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How Fleet Bank Fought Employment Flight – Case Study

CASE STUDY – How Fleet Bank Fought Employment Flight

  • Introduction
  • Background
  • Causes
  • Solutions
  • Justification
  • Conclusion
  • References

Introduction

Companies invest one third of their revenue in Recruitment, Training and Development, Management practices or any incentive plan but most of the time they even don’t know about the return that they are getting from these investments, same as the case with Fleet Bank, which was the second-largest financial services company in the US and seventh largest financial holding company in the country. In 1990s there biggest concern was the Employees turn over which was up to 25% annually and among some groups it was over 40%. That was hurting the Banks Customer focused strategy big time. The company conducted some surveys regarding this issue but employees were not giving correct information regarding their disposal because they did not want to risk people whom they may need one day for a new job reference.

A new methodology developed by Mercer Human Resource Consulting, Fleet set out to determine why so many employees were leaving and what could be done to retain them. It began examining data from HR, finance, operations, and sales about employee behavior and the factors that influence it in different locations. In the late 1990s, Fleet Bank was facing high and rising employee turnover, particularly in its retail operations. Overall turnover had reached 25% annually, and among some groups, such as tellers and customer service reps, turnover was as high as 40%. Using a new methodology developed by Mercer Human Resource Consulting, Fleet set out to determine why so many employees were leaving and what could be done to retain them. It began examining data from HR, finance, operations, and sales about employee behavior and the factors that influence it in different locations and labor markets, departments or work groups, in positions with different pay and benefits, and under different supervisors.

Reference:
  • ncbi.nlm.nih.gov/pubmed/15077372
  • hbr.org/2004/04/how-fleet-bank-fought-employee-flight/ar/1

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