homework
blackpriest0921
MaineBankslides.studyOverviewclass01.pptxToday’s Focus
During this class you will be discussing:
Employment law updates with senior lawyer Thenji Mojo
Our plan for the final weeks in this module
Going through points, best practice and your draft of the Maine Bank case study
Analysing points raised and applying them to your Assignment
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Lesson Plan
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Maine Bank case study Review of Other Aspects….
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READ, READ, READ….
Harvard reference (CITE THEM RIGHT)
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Where do you get your information?
List of sources on Unihub (select carefully)
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Central Bank in the UK
Central Banks sets monetary policy and ensure the lenders follow regulations. The central bank in the UK is the Bank of England.
https://www.bankofengland.co.uk/monetary-policy
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Central Bank in the UAE
https://www.centralbank.ae/en/node/7
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https://www.statista.com/statistics/263754/total-population-of-the-united-kingdom/
Banking Industry US Banks in the UK
MB is an (imitation) large American owned bank in UK – what US owned banks operate in the UK?
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TOP UK Banks for you to look at
HSBC
Royal Bank of Scotland
Lloyds Banking Group
Barclays
NatWest
Santander
Halifax
Standard Chartered
Tesco Bank
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Reward Manager – You will make recommendations for Financial Rewards of Bank (You can have an element of non-financial)
For the Maine Bank Case Study Structure look at the back of case study
Draw your mind map to break down the case study (freehand is best/use platform such as canva.com)
Look at business objectives
HRM objectives
6 businesses and departments in Maine Bank
1 or 2 policies across whole of the bank
Writing report for the MD: report style with Executive Summary (ES) including a summary of key points and recommendations (you tube videos will show you how to put ES together)
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Maine Bank – Executive Summary
An executive summary is the brief introduction to key points in your business plan.
It can describe:
your business
the problem that it solves
your target market
financial highlights
It should be:
Catchy so that the reader is keen to read more about what you do and why you should read the report
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Reward and make practical recommendations for Financial Rewards of Bank
Look at business objectives for each Department
Decline in profits
Anything that affects payroll (for particular department or whole organisation)
Implementation plan: GAANT Chart? Look at short and longer term objectives
Requirement for performance culture: US company are performance orientated
Look at the UK financial regulations
Brexit (especially for investment bank)
Staff morale low
IT: internet banking/use of IT people
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Reward and make practical recommendations for Financial Rewards of Bank
Discuss Key points
Recommendations:
meet business needs
good sound reasoning
why recommended and relevant best practices
Justification and reason well.
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Example: Gaant Chart
Banks in UK
Large banking firms often include several divisions or groups i.e.:
Retail Banking - regular day-to-day banking most people know banks for
Corporate/Commercial Banking – same as retail banking but caters to small businesses or larger firms
Global Banking – i.e. foreign currency accounts
Private Banking - wealth management for high net-worth individuals (HNWI) or families
Investment Banking - helps its clients raise capital in many different ways, i.e. investing the client’s excess funds, along with other services.
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Banking – Key Businesses
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Maine Bank – Overall savings (whole company)
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Areas to point out
Investment banking: centered in City of London
You can make any recommendation to save money!
Changes can be for departments or for the whole organisation
Recommended Structure is at the back of the case study
Executive summary should include recommendations
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Davison, L. (2017)
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Financial Services in London
London’s financial services cluster is its key competitive strengths:
with firms in close proximity benefitting from access to a skilled and specialised workforce; ease of knowledge exchange and shared innovation
enhanced reputation and profile
a large customer pool
wide range of related professional services
Davison, L. (2017)
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Maine Bank – Corporate Banking Dept
High Street Banks offer services to the general public
Business Banking services offered by high street banks in addition to ordinary accounts - include additional services and fees.
Investment Banking services offered by financial institutions on behalf of high street banks, investment trusts, and pension funds. They invest money in stock and bond markets.
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Maine Bank – Key Businesses Policies should meet business departments
Retail:
too many targets
low morale
directors want to improve performance
Look at merit and variable pay slides and Bruce’s recorded lectures
google reward and bonuses in retail banking: not too many bonuses in retail banking as may get bad publicity (mis-selling products).
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Maine Bank Mis-selling of financial products
Comply with current and potential regulation of the banking industry, and avoid the mis-selling of financial products.
https://www.youtube.com/watch?v=xc-6CM5ewBc (video 3.33)
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Maine Bank – Key Businesses Policies should meet business departments
Business and Corporate:
You can use similar decisions as you have made Retail
Risk and morale is an issue. What could managers do? Can you set managers objective and reward them to achieve these? These recommendations may have a shorter timespan than in Retail.
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Maine Bank – Key Businesses Policies should meet business departments
Call Centre:
High staff turnover: monotonous work? (google call centre location and performance) – perhaps a radical move to meet objectives?
Variable and merit pay to motivate staff.
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Maine Bank - HEAD OFFICE Also - Corporate Banking Dept Hemel Hempstead (15 miles North of London)
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LONDON
HEMEL HEMPSTEAD
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Maine Bank – Key Businesses Policies should meet business departments
Head Office support functions
i.e. IT, compliance, HR: Difficult to recruit some staff within existing pay scales
Some staff are in great supply but their pay is on the higher side
Who are the crucial people that you can’t afford to lose? Pay more? Save elsewhere and pay one group of HO staff more?
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Maine Bank – Key Businesses Policies should meet business departments
Investment banking
External markets (Bruce has a recorded lecture on this you can watch)
Are the packages competitive?
How are investment bankers rewarded? Bonuses?
Saving elsewhere?
Look up Goldman Sachs, UBS, JP Morgan
(Google)
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Maine Bank – Key Businesses Policies should meet business departments
Young Graduate Scheme
Look at Bruce’s recorded lecture and slides on employee benefits in Unihub (and Dubai slides in MS Teams)
Non-financial reward motivation: Career, training and development.
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Areas to point out
The banking system is to support the economy of the country and ensure a certain amount of stability.
Despite the financial crisis in recent years, over one million people were employed in financial services and insurance in the UK in 2017.
Banks and their financial and related professional services contributed at that time to 11.8% of the national GDP.
2020 has seen high job losses in the UK in banks. Lloyds bank announced in Sept 2020 it would cut hundreds of job as it proceeds with restructuring (the Guardian, 2020)
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Davison, L. (2017)
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Covid-19 has placed extraordinary demands on leaders in businesses, governments and beyond (Photo: UAE Leaders discuss successful handling of COVID-19)
Covid-19 UK – things to think about
Remote work and branch COVID-19 safety measures
government strategy – government guaranteed loans pumped out in record amounts and forbearance for millions of customers otherwise facing coronavirus-related financial hardship. The details of the recovery process for loans made under government-backed lending schemes have yet to work through.
economic impacts of COVID-19 on businesses and individuals
M&A: smaller and medium-sized banks may join forces
(Garbutt, 2021)
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What about Boris Johnson, PM for England. How did he respond?
HOW ARE THE BRITISH PUBLIC RESPONDING TO GOVERNMENT’S MEASURES?
The schemes that we have put in place are national so wherever you happen to be, whatever job you have, not just in regions in England but wherever you are in the UK, you'll be treated the same
level of Government support is in line with other major European countries
Chancellor, Rishi Sunak
Kitching, C. (2020)
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The Furlough/Job Retention Scheme up to September 2021
The furlough scheme will continue to pay up to 80% of employees' usual pay, capped at £2,500 per month. However, the level of support will taper down in the final stages of the CJRS as follows:
Until July 2021, the government will continue to pay the full 80%.
In July 2021, employers will contribute 10%, with the government contributing 70%.
In August 2021 and September 2021, employers will contribute 20%, with the government contributing 60%.
Employers will continue to pay all employers' national insurance and pension contributions.
(Lewis & Moore 2021)
The Furlough Scheme Cost
Over £100bn is being spent on support for jobs, such as the furlough scheme, where the government steps in to pay most of workers' wages.
The NHS and other public services have been given extra money to pay for the costs of fighting the pandemic.
who will pay this money back to the Government?
interest payments will weigh on future generations until the debt is paid off, meaning there is less money available to spend on public services, or tax cuts.
(King, B, 2021)
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Module Survey
HRM4416
https://bit.ly/33ePrQy
Other banks rewards Rewards - Lloyds Bank
Pay
Group Performance Share Plan (Bonus)
Pension
Share plans
Flexible benefits
Private medical benefits for employee (and family at competitive rates)
Discounts on financial products
Colleague offer scheme
Holidays and Flex scheme
Employee wellbeing
Family leave: adoption, maternity, paternity: shared parental leave etc.
https://www.lloydsbankinggroup.com/careers/our-benefits-and-rewards/reward/
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Other banks Employer of Choice - Citibank
https://www.youtube.com/watch?v=Vaqx01N5zq4 – Learning and Development
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Deutsche's investment banking layoffs so far? Nearly 4,000 people
headline number was CEO’s intention to make 18,000 job cuts across the bank as a whole over the next three years, half from Germany.
new units created: a corporate bank, an investment bank, and a new capital release unit.
profits in the investment bank were down 73% in the third quarter
return on equity in the unit fell to just 0.2%
restructuring might be blamed
Butcher, S. (2019) https://news.efinancialcareers.com/uk-en/3002518/deutsche-bank-job-cuts-2019
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Deutsche Bank HR Report 2016 online
Restructuring and socially responsible measurements/giving staff option of another job elsewhere at the bank/redeployment program
Employee survey results
Focus on culture
Discussing bank initiatives
Workforce management structure/reporting lines
Staff structure
Costs and revenue
Staff comp and ben
Staff turnover – voluntary
Internal career/performance – building young talent, female talent (gender equality), leadership
Digitalisation
https://www.db.com/ir/en/download/Deutsche_Bank_Human_Resources_Report_2016.pdf
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Maine Bank – UK Politics, BREXIT
Referendum question
The proposed question was accepted by the UK Government in September 2015, shortly before the bill's third reading.
The question that appeared on ballot papers in the referendum under the Act was:
Should the United Kingdom remain a member of the European Union or leave the European Union?
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Maine Bank – UK Politics, BREXIT
Referendum question
Referendum is not legally binding – Government can ignore the final majority vote
The referendum resulted in 51.9% of votes being in favour of leaving the EU (17,410,742 votes).
David Cameron, Conservative Prime Minister of that time had promised to implement the result.
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Maine Bank – UK Politics, BREXIT
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Theresa May was Prime Minister in the UK dealing with Brexit and she had been unable to do so.
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Maine Bank – UK Politics, BREXIT
General election early 12 December 2019 – normally 5 years – runs out in 2020
Everything is based on Brexit and other issues such as NHS
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Maine Bank – UK Politics, BREXIT
Different to other elections because Government failed to actually deal with Brexit in Houses of Parliament. Not enough majority votes.
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Maine Bank – Brexit update EXIT
Conservative Party ‘Tories’ – head and UK Prime Minister is Boris Johnson.
He said ‘elect me and give me majority in Parliament so I can exit EU’.
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Maine Bank – Brexit update - IRELAND
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Northern Ireland is in the United Kingdom. South Ireland a republic and in Ireland.
Border Tariffs for trade between N and S – free access?
Biden said don’t interfere in ‘Good Friday Agreement’
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Maine Bank – Why Concerns?
Goods moving freely in and out of Europe
Tariffs will be placed on goods from Europe
Irish border is one problem as consideration as to Northern Ireland and South Ireland
As Exit took place, Southern Ireland will stay in Europe but Northern Ireland will come out as part of UK.
What about goods coming over the border between North and South Ireland?
What about landowners who have land on north and south i.e. farming (milk and meat etc)? Cattle on one side of the border and cattle on the other side.
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Maine Bank – Brexit update HR
How do we employ people from the European Union?
There may be a selection process on what nationalities are allowed in.
https ://www.gov.uk/guidance/coronavirus-covid-19-travel-corridors
Does the UK need your profession? Shortage of talent?
Many workers from Europe have left the UK to go home.
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EU summit on 19 November seen as deadline for draft Brexit deal
A summit of EU leaders on 19 November is now viewed in Brussels as the final deadline for a draft Brexit deal, with negotiations on Britain’s future trade and security relationship with the bloc set to go to the wire. 1 Jan 2021 Deadline
95% deal done
Fishing rights
Free trade Eire
Pull out without
a deal/i.e. Canada trade
Lorries checked
UK living in Europe, taxes
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Maine Bank – Brexit update EU Parliament
Its all a mystery until Boris and the cabinet
Make firm decisions….
The final decisions have to be sanctioned in the EU parliament.
If there are big changes the Europeans don’t like they may not be on the side of the deal.
27 European countries in Europe –UK (Govns. Follow UK? - Italy).
The EU Parliament also votes on the deal.
The EU want a proper deal that does not affect European countries.
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Daily Brexit Update - 11 November 2020
https://www.lexology.com/library/detail.aspx?g=14fab2e1-8dfa-418e-bb04-30e55121fd5a
Maine Bank
He/she is looking at relocating the Investment Business to another EU state. Which one has yet to be decided.
Move headquarters to other parts of Europe to deal directly with Europe (threat than anything else)?
How will this work with Covid still present?
https://www.youtube.com/watch?v=gKxD8I6lEXA (6.24 mins)
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QUESTIONS TO ASK YOURSELF
Where is the best place to find reward information on banks?
Have you looked at other banks to compare your bank?
Have you looked at the annual reports on line for banks?
Have you looked at the types of Investment Banking jobs for information?
What goes into your executive summary?
Could your recommendations apply to the banking industry in general?
Have you thought about checking your grammar, spelling and references? Use Cite Them Right through the library search.
Referencing very important, check learning outcomes and marking rubric
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