The Role of IT Systems in HRM: Recruitment and Retention at HSBC Bank

This report examines the impact of IT systems on Human Resource Management (HRM) at HSBC, focusing on recruitment, retention, and employee engagement strategies. It details HSBC's recruitment processes, including identifying hiring needs, preparing job descriptions, screening candidates, conducting interviews, and background checks. The report highlights the use of IT systems like SAP, ServiceNow, and MuleSoft in managing human resources and improving employee performance. Strategies to improve employee engagement, such as learning together, inclusion, and hybrid working models, are also discussed. The analysis concludes that IT systems have significantly enhanced HRM practices at HSBC, leading to improved employee engagement, performance, and cost efficiency.

IT & HRM
Table of Contents

INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................2
Impact of IT system on recruitment and retention in the HSBC............................................2
Strategies to improve employee engagement in the HSBC....................................................4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6
Online.....................................................................................................................................7

INTRODUCTION
Human resource management is the process of managing the manpower of the
organisation and activities related to them. In 21st century the human resource - the people
working in organisation are the most important means of building competitive advantage for the
organisation (Stahl and et. al., 2020). Therefore managing the human resource is essential in 21st
century as they might affect the performance of the company. Therefore, in 21st century the role
of the human resource management team has become inevitable in modern business in order to
optimally utilize the power, potential and capabilities of manpower. Technology has changed the
scenario of everything to great extent and in the field of human resource management the IT has
gain its major role in recruiting employees, training techniques, attendance and leaves
management and many other activities of HRM. There is extended use of the IT technology in
HRM as the systems adopted by the modern business are completely technology oriented. This
has helped the businesses to boost their transformation process of exchanging human resource
information such as collect, share and use the information (Harney and Alkhalaf, 2021). With the
advancements of technology the human resource that are leveraged with the new tools and
techniques of IT are given preferences. Therefore, there are different ways by which it plays role
in improving overall talent management of organisation. Because with the help of IT
personalized learning is adopted for the training and learning skill which upgrades the level of
talent management. Also there are the IT systems like LMS platforms that identify the core
competencies, skill gaps and also plan the development goals for the human resource (Zardasht,
Omed and Taha, 2020). The present report is in context of HSBC which is one of the world's
largest banking organisations.
Company overview
Purpose- the purpose of HSBC is to open the world of opportunity for their customers with their
expertise, breadth and perspectives. the HSBC has aim to make world better place for the
customers, people, investors and the planet that all share (Opening Up A World of Opportunity,
2021).
Size (numbers of employees)- the HSBC is the community of 226,000 employees that supports
the business to grow.
Target customers- the target customers of the HSBC are the most ignored and untapped
segment that are millennial of age 25 to 35.
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Organisation performance (turnover, etc.) – The HSBC has net income of $50.429 billion in
2020 and total assets of the company are $2.984 trillion. the company’s reprted profit after tax
is$6.1 Billion.
IT system used by HSBC for Human Resource Management- HSBC use three IT systems for
the human resource management of the company that are SAP, ServiceNow and MuleSoft.
Main Body
Impact of IT system on recruitment and retention in the HSBC
Recruitment processes of HSBC
Recruitment refers to the process in which an organisation looks for the person who perfectly fits
the job role. This is a time consuming job which is performed by the human resource manager of
the company (Chacko and Conway, 2019). Every organisation follows a different approach in
recruitment; the process followed by HSBC is discussed below:
 Identifying the hiring needs- This is the foremost part of the recruitment process, in this
step HSBC identifies the need for hiring new people in the organisation.
 Preparing job descriptions- This document is prepared by the company to list the
qualification and skills required in the job.
 Screening and short listing the candidates- The recruiter of HSBC now selects the
eligible candidates from all the applications. This process is done by evaluating
curriculum vitae of all the candidates that applied for the specific job role.
 Conducting interviews and written test- After selection of candidates they are called
for a interview and written test. Person whose both interview and the written test gets
selected.
 Background check and job offer- After doing a check on background of the candidate,
the recruiter offers them job in which he specifies the pay structure and the clauses of the
company (Kumah, Yaokumah and Buabeng-Andoh, 2021).
 Onboard the new employee- The HR manger makes the new employee understand
about the job responsibility and provide them with necessary resources.
Recruitment and retention strategies used by HSBC:
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 Good compensation packages- Offering a good compensation package is the prime
strategy which helps in hiring new employee and in retaining the old one's. HSBC offers
attractive packages and several benefits for the employees which helps them in retaining
the employees.
 Training and development- A continuous improvement in the skills and knowledge of
employees is beneficial for both the employee and the organisation. This strategy helps in
hiring new employees as they are offered an on job training along with the compensation
(Ropret and et. al., 2017).
 Flexible working hours’ program: with the increase of the competition in recruiting
and retaining the talented employee’s the HSBC has introduced the program of providing
the employees with flexible working hours that has helped the bank to succeed in
retaining the employees (HSBC– Flexible Work Arrangements,2022). Through this
employee also feel motivated and encouraged to work hard during peak season as other
time they enjoy the advantage of flexible working system.
 Equality and diversity: In HSBC the recruitment and retention process are equality and
diversity oriented as the company recruit the employees on the basis of their performance
evaluation. For this the company takes interviews and physical examinations (HRM
practice in HSBC,2022). In current situation of the Covid-19 there is online assessment
system for the interns and new candidates to have biased free recruitment on the basis of
the talent the person holds.
Use of IT system in recruitment and retention of employees in HSBC:
 Conduction of online interviews and meetings- Due to various factors the organisation
is unable to host the interviews and meetings offline and to solve this problem there are
several software which offers video conferencing (Almarzooqi, Khan and Khalid, 2019).
HSBC hosts several urgent board meetings online by the help of software such as Google
meet, this helps them in connecting with the people who are currently distant from the
HQ.
 Use of software to manage the human resource- There are several software which
offers a wide variety of feature to track the performance of the employee. This helps in
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establishing good communication between the employees and the managers (Marescaux,
De Winne and Forrier, 2019).
Strategies to improve employee engagement in the HSBC
Strategies and techniques used in HSBC to develop and engage their employees
Employees are the core part of the HSBC and in order to strengthen the core value of an
organisation the company use different strategies and techniques that can develop and engage
their employees within the organisation. The company has developed dynamic and flexible
organisational culture that is highly focused in concerned for the learning and development and
collaboration of the employees with each other and HSBC. The company empower their
employees to develop their skills for the future development. The techniques and strategies used
by HSBC to develop and engage employees are:
Learning together: In HSBC there is the implementation of technique named as learning
together that encourages the collaboration and pursuit of new capabilities and skills. At HSBC it
is believed that learning and development fluids innovation therefore it breaks and changes are
embraced in order to assess the opportunities which can foster engagement of employees with
the company (Creating Opportunities together, 2021). HSBC also invest into the skills and
technology that are required within the employees to create a global network that is inclusive and
sustainable for future. HSBC technological advance human skills are highly crucial as the not
only support the personal skills of the people at also developer foundation for digital data and
sustainability.
Inclusion: strategy of HSBC by which the company reflect the broader world to their customers.
Order to develop and engage the employees the HSBC make the difference in the values and try
to identify the strengths of different people ask for their experiences and voices (Creating
Opportunities together, 2021). In order to develop and engage a company as for the diversified
ideas and perspectives of the employees in order to create opportunities and to grow the
innovative perspective this makes employees stronger and enable them to build more equal
world. Also listen to their employees and take several actions to remove the obstacles in between
of the success. For the development and employees engagement ring closer environment is build
up with the people collaborate with each other and put their best idea forward.
Hybrid working: to robust the engagement of the employees in the HSBC bank after the Covid-
19 crisis the company has opted for the strategy of the permanent hybrid working model in
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which company will be asking their employees to work both ways i.e. work from home as well
as somethings work from office. This will keep the employees in touch with the bank and its
benefits and also through this company can regularly ask for the feedbacks from the employees.
This also gives advantage of spontaneity and increase social relationship that motivate the
employees and increase employee’s engagement (HSBC Plans for Permanent Hybrid Work
Model,2022).
Analyse the IT system used for employee development and engagement is effective and
how it has impacted the performance of the employees of HSBC
HSBC is a highly committed in enhancing performance and the productivity of their
workforce as this helps the company to deliver their strategies improve their returns of
shareholders and also enhance the customer service. In order to reach the objectives of the HSBC
human resource performance is required to be improved by the development and engagement of
the human resource within the organisation. For this HSBC has globally transformed human
resource Management process the form of digitalization with the help of IT systems.
HSBC has global partner Accenture that helped the company to have successful HR
transformation. It systems used by HSBC i.e. SAP, MukeSoft and ServiceNow hi clean factors of
digital HR solutions that has revamped employees engagement and also developed employees
performance within the organisation (HSBC revamps HR services and employee experience,
2021). The SAP is used for legacy of HR performance suction management compensation
payroll talent management which is integrated with the cloud based HR software application.
The ServiceNow is one of the IT systems that have helped the employees to engage with their
portals and to gain the knowledge of Management and case management within the HSBC. The
MuleSoft provides secure and flexible solutions for the seamless integration of global and
regional HSBC applications. Thus, it is analysed that all the three it systems of the HRM of the
HSBC are useful to the company and developing and engaging the employees and also they are
effectively increased and measure the performance of the employees that helps HSBC to lower
their cost and improve efficiency at large scale transformation platform.
CONCLUSION
It is concluded from the above information that human resource are the most important part of
organisation and their management is foremost responsibility of the company in order to gain
efficiency in performance. It is analysed that the recruitment process must be of several stages in
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order to be precise and accurate. Also the training and development is the best strategy to recruit
and retain the employees of the company. Use of IT systems are now become new and necessary
trend for the HRM. Organisations use different techniques and IT systems such as SAP,
MuleSoft to manage the information of employees and also to engage them with organisation. It
was analysed to that after the implementation of it system with the HRM the majority of the
employees of the HSBC were interacting with HR this increased the efficiency of the employees
also help the employees in gaining the employee satisfaction. The bank empowers their
employees to develop their skills for the future development. For the development and
employee’s engagement the bank through hybrid working model bring employees closer to
working environment to build relationship with the people and to collaborate with each other and
put their best idea forward.
References:
Books and Journals
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Almarzooqi, A.H., Khan, M. and Khalid, K., 2019. The role of sustainable HRM in sustaining
positive organizational outcomes: An interactional framework. International Journal of
Productivity and Performance Management.
Chacko, S. and Conway, N., 2019. Employee experiences of HRM through daily affective events
and their effects on perceived event‐signalled HRM system strength, expectancy
perceptions, and daily work engagement. Human Resource Management Journal, 29(3),
pp.433-450.
Harney, B. and Alkhalaf, H., 2021. A quarter‐century review of HRM in small and medium‐
sized enterprises: Capturing what we know, exploring where we need to go. Human
Resource Management, 60(1), pp.5-29.
Kumah, P., Yaokumah, W. and Buabeng-Andoh, C., 2021. Identifying HRM practices for
improving information security performance: an importance-performance map analysis.
In Research Anthology on Business Aspects of Cybersecurity(pp. 326-348). IGI Global.
Marescaux, E., De Winne, S. and Forrier, A., 2019. Developmental HRM, employee well‐being
and performance: The moderating role of developing leadership. European Management
Review, 16(2), pp.317-331.
Ropret, M. and et. al., 2017. The importance of HRM factors for public sector innovativeness in
Eastern Europe. International Journal of Innovation and Learning, 22(4), pp.480-497.
Stahl, G.K. and et. al., 2020. Enhancing the role of human resource management in corporate
sustainability and social responsibility: A multi-stakeholder, multidimensional approach
to HRM. Human Resource Management Review, 30(3), p.100708.
Zardasht, P., Omed, S. and Taha, S., 2020. Importance of HRM policies on employee job
satisfaction. Black Sea Journal of Management and Marketing, 1(1), pp.49-57.
Online
Opening Up A World of Opportunity, 2021, [Online]. Available through,< https://www.hsbc.com/who-
we-are/purpose-values-and-strategy>
Creating Opportunities together, 2021,[Online]. Available through,< https://www.hsbc.com/who-
we-are/our-people-and-communities>
HSBC revamps HR services and employee experience, 2021 [Online]. Available
through,<https://www.accenture.com/in-en/case-studies/financial-services/hsbc-hr-services-
employee-experience>
HSBC– Flexible Work Arrangements,2022, [online], Available
through:https://www.catalyst.org/research/hsbc-india-flexible-work-arrangements/
HRM practice in HSBC,2022,[online], Available through:<
https://www.academia.edu/27676475/HRM_practice_in_HSBC>
HSBC Plans for Permanent Hybrid Work Model,2022,[online], Available
through:<https://www.finews.asia/finance/35297-hsbc-plans-for-permanent-hybrid-work>
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