Bank Co., a Fortune 500 commercial bank, had grown through acquisitions but was experiencing high voluntary turnover rates of 40% after each acquisition. This was costly to the company through increased labor costs, lost productivity, and customer defections. An investigation found the main drivers of turnover were lack of communication about career opportunities and lack of promotion opportunities for high performers. The company implemented solutions including market-based pay adjustments, improved communication of career paths, and expanding promotion opportunities. This resulted in a 20+% reduction in turnover rates and $50 million in estimated annual savings within 8 months.

1. Bank Co.: A Fortune 500 company
Utilizing Reward strategy to integrate- M&A
opportunities
M Gohar Iqbal (5052)
Compensation and Benefits Management

2. WIIFY:
• Company Introduction
• Case situation
• Research findings
• Solutions
• Results
• What is Fortune 500: A video.

3. Company Introduction
• Name : Bank Co.
• Employee strength: 20,000
• Nature: Commercial bank
• Nature of business : Mergers and Acquisition
• Had grown substantially through aggressive Mergers and Acquisitions.

4. Situation/ Case problem
• Increase in post-acquisition workforce reduction.
• Voluntary turnovers that were above market benchmark rate i.e.
40%.
• Effecting:
• High labor cost.
• Lost productivity
• Customer defections
• Inability to manage operations during M&A transitions.

5. Situation/ Case problem (contd.)
• With the help of exit interview data
• HR didn’t find any clear reason of turnover
• There were reasons but inconclusive
• To find reason HR needed:
• Substantive and precise information
• And to develop a retention plan thereafter.

6. Research findings:
Data sources
External Market
condition
Marketplace
data
Employee
attributes
Employee data
Organizational
practices
Organizational
data

7. Research findings (Contd.)
• Quantification of turnover drivers, prioritization of interventions’
value w.r.t cost.
• Bank Co. found:
• More Significant pay
• Managerial (specially high performers) turnover spawned employee turnover

8. Solutions:
Interventions were:
• Compensation:
• Planned to invest in significant market price adjustments to reduce turnover.
• Benefits: Benefits were already OK, so no strategy needed.
• Careers:
• Improving communication about available career opportunities.
• Expanding and accelerating promotion and transfer opportunities for high-
performing employees.
• Making more concerted efforts to expand training and broaden employees’
job experience within BankCo.

9. Results:
• Research helped in providing:
• The factual basis for HR to make its business case.
• The hard data was compelling and galvanized CEO and organization wide
support for swift action.
• Bank Co
• Reported a 20+% reduction in turnover rates and
• Estimated $50+ million in annual savings.
• Within 8 months of strategy implementation.

10. Thank you….
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