Financial regulators have been scrutinizing Lloyds business practices. The Financial Conduct Authority recently fined the bank £28 million for placing excessive pressure on their salespeople to meet targets. The bank also owes an estimated 8 billion to customers that have already filed or plan to file PPI claims. However, a recent report found that the fine has done very little to change the bank’s coercive managerial practices.
The new survey from Only Way is Ethics found that Lloyds staff feel that they are under considerable pressure to meet their targets. Many of them feel that the only way to meet them is to mis-sell products to customers.
The report shows that the employees are living in a culture of intimidation and fear. Salespeople who don’t meet these expectations are often fired, sanctioned or humiliated in front of their peers. Nearly 85% of people surveyed said that they were terrified while working at Lloyds.
One staff member reported that their boss was constantly standing over them and scrutinizing everything they did. They said that they are given almost no flexibility to think and act on their own. This employee said that this level of control has caused them to resent their job and are considering looking for a new employer. Many other employees expressed similar sentiments.
The payment protection insurance scandal was one of the largest financial crises to hit the country. The pressure on salespeople is one of the reasons that the payment protection insurance scandal erupted over the last decade. The culture of fear will need to be addressed if people want to alleviate these concerns.
However, many banks are still creating these types of cultures. The new Financial Conduct Authority realizes that these types of cultures is one of the biggest problems that needs to be addressed. They plan to take some steps to address it in the future, but haven’t outlined a plan of action yet.
Many people warn that this problem will need to be addressed soon. Many bank employees have already started using unethical strategies to meet quotas while trying to push other financial products.
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