New scheme aims to ensure 'greater clarity and transparency on how performance impacts variable pay decisions'
HSBC Holdings appears to be taking a more transparent approach on compensation as reports emerge of a new bonus plan targeting most of its junior staff.
Bloomberg reported on Monday that the financial services company will introduce a "target pay variable" scheme to junior staff who previously did not have specific bonus targets set.
According to Bloomberg, which cited a memo from HSBC, the scheme introduces to staff a figure called "on target variable pay."
The figure is set using external benchmark data from peers and internal pay data relating to those in similar roles at the beginning of the year, according to the report.
"Target variable pay is being introduced this year for most grade 4-8 colleagues to ensure there is greater clarity and transparency on how performance impacts variable pay decisions," an HSBC spokesperson told Bloomberg.
Affected employees will include mid-ranking managers to junior operators and branch staff, according to the report.
The report comes as HSBC unveiled last month its Accelerating Wealth Programme, which signals its shift to a skills-based recruitment and development approach.
"The pioneering programme prioritises transferrable skills above industry experience and qualifications and gives people the training they need to become a licensed Premier or Private Banking Relationship Manager," said Laura Powell, Global Head of HR, HSBC Wealth and Personal Banking and Global Functions, in a blog post.
Powell added that the programme was launched to help individuals change careers and help them "easily begin a new chapter of their career."
The programme has so far been implemented externally in Hong Kong and Singapore, but it is already available internally in already available in mainland China, Hong Kong, Singapore, and India.
