Our partnership with HSBC - Case Study
One of the largest financial services organisations in the world, HSBC has an international network in 82 countries and territories including Europe, Asia Pacific, Middle East, Africa and the Americas.
HBOS EES have been administering HSBC's Sharesave scheme for over 20 years. HSBC have found the Sharesave scheme a valuable tool in order to align employee and shareholder interests, thereby improving performance and increasing employee understanding of the wider group.
Whilst the Sharesave scheme prior to 2006 had proven successful, research had shown that the existing plan was felt to be UK centric, and that there were potential shortfalls from exchange rate conversion. Also, the term of the plan (3 / 5 years) was thought to be unattractive to many colleagues who wanted to invest for a shorter term.
Working closely in partnership with HSBC, HBOS EES developed and implemented a new highly complex, unique and innovative plan for overseas employees, which was introduced in 2006, and lead to the most successful launch to date in 2007. The following features were introduced:
- A one year plan was launched, which proved highly popular amongst HSBC employees, accounting for 44% of applications in 2006.
- Interest rates were fixed for the life of 1, 3 and 5 year plans, which eliminated shortfalls for a large number of international employees and resulted in increased certainty.
- To make options less vulnerable to currency fluctuations, the options were priced in four different currencies (Sterling, US Dollars, Euros and Hong Kong Dollars).
- Other changes to the plan rules, including the option to participate in all 3 terms.
- Universal application opening and closing dates and times were introduced.
- HBOS EES provided local rate telephone application lines (where possible) in a multitude of languages.
- Employees were allowed to amend their Sharesave application during the launch period, thereby increasing flexibility.
Communications were tailored globally in a campaign encompassing the slogan "Save a little, make more". The literature was translated into 8 languages, and over 86 items were produced. The campaign was backed up with a dedicated Sharesave co-ordinator in each country.
Employees were engaged using a variety of media including intranet banners, presentations, emails, desk drops, magazine articles and posters. The use of new media methods of communication enabled the promotion of the plan to remain extremely cost effective whilst ensuring maximum reach.
The result of the enhancements made to the plan was an impressive 25% increase in overseas take-up in 2006, and even more than this in 2007. And the UK results were strong also, applications in 2007 up by 12% compared to 2006.
Paul Jackson, Senior Reward Manager for HSBC said, "Delivering a truly effective and attractive Share Plan for our employees is extremely important to HSBC. The success of the new plan is testament to the successful relationship of HSBC and HBOS EES".
