Human Resource Management Report: Bank of England Analysis

This report provides an in-depth analysis of the human resource challenges faced by the Bank of England. It begins with an introduction to the bank's mission and vision, followed by a discussion of emerging HR issues such as employee retention, skills gaps, and the importance of an attractive organizational culture. The report then explores the impact of technology on HR practices, including communication, data security, and recruitment. It proposes effective HR strategies, including workforce planning, talent management, and employee engagement initiatives. Furthermore, the report outlines methods for evaluating the return on investment of these HR strategies. Finally, it offers recommendations for improving HR operations and concludes with a summary of the key findings.

Running head: HUMAN RESOURCES
HUMAN RESOURCES
Name of Student
Name of University
Author’s Note

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
The current human resource issues that are emerging based upon analysis of the chosen
company’s business strategy..................................................................................................3
The impact that technology may have on the human resources.............................................4
Proposals to be included in an effective HR strategy that can address the issues.................6
Ways in which the HR strategy can be evaluated for its return on investment.....................7
Conclusion..................................................................................................................................8
Recommendations......................................................................................................................9
References................................................................................................................................11

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Introduction
The Bank of England is the central bank of United Kingdom. The main mission of
this bank is promoting the good of the citizens of United Kingdom. This is done by
maintaining the monetary as well as financial stability, supporting various financial markets
besides the settlement of transactions besides the regulation of prudential since the year of
2013. The bank had implemented updated strategies for the purpose of include that it actually
wants to obtain by the year of 2020. The vision 2020 of the bank tends to identify two vital
areas for the financial institute which could be used for improving the effectiveness, the way
it carried out its operations and how it communicates with various stakeholders of the
organization (Hamilton and Parker 2016). Besides this, the bank had approached in
committing publicly for containing numerous costs and had also set internal targets. The
central services division which also belongs to the bank has a certain important role in the
process of facilitating various changes required in enabling the Bank for working in a flexible
manner and hence control numerous costs. The central services are usually responsible the
technology of human resources, procurement, property, financial management as well as
security.
This essay discusses regarding the issues that have been emerging on the basis of
analysis of Bank of England. it further discusses regarding the impact that technology might
have on the bank’s human resources within the upcoming five years, besides this, it had
included various HR strategies which can address numerous issues which had been raised. It
also identifies numerous ways in which HR strategies could be evaluated for obtaining return
on investment. It further provides recommendations on how the human resource operations
could be improved using numerous strategies.

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Discussion
The current human resource issues that are emerging based upon analysis of the
chosen company’s business strategy
There are numerous issues that are faced by the human resources of Bank of England,
the issues are as follows
Employee retention: the Bank of England had transformed its operations since few
years. It had shifted from customer service oriented and transactional environment to a
completely aggressive environment. Here the competition on the revenue is its first priority.
Various employees who believe in long time banking had become disenchanted with the
organization and had been resistant in performing new expectations (Morris 2018). The
diminished morale among employees had resulted in reduced revenue. There exist close ties
among the clients as well as staffs, hence losing these employees would mean a loss in
customer relationships that are very valuable (Zhao, Harris and Lam 2019). Top level
executives as well as departments of human resources had been spending huge amounts of
effort, time as well as money in figuring out how to prevent their customers from leaving.
Skills gaps: the skills gap within the organization had been widening. As per a certain
survey, it had been found that around 70 percent of employees do not have the required skills
for working within the organization, this had been identified as a threat by the CEO of the
organization (Hamilton and Parker 2016). This threat is imposed towards the growth of the
business. This had been driven by the increased capabilities of the digital technology besides
emerging new roles within the Bank of England, like data scientist, software engineers and
artificial intelligence and many more. These had still not been enough developers who had
been versed in the field of finance (Zhao, Harris and Lam 2019). This particular problem had
been realized or detected recently after the Peak 10 had conducted a survey had found that

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more than around three quarter of the organization had created numerous new IT roles in few
years.
Making an attractive culture of the organization: maintaining a good as well as
attractive work culture had been a challenge for the Bank of England. As per the new
workplace culture report that had been generated by LinkedIn, more than 85 percent of
millennial are ready to take a pay for working in a certain company which has numerous
values that match with their own values as per a certain survey (Flood, Jagadish and Raschid
2016). It had been found that the employees within the bank do not have a good working
environment due to which the employees tend to leave the organization and the rate of
employee retention had reached its peak (Hamilton, and Parker 2016). As per employees, it is
very vital for people to be able to bring out their complete selves to the work place. Some
reports have also represented that around 51 percent of professionals belonging to Bank of
England have switched their jobs and are happy to work in numerous companies which
promote a balance between the personal lives and work lives (Comizio, Dayanim and Bain
2016). Some of the approaches taken by the organizations, as mentioned by them include
having access to the paid offs, health insurance and parental leave.
The impact that technology may have on the human resources
Technology would have a huge impact on the operations carried out by Bank of
England. Usage of technology would change the way the HR departments would contact the
employees, store numerous files belonging to the organization and analyse the employees’
performance (Dickson 2017). If technology is used in an effective manner by the Bank of
England, it would make numerous human resource practices even more efficient. If the
technology is not used effectively, it might get between the ways of the management of
organization’s human resources. Usage of technology would make the process of
communication easier, the organization can make use of numerous application that would

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help in communication (Mocetti, Pagnini and Sette 2017). Further these would also help the
staffs belonging to the HR department to stay in contact with the rest of the employees. In
case a manager requires sharing some details with a certain project team, a particular email
containing an attachment would allow them to share it with everyone at once (Fischer 2015).
Within five years, the organization can install numerous cameras in order to maintain security
of organizational data. As Bank of England deals with numerous financial transactions
carried out by the organization as well as its customers, it tends to deal with a huge amount of
data, this might impose various external as well as internal threats to the data and hence result
in data breach from any source (Hon, and Millard 2018). The cameras would help in
monitoring employees all the time and hence it would be easy in finding the culprit in case
the data breach is carried out from internal sources. Besides this, it would also help in
alienating employees. Good HR practices would deal with knowing the amount of data that
could be gathered and compared with how much should be gathered for a certain activity
(Stewart, and Brown 2019). Securing manual data is easy but as the organization would deal
with more amount of digital data after five years, it would be necessary for human resource
department to utilize technology for the purpose of securing digital data. HR must implement
good policies in the place and limit the amount of people who can access a certain data. The
implementation of technology in an effective manner would help the human resource
department in gathering as well as breaking data on numerous employees for getting overall
idea on perspectives like which tasks are performed best by the employees, if they meet the
goals of their performance and some more (Flood, Jagadish and Raschid 2016). Using
technology for recruiting employees would save a huge amount of time that is spent in the
entire process. Suppose online forms having a standardized formats can be used for allowing
the candidates to apply for the organization and hence they could be shortlisted as per their
specifications and abilities.

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Proposals to be included in an effective HR strategy that can address the issues
Work force planning and development: the issues related to workforce planning as
well as development could be addressed, the organization can review the annual business
plan for the purpose of ensuring the fact that the organization has ample staff to cover
numerous projects (Avgouleas and Goodhart 2019). The organization can identify numerous
issues along with the repeated understandings in numerous departments. They can also
explore present staffing competencies for compare them with future competency needs,
finding as well as introducing strategies for the purpose of reducing gaps and hence ensure
consistent coverage (Ojo 2016). They must examine the present use of the workforce.
Talent identification and management: as per a study that had been carried out on
Bank of England, it had been reported that being a financial institute, the organization
provides more value to the high potential employees as compared to the ones having less
potential (Ojo 2016). though less potential employees are provided with proper training such
that they can come up to the expectation of the organization but more potential employees are
provided with more complex tasks in order or test their ability and undertake strategies to
grow the business. Bank of England can undertake numerous strategies for proper
identification of talent as well as management, these strategies include setting clear criteria
for the promotion which define in an explicit manner what behaviours and achievements as
well as KPIs that the organization equates to high potential (Rizvi 2016). They can also
propose numerous objective as well as reliable methodologies for assessing the performance
and hence be transparent regarding everybody’s output. The organization must provide the
support of development for the ones who had failed in meeting the targets despite training,
the potential would be trained as well as boosted.
Improving engagement of employees: in order to improve the engagement of
employees in the workplace, the organization must ensure the fact that employees are very

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passionate regarding their jobs, and that they might come to the office almost every day and
are enthusiastic and eager in starting their work (Comizio, Dayanim and Bain 2016). The
strategies that should be proposed in the HR strategy include the encouragement of
flexibility, this has been proved as one of the most effective step that contributes in increasing
employee engagement within the workplace, and this could be done by providing flexibility
to the employees (Sparrow, Brewster and Chung 2016). This would provide the employees
the freedom of adjustment in their work schedules as well as location in order to suite their
necessities. One more step include being authentic. The organization must not intend to fake
any sort of relationship with its employees instead, develop a good and trusting environment
(Oliver 2019). This way employees would realise that they do not require to hide anything
from the peers or their colleagues and would try to be honest always.
Ways in which the HR strategy can be evaluated for its return on investment
HR strategies could be evaluated for the purpose of its return on investment of the
human capital, this could be done by dividing the overall revenue, gross revenue after the
expenses incurred in the operations are deducted, salaries as well as benefits by the overall
cost of the salaries along with numerous benefits (Oliver 2019). For the purpose of
calculating the return on investment of a certain program, the HR strategies are to be used to
find out the value of that particular program and hence divide it by costs that had been
invested in the implementation of the program. Suppose, a training program had been
implemented for the purpose of speeding up the production, this would increase the number
of products that are being manufactured or the number of customers that are undergoing
successful transactions within the bank along with having a desirable experience (Oliver
2019). In this case the value of the extra activities that is being carried out is recorded and it
is divided by the overall cost that had been invested in the process of providing the training
along with the materials. In numerous cases, a particular level of increase in productivity

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(Bratton and Gold 2017). An example of this is the fact that the organization would need
isolation of the part of the increase which had occurred due to the versus groups which had
not contributed in estimating the effects. As per human resource strategies, an expert could be
used for the purpose of estimating the percentage increase which was due to the training
provided.
Conclusion
From the above discussion, it could concluded that the Bank of England had tried in
implementing latest ideas on the area of management on the concept of human resource
development. The major challenge faced by the Bank of England is the way by which they
can develop their social architecture which generates the intellectual capital. Development of
individual or the human capacity is considered as a vital element in the process of building
capacity and the initiatives of capacity building are becoming more and more necessary.
taking this particular organization up to its heights of excellence, in the current environment
that is competitive in nature needs a certain combination of various new technologies,
appropriate processes of risk appraisal and credit, treasury management, diversification of
products, internal control as well as external regulations and not least human resources.
This could be stated from the essay, that in case the bank maintains proper strategies
of human resources along with effective planning, then the bank would have the ability
survive in the upcoming future. Skilled as well as efficient man power inventory would
become the necessity of the organization, hence the bank should start using proper human
resources development practices for the purpose of boosting their future growth. This
particular essay discusses regarding the present human resources issues that have been
emerging on the basis of analysis that had been carried out on the Bank of England. It further
discusses regarding the impact of technology on the human resources department of the bank

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within upcoming 5 years. It also discusses regarding the proposals that are to be included in
the effective human resource strategy which would help in addressing the issues that have
been raised already. Lastly it identifies the ways in which the human resource strategies could
be evaluated for the return on investment.
Recommendations
In order to meet the challenges that are faced by the human resources and implement
the HR strategy in an effective manner, the Bank of England must frame numerous strategies
which would help them in gaining a certain level of competitive advantage and hence
encourage innovation for meeting the human resource challenges. The recommendations are
as follows
 Identify the knowledge of current employees, abilities as well as their skills. This
would include the evaluation of strengths, level of education, additional training along
with certifications owned by the employees (Niggle 2017).
 The organization must take necessary steps for appointing suitable candidates for
every post within the bank (Furlong, Crossan and Gandz 2017). For this purpose, the
bank can take initiatives in hiring the people who have been specialized in numerous
areas.
 For the purpose of starting training and development programs in order to train the
employees, the organization can update their skills. The bank must also provide
concentration in framing numerous policies about the retaining of the employees who
are talented and have contributed enough for the organization (Mocetti, Pagnini and
Sette 2017). For retaining the employees, the measurement of their performance,
transfer policy, policy for promotion should be maintained by the organization.

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 The organization can also provide numerous non-monetary advantages to the
employees depending on their status of the jobs or their job profiles.
 The organization must maintain a balances compromise among the need of the
organization and the individual needs.
 Organization can provide numerous after service benefits to every employees as per
the status of their jobs (Baptista and Oliveira 2015).
 Changes within the attitudes of the top level professionals must be changed.
 In order to provide individual preferences for avoiding frustration of employee after a
certain time period.
 For the purpose of being human resource development conscious, the bank must
allow the concept of independent functioning of the human resource development
section where to top level of management should be a good as well as a successful
banker, a good human and resource development person and free from any kind of
biases (Pilkington 2016).
 The concept of providing rewards must be initiated for performance as well as non-
performance categories (Mocetti, Pagnini and Sette 2017). Similarly penalties must
also be imposed for certain misbehaviours. Promotions should only be allowed on
merits.
 The organization must introduce an impartial as well as uniform and balanced
performance review system that would be carried out on performances of all the
employees.
 They must initiate a clearly defined system for the purpose of succession planning as
well as career growth planning within the bank (Furlong, Crossan and Gandz 2017).

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addressing misconduct in financial institutions. Bus. L. Int'l, 18, 199.