Interpreting and using internal staff information to plan future human resources involves finding or giving the right people to the right job. They need to allocate jobs according to skills and experience. This means if a man/woman has a degree/qualifications in accounts you would not have them stacking shelves, the sensible thing to do is to put them in the accounts department. The human resources department has to make sure that the job specification and job description are clear, so only people who have the skills required for the job apply.
How, where and when HSBC advertise for internal recruitment
HSBC say recruiting internally is convenient and time saving. The manager pr head manager will know what ability the candidate has, and also reduces the risk of hiring an unsuitable candidate.
How
When recruiting staff internally HSBC would put up a notice, this notice will be placed in an area where all staff members can see it. On this notice will be space where the candidate can write their name if they are interested in applying for the job.
When
HSBC would put up advertisements when employees leave, the employee will give notice so the employers will have some time to find a replacement. Normally a employee will not be allowed to leave during holiday season as they are very busy.
Where
HSBC would make announcements about the job and put notices around the cafeteria. Also in weekly HSBC newspapers, which only staff can have, their will be an advertisement in there is well.
When recruiting internally it saves a lot of money and is a much quicker process. It gives HSBC employees chances to develop and further their career. They will not need an induction as they will know the business quite well as it is.
How, where and when HSBC advertise for external recruitment
When recruiting externally HSBC use different varieties of advertisements:
- Direct advertisements
- Advertisements selection
- Commercial employment agencies
- Youth’s training
Direct advertisements
This is when HSBC place and advert in the local or national newspaper. This is very expensive and can cost over £200, it also depends on the size of the advertisement. Advertising in the local newspaper is cheaper than advertising in the national paper. When businesses advertise in the local newspaper they are only likely to find local candidates, this can limit HSBC’s options. If businesses advertise in national paper they are likely to get more applicants with a wider range of skills.
Advertisement selection
This when HSBC place a advert in the media under the name of constancy. This method is much easier. All HSBC would have to do is to interview the short listed candidates.
Commercial employment agencies
These are companies that specialize in recruiting and selecting. These are agencies that have a record of people who they think are suitable for the job. Some agencies specialize in only having candidates for banks. HSBC do have these types of agency and ask for a shortlist of candidates.
When
The employee has to give a months notice before they resign. This is so HSBC have time to find a suitable candidate to replace them with. Normally employees are not allowed to resign during holiday periods (i.e. Christmas).
Where
HSBC advertise in newspapers, agencies and job centers. Through these advertisements they get a wide range of candidates with a lot of skills. HSBC try not to recruit externally for manager jobs try to get an existing employee who has knowledge of HSBC. Also it improves the chances of promotions for employees.
HSBC can also look at advertisements for vacancies from competitors. HSBC should look out for competitors (such as Barclays) job vacancies in newspapers or on other sources of advertisement. HSBC should do this because if competitors are offering a job that is the same as one job at HSBC but their competitors pay better, it could mean that their employee will leave, to work in another bank doing the same job and getting paid more money. In the event that the HSBC employee sees this advertisement and says that he or she wants to leave for more money, it could mean that HSBC will have to renegotiate the employees wages in order for them to stay. HSBC will want the employee to stay at HSBC as it is hard to find an applicant who has experience and the appropriate skills for the job, as the unemployment rate in the local area is really low and that most of the unemployed are manual workers. So it is important that HSBC keep a look out for competitors job vacancies and try to offer employees who may be attracted to the vacancy more money, better working conditions, anything that is within their budget and which is reasonable.
Another external labour market information that can help HSBC plan for future recruitments is graduate recruitment. Graduate recruitment is students who have just got a degree or who have degrees but are still unemployed. HSBC can find out how many graduates are unemployed in the local area and then see which ones have the skills, which could be used working for HSBC. When HSBC find a selected few graduates who they think have the potential of working in HSBC, they are sent away on special training programmes. This training program shows HSBC if these graduates can work in the bank, and to see if they have any potential. A new scheme, which HSBC has come up with, is that graduate students can sign up with HSBC and while they are studying they have some training sessions to adapt their skills throughout the year. As soon as they have graduated they can work in the bank as they have been trained and will know how to work in the bank, also HSBC will know that they are capable of working in the bank. The number of graduates unemployed increases after June as everyone has by then got his/her degree.
Unemployment Rate
The unemployment rate in Hounslow has been steady in the past ten years. Hounslow has a very low unemployment rate. This is due to the fact that there is over 9700 businesses in Hounslow, between these businesses they hire 118,000 employees. The unemployment percentage in Hounslow at this time is 2.6% (2002) this compares to five years ago when the unemployment rate was 3.2%. below is a graph showing how unemployment has declined and how the number of businesses operating in Hounslow has increased.
Recruitment
When the business advertises a job vacancy, they should make it very clear and concise with specific job details and requirements on the advert. An example of this is by stating the minimum age requirements. Certain businesses do not employ people under the age of sixteen, but do not state this, and only inform candidates after they have filled in the job application form and have received a reply.
The job specification should inform the candidates of what skills are required. For a vacancy in an accounts department it should be made clear that applicants will require certain qualifications and good grades in maths and accounts. Below is a job specification for an accounts coordinator (this has been taken from an advert placed in the Hounslow Informer):
This position will be based within the Customer Relations Department; it will be both interesting and challenging.
The candidate should have the following qualifications:
- Possess strong communication skills, especially in the composure and writing of business letters,
- Fluency in both written and spoken English is essential as is
- Fluency in both written and spoken Portuguese
- Be computer literate, especially in Microsoft Word, Excel, Publisher and Power Point
- Having the ability to communicate with customers, especially with regards to complaints
- Be smart in appearance
- The ability to work, as part of a team but is self motivated to also work alone
- Be customer focused
In the job description they should inform the candidates of what they will have to do, on the next page is job description for part-time sales adviser, this is a copy of a job description printed out by HSBC.
Job description
Job title Part-time cashier
Reporting to Branch manager
Location Hounslow branch
Hours of work up to 20 hours per week, by arrangement
Purpose of post to assist the Branch Manager to achieve a successful level of sales
and meet customer needs.
Key duties
- To assist and advise customers.
- To demonstrate knowledge and answer any queries from customers.
- To organise the packing, despatch and delivery of equipment.
- To advise customers about the variety of payment methods.
- To use and keep up-to-date current stock control systems.
- To arrange for faulty equipment to be repaired or replaced
- To notify Head Office of any outstanding problems
- To maintain the company image at all times.
- To carry out any other duties assigned by the branch manager.
When a candidate looks at the job description and the job specification, and believes they have all skills required for these jobs they should fill out an application form, on the next few pages is an example of an application form from HSBC.
Job Analysis
This involves a formal assessment of the skills; knowledge and experience needed to carry out a specific job effectively. For a job that already exists in the business (i.e. it is not a brand new position) this will involve observing other employees already carrying out similar roles. This will allow observers to collect detailed information about the nature of the job and gain an understanding of any technology involved.
Observations and interviews are the main methods used to collect this information. The result of the collection of all this information is a job description, which then forms the basis for selection decisions. Managers and selectors can look for specific characteristics and skills required by candidates applying for the job. The job description will also specify other factors such as age, level of education, formal qualifications, level of previous training, experience, physical characteristics etc.
What are the factors that need considering when filling a vacancy?
Full time/part time position –
Is it a fulltime position?
- Are there shortages only at certain times
- Current staffing budget - can they afford to hire a full timer
- Does the job require more flexibility
Rates of pay –
- Consider current pay structure, needs to be consistent
- Look at staffing budget, make sure its not exceeded
- Minimum wage requirements
- Pay should reflect job and responsibilities
Job Sharing –
- Can the job be shared?
- Would it be more cost effective to have two part timers?
- Does the job require a lot of flexibility?
Training –
- On the job, off the job, mixture?
- Existing training is there sufficiently trained staff available in branches to train new persons e.g. shadowing.
- Costs
- Branch time constraints, do we need staff instantly, short training, move into branches quickly.
- Experience of applicant e.g. previous banking experience.
Internal/External -
- Are there adequately trained staff available internally who are suitable for the post?
- Would recruiting such person leave shortages elsewhere?
- Costs, cheaper to provide internally, person with existing knowledge and experience requires less training.
- External, writing job descriptions and job specifications, placing advertisements, arranging interviews and looking through interviews.
What are the factors that need to be considered when carrying out a interview?
- Where – at the business, neutral venue, at candidates home.
- How long – five minutes, half hour, one hour.
- One person or a panel interviewing the candidate.
- What questions should be asked – do you have experience.
- Make sure the interview is fair and compiles with legal requirements.
Do you wish to work (please tick one):
Do you have a full driving licence? Yes No
Application form
The application form needs to be simple and concise but still give the right information. It is from the details provided on this form that selectors will decide whether the candidate should move onto the next stage of the recruitment process.
The first section involves collection of the candidate’s personal details. These are facts about the individual such as name, age, address and contact numbers. The second section looks into the candidate’s education and qualifications achieved. The next stage charts the candidate’s employment history. This will highlight any relevant experience the candidate has and shows what kind of employee they are e.g. are they frequently changing jobs or careers?
The last section looks at general information such as medical history, criminal records, etc. This form is very similar to most standard application forms given by most companies. It asks for information, which can be used to compare candidates.
More recently organisations have included a separate section to their application forms which are more qualitative. This section may include questions such as:
- give an example of when you have been given good customer service
- what is your definition of good customer service?
- what other relevant skills and attribute do you possess which make you suitable for this position?
- give details/examples of any positions of responsibilities you have held
- give an example of when you’ve been involved in effective teamwork.
HSBC have not included such a section as they feel they can explore these types of issues better in an interview situation.
The application form they use allows them to choose the right candidates from basic information.
Carrying out Interviews
The human resources department at HSBC never has a one on one interview. HSBC say it is too much pressure for one member of the human resources team to choose one employee from what could be many candidates. Also this person might not choose the right man or woman for the job and two or more people can provide a more objective selection. HSBC select a panel of three people from the human resources department, this way there will be a wider view and they can all examine the candidates to find the right employee.
When the human resources department of HSBC carries out interviews they consider many things. The first thing the human resources department looks at is the appearance of the candidate and their attitude.
HSBC say that first impressions last in the heads of the panel. In some cases HSBC say if there is a tie between two candidates and they match each other by their skills, they will choose by how each candidate manages themselves in the interview. How well they can answer questions given to them by the panel and with what level of confidence and knowledge they show.
HSBC say the panel from the human resources department is opened minded; they cannot be biased towards someone or against someone because of their race, sex, religion or disability. If a candidate says to HSBC senior management that the panel was being unfair to him/her because of their race, sex, religion or disability, HSBC will take this matter seriously and set up an investigation.
Training and Development
Although through the selection process the best candidate for the job is recruited he or she is unlikely to remain competent for the whole of their career. Its changes take place in technology, knowledge and innovations so will the demand placed on jobs. It is because of this that training and development are required.
Training – “is a systematic process whereby an individual learns skills, abilities and knowledge to further both organisational and personal goals. In general terms, training is focused on helping individuals fulfill their present role”.
Development – “is more future orientated. It is usually intended for those individuals who are perceived in the organisation as having the desire and potential to undertake other roles. Although the organisation often has responsibility in creating appropriate development activities and programmer, it relies more upon the individuals initiative to ask questions and to bring important points for consideration.”
On Site Training
This is based on the belief that employees can learn the basics/specifics of a job through training in the actual work environment. This can be very effective in learning specific techniques such as apprenticeships.
HSBC like all organisations, use some form of on the job training which in, the beginning includes shadowing existing employees. When new cashiers start at the bank. They spend their first two weeks shadowing existing cashiers. After this period they are then sent for a two-week off site training course.
Off Site Training
This includes any training, which takes place away from the individual’s workplace. One reason for the off-the-job training can be to develop interpersonal or problem solving skills. HSBC use this type of training with new cashiers to introduce the company, the business and to increase their technical expertise.
HSBC Training and Development
When a new employee is recruited by HSBC, they are immediately placed on a training programme. This can take place within the business or outside the business. HSBC train their employees outside the business, but some new employees are given mentors. The human resources department in HSBC say this a good way for a new employee to train, as the new employee can pick up how to operate in their roles by someone with experience. The human resources department say that both ways of training are very effective, but the training off-site involves travelling to a location outside the business which can be costly whereas the mentor method can be time consuming, so they both have advantages and disadvantages. HSBC employees also still have to go on training programmess as their careers progress. This is so that they can keep developing their skills.
When HSBC was fitted with new computer systems, the human resources department selected a few employees for training, so they can get used to the new system and use it with confidence. HSBC say they only send a few employees as these employees can then teach the rest of the employees at HSBC and it will be less costly.
HSBC say when an employee is not able to achieve targets set, it could be due to a lack of skills so then the human resources department of HSBC will send them to a training course to improve their skills. HSBC human resources department say 95% of the time when these employees come back from training they will achieve targets that have been set for them.
HSBC on the job training
A lot of the employees learning and development will take place ‘on-the-job’.
This could take the form of
- Coaching by another employee with experience of the job
- Job shadowing – watching another employee and familiarizing themselves with the role
- Performing the role under supervision
- Self-study to familiarize themselves with procedures (for example, job training aids)
- Learning by experience
- Undertaking projects
When the employees undertake any of the above activities, they will log it in their personal logbook provided by HSBC. This is referred to when preparing for their progress and performance reviews.
Modular training
Wherever people are placed within the bank they will soon become involved in modular training. Modular training enables staff to learn in their office rather than traveling to a training center. Modular training consists of various elements:
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Learning guides on various products like cards, saving accounts, loans and current accounts. These learning guides are designed to be used individually and build on the information in the employees Fact Finder. They also give useful hints on selling the products.
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Videos covering different skills like communication, product knowledge and sales skills. The videos can be used in large or small groups. Each video has a learning guide attached to it.
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Quizzes to test employee knowledge, for example on products or procedures.
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Short training sessions conducted in the office. These sessions are usually organized and delivered by a modular training facilitator and concentrate on:
- improving customer service
- knowledge of products and procedures
- enhancing skills, for example selling skills
HSBC off the job training
HSBC have dedicated learning centers where staff and managers can continuously improve their skills and develop new ones in line with their individual and business needs. By the end of 1997 HSBC had over 100 learning centers.
Training which relies on interactivity within a group of people, for example some skills training, is more effectively delivered as a formal training course. For non-branch staff a one-day induction workshop is attended at the beginning of their induction training, this is a good example of this type of training.
The Leap Library
What’s Leap?
Leap is a library of self-development and distance learning material that is available to all staff and managers throughout HSBC. It’s the largest employer owned library in the country with over 1000 titles. The number and range of materials continues to grow as new items are introduced.
The materials can be used to improve employees existing skills and help them develop new ones. There is also a section to help employees study for Chartered Institute of Bankers examinations.
The material available comes in a variety of forms – books, workbooks, audiocassettes and videos. Leap items cover a vast range of topics under skill and competency headings. These include:
- Customer service
- Teamwork
- Business awareness
- Verbal and written communication
- Information technology
- Equal opportunities
- Decision making
Importance of training
Training is very important to HSBC, as it helps employees to work harder and to be more efficient. In a average year HSBC send their employees four times on training programmes. Training programmes give employees a great advantage, the training will help employees to develop their skills and can gain new skills. Training makes employees more productive which can help HSBC meet their objectives. With employees having more and more training the better chance employees will have getting promotion. Training will also give employees job satisfaction. HSBC make their employees go to training programmes as it could lead to less mistakes being made in the organization, which in the long run could mean less costs. Training helps employees to have knowledge of the business and lets them know what they should. This helps employees as they will make fewer mistakes in the work place and as I said less mistakes there are less costs and less time is take up.
Conflicts within the Human Resources Department
The human resources department from HSBC says skills and abilities are normally divided up into different age bands (e.g. 16-23, 24-35, 36-45, 45-55, 56-65). The human resources department says the younger members of staff are likely to know how to use technology due to their education; they have good skill levels and are willing to try new activities. The more mature staff will have more loyalty to the organisation but limited access to technology, can perform some tasks once shown what to do, may be reluctant or afraid to learn new tasks and increase skill levels.
The human resources department at HSBC has to make hard decisions because of the points made above. HSBC said new technology was installed in the early 1990s. This meant less employees were needed due to technology e.g. ATM machines, more and more people withdrew their money from their account using the ATM machine rather than going inside the bank waiting in a queue to withdraw their money from a cashier. This meant the HSBC human resources department had to make a decision of which staff they should let go. If they were to let all the young staff members go, all the mature staff might retire in the same period leaving HSBC with no employees and no one to teach the new employees the ropes. If they were to sack all the mature members of staff, the young staff will not be experienced enough, and are likely to have less loyalty than the mature members, so the young members might change careers. The human resources department at HSBC has to pick a few employees from each age band so that there will be a mixture of mature and young members of staff.
Overcoming Resistance to Change
The Human Resources department is often implementing change and this can cause conflicts. A lot of change has occurred at HSBC and often change is implemented ineffectively because organisations fail to recognize that there will be resistance to change. There are many reasons why people will resist change:
Habit - they do not want to change to unaccustomed ways
Security - threatens feelings of security
Economic Factors - change may reduce incomes, this leads to fear especially when pay is closely tied to productivity/sales, (this is the case at Midland)
Fear of the Unknown - change substitutes ambiguity and uncertainty for the known. Some fear that they will not be able to perform new work practices and techniques.
When implementing new policies HSBC should take more time introducing them to their staff in order to calm their fears and make them feel more comfortable with the new schemes. In order to overcome resistance to change and make change more acceptable they should adopt the following: Education and Communication; Participation; Negotiation; Coercion; and Facilitation and Support. More time should be spent educating and informing staff of new policies and services. This may make implementing strategies a longer process but the end results will be better for it. Such a process will keep staff morale and motivation high. Employees will feel valued as they are being involved in the decision-making process and their views are being listened to. It will also make change seem less dramatic as implementation will appear slower.
Culture
Another problem faced by the Human Resources department at HSBC is the integration of two different cultures. The acquisition of Midland by HSBC involved the integration of organisations from two different countries. If HSBC had not been sidetracked by the increasing competition their main concern would have been to create an integrative culture. This should be created now. HSBC need to start to move towards a culture that is not alien to staff. A strong organisational culture should be built which appreciates the role of staff at the forefront of all its operations. This is not going to be an easy task, changing the culture of an organisation is extremely difficult but will undoubtedly reap benefits for the whole organisation. Studies by Peters and Waterman (1982) and Kanter (1984) support the link between strong culture and financial success and sustainable competitive advantage. More significantly for HSBC, Kanter found that sustainable success, "stemmed from an organisational culture which favoured corporate entrepreneurship coupled with heavy investment in human resources".
Motivation Theories
Motivation is one of the key functions of the human resource function.
Maslow’s Theory
Abraham Maslow formulated a ‘hierachy of needs’ in the 1940s identifying five levels in hierachy:
- Basic – Physiological requirements for survival: at work these include food, drink, ventilation, rest breaks and payment.
- Safety – Protection from danger, a safe working environment through health and safety provisions, and a safe (i.e. secure) job.
- Social – Friendship; the companionship of fellow employees, and sports/social clubs and events.
- Esteem – Ego needs; recognition of ‘ a good job done’ at work, promotion.
- Self-actualisation – Personal ambition and self-fulfillment; complete job satisfaction.
At any given time, one group of these needs is dominant. The needs in this group must be met before the individual can proceed to the next group. In a work context, employees must be provided with the opportunity to fulfill these needs.
This hierachy does not operate in such a mechanical way, in practice: for instance, many people may be motivated by higher-order needs before their lower-order ones have fully been satisfied. These needs (notably the higher-order ones) can also be fulfilled by personal activities outside work.
Maslow’s ideas illustrate the importance of work to individuals, and they help in examing some of the social costs of high unemployment levels in societies that stress the importance of being employed.
Frederick Herzberg
Herzberg analysed needs under two headings: motivators, which broadly relate both to work content and to Maslow’s higher needs: and hygiene factors, which relate to the working environment and to Maslow’s lower-order needs.
He developed a framework to distinguish between motivators and hygiene factors. Although hygiene factors should be present – motivation falls if they are ignored or neglected – they do not by themselves motivate employees.
Herzberg’s theory suggests that managers must provide motivators in the form of satisfying jobs (e.g. through job rotation and job enrichment schemes), and at the same time ensure that the negative hygiene factors do not detract from the work being done.
Douglas McGregor
McGregor identified two opposing attitudes towards the formal organisation of workers. He referred to the negative attitude as Theory X and to the positive attitude as Theory Y. Theory X links to the earlier work of classical theorists such as Taylor, and emphasises the role of money as the main motivating factor.
Theory Y recognises (like Herzberg) the importance of Maslow’s higher-order needs in motivating employees.
Advocates of Theory X support an authoritarian form of organisational structure; supporters of Theory Y argue that the main limiting factors in an organisation are management’s ability and willingness in channelling employee potential. Problems arise when employees who expect Theory Y management are subjected to Theory X approaches, and vice versa: symptoms associated with low motivation (e.g. absenteeism and high labour turnover) will develop.
Pay has multiple meanings when looked at from a job satisfaction view.
Dissatisfaction with pay received can seriously affect the longer-term ability of an organisation to survive. If the better employees start to leave work or work less and the company has difficulty in recruiting new qualified staff then the organisation will have difficulty regenerating itself. This emphasizes the importance of motivation of employees through pay.
Paying money can be an incentive to motivate workers to work harder. Schemes are now being used by HSBC. HSBC sets targets for each department. Employees in those departments can be then rewarded with bonuses once targets are reached. Bonuses are paid at a certain time in a lump sum by HSBC (often at Christmas). Although HSBC give employees bonuses for reaching targets, it may also be for other things. HSBC might give rewards for punctuality or attendance is sometimes used.
HSBC say the problem with regular bonuses is that they are often seen as part of the employee’s basic pay. As a result, they may no longer act as a motivator.
Individual schemes. Individual employees may be rewarded for exceeding a target. The benefit of this scheme is that it rewards individual effort and hence employees are more likely to be motivated by this approach.
Group incentives. In some situations the need is to increase group sales rather than individual output. HSBC can, however, put great pressure on all group members to be productive. It can also be difficult for a new recruit to become part of the group, as existing members may feel they will compensate for their inexperience.
Incentive schemes for managers and directors. In the 1990’s there has been a large increase in the use of incentive schemes for managers and directors within HSBC. These have been linked to how well HSBC performed, often following restructuring, delayering or the privatization of HSBC. Share ownership schemes are often used to motivate managers.
Performance related pay (PRP). Performance related pay schemes link the annual salary of an HSBC employee to their performance in the job. PRP schemes have spread rapidly in recent years and now form an important part of white-collar pay in the public and private sector. Nearly all the major banks, building societies and insurance companies use performance systems and so do HSBC now. The shift towards PRP can be seen as part of a more general movement towards ‘pay flexibility’ in British industry. HSBC has sought to tie pay increases to measure the business performance.
There is a new focus on the individual employee and rewards, which has meant that collective methods of pay determination have become less important. Individual performance is reviewed, usually over a year. This may take the form of comparing performance against agreed objectives.
There are problems with PRP. It is based on individual achievement, so the better a person does the more that person is paid. However, there may be disputes about how performance is to be measured and whether a person ahs achieved enough to be rewarded. Also the system is not likely to work if people do not react to the possibility of rewards by working harder.
Research also shows that HSBC may be out of tune with their employees, placing too much emphasis on incentives. The effectiveness of performance related pay, in particular, is called into questions.
Schemes can be used to overcome resistance to change. HSBC might introduce new technology, such as computers, may offer an incentive for staff to retrain or spend extra time becoming familiar with the new system. Employees often see benefits in such systems of payment. They may feel that they are gaining some control over their own actions in the workplace, being able to work at their own pace if hey so wish. Furthermore, many businesses believe that incentive schemes ought to work, as it is logical to assume that employees work harder if they are offered financial rewards.
Performance Management
Performance management is a tool used by management to monitor individual employee performance. It is in ‘inextricably linked’ with motivation.
Performance management covers reward management which covers developing remuneration (pay) strategies – linking these strategies to individual jobs and people, managing an extensive and complex range of benefits and expenses involved with the workforce and probably most importantly making sure that everyone gets paid the right amount at the right time.
Human resources management is the process by which organisations “seek to generate an acceptable return from their employees efforts”. Management is now recognising that employees are the fundamental assets of any organisation and should be carefully managed to make sure that businesses get maximum value from them. Human resources management is looking to maximise the value provided by the efforts of employees. It highlights the need to adopt sensible and measurable techniques to assess employees’ contributions.
More and more organisations are moving towards performance related pay packages. This includes combining a relatively low fixed salary component with a variable top up component. This may be individual bonuses, team bonuses, and organisational bonuses.
There is also a link between job satisfaction and performance. It is widely believed that improving job satisfaction directly improves performance. Improving employee morale is seen as a way of lowering labour turnover absenteeism and increasing production.
Developing and maintaining fair and appropriate systems of performance related pay is a major challenge for organisations and can lead to some potentially troublesome results.
The staff performance management process is the method by which HSBC staff performance is assessed at regular meetings with their line managers.
HSBC’s staff’s first progress review is a probationary progress review and takes place three months after employees have joined HSBC. Permanent staff at HSBC will have a progress review, which will take place halfway through the performance year, (usually July or August).
The purpose of the progress review is to provide an opportunity for the HSBC staff and managers/supervisors to check on HSBC employees performance so far in the year, and if the employees are on track to achieve their performance standards by the time they have their performance review, and to identify if the employees need any additional support.
It is also an opportunity for HSBC employees to raise any concerns or issues they may have. For head managers/supervisors/team leaders it is a means to discuss things with the employees and make them aware that they need to improve their performance before their next performance review. HSBC management says no performance rating is agreed at this review, it is simply a progress check.
As it has been said before, this general discussion will take place at the three-month point for probationary staff and at six months into the performance year for permanent staff. It will be based around the employee’s progress so far, their successes, and any setbacks that they might have encountered.
How does HSBC motivates its staff
HSBC motivates its staff by offering a lot of rewards. When an employee helps a customer to open an account they are working towards a target. In other words each cashier has a target the have to reach as in they have to open a certain amount of accounts and sell a certain amount of credit cards. If the employees reach this target then there are a number of options the employee can receive. The employees can choose from having a cash bonus, gaining air miles or having more holiday hours. This motivates employees to get more customers to open accounts with HSBC and get credit cards from HSBC is well.
HSBC also try to motivate its employees by inviting the team leader to monthly meetings on hoe to improve the running of the business. This makes employees think that their opinions matter and that they can influence the way that the business operates.
Also senior managers are given certain targets to reach is well. Their branch has to open a certain amount of accounts and give out a certain amount of credit cards. If these targets are met, the credit largely go to the managers, and the managers will receive big bonuses like a company car or paid holiday.
HSBC employees are regularly sent on training programs, this is done to develop their skills. They are sent on training programs every three months, this can be done to develop their skills, learn new skills or to learn new skills with new technology. This motivates the HSBC employees as they think that HSBC care about tem and that they want them to further their career.
Job rotation – HSBC employees often change jobs. Sometimes the cashier will become an advisor to customers one on one. This allows employees to learn new skills and experience other jobs. Employees will be motivated because they have a new job instead of doing the same thing day in day out.
Employment status in Hounslow
As I mentioned before the unemployment level in Hounslow is really low, it is below 3%. This due to fact that lots of businesses have setup within Hounslow. The majority of the unemployed in Hounslow are manual skilled workers. These are people who work with their hands and are more likely to operate in primary and secondary industries. Because of this shortage of skilled workers it is essential for HSBC to hold onto their employees, as it will be hard to find a replacement. The way that HSBC can try to keep their employees is to improve their wage structure, improve working conditions, and give employees some fringe benefits.
On average a full time will earn between £12,000 - £15,000. This means that HSBC should be prepared to pay their employees between or more than this. This way HSBC can keep their employees. Some employees in Hounslow are likely to earn more than this amount, and it is certain that some employee in HSBC will earn more than this average.
It is said that the majority of the people who live in Hounslow are middle class. The average income per family who live in Hounslow is £13,000. The split between males and females is very close, 48% are female and 52% are male. 86% of the people who have employment in Hounslow are skilled workers. This means they are likely to work in offices and do work that will need them to have degrees. A lot of people who go to college go on to university and then get their degrees. This means that they will become skilled workers and can go on to get high paid jobs.
As you can see from the graph on page 12 the unemployment rate throughout Hounslow has been relatively low for the past 7 years. In 1995 the unemployment rate was 3.2%, it has been decreasing dues to more and more businesses starting up in Hounslow. HSBC can use this information by trying harder to keep their staff, as it will be very hard for them to find an appropriate replacement.
Due to the fact that these days when student graduate the university finds them a job straight away for them, this will make it harder for HSBC to recruit new and younger staff.
How HSBC measure the performance of their human resources department
HSBC have a number of ways in which they can measure the performance of their human resources department. In this section I will discuss how HSBC measure the performance of the human resources department.
Number of employees who leave HSBC a year
If a lot of employees leave HSBC, it could be down to the fact that they feel neglected. They might feel that the human resources department don’t care about them, if this is so then the employees are unlikely to have a good chance of promotion and less chance of furthering their careers.
Number of accidents in a year
HSBC could also see how many accidents occur in HSBC or to employess over the year. If many accidents take place during the year HSBC would have to ask the human resources department questions. Why were their so many accidents? Why did the human resources department allow these accidents to happen? It is up to the human resources department to take care of the employees, if a lot of accidents are occurring then it means the human resources department are not doing their job.
Number of applicant for a vacancy
By looking at the number of applicants received for a vacancy. If the number of applicants is low, HSBC will look to the human resources department. It is the job of the human resources department to attract applicants. The human resources department has to write the advertisement, the job description ad he job satisfaction, if this does not look good, it is doubtable that applicants will be attracted to the job.
Hold appraisals for employees working in the human resources department
If HSBC holds appraisals of staff that actually work in the human resources department they can see if these individual employees are working well. If all out of the staff are under performing it means that the human resources deparmtne is under performing as a whole.
Job satisfaction
Interview all staff and ask if they enjoy working for HSBC, if they say no it means that their job satisfaction is low and that the human resources department are not doing their job properly. It means that employee do not feel happy when working at this is up to human resources department to make them feel wanted and for them to enjoy working for HSBC.
In Depth Study into the Recruitment Process
The human resources has a major responsibility, which is to identify future staffing needs and planning for a supply of appropriate labour. Staffing needs may be satisfied from within the organisation by using existing staff more efficiently. This might involve:
- Changing job roles – for example, bus drivers now do two jobs, they drive the bus and carry out the duties of a bus conductor.
- Retraining staff – staff may become more efficient if they use information technology or different methods of working.
- Introducing flexible working practices – for example, annualized hours. Staff on weekly hours may have little to do in slack times but need help from relief workers at busy times. If staff work annualized hours (a set number of hours a year) their work patterns can be arranged to reflect demand, i.e. more at busy times, less at slack times. Relief staff may no longer be needed.
On the following page is a recruitment process HSBC follows. HSBC say this helps them to find the appropriate candidates and to be HSBC employees.
HSBC Recruitment Process Diagram
Analysis of labour market information
Below is a table showing information on the labour market, beside it is my interpretation of the data and how HSBC should use the information.
Examples of HSBC vacancies
HSBC have numerous openings for:
Cashiers
To join our team of professionals, you need to be customer service focused, confident when dealing with money and able to meet the demands of working in a target driven environment. Maths and English GCSE’s are essential, as is commitment to giving the little bit extra in delivering an industry leading service.
Senior Cashiers
Demonstrating the ability and maturity to support the Team Leader, lead by example and improve and develop a team, you need at least a year’s cash handling experience with a solid customer service background – both ideally gained in the cashier industry. You also need Maths and English GCSE’s a clear quality focus and the drive to meet sales targets and exceed customer expectations.
Cashier Team Leaders
Your proven people and performance management skills – preferably gained in cashiers – will have you supervising, motivating and leading a team or teams of cashiers in the promotion and sale of HSBC products. Strong business acumen and a solid track record of maximizing profitability, customer satisfaction and financial performance are essential.
Training and Development
HSBC has a training center dedicated top staff training needs. Soon after employees join HSBC they will be invited to attend an ‘introduction to HSBC’. This comprehensive course gives employees a highly professional start by teaching employees how to add value in customer service and perform to optimum levels within their team. Thereafter, their training and development will follow Learning Tracks relevant to their position and experience, increasing their skills and knowledge and enhancing opportunities for progression. As part of their ongoing development their team leader will have monthly one to ones and quarterly reviews with employees to discuss their performance and ways to help further their progress. They will also invite employees to weekly team briefings to convey key issues that affect the business and monthly team meetings, which focus on HSBC’s targets, company procedure developments and training updates. Employees will also be invited to participate in meetings with the Regional Manager and the UK Director.
Career Progression
By following HSBC ‘Learning Tracks’, employees will have excellent opportunities to progress from cashier to senior cashier-to-cashier team leader or supervisor. Top performers frequently go on to become managers at HSBC flagship sites or Regional or Sales manager. After one years service, HSBC managers offer opportunities within Head Office or other HSBC divisions.
Conclusion
The role of the Human Resource department has grown in significance over the last decade. The importance of their tasks and responsibilities has become realized and most companies have set separate Human Resources Departments whereas previously they might not have. HSBC’s human resources department has had the responsibility of implementing a lot of change recently and it seems that they have not done this in a way that satisfies all their staff. They might need to implement the following changes within the department in order to successfully implement changes within the organisation.
Reform
HSBC has become a sales orientated/driven organisation and is neglecting its staff and their needs. Policies are increasingly tailored towards sales targets and increasing use of technology. HSBC’s Human Resources department needs to address the issues highlighted.
Summary of Problems
- High degree of change leading to instability
- Inadequate staffing levels causing stress and health problems
- Job insecurity (partly due to general changes in banking sector)
- Employees feeling undervalued
- Organisation adopting a culture of being cost and sales driven
- Low staff morale and motivation
Leading to...
- Low quality of customer service and security lapses
Staff at HSBC have been neglected in management's quest to deal with an increasing number of entrants and changes in the banking sector. Staff have become increasingly demoralized and less committed to HSBC. Reform is certainly needed in this organisation and the Human Resources department can help implement this.
The suggestions highlighted can all be implemented by HSBC. The benefits of the scheme are:
- Higher staff morale and motivation
- Adequate staffing levels
- Greater job security and stability
- Wider acceptance and understanding of change
- Reputation for being concerned about the welfare of employees
- More productive workforce
Introducing these schemes will improve the working environment, which in turn will improve the quality of customer service and lead to greater sales and profitability. The proposals will also lead to development of the bank as staff and management work together for the common goal of improving standards and increasing the competitiveness of the bank.
In 1998 HSBC's operating profit* was £1,153 million. Some of this money could be used to fund schemes to improve working conditions for branch staff. It is still important to continue marketing and competitive activities but more emphasis should now be placed on overcoming problems that have been created at branch level and funds channeled into improving employee welfare.
HSBC's mission:
'Our aim is to be the most respected and successful bank'.
They intend to achieve this through "establishing a nationwide reputation for outstanding customer service". They are unlikely to be able to achieve and sustain this ambition without first investing in the people who deliver this service.
Bibliography
HSBC Publications
Midland Bank Factfinder, December 1998
Midland Bank, , Products and Services, Commercial Banking
Midland Bank, Personal Learning Log (of a member of staff)
Midland Bank, Employee Handbook
HSBC Holdings plc, Annual Report and Accounts 1997
HSBC News Release, 1998 Results, 22 Feb 1999
Newspaper Articles
Financial Times, George Graham, 30th Oct 1998, 'HSBC to reshuffle senior executive positions'
Financial Times, George Graham, 28th Nov 1998, 'Midland name to be withdrawn from UK High St'
Texts
Rosenfeld and Wilson, 1999, Managing Organisations, 2nd edition, Berkshire, McGraw-Hill
Business and Economics for GCSE, Collins Educational
Other Reports
BIFU Bulletin, 4th July 1997, More staff needed
BIFU Bulletin, 7th July 1997, Another quiet Christmas?
BIFU Bulletin, 15th March 1999, Pay '99
Datamonitor, 1999 'UK New and Niche Banks'
Mintel, January 1995, Banks
Mintel, January 1996, Banks and Building Societies
* for HSBC Midland UK only
Midland Bank, Annual Report, 1998
Midland Bank Factfinder, December 1998
