The Importance of SHRM in the Success of Bank of America

The Importance of SHRM in the Success of Bank of America

Team D Final Team Project

Komelia Brown, Brandi Johnson, Courtney Robinson, Cathie Tedrick

October 5, 2010

GB520-04NA: Strategic Human Resource Management

Instructor: Sandra Harris

Kaplan University2

Introduction

Second largest bank in the US

Equal Opportunity Employer

Obtain right individuals for the job

Offers wide range of benefits

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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

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Recruitment and 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.

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Recruitment and 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.

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Compensationand Benefits

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Salaries Incentives/Bonuses

Voluntary Benefits Total

Compensation

$$$Total Compensation Plan$$$

Compensationand Benefits (continued)

Incentives– Company wide Bonuses

– Department wide Bonuses

– Performance Bonuses

– Attendance Bonuses

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Voluntary Benefits– Medical/Dental/Vision

– Tuition Reimbursement

– Adoption Reimbursement

– Child/Dependent Care Reimbursement

– Paid Vacation

– 401K

– Retirement benefit

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.

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Conclusion

Grown to become a success

Continuous success of the business

Recommendations

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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, p351-367

Holtom, 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, p231-274

Bringing 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, 492-493

O’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-forecasting

Reviewing & Changing Contracts of Employment. (2005) Business Source Complete. HR Policies -- Key Policies and Procedures, p30-39

Rothwell, W. (2010). The Future of Succession Planning. T+D, Vol. 64 Issue 9, p50-54

Ruiz, G. (2005). Bank of America ties bonuses to overall success. Workforce Management, 84(10), 14-16

Woods, K. (2009). Relationship between employee turnover rate and customer satisfaction levels for banking centers. Trevecca Nazarene University.

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