HRM Practices in Banking Sector: Rewards and Compensation System

Running Head: HRM PRACTICES IN BANKING SECCTOR
HRM practices in banking sector
Rewards and compensation system

HRM PRACTICES IN BANKING SECCTOR 1
Table of Contents
Introduction......................................................................................................................................2
HSBC and its employees.................................................................................................................2
Pay for performance........................................................................................................................2
Rewards system designing and its complexities..............................................................................3
Complexity factors of designing a rewards and compensation system.......................................3
The Multi factor.......................................................................................................................3
Balancing global and local.......................................................................................................3
Driving extended process........................................................................................................4
Optimizing the budget.............................................................................................................4
Reward system of HSBC.................................................................................................................4
Rewards system in Australia.......................................................................................................4
Reward system in US...................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

HRM PRACTICES IN BANKING SECCTOR 2
Introduction
Employees and organization, in the global world are facing the increasing speed of business
activities as well as career internationalization since mid of 90’s. Since then expatriation has
become a normal part of business career advancement either assigned or self-initiated (Beer,
Boselie, and Brewster, 2015). This normal part in business career advancement is also an
essential prerequisite step for some managerial positions in their home country, host country or
in third party country. Expatriation includes employees able to transfer technical, for instance,
administrative or management practices, improve communication between head office and its
subsidiaries, to ensure organization policies, coordinate activities between HQ and subsidiaries,
many more skills required to manage the organization’s business in foreign countries (Allen,
Lee, and Reiche, 2015). In such practices management has to design a separate reward and
compensation system for their expatriate employees working in any of the parent country, host
country, or third party nations.
This report discusses the complexity of designing a reward and compensation system for such
expatriate employees. Further part of the report discusses an existing reward system of HSBC in
its
HSBC and its employees
HSBC was started with a simple idea of becoming a local bank for international needs. Bank is
more than 150 years old and headquartered in London. Bank has expanded its international
banking network in 66countries comprising of around 3800 offices. Most of the business
operates in Europe, America, Middle East, North Africa, and Asia. This huge network of the
bank outsource for its human resource need.
Organization encourages both the horizontal as well as vertical move for employees hence,
HSBC encourage its employees to apply for their suitable positions across the organization
network. In the organization it is employees’ responsibility to apply for a suitable position.
However this opportunity is not for employees, in their probation period or for those who have
joined a new position, to apply for within six months of working at the new position. HSBC also
apply some strategic methods of human resource management to select most logical and efficient
candidates to operate its international business network. In order to take care of organization’s
expatriate employees bigger branches have minimum 20 HR personnel while smaller branches
have minimum 3-6 HR personnel. These HR personnel are employed to monitor and motivate
the performance of respective branch employees (HSBC, 2018a).