Bank Co.: A Fortune 500 company

Utilizing Reward strategy to integrate- M&A opportunities

M Gohar Iqbal (5052)Compensation and Benefits Management

WIIFY:• Company Introduction

• Case situation

• Research findings

• Solutions

• Results

• What is Fortune 500: A video.

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.

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.

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.

Research findings:

Data sources

External Market condition

Marketplace data

Employee attributes

Employee data

Organizational practices

Organizational data

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

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.

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.

Thank you…. The importance of getting rock bottom is that u have only one way to go.. And that is up … Moon Buster