Page 23 - CCB_Annual Report_2022

22 Strategic Report 23

• Policies and procedures – throughout
2022, we have continued to review
people policies and procedures to
ensure that they promote our beliefs Diversity and
and stance on inclusivity. We confirmed
our hybrid working arrangements, inclusion remain
with colleagues able to work up to
50% of their time at home, developing at the heart of
the infrastructure and management
practices required to effectively support our culture
this way of working. This approach
has been welcomed by colleagues
who provided positive feedback in
our internal colleague survey. In 2022,
the Performance & Remuneration
Committee decided to equalise benefits
so that the Bank’s benefits package is with 32% female representation in Activity Financial Performance
the same for all colleagues regardless senior management, 30% on our Board, During the year, the Bank has focussed
of grade or position. The Board also and 33% of our Executive Committee on creating a cultural design framework Macroeconomics
committed actively to supporting being female. Whilst we are proud of that will underpin the Bank’s strategy
colleagues with the cost-of-living this, it is not enough, and our journey and provide a basis for future review and 2022 has seen the impacts of higher
challenge, making one off payments continues as we seek to achieve female measurement. This has been linked to the energy costs, global supply chain
to all staff below Executive level in July representation at all levels of senior results of our staff engagement surveys, shortages, the conflict in Ukraine as well as
2022 and making pay awards of 3% in management to 40% by 2025 and 75% our work with the Financial Services Culture post Covid-19 and Brexit effects resulting
April 2022. There has been no change female representation on our apprentice, Board, and our customer and broker in a significant deterioration in the UK
to our variable pay schemes during the intern and graduate programmes. In engagement surveys. economic outlook.
year, and the majority of colleagues 2022, we reduced our Gender Pay Gap
benefitted from the Bank’s discretionary to 26% and have committed to targets to We have also focussed on refining the The Bank of England increased bank base
profit-sharing scheme capped at 10% reduce our Ethnicity Pay Gap by a third constituent parts that drive the Bank’s rate by 3.25% to 3.5% during 2022 with
of basic salary. The Board pays close over the next three years. culture, by: further increases expected in 2023 as
attention to the Bank’s culture and key • being responsive to the cost of living the Monetary Policy Committee seeks to
people measures, including turnover crisis and how we remunerate staff; reduce UK inflation.
rates, sickness levels and time taken Culture The Bank remains committed to supporting
to fill vacancies. All of these remain • maintaining our representative forums its customers and staff through the current
positively low, although we have been that allow colleague engagement; difficult economic environment.
mindful of the increase of mental Overview • reviewing our approach to hybrid
health concerns and as a result have working arrangements; Prudential framework
extended our support to colleagues Mindful that the culture of an organisation
by providing additional counselling is key to how customers and other • renewing our commitment to local The prudential framework has remained
services, training for managers and stakeholders are treated, the Board plays charities and communities; relatively unchanged during 2022. The
adjustment to working arrangements a vital role in the leadership, development, • refreshing our benefits and rewards implementation of CRRII took place
to support individuals; and oversight of the Bank’s culture. We from the 1 January 2022, with the key
know that it is our culture that has enabled system to improve and better align change from the Bank’s perspective being
• Talent and growth – the Bank’s ‘grow us to differentiate ourselves as the specialist benefits to colleagues needs including the implementation of the Net Stable
our own’ strategy supports our diversity SME Bank of choice. Our culture is reflected improvements to maternity, paternity, Funding Ratio (NSFR) ratio. The Bank’s
and inclusion ambitions, advocating that in everything we do: we value building and and adoption leave. NSFR at the end of December 2022
all colleagues have a development plan maintaining strong relationships, using our • implementing our inclusion and diversity was 134%, above the 100% minimum
that supports them to be successful in expertise, being open, caring, and down plan; Continuing to support colleagues regulatory requirement.
their role and achieve their potential to earth – a culture that enables us to develop their competency through
whilst enabling the Bank to have understand and support our customers, the learning and development of skills, The Bank’s strong capital base has
strong internal succession in place. colleagues and communities in which we knowledge and behaviours; enabled it to meet the higher capital
Gender diversity is one element of our live and work. The Board regularly reviews requirement set for all Bank’s as a result
inclusivity strategy. In 2022, five years and considers how the culture evolves • reviewing the Bank’s cultural rituals, of the Counter Cyclical buffer increasing
after signing the Women in Finance with the Bank’s growth as well as reviewing norms and artefacts; and to 1% in December 2022. The Bank is also
Charter, we achieved our pledge to the cultural indicators to assess how it is • Board evaluation of how they visibly lead ready and able to manage the further 1%
increase in this buffer that is expected to
increase women in senior management embedded across the organisation.
and advocate the culture. be implemented in July 2023.