Discuss about the People Culture and Contemporary Leadership.
People in an organisation are very important assets for the organisation. A skilled and motivated workforce assists an organisation to efficiently attain the organisational goals in the stipulated time (Ardichvil, 2015).Employee engagement is a tool through which employee performance can be enhanced (Albrecht, et al., 2015). The following study tries to understand the HR practices and employee engagement in Hong Kong and Shanghai Banking Corporation (HSBC) holdings PLC. The study will try to assess the various HR practices of HSBC. It will further assess the employee engagement at HSBC and finally will recommend some initiatives which can improve employee engagement at HSBC.
HSBC is a global banking company with headquarters in London. It has branches all over the glove including Australia (Gakovic & Yardley, 2007). HSBC is one the largest banking and finance companies in the world in terms of sales revenue. HSBC was founded in 1868 in UK and set up its branches in Hong Kong and Shanghai by the HSBC holding corporation. However, it was reincorporated in its present form in 1991 (Kynaston, 2015). HSBC is present in 70 countries in the world and is a well reputed and recognised organisation. The organisation has a strong and well established human resource department and is very active in training and development of the workforce (HSBC, 2016). The firm prides itself on being a learning organisation and believes that workforce is the driving force of its success (HSBC, 2017). Therefore, it would be interesting to understand the HR practices and employee engagement at HSBC.
HSBC functions in the financial sector; therefore, it believes in formulating a trust worthy and long lasting relationship with all its stakeholders (HSBC, 2017). HSBC believes in generating value for the customer by being committed to them. HSBC’s vision is to be the most trusted financial institution in the world and to be one of the best in wealth management and retail banking sectors (Kynaston, 2015). The organisation also strives to connect its customers to a world of economic opportunities. HSBC delivers a service; therefore, it understands the importance of people. Their business strategy is to grow as a bank with the help of its skilled workforce (HSBC, 2017). Therefore, the firm is open to different ideas and cultures from its workforce.
HSBC believes that it can generate value for the customers through its financial products if the workforce is skillset in managing the financial operations (Gakovic & Yardley, 2007). For the purpose of generating and procuring a skilled workforce HSBC has a well structures human resource department. The HR department manages recruitment, selection, training, motivation and performance appraisal of staff (HSBC, 2016). The organisation tries to hire the best possible skilled people in the field of finance, marketing and sales to provide the best products and services to the customer.
At HSBC, tasks are conducted in teams and idea generation is encouraged so that the employee feels enthusiastic and a part of the organisation (Kramar, 2012). HSBC is very conscious about the need for training and development because it exists in an atmosphere where financial changes in the economy can change sales dynamics (Gakovic & Yardley, 2007). Therefore, to handle such situation it gives training to its employees on products and services, transferability skills, decision making skills and analytical skills. HSBC believes that organisational objectives can be better achieved by a trained, motivated and engaged employee (HSBC, 2017). For example, training employees in financial knowledge will help HSBC to attain its objective of becoming the best financial and banking company in the world.
HSBC uses motivational measures like performance linked bonuses, target oriented pays, other rewards to maintain high performance level (HSBC, 2016). Periodic performance appraisal is done so that high performing employees can be rewarded. Positive and constructive feedback is given to employees who need to improve. They are given learning opportunities. Discussions, idea generation and team work is encouraged (HSBC, 2016). Therefore, through its training and development activities HSBC has generated a committed and an engaged work force.
Employee engagement is an approach of human resource management which aims at absorbing the employee fully into their work and making them enthusiastic and happy about it (Bal, et al., 2013). Happy employees are engaged employees. Such employees show commitment and trust towards the organisational goals and values. Such employees are motivates to work for the company (Boon & Kalshoven, 2014). Fundamentals of employee engagement are trust, commitment, two way communication and integrity (Boon & Kalshoven, 2014). HSBC tries to enhance commitment level of employees by providing continuous training. Employees are encouraged to work in teams so that they are able to work in a cooperative and happy atmosphere. They are also encouraged to generate ideas and discuss attainment of firm’s objectives. Promotions, transfers and increment are based on performance (HSBC, 2014). Performance appraisal is transparent so that employees trust the company. Employees are motivated through performance linked bonus, participation in decision making and career growth prospects (Employee benefits , 2013). All this leads to increased employee happiness leading to retention.
There are various elements or driving factors of employee engagement (Truss, 2013). A few of them are
Involvement- involvement is making employees feel a part of the decision making process. Involvement can make the employee work more happily (Macey, 2011). This can be done by encouraging them to contribute to generate ideas and empowering them by giving them responsibility and authority (Zhang & Bartol, 2010). If employees are involved in all processes of the organisation they will become more creative (Boon & Kalshoven, 2014). This will make them engaged with the organisation. Encouraging employees for idea generation is a part of the core value of HSBC (HSBC, 2017). Therefore, the firm tries to involve its employees in various processes.
Trust and respect- Trust and respect of all stakeholders for each other will lead to better work atmosphere (Shuck, et al., 2013). If employees will trust each other and management will trust employee, there will be free communication and exchange of ideas. Consequently, it will increase commitment level and employee engagement (Shuck & Wollard, 2010). As HSBC sells financial services it tries to inculcate an atmosphere of trust by creating transparency in working between staff, leadership and management (HSBC, 2014). Therefore, HSBC strives to create a committed workforce through an atmosphere of trust.
Culture- A good corporate culture of cooperation, helpfulness, discussion and openness leads to happy and satisfied employees who like to work for the organisation (Shuck, 2011). Better corporate culture also improves the productivity of employees because it enhances commitment level and trust. This results in improved profitability (Maylett & Warner, 2014). HSBC tries to create an open atmosphere through team work (HSBC, 2017). Management is committed to inculcate healthy discussions and idea generation. Therefore, work culture at HSBC is open and healthy.
Rewards and Recognition- An organisation recognising good performance and talent and rewarding it, earns the respect of employees (Hutchinson, 2011). Employees tend to become happier with their work and work harder if their work is recognised. Employees feel engaged with the organisation if they are given credit for the hard work they put in (Bridger, 2014). HSBC recognises employee work and talent. There is performance linked appraisal system and recognition of good work at HSBC (Gakovic & Yardley, 2007). Additionally, the firm believes in talent management and career progression. It recognises years of services and has rewards for excellent performance (HSBC, 2014). Therefore, the firm strives to make sure that employees feel their work is recognised and rewarded.
Communication- Workforce feels satisfied, involved, happy and engaged in the organisation if there is open and free flow of information (Exter, 2013). An atmosphere of too much secrecy can breed distrust. Procedures and policies should be open and accessible to employees (Byrne, 2014). Transfer and promotion policy should be uniform, non-discriminatory, based on merit and clear to employees. This will help improve employee retention (Hutchinson, 2011). HSBC has employee hand book which has all employee related polices. Employment terms are transparent. Performance management system is also transparent. Feedback is discussed with the employee (HSBC, 2014). Hence, there is free flow of communication at HSBC.
Empowerment- Giving strategic roles to employees and making them responsible for key decision can also make employees feel involved and happy (Byrne, 2014). At HSBC managers are given key roles with authority and responsibility for decision making (HSBC, 2017). This gives a sense of commitment, responsibility, loyalty and involvement and engages the managers in the organisation so that they work towards fulfilment of organisational goals.
Professional and personal growth- If an organisation will give training opportunity to employees, so that they can endow their skills for both personal and professional development, the employees will feel more committed and responsible for the organisation (Shuck, et al., 2013) Employees can be made more engaged by giving them practical on the job as well as off the job training (Truss, 2013). HEBC is a learning organisation. The firm prides itself on its talent management and training endeavours (Gakovic & Yardley, 2007). Therefore, the employees feel engaged.
Hence through a series of methods like communication, involvement and training HSBC manages to keeps its employees engaged.
Though HSBC is an organisation which aims to make its employee engaged though transparency in policies and training; however, there is always scope for improvement (HSBC, 2016). Following are some initiatives which can further help in improving employee engagement at HSBC.
Plan for Initiatives to Improve Employee Engagement at HSBC
|
Initiative |
Reasons for choosing |
Action and rationale |
Expected Impact |
|
Giving incentive to employees for training in different roles in the organisation. |
· Employees will feel that they belong to the organisation · They will feel good about the fact that the organisation wants to give them multifaceted training. · This will lead to employee engagement due to improvement in involvement and commitment |
· Assessment must be done of each employee’s capability and training need · Based on various learning styles and theories suitable to each employee like visual, auditory or reading and writing, training programme should be designed. · This will help in improving happiness and involvement of employees. |
· This will boost the confidence of the employees and they will feel that the organisation cares for their career growth · This will make them more committed and involved leading to increase in employee engagement |
|
Encouraging teams to set values for conduct and goal achievement and evaluation every of month which employee successfully represent the value |
· Improving values will improve the work culture in the organisation. · As per employee engagement theory work culture needs to be healthy for the employee to feel engaged. |
· At the start of the month a team meeting to set up values for the month like courage, out of the box thinking, integrity etc. · Monitoring of employee behaviour · Deciding which employee showed that value the most and rewarding hem |
· This will lead to an inculcation of setting up good work culture. · Employees will learn to behave and work as per company value. · This will lead to an environment of collaboration, and cooperation · Employees feel good to work for the company leading to employee engagement |
|
Enhancing employee happiness by activities like declaring employee of the week. Rewarding employees completing maximum sales every month and activities like celebrating success with employees through events |
· As per employee engagement theory happy employees are more involved and commented. · Reward recognition and celebration will lead to feel of greater involvement of employees |
· Having a best employee drive and weekly choosing best employee · choosing and rewarding one employee every month who maximised sales · Any new success of the firm like increase in profits, to be shard and celebrated with employees through events |
· This initiative will impact the employee happiness quotient and sense of belongingness |
Table1 Source: Made by Author (2017) Adapted from Truss, (2013)
Therefore, these initiatives will help in further enhancing employee engagement a HSBC
Conclusion
Employee engagement is about bringing the employees with in the fibre of the organisation and making them feel that they do not just work for the organisation but are a part of it. Through employee engagement, employee happiness can be enhanced which can lead to better productivity and efficiency. To improve employee engagement a firm must include employees in the decision making process, be transparent with them and communicate freely.
References
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Ardichvil, A. A., (2015) Human Resource Development. London: Routledge.
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Boon, C. & Kalshoven, K., (2014) How High?Commitment HRM Relates to Engagement and Commitment: The Moderating Role of Task Proficiency. Human Resource Management, 53(1), pp. 403-420.
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Kramar, R., (2012) Human Resource Management in a Global Context: A Critical Approach. Hampshire: Palgrave Macmillan.
Kynaston, D., (2015) The Lion Wakes: A Modern History of HSBC. Stockingford: Profile Books.
Lencion, P. M., (2011) Managing for Employee Engagement Participant Workbook. New Jersey: John Wiley & Sons.
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Shuck, B., (2011) Integrative literature review: four emerging perspectives of employee engagement: an integrative literature review. Human Resource Development Review, 10(3), pp. .304-328.
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