Internal report reveals "poor staff management" costs BBC £80m a year

Mismanagement of under-performing staff and erroneous "unpredictability" allowances cost millions fo

A leaked study by the BBC's People department shows how it is seemingly wasting £80m a year. This is mostly due to the erroneous granting of salary top-ups to employees that were not qualified for it, as well as the mismanagement of under-performing staff.

The latter were costing the company over £50m, the report said, recommending a new system of appraisal be set up. The study labelled 910 employees as "poor performers", roughly 5% of the 22 000 staff members.

The report also pointed out that an average of £28m in "unpredictability allowances" were paid to employees who were not working unpredictable hours. Unpredictability, a £33m scheme, accounts for close to 3% of the corporation's wage bill, which is close to £1bn.

Another costly flaw detected by the study came from an incoherent salary distribution amongst departments. The report pointed to how staff in adepartment can earn more on average than a colleague in a different department, even if the two are theoretically on the same pay grade - staff between pay grades seven and nine at BBC Vision earned 10 per cent more, on average, than their colleagues at BBC News

This study was carried out as part of the BBC's director general Mark Thompson's project to cut £400m from the broadcaster's budget. The company has already announced it will cut 1000 jobs from various services, while more cuts are to be expected which could reach up to 25% of the workforce. The report recommended further flexibility among the BBC workforce - including the increased use of short term contracts - as well less generous redundancy terms, to reduce costs.

The BBC is also contemplating measures such as merging local radios or abandoning coverage of events such as Wimbledon or Formula 1 races, to further cut spending.