By the end of the 20th Century, Bank of America had grown to become the second largest bank in the United States. They had almost 4,500 branches is 21 states. Bank of America is an equal opportunity employer that does not discriminate under any circumstances. They offer support to all of their employees from the time they are hired to the time that they leave the company. Bank of America obtains the right employees by doing background checks and drug screening before employees are hired. In order to keep their employees happy,. Bank of America offers a wide range of benefits to their employees.
Equal Equality Regulation 2003, Disability Discrimination Act 1995Diversity maintained through five HR programsGiven the nature of its organization and the information that it’s entrusted with, B of A finds it necessary to conduct background checks and drug screenings as a tool to prevent internal and external threats.
As a part strategic designing and staffing, B of A has formed department teams to ensure an optimal fit between the needs of the employees and the needs of the organization
Bank of America is different from other companies when it comes to staffing.They know that in order to deal with different ethnicities, it is important that they employ different ethnicities. In order to help their employees become more diverse, and deal with the diversity, Bank of America offers many diversity organizations. These organizations include: Global Diversity and Inclusion Council, Diversity and Inclusion Business and Regional Councils, Affinity Groups, and Diversity Network. The Global Diversity and Inclusion Council is where a group of senior leaders from different levels of business guide and implement initiatives at the corporate level. The Diversity and Inclusion Business and Regional Councils allows for councils from across all lines of business address issues across the global regions. The Affinity Group is for associates with a common interest. The Diversity Network is composed of associates from any level that want to help the professional and personal growth of diversity. To be more efficient with the recruitment process, BOA does not allow for candidates to fill out paper applications, but only accept online applications. The only exception to this is if it is campus recruiting, military recruiting, or job fairs.
The Analyst Program allows for a college or undergraduate student to receive comprehensive training that combines instructor-led and web-based classes with on-the-job training and networking. The Associate & PhD Program are training programs that allow associates to build on their MBA or advanced degree. They are able to turn knowledge into real world experience. The PhD candidates can use their technical skills and knowledge with a real-world, quantitative focus. The Internship Program is offered on many different levels. It allows for undergraduate and graduate students to learn about the financial industry and the company. Many of them are offered jobs once they graduate. They recognize them and they offer them rewards. These programs include: Spirit Celebration Cards, Spirit Rewards, Spirit Medallions, Anniversary Awards, and the Spirit Award of Excellence.
Bank of America compensation package includes more than just an employees salary. Although, the salary is a large part of the compensation package it is not the only part. Salary may be the portion that is easily calculated by the employer and employee, but sometimes the other benefits is the dealer maker or breaker. Many individuals when looking for employment not only look at the salary that is being offered, but all the benefits that the company is offering to its employees.
Bank of America compensation package also included incentives. These incentives can add to employees salaries heavily if the employee or the company succeeds. Usually the bonuses are driven by the company success, the department success, the employees success and sometimes even the employee attendance. Bonuses are usually monetary, but can also include additional paid time off, gift cards, or prizes.The benefits that Bank of America offer voluntary is a long list. They include medical, dental, vision, tuition reimbursement, adoption reimbursement, child or dependent care reimbursement, paid vacation, 401k plan and retirement benefits to name a few. They want to remain competitive in the job market and stay on the list as the best place to work for minorities and women. By having an excellent compensation package they are able to do so.
According to the Bureau of Labor Statistics, “the average cost to replace an employee is $13,996.” (O’Connell & Kung 2007).A study of 76 Bank of America banking centers in Tennessee found that those centers that had lower turnover of managers also had significantly lower employee turnover rates. (Woods 2009) Increasing employees’ satisfaction also increased their commitment to the companyLack of preparation for the succession of Bank of America President Ken Lewis left the Board scrambling for a replacement.
Training and development helps an organization optimize the utilization of human resource that in turn helps an employee achieve the organizational goals as well as their individual goals. As part of this development, organizations need to integrate succession planning for those managers that show promise of promotion.One key issue is how to get their long-time retiring employees to pass their knowledge down to new employees through mentorship. Lack of preparation for the succession of Bank of America President Ken Lewis left the Board scrambling for a replacement. There was fear of undermining the reputation of the bank if successor was not approved by the investors and regulatory commissions. Customers and employees needed to be able to have confidence in who was leading the bank.
Over the years, Bank of America has grown to become a great success. Most of this is due to the way they handle their human capital and the money and time that they spend in investing for staffing. They also spend a great deal of money on the training and development for their employees. Bank of America needs to create a successful program for succession planning in order to increase the probability of hiring from within the company, rather than an outsider. If Bank of America continues to: reward their employees for their work, offer them training and development, and show them that they are appreciated, they can keep their employees happy and decrease the turnover rate.
The Importance of SHRM in the Success of Bank of America, October 2010
The Importance ofSHRM in the Success ofBank of America
The Importance of SHRM in the Success of Bank of America Team D Final Team ProjectKomelia Brown, Brandi Johnson, Courtney Robinson, Cathie Tedrick October 5, 2010 GB520-04NA: Strategic Human Resource Management Instructor: Sandra Harris Kaplan University 2
Introduction Second largest bank in the US Equal Opportunity Employer Obtain right individuals for the job Offers wide range of benefits 3
Human ResourcesPolicies & Procedures Equal opportunity employer – Ensure employees are treated fairly and receive fair pay, promotions, and benefits based on the Fair Labor Standards Act. Flexible work schedules – Telecommuting, phase-in, and shifts designed for individual needs. – Emphasize a work-life balance that helps decrease absenteeism. Background checks and drug screening – Information that customers submit is considered highly classified. 4
Human ResourcesPolices & Procedures (cont.) Career growth – Ongoing development and training for new hires and existing employees. – Internships for college graduates. Team building to address departmental needs – Teams exist in every department to ensure that HR procedures are practiced and carried out in the most efficient manner. Other Policies – Performance reward program – Grievance policy/ Harassment policy – Information Disclosure policy 5
Recruitmentand Training Manpower forecasting – Textbase most of their staffing on service and process. – Bank of America have developed forecasting capabilities that eliminate mistakes and waste that can arise from being understaffed or overstaffed”. Effectiveness of recruitment and selection – Since Bank of America is a global company, they recognize the importance of being diverse. – Efficient online application process. 6
Recruitmentand Training (continued) Effectiveness of training and development – In order to help their employees to develop and grow, Bank of America offers career development programs, such as Analyst Programs, Associate & PhD Programs, and Internships. To retain Associates and boost morale, they recognized them with “Spirit” Awards – There are five Recognition and Reward programs that Bank of America makes available to their employees. 7
Turnover andSuccession Planning Employee Turnover – The cost of employee turnover is high – whether voluntary or involuntary. – Research relating to employee turnover revealed the importance of the manager-employee relationship. – BOA developed a strategic management plan that invests in the employees needs through: • Compensation & Benefits • Career growth opportunities, and • Highly successful recognition program. 10
Turnover andSuccession Planning (cont.) Succession Planning – With the change in job trends, including baby boomers retiring, managers are dealing with new issues that require new answers. • Must have greater integration of succession planning with career development. • Key issue is utilizing retiring employees for knowledge exchange and mentoring. – Succession of Bank of America President Ken Lewis was not well planned and the Board met with a lot of criticism. • Had to deal with satisfying not only the customers, but investors, regulatory commissions, and the employees. 11
Conclusion Grown to become a success Continuous success of the business Recommendations 12
ResourcesBank of America Associates. (2010). Retrieved from www.bankofamerica.com/associates/Greer, C., Virick, M. (2008). Diverse succession planning: Lessons from the industry leaders. Human Resource Management, Vol. 47 Issue 2, p351-367Holtom, B., Mitchell, T., Lee, T., Eberly, M. (2008) Chapter 5: Turnover and Retention Research: A Glance at the Past, a Closer Review of the Present, and a Venture into the Future. Academy of Management Annals; 2008, Vol. 2 Issue 1, p231-274Bringing Discipline to HR. (2010) HR Management. Retrieved from http://www.hmreport.com/article/Bringing-Discipline-to-HR/Mello, J.A. (2006). Strategic Human Resource Management 3rd Edition. Mason, OH, USA: South-Western Cengage Learning, 492-493O’Connell, M., Kung, M. (2007). The Cost of Employee Turnover. Industrial Management. Institute of Industrial Engineers.QFinance.(2010). Manpower Forecasting. QFinance: The Ultimate Finance Resource. Retrieved from www. Qfinance.com/dictionary/manpower-forecastingReviewing & Changing Contracts of Employment. (2005) Business Source Complete. HR Policies -- Key Policies and Procedures, p30-39Rothwell, W. (2010). The Future of Succession Planning. T+D, Vol. 64 Issue 9, p50-54Ruiz, G. (2005). Bank of America ties bonuses to overall success. Workforce Management, 84(10), 14-16Woods, K. (2009). Relationship between employee turnover rate and customer satisfaction levels for banking centers. Trevecca Nazarene University. 13