HSBC 2006 Annual Report Download - page 268

HSBC HOLDINGS PLC
Report of the Directors: Governance (continued)
Employees > Remuneration policy / Share plans
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of union membership are in Brazil, France, India,
Malaysia, Malta, Mexico, the Philippines, Singapore
and the UK. It is the policy to maintain well-
developed communications and consultation
programmes. HSBC has not experienced any
material disruptions to its operations from labour
disputes during the past five years.
In support of its strategy, HSBC focuses on
attracting, developing and motivating the very best
individuals and on encouraging talent internally.
HSBC places employees’ engagement with the
business central to people management. With a
proven link to superior business performance, this is
beneficial to shareholders, colleagues and customers
alike. Emphasis is placed on performance
management and differentiated rewards that are
competitive in their market, valuing those who
contribute over time. In addition, a continuing focus
on policies that encourage an inclusive working
environment and the availability of career
opportunities for all is critical to HSBC being an
employer of choice. HSBC seeks to maintain an
employee profile that reflects its customer base.
HSBC operates in a highly competitive and
international business environment and HSBC’s
diverse workforce represents a significant
competitive advantage. The broad cultural mix and
increasing cross-border mobility of its employees
enables HSBC to resource operations with
individuals who have detailed knowledge of local
markets and of HSBC globally, in order to enhance
customer service and improve productivity. HSBC
recruits from a broad cross-section of society and
encourages the sharing of individual perspectives
and ideas through collective leadership development
events, training and global secondments.
Increasingly HSBC recognises its role as an
employer in a wider context and is developing its
commitment to employee health issues, involvement
in community and not-for-profit organisations and
flexible working opportunities. As rising global
education levels and advances in technology
improve, the Group’s access to previously untapped
resources and the profile of HSBC’s employees
continues to change. Job losses in some countries
may arise but HSBC has a good record of
communicating honestly and openly, treating people
with respect and reassigning people wherever
possible.
HSBC attaches great importance to cultivating
its own talent. Resources have been set aside to
ensure a supply of talented individuals to meet
business needs, with support provided for these
employees in the form of career enhancement and
personal development programmes. HSBC invests in
succession planning and developing a talent pipeline
from graduate hires through to senior management.
In addition, HSBC recognises that there are lessons
to be learned from other successful businesses, and
will recruit from other organisations where
appropriate.
Employee involvement
HSBC Holdings continues to regard communication
with its employees as a key aspect of its policies.
Information is given to employees about
employment matters and about the financial and
economic factors affecting HSBC’s performance
through management channels, an intranet site
accessible to all HSBC’s employees worldwide, in-
house magazines and by way of attendance at
internal seminars and training programmes.
Employees are encouraged to discuss operational
and strategic issues with their line management and
to make suggestions aimed at improving
performance. The involvement of employees in the
performance of HSBC is further encouraged through
participation in bonus and share plans as appropriate.
About half of all HSBC employees now
participate in one or more of HSBC’s employee
share plans.
Employment of disabled persons
HSBC Holdings continues to be committed to
providing equal opportunities to employees. The
employment of disabled persons is included in this
commitment and the recruitment, training, career
development and promotion of disabled persons is
based on the aptitudes and abilities of the individual.
Should employees become disabled during
employment, every effort is made to continue their
employment and, if necessary, appropriate training is
provided.
Remuneration policy
As with most businesses, HSBC’s performance
depends on the quality and commitment of its
people. Accordingly, the Board’s stated strategy is to
attract, retain and motivate the very best people.
In a business that is based on trust and
relationships, HSBC’s broad policy is to look for
people who want to make a long-term career with
the organisation since trust and relationships are
built over time.
Remuneration is an important component in
people’s decisions on which company to join, but it
is not the only one; it is HSBC’s experience that