in place so that our employees always feel like they’re progressing in their careers. Recognizing efforts and appreciating employee contributions go a long way in retaining top talent.”

Of course, the most immediate way to help employees with the cost of living crisis is by increasing wages. On this note, Matthews comments: “Every organization should be if they want to best support their employees right now.”

Inside Co-Op Bank: “We use data to frequently review our salaries and to ensure our rewards are in line with the market. We do that so our employees are paid fairly. We also have a specific rewards team who continually reviews our benefits to make sure they’re the right fit for our employees. 

“For instance, we have discounted rates on shopping, which is a benefit our employees are finding invaluable in supporting rising costs.”

In addition to monitoring what is best for employees, Co-Op Bank is taking action.

Matthews explains: “We’re always investing in employee pay and additional support. To meet the increasing cost-of-living demands, we have made one-off payments to colleagues who earn under £30,000. 

“We have also moved our bonuses to bi-annually from annually for this group to help spread the payments.”

One of the most significant increases will be seen in September when the company increases “colleague pay by £1,000 purely due to cost-of-living”.

Use flexibility to help employees

Flexibility is another area that can help organizations keep employees. In fact, 24% of respondents in HireVue’s study suggest that a lack of flexible work motivates them to look at new positions. 

Matthews notes: “Flexible work offers many benefits, including reducing stress, improving productivity, and overall job satisfaction. This is why we promote flexible working within our workplace.”

Going into detail about this policy, Matthews explains that it is driven by the home circumstances of employees. He notes: “For parents who have to do the school run, to colleagues who enjoy going to the gym before the after-work chaos, we allow our employees to work however they please to promote a healthy work-life balance.”

As a result, the Co-Op Bank has measures in place to support all workers no matter where they are. Matthews stresses, “this is important as home working can become very lonely if not managed carefully. For example, we recently introduced mental health first aiders to help spot signs of distress and support employees who might be struggling”.

On the note of flexibility, Matthews recommends organizations consider it, especially as costs increases. He notes: “Travelling to offices can pile up unnecessary costs – train fares are the highest they have ever been. “

Despite this, Matthews warns that “employers must remember that flexible working has to be carefully managed. Introducing regular touch points, regularly reviewing processes, encouraging employee feedback, and ensuring wellbeing initiatives are in place will help make flexible working a success”.

What’s worked for Co-Op Bank?

Discussing broader programs outside of the cost of living that he is proud of Matthew mentions: “Our employees have the opportunity to buy annual leave. This scheme has enhanced positive relationships between management and teams as it’s created a family-friendly feel to our company’s culture – something that we know our staff value.”

Matthews also draws attention to homeschooling, adoption, and pregnancy loss policies. All of which are designed to help employees. 

Interestingly, ethics and sustainability play a huge role in the policies of the group, “we’re the number one ethical sustainable bank in the UK. We do not provide banking services to organizations that conflict with customers’ views on a comprehensive range of issues.” 

Examples of ethical issues that the bank actively tries to improve include human rights, environmental stability, international development, and animal welfare.

Evidently, there’s plenty for the Co-Op Bank to be proud of, as it works towards improving the lives of employees in troubling times.

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