Investigation of HSBC Bank's Equality and Diversity Strategy - Example

Investigation of Equality and Diversity Strategy Report Yanallah Awad Al-Qahtani HSBC 06-Nov Executive Summary HSBC is widely recognised for its employee friendly policies and practices. The company still strives to be the best in terms of equality and diversity. The organisation currently holds and manages thousands of employees across the global. By adopting appropriate diversity management practices, the company sustains a comprehensive, well-adjusted, and stable employment condition. This furnishes HSBC the ability to confront all forms of problems, challenges, and issues. The company prioritises its employees and guarantees their privileges and rights are respected. It prioritises the value of inclusiveness, which consequently forms the foundation of HSBC’s diversity approach. The organisation also promotes local adaptability and equality by launching employee- and family-friendly programmes like Childcare Scheme, Gender Plan, Flexible Working Policy, and so on. The company is clearly focusing on its diversity and equality programmes in order to enhance employee retention rate, employee morale, and customer satisfaction. Its organisation is becoming one of the benchmarks across the globe in terms of HR management. Adopting and implementing appropriate HR strategy HSBC will eventually be the topmost in the field of HR among the competitors. This report analyses and discusses the HR strategy of HSBC, especially how it promotes diversity and equality among its employees. Some of their policies that encourage equality and diversity are discussed in this report. This report is carried out in order to identify the best equality and diversity management practices adopted and implemented by HSBC. This is to identify which among these HR strategies work best in actual practice. Table of Contents Section Title Page Number 1.0 Terms of Reference 4 2.0 Procedure 4 3.0 Findings 5 3.1 Workforce System and Diversity 5 3.2 Inclusivity 6 3.3 HSBC’s Policies Promoting Equality and Diversity 7 4.0 Conclusion 9 5.0 Recommendations 10 6.0 References 12 7.0 Bibliography 13 1.0 Terms of Reference This report is requested by the HR Director Mr. Brynach Heeffernan on 16-Oct-2014. The purpose of the report is to investigate the Equality and Diversity. This report chooses HSBC as the topic of research. This report is compiled by HR Assistant Yanallah Al-Qahtani. The problems discussed here are the following: (1) how does HSBC manage a global workforce; (2) what diversity management approaches are adopted and implemented by HSBC; and (3) what policies does HSBC create in order to promote equality and diversity. This report is submitted on 6-Nov-2014. 2.0 Procedure This report has been written with a detailed outline in order to thoroughly analyse and discuss the HR strategy adopted by HSBC in order to promote equality and diversity. Several kinds of sources of information are used in writing this report, particularly textbook, peer-reviewed articles, relevant websites, and so on. Only secondary sources are used in this report. No primary sources, such as questionnaires or interviews, are included here. Time and budget constraints hindered the conduct of procedures to acquire primary information. 3.0 Findings HSBC is a British financial holding enterprise that originated from Hong Kong and Shanghai. The company was fiercely competing throughout Asia with Chase Manhattan which expressed plans to enter Malaysia and India. HSBC prevented this by acquiring the bank (Haig, 2006). Diversification had lost its popularity even though it was just in 2000 when the practice of acquisition became relevant again all over Asia. HSBC has declared that e-commerce will transform the foundation of the financial services institution and views it as a means of looking for new customers across the globe and enhancing its services to current customers (Ahlstrom & Bruton, 2009). 3.1 Workforce System and Diversity According to Ready and Conger (2007), HSBC has developed a workforce system that monitors and supervises the careers of highly talented and skilled employees (as cited in Crawshaw et al., 2014). Employees in this system are chosen primarily for new tasks in their area of interest or region and, over time, are assigned to tasks that go beyond borders so as to prove that they have the capability to attain a senior management position. They can afterward be categorised under the talent pool, which implies that they capability to attain the senior management position within a few years, as well as long-term top management role. Leaders carry out talent relations discussions with individuals within every pool so as to deal with their development issues and requirements (Hawkins, 2012). HSBC has a globally diverse workforce with members coming from more than 140 countries. The company regards diversity management as a routine ‘business truth’ and the company had to be dynamic and positive in how diversity is identified and made essential throughout the organisation (Schuler et al., 2011). The company applies a business case model of diversity management. HSBC allocates a substantial amount of resources to global diversity management programmes because they are confident that it can generate sizeable returns through enhanced customer service, which consequently raises the company’s profits. However, identifying and applying diversity can be challenging. HSBC have used a wide-ranging analysis of the notion of diversity and implement it to create an environment of broadmindedness and, essentially, giving greater importance on the input that every employee can contribute to the organisation, regardless of their way of life and background. This wide-ranging definition facilitates the customised management of diversity in every operating region across the globe. For instance, in the UK the emphasis on promoting and expanding the involvement of women by supporting a greater number of applications thru the graduate recruitment programme (Brown & Grundy, 2012). In subordinate companies in Latin America, on the other hand, broader social inclusion programmes are the top priority because incorporating various social groups into the organisation is of main concern (Gitsham, 2012). 3.2 Inclusivity Inclusiveness is a principle that characterises HSBC’s diversity approach and facilitates local adaptability or flexibility. The regions are persuaded to integrate this principle within every management process and the support for flexible working throughout the company represents the idea and recognition that not everybody can and will have similar work hours and performance yet still within an inclusive setting, the individual can contribute substantial value to the company (Haig, 2006; Yaeger & Sorensen, 2009). This inclusiveness model is reinforced by an array of global management techniques. HSBC has diversity teams in every of its business unit all over the world. These teams comprise human resource representatives and senior managers from the various regions and monitor and standardise the global diversity approach (Loosvelt, 2006). Furthermore, the company has a worldwide diversity training system, as well as regional training, for every management level. The global training highlights behaviours, attitudes, and values and promotes openness and responsiveness to new insights and knowledge and various approaches to work. HSBC, holding the slogan ‘the world’s local bank’, strongly embraces the principle that focusing on diversity and giving greater importance on diversity management practices will achieve a commercial effect (HSBC Holdings plc, 2011). 3.3 HSBC’s Policies Promoting Equality and Diversity The goal of the staffing procedure is to target employees most capable of carrying out the tasks in an organisation competently. This involves an effort to finding the type of information needed for determining each applicant’s likelihood to be successful or unsuccessful in coping with the job or tasks before being employed by the company (Syrett, 2012). It must be emphasised that the level of work performance is also generally regarded a measure of adjustment to the job. HSBC is confident that diversity generates only benefits for their members, their organisation, and their customers. The company believes that the larger the number of perspectives that they possess, the more able they are to satisfy the needs of their largely diverse customer base across the globe, whether they are seeking financial goods in line with their religious values, preparing for their retirement, trading with new markets, or opening up a business. This is the reason why HSBC is working towards genuine diversity. The company is building a working environment that is accommodating, helpful, and comprehensive at all levels; a working environment where originality, individuality, and innovativeness is supported, and recruitment and promotion are founded on performance or merit (Page, 2007; Martin & Hetrick, 2006). As stated by Stuart Gulliver, the HSBC Group Chief Executive, “I would like people to view HSBC as a responsible institution, which is aware of its role in the community, is trusted by its customers, is a good and fair employer, and offers a stable, attractive and positive return to its shareholders” (HSBC Holdings plc, 2011, p. 10). The introduction of the Childcare Scheme in 1989 by the company has been very effective in strengthening the organisation through high rates of employee retention and helping employees attain work-life balance. More than 80 per cent of female workers go back to the company after the duration of their maternity leave (Carter et al., 2011). The Childcare Scheme gives admission to a large number of nurseries all over the UK. Furthermore, childcare support is currently offered to parents with children aged 16 and below. Workers can substantially save from their childcare expenditures from National Insurance free aids and taxes. Furthermore, women’s representation at top management is gradually improving and there are additional single-minded goals prepared by means of a Gender Plan to guarantee this positive development keeps on (Han et al., 2012). A Flexible Working Policy is accessible every employee and provides alternatives like home-based jobs, spaced out hours, and job sharing. HSBC is aware that not everybody will or has the ability to work similarly and flexible working abolishes shortcoming and discrimination to involvement in the workplace (HSBC Holdings plc, 2011). Roughly 24 per cent of workers are classified as part-time employees. This number does not count the other workers who are under flexible hours, as well as working from home or compressed hours. A virtual job share system is also accessible, which allows workers to create a professional job sharing collaboration (Schuler et al., 2011; El-Bannany, 2008). HSBC promotes an array of family friendly programmes to help workers balance their duties at work and at home. This comprises family leave, which roughly 20 per cent of workers avail every year. This is remunerated leave in emergencies to care for ill children, impaired or chronically ill elderly or relatives (HSBC Holdings plc, 2011). The company also provides a Priority Returner Scheme for workers who choose to take a leave of absence to become a primary caregiver. This implies that workers keep precedence over outside candidates for job openings when they request to go back to the company after their leave (Crawshaw et al., 2014). HSBC remains at the top of the Opportunity Now scale and is acknowledged as a UK Exemplar Employer in terms of equality and diversity, especially with regard to gender. Exemplar is a collaborative venture formed between Opportunity Now and the Women and Equality Unit (HSBC Holdings plc, 2011). 4.0 Conclusion Apparently, as discussed above, HSBC is commendable in its equality and diversity HR approach. The company has developed a workforce system that monitors and supervises the careers of highly talented and skilled employees. It applies a business case model of diversity management. HSBC allocates a substantial amount of resources to global diversity management programmes because they are confident that it can generate sizeable returns through enhanced customer service, which consequently raises the company’s profits. Inclusiveness is a principle that characterises HSBC’s diversity approach and facilitates local adaptability or flexibility. Equality is also promoted by the company through policies such as Childcare Scheme, Gender Plan, Flexible Working Policy, family friendly programmes, and so on. HSBC surpasses three leading banking and financial services, namely, Wells Fargo, Citigroup, and Barclays, in terms of equality- and diversity-oriented HR strategies. Wells Fargo, Citigroup, and Barclays resemble HSBC’s HR approach to diversity in several ways. These companies promote and support respect for culture and encourages teamwork among individuals of different cultural backgrounds. However, Wells Fargo has no impressive record in the field of employee- and family-friendly policies, unlike HSBC (Crawshaw et al., 2014). Citigroup, on the other hand, has several recruiting partners, such as Women for Hire, Sponsors for Educational Opportunity, etc. that guarantee equality within the company (Syrett, 2012). Similarly, Barclays implement a global diversity and inclusion approach which currently serves an important role in their operations and balanced scorecard. The company has five global agenda foundations of multicultural, multigenerational, disability, LGBT, and gender (Crawshaw et al., 2014). 5.0 Recommendations Discrimination is one of the staffing problems that HSBC must take into consideration in future actions towards worldwide expansion. Discrimination weakens the productivity of members of any organisation and it damages personal relationship. The company must provide an appropriate solution to discrimination so that it will not hinder the growth of the organisation in the coming years. Employee morale is another staffing concern. There are several cases where employee morale is down. This makes them less productive and competent. Furthermore, a staffing concern that must be taken into consideration is harassment not just among rank-and-file employees and superiors but between their colleagues too. This brings about interruption of the company’s usual, standard operations. Ultimately, compensation is a staffing concern that requires much attention. The needs of the employees change in accordance to their compensation. It relies on the changes that are taking place in the economy. HSBC should distinguish when to raise compensation to guarantee that they will come across no difficulties in the future. References Ahlstrom, D & Bruton, G (2009) International Management: Strategy and Culture in the Emerging World. Mason, OH: Cengage Learning. Brown, L & Grundy, T (2012) Value-based Human Resource Strategy. UK: Routledge. Carter, G et al (2011) Career Paths: Charting Courses to Success for Organisations and their Employees. UK: John Wiley & Sons. Crawshaw, J et al (2014) Human Resource Management: Strategic and International Perspectives. Thousand Oaks, CA: SAGE. El-Bannany, M (2008) “A study of determinants of intellectual capital performance in banks: the UK case,” Journal of Intellectual Capital, 9(3), 487-498. Gitsham, M (2012) “Experiential Learning for Leadership and Sustainability at IBM and HSBC,” Journal of Management Development, 31(3), 298-307. Haig, M (2006) Brand Royalty: How the World’s Top 100 Brands Thrive & Survive. UK: Kogan Page Publishers. Han, L et al (2012) “The use and impacts of bank support on UK small and medium-sized enterprises,” International Small Business Journal, 32(1), 61-80. Hawkins, P (2012) Creating a Coaching Culture: Developing a Coaching Strategy for Your Organisation. New York: McGraw-Hill International. HSBC Holdings plc (2011) “HSBC Sustainability Report,” HSBC Holdings plc Sustainability Report, 1-32. Loosvelt, D (2006) Vault Guide to the Top Financial Services Employers. UK: Vault Inc. Martin, G & Hetrick, S (2006) Corporate Reputations, Branding and People Management: A Strategic Approach to HR. UK: Routledge. Page, S (2007) “Making the Difference: Applying a Logic of Diversity,” Academic Management Perspective, 21(4), 6-20. Schuler, R et al (2011) “Global talent management and global talent challenges: Strategic opportunities for IHRM,” Journal of World Business, 46(4), 506-516. Syrett, M (2012) The Economist: Successful Strategy Execution: How to Keep your Business Goals on Target. UK: Profile Books. Yaeger, T & Sorensen, P (2009) Strategic Organisation Development: Managing Change for Success. UK: IAP. Bibliography Healy, G et al (2010) Equality, Inequalities and Diversity: Contemporary Challenges and Strategies. New York: Palgrave MacMillan. Kirton, G & Greene, A (2013) The Dynamics of Managing Diversity. London: Routledge. Kumra, S & Manfredi, S (2012) Managing Equality and Diversity: Theory and Practice. UK: Oxford University Press. Read More