Review of Future of Fixed Pay / Beyond - UB 08/25 - UB NI & ROI

UB 08/25

You will be aware of the Union’s recent survey to review the Future of Fixed Pay / Beyond model implemented at Ulster Bank in 2025. In 2024, following the completion of the Future of Fixed Pay negotiations both FSU and NatWest agreed to a comprehensive joint review once the 2025 pay process concluded. This review was conducted to evaluate the experiences of employees and line managers with the newly introduced pay process. This process features a fixed pay component, a discretionary pay element, and a revised approach to managing underperformance.

The aim of the review was to gather insights from both employees and managers on how the fixed and discretionary pay elements were implemented during the first year of the Beyond, specifically Chapter Four. Chapter four marked a brand-new approach to pay with no performance rating, a split-pot approach of fixed pay and a discretionary pay element, and a new method for dealing with underperformance. FSU committed to surveying its members and providing anonymous feedback from managers who were people leaders with pay pots to distribute.

FSU has since had a formal meeting with the Bank to feedback results from employees, people leaders, and the Sector Committee regarding the new pay process. ​Below outlines the topics FSU Sector Committee discussed at its meeting with Bank management on July 16.

Key Findings:

1. Employee Feedback:

• 58% of members participated in the survey, but confusion arose as the Bank referred to the model internally as "Beyond," not "Future of Fixed Pay."
• 4% felt the model was not properly explained, and 71.8% were unclear on its link to performance.
• Concerns included poor communication, lack of transparency, perceived unfairness, and dissatisfaction with pay outcomes.
• Discretionary pay was seen as too small and subjective, with limited understanding of how it was allocated.
• Members outlined their dissatisfaction with overall pay outcomes for 2025​.

2. People Leader Feedback:

• Managers generally understood the process and found the training helpful, but the implementation was rushed and poorly communicated.
• Discretionary pay pots were considered insufficient, leading to frustration and difficulty in rewarding staff meaningfully. ​
• Managers expressed disappointment with the pay pot size and the overall pay offering, especially given the Bank's record profits. ​
• Most managers engaged in pay conversations with all staff, but some felt disillusioned by the process.

3. Sector Committee Feedback:

• The Committee noted a need for greater clarity around the determination and calculation of pay pot sizes.
• Positive aspects included improved handling of underperformance and removal of certain calibration methods. ​
• The Committee emphasised the need for a larger pay pot to make the two-pot system meaningful. ​

4. Summary:

The review highlighted dissatisfaction with the new pay model, particularly around communication, transparency, and understanding.  Both employees and managers expressed concerns about the fairness and effectiveness of the system.

The Bank acknowledged the feedback and expressed a willingness to work with FSU to address the issues raised. FSU is hopeful that improvements will be made ahead of the 2026 Pay Review and will keep members informed of any developments.

For more information please contact your Sector Committee member, details below:

Mandy La Combre

Senior Industrial Relations Officer