HR Strategy for HSBC Essay Example | Topics and Well Written Essays - 3000 words

HR Strategy for HSBC - Essay Example This paper aims to provide an overview of the business strategy of HSBC Holdings plc and to develop the HR strategy that will fit the new company’s strategy. HSBC retail banking segment targets premium market, focusing on customers with medium to high incomes. Thus, the company is capable to earn good profits and to minimize risks associated with high-risk borrowings (Uvais, 2015). Recently, the company has updated its business strategy aiming to be â€Å"where the growth is, connecting customers to opportunities† (Hsbc.com, 2015). HSBC introduced a two-part strategy comprised of the following two elements: (1) a network of businesses connecting the world, and (2) wealth management and retail with local scale (Hsbc.com, 2015). Therefore, on the one hand, the company aims to achieve global reach and develop its business operations in the international arena, achieving thus economies of scales, and on the other hand, it aims to capture opportunities in wealth management and retail markets with a focus made on growth markets (Hsbc.com, 2015). Strategically, the company aims to expand its business in Asia, North Africa, and the Middle East as the markets with huge potential. Currently, the HSBC is restructuring its operations worldwide and in the UK. The company aims to improve its profitability and to reduce costs. In order to achieve this goal, the management is planning to cut the number of jobs significantly in the UK and across the globe. According to the most recent information, the company has introduced a cost-cutting strategy whereas its management aims to cut costs by $4.5 billion ( £3 billion) to $5 billion ( £3.3 billion) a year by 2017 (ITV News, 2015). However, in order to dampen the overall effect of this cost-cutting strategy, the company also has a plan to create more than 2000 new positions (Uvais, 2015).