Nedra Hollins & Jorge Cardenas
June 16, 2011
In today’s fast paced competitive business environment, banks who wish to attract, retain, and engage highly qualified employees must ensure that their employee benefit plan is at best comparable to industrystandards. While cost can be exorbitant, it’s crucial to recognize keeping abreast of industry trends and redefining benefit plans to meet employee needs will enable organizations to maintain a competitive advantage.
Hong Kong and Shanghai Banking Corporation (HSBC) is one of the leading banking and financial services institutions in theworld head-quartered in Canary Wharf, London. HSBC provides an impressive and comprehensive range of financial services to around 100 million customers globally through four customer groups and global businesses: Personal Financial Services (including consumer services), Commercial Banking; Global Banking and Markets; and Global Private Banking. Since its conception over a century ago, HSBC hashad one central focus: a local bank serving local needs. Given HSBC strengths as a multinational company who has been in existence for over a century as a leader in the banking industry it’s imperative that they offer competitive benefit package in order to keep a competitive advantage. We will examine their organizational background, current benefits information, and provide recommendation basedon two scenarios:
1. An anticipated 20% reduction in revenues next year, with a desire to maintain current staffing levels in hopes of an economic turnaround.
2. The company expects a large revenue growth next year, and can afford to add enhancement benefits.
HSBC was founded on March 1865 in Hong Kong as a local bank serving local needs, and now as one of thelargest financial services organization in the world it embodies the same idea. According to Erin Davis equity manager for the Morning Star (Davis, 2011) HSBC success has been its ability to build on its core strength “its steady traditional banking business, its global reach, and its conservative deposit funding base. Today, HSBC has five governing principles: outstanding customer service,effective and efficient operations, strong capital and liquidity, conservative lending policy, and strict expense discipline.
As a public limited company (plc) HSBC is an international banking and financial servicing provider comprised of over 7,500 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa. HSBC is listed on the London, HongKong, and New York, Paris, and Bermuda stock exchange as HSBC Holdings plc which is held by over 221,000 shareholders in 127 countries and territories. HSBC offers a diverse workforce of over 335,000 people who serve a customer base of around 100 million people.
HSBC mission and strategy is:
* Leading in our chosen markets
* Delivering an outstanding client experience based onexcellence in sales, service & solutions
* Achieving a superior, ethically based, long-term return for our shareholders
* Building highly motivated, high-performance teams
* Creating a challenging, rewarding and fun work environment
* People: Attract, retain and reward top performers.
* Execution: Perform with skill and speed.
* Customer-Centered: Alwaysprovide exceptional customer service
* Efficiency: Lower our costs and use resources wisely.
* Profitable Growth: Grow sales and increase our revenues.
* Credit Quality: Maintain credit quality and understand our role in managing losses.
* Ownership: Own our performance and our results.
Current Benefits Information
HSBC employee benefit package falls into 3 categories: Healthcare,...