CASE STUDIES FROM THE CIPD ANNUAL CONFERENCE 2024


On this theme of making employee benefits valuable and meaningful for employees, the CIPD conference session, ‘Compensating fairly: reward, recognition and the importance of pay transparency’, discussed the impact of reward and recognition on employee motivation, engagement and retention. The panel debated how to design effective


reward and recognition programmes tailored to diverse employee needs. They also discussed if benefits always needed to be financial to offer the best value to staff.


BANK OF IRELAND’S REWARD TRANSFORMATION: NAVIGATING CHANGE TO REBUILD TRUST & RETAIN TALENT


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“ IT IS NOT ROCKET SCIENCE THAT IF YOU TREAT YOUR PEOPLE WELL, THEN THEY ARE GOING TO GIVE MORE DISCRETIONARY EFFORT.”


LUCY CARTER, SENIOR EMPLOYEE EXPERIENCE MANAGER, SEASALT CORNWALL


avid Keogh, head of reward at Bank of Ireland, presented the first case study. He has over 20 years’ experience in the field of reward


management and is transforming the bank’s rewards. He described how Bank of Ireland had recently


undergone a significant restructuring of its employee reward system, evolving from years of state-imposed restrictions into a more flexible and transparent approach. At its heart is a new, accessible online system. The shift reflects both a changing landscape in banking and a deeper commitment to understanding and meeting employee needs. While the bank’s historical context constrained its


flexibility, the recent reforms in its reward system signal a new phase of revitalised engagement and empowerment for its 10,000 employees. He explained how Bank of Ireland’s journey towards a modernised reward system was deeply rooted in its past financial challenges and government intervention. During the global financial crisis from 2009 to 2011, the bank, like many other financial institutions, received significant state aid to stay afloat, taking in €4.7 billion from the Irish state. This lifeline, though critical, came with stringent limitations. David Keogh said these constraints created a sense


of stagnation within the organisation. With a lack of variable pay and limited scope for benefit enhancement, Bank of Ireland struggled to retain talent and to align employee rewards with its performance. This environment bred frustration, as employees, unable to see the tangible value of their benefits package, often viewed it as uncompetitive. In December 2022, the Irish government sold its


remaining shares in Bank of Ireland and the regulatory restrictions on remuneration began to ease. This turning point allowed the bank to reintroduce performance- linked bonuses up to €20,000 and adjust its benefit offerings. However, this also meant that employee inquiries surged, with questions about bonus schemes and demands for greater transparency, placing the bank’s reward function under new pressure. “There was a perception that our reward package


was not competitive,” he explained. “Now, bear in mind we hadn’t been allowed to enhance or change benefits for 14-plus years, that’s understandable. But when we looked at what we spent versus the market on benefits, we were market median for companies our size. There were a huge amount of benefits.” The problem for the bank was that a lack of


transparency and access to the package meant that employees had the perception that the bank was uncompetitive. “Colleagues were saying that we didn’t have a decent benefits package. People were leaving us


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