Human Resource Management of Bank of America
Bank of America Corporation (NYSE: BAC) is a financial services company, the largest bank holding company in the United States, by assets, and the second largest bank by market capitalization. Bank of America serves clients in more than 150 countries and has a relationship with 99% of the U.S. Fortune 500 companies and 83% of the Fortune Global 500. The company is a member of the Federal Deposit Insurance Corporation (FDIC) and a component of both the S&P 500 Index and the Dow Jones Industrial Average.
As of 2010, Bank of America is the 5th largest company in the United States by total revenue, as well as the second largest non-oil company in the U.S. (after Wal-Mart). In 2010, Forbes listed Bank of America as the 3rd "best" large company in the world.
The bank's 2008 acquisition of Merrill Lynch made Bank of America the world's largest wealth manager and a major player in the investment banking industry.
Human resource is considered as the most important resource of any organization. That is the reason why there are different strategies and plans that are being implemented by different companies in order to make sure productivity. The management of people is considered as one of the most vital and challenging areas of business management and most of the organization believe that it is taken very seriously (Gennard & Judge 2005, p. 41).
Employee relations consists of all the important areas of human resource management or HRM that involve the general relationship with the employees, in the course of collective agreement where in the trade unions are recognized, and/or through generally applied policies for the involvement and communications of the employee (Armstrong 2000, p. 242).
Different employee relations strategies defines the entire intensions of the organization regarding what needs to be done and what are the needs to be changed in the ways in which the organization will enable to manages their relationship and communications with the employees as well as their respective trade unions. Unlike the HR strategy, the employee relations strategies focus from the business strategy and also aim to support
Human Resource Management exists just for this purpose –to bridge the gap between staff and upper management. In doing so, compromises have been attained which preclude the need for unions or outside arbitration, and thus provide the services that employees feel is their right to have
A company which is not so progressive, on the other hand, neglects HR and the philosophy that goes with it. The result is, employees abandon any thought of fidelity towards their employer in favor of businesses that reward their service in greater ways. Examples of this begin at the most basic level of appreciation. Certificates of recognition awarded on a monthly, bi-yearly, or even yearly basis, for instance, are all that many employees wish.
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Of course, on a more pecuniary basis, more constant raises –whether structured and awarded based on time and/or merit, are always welcomed. Likewise, health benefits are probably the second most important factor, besides these well-earned raises. The HR department is very often responsible for such aspects in the workspace.
Yet, this is only the tip of the iceberg. Surely, the aforementioned has been a part of the American workspace for decades. What staff in HR try to instill are programs and emotional support that make employees feel a part of a winning, caring team –even a family.
This has been actualized by programs such as after-work softball and bowling leagues, on-site day care, free fitness memberships, and even after hours bar hopping and social events with the office staff and the boss. At work, people in HR have implemented office parties where before there were none, office pools, after-hour bingo (for charity or just for fun), and other such activities that create a cohesion within a workforce that makes it extremely difficult for an employee to ever consider leaving. It is just this feeling that managers and owners are looking for and why HR is so important.
recruits the most talented individuals from the external market to supplement their internal pipeline of talent. Their Human Resources department provides guidance on the use of psychometric tests and has robust recruitment criteria to ensure that all candidates are treated fairly, equally and with respect. It has a global Graduate Recruitment Program; where in the region of 150 graduates are recruited each year on a management trainee program across all businesses, functions and countries.
selects employee based on knowledge, skills and talent. They are committed to providing equality of opportunity to all employees, regardless of gender, race, nationality, age, disability, ethnic origin, or marital status. They are committed not just providing equality of opportunity to all employee, but also identifying what unique strengths each individual brings to the roles they carry out and the development of these strengths.
Employee health, well-being and safety:
believes that the health and wellbeing of their employees and their families is important. They are concerned not only about the physical health of their employees, but also their mental and emotional well-being. has policies & practices that provide for a safe and healthy working environment. They place importance on the safety and well-being of their staff, communities and on the effect its working and operational processes have on the environment. They are continually developing policies and practices designed to maintain the highest appropriate standards.
At , the compensation package provided to the employees can be divided into two categories. One comprises of the sales personnel who are compensated on their ability to meet their targets. Second is compensating the executives who are responsible for the overall functions of the Bank.
Compensating the Sales Force:
How the Bank presents itself to its corporate as well as individual customers is dependant upon the ability of its sales force. These are the individuals who take and active approach is getting the message out about the Bank’s products and services. How effectively the sales team markets the Bank and in run, how successful it is, is directly related to the sales compensation program.
The key to a successful sales compensation program is achieved in three steps:
1. Clearly defining sales goals that are realistic but challenging
2. Tracking and measuring performance against goals
3. Rewarding achievement with competitive and motivational compensation
Sales compensation packages typically comprise one or more of the following components:
1. Base Salary
2. Periodic incentives tied to short-term goals
3. Annual Incentives tied to longer-term sales activities
4. Commission-based incentives
5. Perquisites to facilitate sales efforts
The way the Bank pays its top management plays an important role in motivating the critical performance needed to run it effectively. Base salary is not the only component of the typical executive’s compensation package. Executive compensation packages typically comprise the following components:
1. Base Salary
2. Annual Incentives
3. Long-Term Capital Accumulation
4. Deferred Compensation Arrangements
5. Supplement Benefits and Perquisites
6. Special Severance and Retirement Arrangements
7. Employment and Change of Control Agreements
Reward & Recognition:
aims to reward the talented and high performing employees competitively. They regularly conduct salary surveys to ensure that the reward package remains competitive in the market place. They encourage continuous discussion; encourage regular review of employees’ performance and development. This provides feedback to the staff about how they are doing. The management links this to both financial and non-financial recognition.
In addition to this, the bank provides various incentives in the form of bonuses to encourage the employees and motivate them to continue with their high performance. These include Spot Award, Surprise Award, Best Performer Award, Service Quality Award, and Year of Excellent Services Award.