Employee Retention of Bank of America : Bank of America Corporation (NYSE: BAC, TYO: 8648) is an American global financial services company, the largest bank holding company in the United States, by assets, and the second largest bank by market capitalization.[3][4][5][6] Bank of America serves clients in more than 150 countries and has a relationship with 99% of the U.S. Fortune 500 companies and 83% of the Fortune Global 500. The company is a member of the Federal Deposit Insurance Corporation (FDIC) and a component of both the S&P 500 Index and the Dow Jones Industrial Average.[7][8][9]
As of 2010, Bank of America is the 5th largest company in the United States by total revenue,[10] as well as the second largest non-oil company in the U.S. (after Wal-Mart). In 2010, Forbes listed Bank of America as the 3rd "best" large company in the world.[11]
The bank's 2008 acquisition of Merrill Lynch made Bank of America the world's largest wealth manager and a major player in the investment banking industry.[12]
The company holds 12.2% of all U.S. deposits, as of August 2009,[13] and is one of the Big Four banks of the United States, along with Citigroup, JPMorgan Chase and Wells Fargo—its main competitors.
EEmployee Turnover can be a problem for many banks, but when you have 188,000 employees and your turnover rate reaches 48 percent, the situation takes on significant proportions.
That was the case at Bank of America when it set out in 2001 to improve employee satisfaction and retention with an ongoing corporatewide annual integrated recognition program consisting of several key programs. (See box below.) Its first step was to create a customized Web site portal with extensive help from its vendor partner, Maritz. Once the structure was in place, all associates were encouraged to start practicing basic recognition by thanking others for a job well done with an online card or note card known as the Spirit Celebration Card. The company made it clear that they expected 100 percent participation in this level of recognition.
Managers were asked to reinforce the recognition culture by beginning each team meeting by thanking associates, acknowledging recipients and senders of Spirit Celebration Cards, and reminding people of other various recognition options. Senior leaders added their support by encouraging people to nominate their peers and by selecting the “best of the best” for an annual Award of Excellence incentive trip — the most coveted reward. This spring, these honored employees will be feted during 10 trips to such locations as the Hotel Del Coronado in San Diego and the Fairmont Mayakoba in Riviera Maya, Mexico.
All employees, from the top down, are encouraged to use recognition in a timely manner, to recognize associates at all levels, and to make their recognition public. The results? Employee satisfaction scores increased from 50 percent to 85 percent, and turnover was cut in half, to 24 percent. Now those are numbers to bank on.
Increase Employee Retention
Encourage company loyalty by
offering a supplemental benefits plan to your employees. Our
supplemental plans cover dental care, vision care, prescriptions, and
chiropractic care. Our more comprehensive plans cover doctor's office visits, hospitilization, laboratory tests, radiology, and more.
Group Supplemental Benefits Made Simple
With access to one of the largest dental provider networks in the United States, AmeriPlan{size:1}®{size}
is a leading provider of supplemental discount group benefits. We offer
affordable health care packages for all groups, regardless of size.
Simple and Affordable
We offer supplemental to comprehensive plans, depending on your needs, starting at $19.95 a month per employee. List bills are available. If you cannot incure the expense of offering benefit plans, you can provide information about our low cost medical and dental plans to your employees free of charge
Executives managing hourly employees often face operational inefficiencies from high employee turnover. Companies in all industries use benchmark metrics to evaluate and optimize employee retention and accelerate workforce productivity. This 28-page slide presentation reveals turnover rates for customer-facing full-time and part-time employees segmented by retail, financial services and other industries. It graphs employee turnover in the following three categories: Internal movement (employee changes positions within the company); Voluntary external turnover (employee chooses to leave the company); Involuntary turnover (employee is terminated by the employer). The document also includes best-in-class retention programs and methods used at leading companies today. For many small businesses, whether to cover employees at all is the most pressing question. And a very difficult one. Cost is usually the primary issue in the decision. There's no getting around the fact that health insurance is expensive and is getting more expensive each year. According to the aforementioned Kaiser study, health insurance premiums rose an average of 9.2 percent in 2005, almost three times the increase in workers' wages, and more than twice the rate of inflation. Nevertheless, there are very good reasons for providing health insurance to your employees, despite the cost.
The first and most important benefit is that health insurance will attract better employees. Health insurance costs are not only an issue for business owners; the premiums for individual and family health plans are rising quickly as well. Consequently, few workers want to finance their own health plans. Since most large companies provide health insurance, skilled workers will tend to gravitate away from small businesses that don't offer some form of health insurance. So while you may save money in the short term by forgoing health insurance for your employees, you are also limiting the pool of talent from which you can hire, which can potentially limit your business's chances for growth in the future. "Competent, skilled workers are crucial to any business," says management consultant C. Davis Fogg. "Health insurance is so expensive outside an employer-provided plan, that few really talented workers were willing to work at companies that don't offer it."
Health insurance also serves as an incentive for your current employees to value their jobs, since they may not get health insurance from your competitors. This can boost both employee retention-employees are less likely to leave your firm if they receive benefits they may not get elsewhere-and employee productivity. Employees who value the health insurance coverage will be more motivated to work diligently for the firm, thus showing their worth as employees. Also, health insurance will allow employees to deal with any medical issues they face, leading to healthier, more productive workers.
How does offering health insurance benefit my business beyond attracting good employees?
Actually, company health insurance isn't only about your employees. If your business doesn't have a group insurance plan, it's likely that you're paying for your own family's coverage. Individual and family health insurance is usually significantly less expensive when purchased as part of a group plan compared to similar coverage purchased on an individual basis.
Also worthy of consideration are the tax benefits offered by a company-sponsored group health plan. Insurance premiums are usually 100 percent deductible against business taxes, and if the health insurance is offered as part of a compensation package, it can be used to lower payroll taxes. This also benefits your employees who can pay for their part of the monthly insurance premium with pre-tax dollars.
As of 2010, Bank of America is the 5th largest company in the United States by total revenue,[10] as well as the second largest non-oil company in the U.S. (after Wal-Mart). In 2010, Forbes listed Bank of America as the 3rd "best" large company in the world.[11]
The bank's 2008 acquisition of Merrill Lynch made Bank of America the world's largest wealth manager and a major player in the investment banking industry.[12]
The company holds 12.2% of all U.S. deposits, as of August 2009,[13] and is one of the Big Four banks of the United States, along with Citigroup, JPMorgan Chase and Wells Fargo—its main competitors.
EEmployee Turnover can be a problem for many banks, but when you have 188,000 employees and your turnover rate reaches 48 percent, the situation takes on significant proportions.
That was the case at Bank of America when it set out in 2001 to improve employee satisfaction and retention with an ongoing corporatewide annual integrated recognition program consisting of several key programs. (See box below.) Its first step was to create a customized Web site portal with extensive help from its vendor partner, Maritz. Once the structure was in place, all associates were encouraged to start practicing basic recognition by thanking others for a job well done with an online card or note card known as the Spirit Celebration Card. The company made it clear that they expected 100 percent participation in this level of recognition.
Managers were asked to reinforce the recognition culture by beginning each team meeting by thanking associates, acknowledging recipients and senders of Spirit Celebration Cards, and reminding people of other various recognition options. Senior leaders added their support by encouraging people to nominate their peers and by selecting the “best of the best” for an annual Award of Excellence incentive trip — the most coveted reward. This spring, these honored employees will be feted during 10 trips to such locations as the Hotel Del Coronado in San Diego and the Fairmont Mayakoba in Riviera Maya, Mexico.
All employees, from the top down, are encouraged to use recognition in a timely manner, to recognize associates at all levels, and to make their recognition public. The results? Employee satisfaction scores increased from 50 percent to 85 percent, and turnover was cut in half, to 24 percent. Now those are numbers to bank on.
Increase Employee Retention
Encourage company loyalty by
offering a supplemental benefits plan to your employees. Our
supplemental plans cover dental care, vision care, prescriptions, and
chiropractic care. Our more comprehensive plans cover doctor's office visits, hospitilization, laboratory tests, radiology, and more.
Group Supplemental Benefits Made Simple
With access to one of the largest dental provider networks in the United States, AmeriPlan{size:1}®{size}
is a leading provider of supplemental discount group benefits. We offer
affordable health care packages for all groups, regardless of size.
Simple and Affordable
We offer supplemental to comprehensive plans, depending on your needs, starting at $19.95 a month per employee. List bills are available. If you cannot incure the expense of offering benefit plans, you can provide information about our low cost medical and dental plans to your employees free of charge
Executives managing hourly employees often face operational inefficiencies from high employee turnover. Companies in all industries use benchmark metrics to evaluate and optimize employee retention and accelerate workforce productivity. This 28-page slide presentation reveals turnover rates for customer-facing full-time and part-time employees segmented by retail, financial services and other industries. It graphs employee turnover in the following three categories: Internal movement (employee changes positions within the company); Voluntary external turnover (employee chooses to leave the company); Involuntary turnover (employee is terminated by the employer). The document also includes best-in-class retention programs and methods used at leading companies today. For many small businesses, whether to cover employees at all is the most pressing question. And a very difficult one. Cost is usually the primary issue in the decision. There's no getting around the fact that health insurance is expensive and is getting more expensive each year. According to the aforementioned Kaiser study, health insurance premiums rose an average of 9.2 percent in 2005, almost three times the increase in workers' wages, and more than twice the rate of inflation. Nevertheless, there are very good reasons for providing health insurance to your employees, despite the cost.
The first and most important benefit is that health insurance will attract better employees. Health insurance costs are not only an issue for business owners; the premiums for individual and family health plans are rising quickly as well. Consequently, few workers want to finance their own health plans. Since most large companies provide health insurance, skilled workers will tend to gravitate away from small businesses that don't offer some form of health insurance. So while you may save money in the short term by forgoing health insurance for your employees, you are also limiting the pool of talent from which you can hire, which can potentially limit your business's chances for growth in the future. "Competent, skilled workers are crucial to any business," says management consultant C. Davis Fogg. "Health insurance is so expensive outside an employer-provided plan, that few really talented workers were willing to work at companies that don't offer it."
Health insurance also serves as an incentive for your current employees to value their jobs, since they may not get health insurance from your competitors. This can boost both employee retention-employees are less likely to leave your firm if they receive benefits they may not get elsewhere-and employee productivity. Employees who value the health insurance coverage will be more motivated to work diligently for the firm, thus showing their worth as employees. Also, health insurance will allow employees to deal with any medical issues they face, leading to healthier, more productive workers.
How does offering health insurance benefit my business beyond attracting good employees?
Actually, company health insurance isn't only about your employees. If your business doesn't have a group insurance plan, it's likely that you're paying for your own family's coverage. Individual and family health insurance is usually significantly less expensive when purchased as part of a group plan compared to similar coverage purchased on an individual basis.
Also worthy of consideration are the tax benefits offered by a company-sponsored group health plan. Insurance premiums are usually 100 percent deductible against business taxes, and if the health insurance is offered as part of a compensation package, it can be used to lower payroll taxes. This also benefits your employees who can pay for their part of the monthly insurance premium with pre-tax dollars.
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