Compensation and Benefits of banks at Canada - Research Paper Example

 Compensation and Benefits of Canadian Banks Scotia Bank Scotia Bank is a subsidiary of the ScotiaMcleod group. The total compensation packageat Scotia Bank comprises a variation of different elements. There are two types of cash reward systems: incentive/merit pay and basic pay (Media.scotiabank.com, 2015). Scotia Bank emphasizes a strict philosophy of performance pay, stressing on remunerating staff workers with a competitive basic pay for the normal duties assigned to them, their contributions and accomplishments towards achieving the banks bottom line. At the same time, the bank has a system of rewarding top performers with a merit pay structure, aimed at increasing the basic pay annually for employees said to have achieved their targets. Merit pay is based on performance. All employees are paid very competitive starting salaries. However, salary increments are based on merit. The company promotions are also given at the discretion of the management, with clear structures that are based on performance evaluation. Part of the banks benefits package includes the Flex benefits program, designed by the banks management according to each employee's specific needs. The bank additionally distributes some credits in an allotment program carried out every year. The Flex credits are unique to Scotia Bank, and they act as an incentive for employees to put in extra effort in their work with the promise of being awarded these credits every end year, redeemable with Canadian Dollars. Other non-financial benefits for Scotia Bank include the Health insurance, the dental plan, life insurance, emergency medical coverage, pension plan, paid annual leave days as well as investment packages exclusive to staff members only (Scotiabank.com, 2015). Employment Potential at Scotia Bank Scotia Bank follows a systematic recruitment program to get the best workers within the Canadian job market. The HR policies and procedures are followed strictly when procuring candidates for positions within the bank. A job evaluation exercise is initially carried out by the HR department for any vacant post that arises, which is subsequently followed by an advertisement process. The bank believes in grooming its employees to take up positions in the bank as they arise (Carmona, 2009). Therefore, it means that a suitable candidate will first be sourced from within the bank and its subsidiaries. Upon issuing an internal advertisement within the bank, internal staff members are allowed to apply, subject to a rigorous interview process aimed at finding a suitable candidate. Therefore, for staff members already with the bank, there are added chances for securing positions in better departments, if qualifications warrant so. Failure to find a prospective candidate within a stipulated period prompts the HR department to advertise externally, with local media and other public media outlets (Scotiabank, 2015). The process is carried out just like any other recruitment process. HSBC Canada HSBC Canada is a subsidiary of the larger HSBC Bank Plc., which is one of the biggest banks in the world regarding assets and market capitalization. Therefore, HSBC Canada compensation and benefits system is a replica of the bigger bank headquartered in London (Hsbc.com, 2015). The methodology applied by the bank in rewarding its employees is categorized into four segments: annual leave, fixed monthly salaries, pay awards given at the discretion of the management of the organization based on performance and a set of other benefits covering segments such as insurance, savings, work-life balance, personal development, career growth, promotional and training programs etc. According to Thompson (2013), the company is renowned for having one of the best employee reward system, with a very competitive basic monthly pay. The company believes that manner in which individuals attain their objectives is paramount to the performance of the organization in the long-term, which translates to evaluating whether the company will be able to sustain its operations in the end or not. To motivate its employees all year through, HSBC carries out performance reviews every end of the year to determine the top performers. They are thus awarded with incentive pay in the form of higher bonuses and pay packages. Performance is evaluated on a case-to-case basis, as well as departmental and team effort. HSBC's remuneration approach includes both performance related benefits and the company's discretionary pay awarded at the end of every year. These two pay systems are meant to reward success in a fair manner while ensuring that whatever is given to the staff members as payment is strategically aligned with the company's business objectives. Individual performance is therefore assessed with regard to long-term and short-term financial and non-financial goals. The company additionally provides its employees with the "work from home" option, depending on the circumstances. The applicability of this benefit is given to staff workers with special needs, and those deployed to the field mostly operating in sales. The company has fringe benefits such as annual leave of 30 days every year, applicable to every member of staff. It also has a medical insurance cover and life insurance (Hsbc.com, 2015). Employment Potential at HSBC HSBC offers employment opportunities to develop a satisfying career and serve clients as well as fellow staff members within the larger HSBC group. The bank has roles available in sections that include investment and commercial banking, wealth management and retail banking. HSBC Canada additionally provides careers in support and operational functions, for instance, marketing, risk and finance. HSBC Technology, Operations and Services additionally have a noteworthy existence in Canada (Arnold & Jenkins, 2015). The stated parts provide HSBC Canada with technical, IT and operational services to both HSBC worldwide and HSBC Canada. HSBC Canada scouts for individuals that are ambitious and intend to develop their personal careers thus contributing to the Banks sustainable long-term growth and development. HSBC looks for individuals that can assist in achieving its strategy, economic considerations, managing environmental and social balance in addition to managing risk accordingly. In ensuring that the company achieves its growth targets in the right manner, it appropriates great importance on its values. HSBC Canada is dedicated to exercising the highest level of standards all through the bank different sections, in all its departments in Canada. HSBC Canada believes it is of paramount importance to provide support to its staff members in their personal lives as well as tin their work. The bank provides a tailored approach to simple operability that makes it possible for staff members to have an agreement on a work schedule that is suitable to them, their main stakeholders, the core business and the HSBC Canada team (About.hsbc.ca, 2015). References Arnold, M., & Jenkins, P. (2015). HSBC: Shrink and simplify. Financial Times. About.hsbc.ca,. (2015). Careers - About HSBC | HSBC Canada. Retrieved 14 November 2015, from http://www.about.hsbc.ca/careers Carmona, J. L. (2009). “Scotiabank is always looking for opportunities.” Caribbean Business, 37(38), 4 Hsbc.com, (2015). Benefits - Careers - HSBC Holdings plc. Retrieved 14 November 2015, from http://www.hsbc.com/careers/why hsbc/benefits?WT.ac=HGHQ_Careers_WhyHSBC_Benefit1.1_On Media.scotiabank.com, (2015). Home. Retrieved 14 November 2015, from http://media.scotiabank.com/cdaen/ Scotiabank.com, (2015). Careers @ScotiaMcLeod | ScotiaMcLeod. Retrieved 14 November 2015, from http://www.scotiabank.com/ca/en/0,,705,00.html Scotiabank (2015), Personal banking for owners and employees, retrieved from http://www.cfib-fcei.ca/english/article/5620-scotia-personal.html Thompson M., (2013), HSBC CEO made $11 million in scandal-hit year, Retrieved from http://money.cnn.com/2013/03/04/news/companies/hsbc-ceo-pay/ Read More