Module Title – International Human Resource

Management

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 Table of Contents

Introduction...................................................................................................................... 1

Company background......................................................................................................2

International human resources practice at HSBC............................................................4

Recruitment and selection process...............................................................................4

Orientation and onboarding process.............................................................................6

Training and learning development..............................................................................7

Pay and compensation.................................................................................................9

Performance management system.............................................................................10

Challenges in ensuring consistency and standardization...........................................12

Effective two-way communication...............................................................................13

Support for the expatriates.........................................................................................14

Awareness for legislation............................................................................................15

Recommendations......................................................................................................... 16

Conclusion..................................................................................................................... 17

References.....................................................................................................................18

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 List of Figures
Figure 1: Annual turnover of HSBC..............................................................................2
Figure 2: Selection process at HSBC...........................................................................4

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 Introduction
Human resource management (HRM) that takes into account cultural differences
between employees in various nations is known as international human resource
management (IHRM). Recruitment, selection, development, performance management,
remuneration, and employee relations are all parts of integrated human resource
management. The British multinational financial services corporation HSBC Holdings
plc, or HSBC for short, is well known across the globe. It is a major and well-known
supplier of banking and other financial services worldwide. Sir Thomas Sutherland
founded HSBC in Hong Kong on March 3, 1865. Its original name was The Hongkong
and Shanghai Banking Corporation Limited. The report consists of discussion regarding
the different aspect of international human resource management of the multinational
company.

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 Company background
HSBC was established with the intention of facilitating trade between Europe and Asia
in response to the growing economic relations between China and the British Empire.
The bank's name relates to its original goal of promoting trade along the routes between
Shanghai and Hong Kong (Al Ariss and Sidani, 2016). HSBC's original markets of
operation were Shanghai and Hong Kong, but it has subsequently expanded. It grew
into other countries and ultimately developed into a true global financial organisation.
The HSBC-financed global trade and business contacts aided in the company's rapid
international expansion. After acquiring Midland Bank, a major British bank, in 1993, the
bank moved its headquarters from Hong Kong to London. Financial services provided
by HSBC include retail banking, commercial banking, investment banking, wealth
management, and more.

Figure 1: Annual turnover of HSBC (Statista, 2022)

According to HSBC's most recent annual report, there were 219,199 employees there in
2022, an 11% decrease from the year before. That year, it had revenues, or turnover, of
$51.727 billion, a 10% decrease from the previous year. The main areas of activity for
HSBC include Asia, Europe, North America, and the Middle East and North Africa.
HSBC has subsidiaries in Hang Seng Bank, HSBC Bank USA, HSBC UK Bank, and
M&S Financial Services. A stylized form of the bank's name appears in the logo. The
hexagonal design of the emblem stands for stability and toughness. The slogan of

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HSBC, "The World's Local Bank," demonstrates the company's commitment to
developing into a global bank with a solid understanding of regional markets and
cultures.

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 International human resources practice at HSBC
Recruitment and selection process

Global diverse talent sourcing. In order to create a culturally rich and talented
workforce, HSBC's worldwide HR management includes the practise of acquiring
people from a wide variety of areas. The firm highly seeks after candidates with
linguistic and cultural versatility. HSBC posts jobs in a variety of countries, each time
adapting the language, culture, and laws to suit the specific needs of the region. The
corporation may team up with local staffing firms to expand its applicant pool. HSBC's
worldwide HR management places a premium on diversity and inclusion in order to
build a workforce that is representative of the diverse populations it serves across the
world (Bonache and Festing, 2020). To create a more diverse and welcoming
workplace, the organisation actively recruits applicants from all walks of life.

Figure 2: Selection process at HSBC (HSBC, 2023)

Cross-border interviews. Assessing a candidate's linguistic and cultural competence

may be necessary, depending on the nature of the position and the area. Candidates
who can articulate themselves clearly and confidently to people of different cultural

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backgrounds are highly prized by HSBC. HSBC uses methods such as video
conferencing and telephones to conduct interviews with applicants in different countries.
Managers from the target nation, as well as HR professionals from across the world,
may participate in the interview process. For the purpose of determining whether or not
a candidate meets HSBC's worldwide criteria for competence, the bank may use global
competency frameworks. This method guarantees that applicants have the skills
essential to succeed in a global setting.

Analysing cross-cultural communication and expatriation. Effective cross-cultural

communication and teamwork skills are prioritised in HSBC's global human resources
operation. Candidate's ability to work with people from diverse cultural backgrounds
may be considered. When applying for a career at HSBC that requires overseas travel,
the Human Resources team can help through the visa and immigration
requirements(Kandula, 2018). The corporation may also help its employees locate
lodgings and become settled in their new home.

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Orientation and onboarding process

Prearrival preparation. Prior to their arrival, the HR department at HSBC may offer
new overseas recruits with important information such as specifics on their job, team,
and onboarding timetable. The local traditions and culture, as well as information on
how to become settled in, are discussed. New employees get position-specific training
to provide them with the knowledge and abilities they'll need to succeed in their jobs
(Pucik et al., 2016). Learning the ins and outs of HSBC's business may entail technical
training, compliance education, and more. New hires are encouraged to meet other
HSBC workers from across the world by attending in-person and online networking
events.

Welcome, introduction and continuous learning. HSBC is dedicated to its

employees' growth much beyond the first phase of employment. All new employees at
HSBC are given an overview of the company's many training programmes and career
advancement options. To guarantee a smooth onboarding process, HSBC promotes
two-way communication between management and new workers. New hires may better
integrate into their roles and establish productive objectives with the support of regular
check-ins and performance reviews. New international recruits may be given aid in
finding housing, medical care, and other necessities in their new community.

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Training and learning development

The Global HR Academy at HSBC provides worldwide human resources professionals

with a formal training programme designed to improve their expertise. Global human
resource management, international labour regulations, talent acquisition techniques,
and other related topics may all be on the table for discussion at this potential academy.
Workshops and seminars on the legal nuances of managing a worldwide workforce are
something HSBC may provide in the form of International Labour and Employment
Law Workshops. Topics discussed at such meetings might include labour law, contract
drafting, contract disputes, and international labour standards.

Access to hundreds of live classes and digital learning materials from anywhere in the
world with HSBC University, a global learning platform is facilitated for the new
employees or to be employees. Digital, data, sustainability, personal skills, and other
related themes are all included. The United Arab Emirates (UAE), Mexico, and the
United Kingdom are all available for on-site training (Sekiguchi, Jintae Froese and
Iguchi, 2016). Internships and graduate courses in banking and finance throughout
the world are available to students and recent graduates who are looking to acquire
experience and establish their careers. Volunteering, mentoring, networking, and
training in technical and business skills are all examples. HSBC's Training and
Development Department hosts seminars, workshops, and locally tailored training on a
wide range of subjects at its training campus in Motijheel, Bangladesh.

Training in cross-cultural competency might be emphasised at HSBC because of the

multinational and multiethnic makeup of the company's employees. Human resource
managers and professionals may get training in cultural awareness, team diversity
management, and more. HSBC might provide courses that focus on the challenges of
working with workers who are on overseas assignments or living abroad. Human
resources experts could gain knowledge regarding visa applications, taxes, and helping
workers adjust to new locations. Training might address the challenges of overseeing
wage and benefits packages for employees in several nations (Pucik et al., 2016).
Human resource managers may learn about regional compensation trends,
incentive programmes, and benefit law requirements. In the field of human

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resources, language proficiency is the most useful. To help its human resources staff
communicate more successfully with customers of different linguistic backgrounds,
HSBC may provide courses in foreign languages or communication skills.

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Pay and compensation

The Hong Kong and Shanghai Banking Corporation (HSBC) is a global financial
services institution. Employees and applicants may choose from a variety of
compensation plans. HSBC's salary and benefits are influenced by a number of
variables, including:

 Pay scales vary widely depending on job description and amount of

responsibility. Depending on the company's structure, a business analyst may
make more than a customer care person, or vice versa.
 Different nations and regions have varying market circumstances and lifestyle
expectations. Employees in Dhaka, Bangladesh, may have lower take-home
pay than their London counterparts because of currency fluctuations, tax rates,
and cost of living (Stahl, Björkman and Morris, 2012).
 Pay at HSBC is strongly tied to performance, and how that success is achieved
is evaluated against the company's core principles. An employee that
consistently performs above and above expectations shows initiative and
supports the company principles of dependability, openness, and connection
may be rewarded monetarily more than their less successful counterparts.
 Total compensation is an important factor for HSBC, which is why they place a
premium on things like bonuses, stock options, profit sharing, sales
commissions, gratuities, and perks in addition to a salary (Tarique, Briscoe and
Schuler, 2015). As an example, an employee's total remuneration could include
benefits such as health insurance, a pension plan, tuition help, employee
discounts, and other perks.

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Performance management system

HSBC's worldwide aims, principles, and business strategies are likely the inspiration
for the company's international performance management system. Aiming to offer a
uniform and fair procedure while taking into account local cultural and legislative
variances, it takes into consideration the heterogeneous workforce across various
nations. Goals that are in line with the employee's function and the organisation as a
whole would be established as part of the performance management process.
Consideration might be given to both domestic and global business climates when
setting objectives.

Considering HSBC's worldwide reach, it is sense to include an evaluation of workers'

ability to work effectively across cultures into its performance management process.
Ability to operate in multicultural settings, interact with people of different backgrounds,
and understand cultural norms throughout the world may all be factors in this evaluation
(Sekiguchi, Jintae Froese and Iguchi, 2016). Performance, advancement, and room for
growth might all be discussed in regular feedback meetings between workers and their
supervisors. Managers might get instruction on how to provide constructive criticism
that takes into account different people's cultural backgrounds.

Technology may be used to bolster HSBC's global performance management system.

The analysis of data may reveal patterns in performance and point to places for
development. The system may have a common set of global leadership skills for all
managers and executives to follow. Leadership across cultures, flexibility, and the
capacity to think strategically are all skills that might fall under this category (Bonache
and Festing, 2020). HSBC's worldwide performance requirements might be reflected in
the bank's incentive programmes. The method might reward employees for going above
and beyond to help the company succeed.

HSBC employs a variety of performance evaluation techniques, such as:

 Self-assessment questionnaires can be used to evaluate an employee's

performance, accomplishments, strengths, and development requirements. They

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 communicate to their superiors what they expect from them, what they wish to
accomplish, and what kind of assistance they require.
 Managers and employees meet in person or online to discuss the worker's
performance, any areas for refinement, and any potential rewards or promotions.
The worker's evaluation is also consistent with the objectives and competencies.
 A smartphone application that facilitates frequent, two-way feedback between
employees and their supervisors. It also helps employees track their
development and accomplishments throughout the year.
 SAP SuccessFactors is cloud-based HR software used to manage employee
performance, compensation, talent, succession, learning, and analytics (Reiche
et al., 2016). In addition, it may interact with other HR tools and processes to
create a unified environment for your employees.

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Challenges in ensuring consistency and standardization

International human resource management (IHRM) for a multinational organisation like

HSBC may be challenging owing to differences in cultural norms, laws, and business
practises from country to country. HSBC is a global bank; therefore it works in many
countries with varying cultural standards. It might be difficult to strike a balance between
universal norms and local traditions.

Employment policies, rules, and regulations may vary widely from one nation to the
next. HSBC must work through these complications while being consistent to assure
compliance. When two people speak different languages, it might be difficult for them to
communicate, which can lead to confusion about rules and regulations. The norms and
standards for performance management in various regions may vary. It might be
difficult to standardise performance reviews and ratings across areas with widely
varying business practices (Björkman and Welch, 2015). It might be difficult to design a
fair salary and benefits package that takes into account market conditions in a variety of
locations.

Various cultural factors influence people's preferred modes of communication. HSBC

needs to encourage productive communication that respects different ways of talking to
one another. Cultural variations and variable degrees of acceptability might provide
challenges when attempting to implement standardised HR practises across different
locales. When local talent markets vary greatly, it may be difficult to find, attract, and
keep employees with the necessary abilities in many locations.

Finding the sweet spot between decentralising HR to allow for responsiveness to local
demands and keeping tight corporate oversight may be difficult. Training and
development programmes should be designed specifically for the purpose of producing
leaders capable of leading multicultural teams. Conflicts may arise when global strategy
is applied to local business units and stakeholders (Al Ariss and Sidani, 2016). It may be
difficult to meet the preferences and expectations of workers throughout the world via
HR policies, perks, and practises. Human resource policies and practises need to be
adaptable, since standardised techniques may not always be appropriate for local
markets.
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Effective two-way communication

With offices all over the world and such a diversified staff, HSBC relies heavily on open
lines of communication. Intranets, collaboration tools (e.g., Microsoft Teams, Slack),
and internal social media are all examples of digital platforms that HSBC uses to
improve real-time communication and information sharing among workers located in
different parts of the world. Senior management holds regular virtual town hall meetings
to inform employees on the status of the company's strategy, performance, and major
projects (Bonache and Festing, 2020). Employees have the opportunity to voice their
concerns and ask questions at these gatherings.

HSBC may learn more about employee sentiment, pinpoint problem areas, and
evaluate the efficacy of company-wide communications by conducting frequent
worldwide surveys of staff. The multinational company appoints regional liaisons to
facilitate communication between the headquarters and on-the-ground personnel.
Having a local point of contact might greatly improve the flow of information, questions,
and suggestions. Managers and leaders maintain open lines of communication so that
workers may come to them with any issues or suggestions they may have. They further
set up online "coffee breaks" or "informal meetings" to facilitate communication amongst
workers in various time zones (Björkman and Welch, 2015). Relationships and the
exchange of ideas both benefit from these kinds of meetings.

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Support for the expatriates

Since HSBC is a multinational financial company, it is reasonable to assume that it

offers its expatriate workers (those who are sent to work temporarily in a country other
than their own) a number of benefits. The purpose of such assistance is to ease the
transition and increase the efficiency of the expat's assignment overseas.

Before an employee is moved abroad to work for HSBC, the company provides a
thorough orientation that details the country's culture, business customs, living
circumstances, and legal laws (Horak et al., 2019). Expats benefit from these briefings
since they allow them to prepare for their overseas assignment with realistic
expectations. It's possible that HSBC will help expatriates get the visas, work permits,
and other paperwork they need for their assignment.

Furthermore, HSBC helps expatriates discover affordable and convenient

accommodation by taking into account aspects such as location, affordability, and
accessibility to work and amenities. Moreover, HSBC provides resources for spouses
and children affected by expatriate postings, such as help finding employment, figuring
out where to go to school, and adjusting to life in a new country.

HSBC may be able to enlighten expatriates on their healthcare alternatives in the host
country and assist them in finding affordable health insurance (Reiche et al., 2016). This
guarantees convenience and peace of mind in the event of illness or injury while on
duty. To assist its expatriate employees better adjust to their new home and converse
with locals, HSBC may provide cultural orientation and language classes. Possible
topics for training include regional norms and polite discourse. Overall, depending on
the nature of the assignment, HSBC may provide expatriates with a point person in the
HR department who may help them with any issues that arise. And when employees'
time abroad is done, HSBC can help them return home and settle back in without any
hiccups by facilitating a seamless repatriation procedure.

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Awareness for legislation

As a worldwide financial company, HSBC must be well-versed in the many laws that
affect its operations across the world. Some of the rules and regulations that HSBC
would probably follow are listed below.

Bank capital requirements and risk management guidelines are established under
Basel III, which HSBC is likely familiar with and must abide by the rules associated.
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires HSBC
to implement a number of reforms aimed at making the financial system more resilient
(Tarique, Briscoe and Schuler, 2015). GDPR stands for the General Data Protection
Regulation and requires HSBC to safeguard the personal information of EU residents in
its European Union activities.

With its U.S. operations, HSBC is subject to the USA PATRIOT Act, a law passed to
fight money laundering and terrorism (Shen, 2011). When doing business in California,
HSBC must comply with the California Consumer Privacy Act (CCPA), which
expands individuals' right to privacy.

International anti-money laundering (AML) and counter-terrorist financing (CTF)

requirements specified by the Financial Action Task Force (FATF) must be met by
HSBC (Stahl, Björkman and Morris, 2012). CFPB Rules for Protecting Consumers in
the Financial System: In order to serve American customers, HSBC would have to
follow rules established by the Consumer Financial Protection Bureau (CFPB).

HSBC must abide by Securities and Exchange Commission (SEC) rules when
issuing or dealing securities in the United States. Abuse of the Market Act (MAR),
which forbids insider trading and market manipulation, would be obligatory for HSBC to
follow if it were to do business in the European Union (Thomas, and Lazarova, 2013).
European Union's Unfair Commercial Practises Directive requires HSBC to avoid
deceptive advertising and other unfair business procedures inside the EU.

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 Recommendations
The following are some suggestions for improving HSBC's foreign HR policies and
procedures:

 HSBC should adopt a more uniform and standardised approach to human

resources policies and practises worldwide, while leaving room for local
adaptation and customisation. As a result, HSBC's worldwide workforce would be
more aligned, integrated, and efficient.
 HSBC should attempt to increase productivity, morale, and cooperation via the
use of its digital HR solutions. In addition to promoting a culture of innovation
and learning, this would help HSBC boost employee happiness, retention, and
productivity.
 HSBC should improve personnel management by taking a more strategic and
comprehensive approach to recruiting, training, and maintaining a diverse and
talented workforce. In doing so, HSBC would strengthen its position in the global
market and better position itself to take advantage of emerging possibilities.
 HSBC should allocate greater resources towards professional growth
opportunities that meet the requirements and ambitions of its workforce. If HSBC
did this, its workers would be more prepared for their present and future jobs,
and they'd have more opportunities to advance in their careers.
 HSBC should create and execute a more open and equitable compensation
plan that fairly and accurately reflects workers' actual contributions,
achievements, and future potential. This would help HSBC encourage its staff,
get them working towards common goals, and promote a meritocratic work
environment.

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 Conclusion
More than 60 nations and territories are served by HSBC, making it one of the world's
major financial institutions. More than 40 million clients are served by HSBC's
multicultural staff of over 260,000 people. The ultimate goal of HSBC is to become the
best multinational bank in the world. To realise this ambition, HSBC will need to
implement an IHRM strategy that is both effective and strategic, and which
complements the bank's worldwide business operations and core values and beliefs.

Human resources (HR) policies and procedures at HSBC should be uniform across
regions and nations, however they should also be flexible enough to accommodate local
circumstances. HSBC uses its digital HR solutions to boost employee participation,
coordination, and information sharing. Human resources decisions and results at HSBC
are also enhanced via the use of data and analytics (Bonache and Festing, 2020).
When it comes to talent management, HSBC takes a comprehensive strategy that
prioritises recruiting, developing, and keeping individuals from a wide range of
backgrounds and skill sets. HSBC also provides its workers with a number of career
paths to choose from and relocation benefits. Training and development programmes at
HSBC are prioritised because the company values its people and wants to help them
achieve their goals. There is a strong emphasis on education and creativity at HSBC.

In order to recognise and reward workers for their performance, contribution, and
potential, HSBC develops and executes a clear and fair incentive system. HSBC also
emphasises a meritocratic and accountable work environment for its staff.

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 References
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management: Future research directions. Human Resource Management
Review, 26(4), pp.352-358.

Björkman, I. and Welch, D., 2015. Framing the field of international human resource
management research. The International Journal of Human Resource
Management, 26(2), pp.136-150.

Bonache, J. and Festing, M., 2020. Research paradigms in international human

resource management: An epistemological systematisation of the field. German Journal
of Human Resource Management, 34(2), pp.99-123.

Horak, S., Farndale, E., Brannen, M.Y. and Collings, D.G., 2019. International human
resource management in an era of political nationalism. Thunderbird international
business review, 61(3), pp.471-480.

Investors: HSBC Holdings plc (2023) HSBC. Available at:

https://www.hsbc.com/investors (Accessed: 10 August 2023).

Kandula, S.R., 2018. International human resource management. SAGE Publishing

India.

Pucik, V., Evans, P., Bjorkman, I. and Jhaveri, K., 2016. The global challenge:
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Reiche, B.S., Stahl, G.K., Mendenhall, M.E. and Oddou, G.R. eds., 2016. Readings and
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Sekiguchi, T., Jintae Froese, F. and Iguchi, C., 2016. International human resource
management of Japanese multinational corporations: Challenges and future
directions. Asian Business & Management, 15, pp.83-109.

Shen, J., 2011. Developing the concept of socially responsible international human
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Stahl, G.K., Björkman, I. and Morris, S. eds., 2012. Handbook of research in
international human resource management. Edward Elgar Publishing.

Statista Research Department (2023) Global: HSBC Annual Revenue 2022, Statista.
Available at: https://www.statista.com/statistics/620314/annual-revenue-of-hsbc-bank-
worldwide/ (Accessed: 10 August 2023).

Tarique, I., Briscoe, D.R. and Schuler, R.S., 2015. International human resource
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Thomas, D.C. and Lazarova, M.B., 2013. Essentials of international human resource
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