HSBC 2004 Annual Report Download - page 13

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markets and through appropriate channels to
make HSBC the strongest global player in
personal financial services;
• Consumer Finance: extend the reach of this
business to existing customers through a wider
product range and penetrate new markets;
• Commercial Banking: make the most of HSBC’s
international customer base through effective
relationship management and improved product
offerings in all the Group’s markets;
• Corporate, Investment Banking and Markets:
accelerate growth by enhancing capital markets
and advisory capabilities focused on client
service in defined sectors where HSBC has
critical relevance and strength;
• Private Banking: serve the Group’s highest
value personal clients around the world;
• People: attract, develop and motivate HSBC’s
people, rewarding success and rejecting
mediocrity; and
• TSR: fulfil HSBC’ s TSR target by achieving
strong competitive performances in earnings per
share growth and efficiency.
Employees and management
At 31 December 2004, HSBC’ s customers were
served by 253,000 employees (including part-time
employees) worldwide, compared with 232,000 at
31 December 2003 and 192,000 at 31 December
2002. The main centres of employment are the UK
with 56,000 employees, the US 43,000, Brazil
28,000, Hong Kong 26,000, Mexico 20,000 and
France 14,000. HSBC negotiates with recognised
unions, and estimates that approximately 40 per cent
of its employees are unionised. The highest
concentrations of union membership are in Brazil,
France, India, Malaysia, Malta, Mexico, the
Philippines, Singapore and the UK. As a result of
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 new strategy, HSBC focuses on
attracting, developing and motivating the very best
individuals, particularly graduates, and on
encouraging talent internally. Emphasis is placed on
performance management; differentiated rewards;
succession planning; diversity; and learning and
development, with priority accorded to enhancing
sales and relationship management skills. HSBC
continues to endeavour to ensure that employees’
engagement with the business is maximised as this is
beneficial to shareholders, employees and customers
alike.
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. This
strengthens international networks and facilitates the
sharing of best practices. 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. Through its
network of international operations, it has the
advantage of being able to respond to the availability
of talented employees wherever they are, in order to
enhance customer service and improve productivity.
As education levels improve globally and as
investments in technology and telecommunications
facilitate access at competitive cost to hitherto
untapped resources, the balance of employment will
change and global resource centres of excellence
will emerge. Job losses may arise in some countries,
but HSBC has a good record of communicating
openly and sensitively in these circumstances, and of
reassigning employees and minimising compulsory
redundancies wherever possible.
HSBC seeks to promote and recruit the most
able people and attaches great importance to
cultivating its own talent. Resources have been set
aside to ensure a supply of talented individuals to
meet business succession needs, with support
provided for these employees in the form of career
enhancement and personal development
programmes. In addition, HSBC recognises that
there are lessons to be learned from other successful
businesses, and will recruit from non-banking
industries where appropriate.