The Royal Bank of Scotland Group: The Human Capital Strategy

Abstract :

The Royal Bank of Scotland Group (RBS) has developed a comprehensive human capital
strategy that emphasizes the importance of employee engagement, leadership, and efficiency
to drive business performance. This strategy is supported by the use of advanced tools and
surveys to measure and improve various aspects of the workforce and organizational culture.

Key Components of the Strategy:

1. Human Capital Toolkit: RBS has implemented a Human Capital Toolkit that includes web-
based tools and pulse surveys to measure and analyze employee-related data. This toolkit has
saved the Group over $2 million in labor and duplication costs within 24 months.

2. Annual Employee Survey: Since 1997, RBS has conducted an annual survey, "YourFeedback,"
with a high response rate, increasing from 70% to 90%. The survey assesses the Group's
performance across 15 categories and benchmarks against external companies. Results are
widely distributed within the Group and shared with financial analysts.

3. Employee Engagement: The strategy focuses on the SAY, STAY, and STRIVE model, where
employees express pride in working at RBS, show a reluctance to leave, and are motivated to
contribute beyond the norm.

4. Leadership and Development: RBS places a strong emphasis on promoting competent

leaders and providing opportunities for employee development. The Leadership Index is a
critical metric used to gauge leadership effectiveness.

5. Work-Life Balance: The Group encourages employees to maintain a healthy balance between
their professional and personal lives, recognizing its impact on productivity and satisfaction.

6. Efficiency and Performance Management: RBS is committed to improving efficiency and has
systems in place for performance management and development.

7. Diversity and Communication: The Group values diversity and open communication, which
are integral to its corporate culture and employee relations.

8. Recognition and Rewards: RBS acknowledges the importance of recognizing and rewarding
employees for their contributions, which is essential for job satisfaction and engagement.
9. Customer Focus: A customer-centric approach is at the heart of RBS's strategy, with a focus
on promoting customer security and trust.

10. Change Management: The Group is adept at managing change and people, ensuring that
transitions are smooth and that the workforce remains aligned with the company's goals.

Results and Impact:

- Branches with above-average Customer Satisfaction Index (CSI) scores tend to outperform on
Employee Opinion Survey (EOS), HR, and performance metrics.

- The strategy has led to more informed people and business decisions, fostering a joined-up
approach across the organization.

Conclusion:

RBS's human capital strategy is a testament to the belief that "what gets measured gets done."
By focusing on employee engagement, leadership, and operational efficiency, RBS has created
a robust framework that aligns human capital with its overall business objectives, leading to
improved performance and competitive advantage.