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Research Briefing Of Bank Of America
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Background
Organizations’ growth assesses the optimum operational requirements that guide their relevant processes. The organizational culture and appropriate organizational structure are the pillars that prop up any organization. Labor is at the heart of the organization’s success. The internal stakeholders in an organization have a significant mandate to determine the policy framework of an organization. The paper assesses labor relations and related reports in impacting Bank of America.
I shall serve as an external labor relations consultant for the paper. My expertise involves the provision of accurate labor reports about organizations. The particular mandate in the paper shall include the provision of performance management, review of the relevant policy, and enhancing the grievances process. Other considerations include the internal processes and relevant bureaucracies impacting the labor relations in an organization. In many instances, disputes between the employees and the organizations lead to conflict, including strikes. As an external expert, one can objectively assess the organization’s best approaches to labor relations. The process’s core includes providing the organization’s negative and positives to create a fair decision-making platform.
Choice of the Organization
I have chosen to research Bank of America. Ameno Peter Giannini was the bank’s founder in 1904 as Bank of Italy (James & James, 2002). The founder was an Italian, and the intended clientele included Italians who had migrated to the United States. The initial purpose of the bank included providing the necessary banking services to the Italian immigrants who were discriminated against affording banking services. In other words, Ameno believed that the banks of his era did not provide the unique needs of the Italians (James & James, 2002). Although the bank operated profitably, it suffered significant losses from the 1998 Russian Bond Default (Melvin & Taylor, 2009). The default led to the Bank of Italy’s acquisition by NationsBank, leading to the birth of Bank of America. The acquisition was the largest bank acquisition in the history of the American banking industry.
The Bank of America has an international appeal. It operates in all states in the United States. The bank has an additional presence in 35 other countries spanning Europe, Africa, and Asia (Norrestad, 2021). The bank has an extensive portfolio, including standard retail banking, private banking, and corporate services, among other banking services. The diversity in the bank’s operations means that Bank of America has a diverse labor pool. When conducting the research, Bank of America had 208 000 employees, which was at least a marginal increase from the 2018 figures (Bank of America, 2022). However, such figures were a marginal decline from the 2021 figures at 213,000 employees (Bank of America, 2022). Such figures indicate that the bank is one of the top five employers in the United States. The citation indicated the diversity and the sheer magnitude of the company’s vast number of employees.
Value of Labor Relations
For example, Bank of America’s (BOA) active labor relations approach is critical in any organization. For instance, the company’s employees represent racial and cultural diversity in the United States. The BOA is aware of the cultural and inclusion needs among the employees (Shan et al., 2020). Interestingly, the bank accommodates corporate social responsibility approaches, including giving back to the communities. One can see that oversight and labor relations are crucial in pursuing the company’s labor approaches.
At BOA, all the employees must take cultural sensitivity training and workforce development programs (Shan et al., 2020). When employees re-enter the labor market after a prolonged leave, they have to take the return to work training. The processes aim to promote a positive culture that accommodates inclusive organizational culture at BOA. Although the approaches above are critical, BOA further engages external experts in improving its relations with its employees. Such elements have created a highly motivated staff that serves the distinct needs of the bank’s clientele. For example, one can point out that the intervention has helped to improve the bank’s image among the potential clientele.
Value of Labor in BOA’s Operations
Labor is a critical input in BOA’s operations. Although automated payments and withdrawals through Automated Teller Machines (ATMs), online banking, and other technology-driven services are standard with the bank, labor still serves as a central element in BOA’s operations (Bank of America, 2022a). Processes such as recording transactions, promoting various products offered by BOA, and helping clients open new accounts are labor-intensive processes. Such processes require employees, and technology cannot replace the input of individuals in such processes. A relevant process, such as processing loans and assessing the suitability or viability of a particular banking product, requires employees’ input.
The Perspective of the BOA’s Management
The management believes it has adopted the best approaches to improving employee experience. The company’s workplace mission is “deliver together, act responsibly, realize the power of our people and trust the team” (About Bank of America, n.d.). The mission underlines the value of teamwork as a core value promoted under the bank’s vision. The bank’s management feels it has attained a positive and inclusive work environment.
Various entities have lauded BOA for its favorable workplace policies. In other words, the bank has received awards and recognition for its conducive and positive work environment. For example, Fortune is one of the best 100 places to work for the bank (Bank of America, 2022a). The bank was also ranked as the world’s best bank in engaging in corporate responsibility. The employees are a crucial pillar of the corporate responsibility processes. The awards also included the recognition of the bank as one of the world’s most fair workplaces (Bank of America, 2022a). Such awards mean that external assessments reveal that the bank has positive employee relations.
The bank’s leadership practices inclusivity. The bank has cited that the institution’s inclusivity in management and leadership positions highlights the bank’s commitment to attaining a progressive workforce (Osili et al., 2021). In addition, the bank has cited good employee ratings indicating the management’s assessment that it has excelled in treating the employees positively (Indeed). A reflection of the experiences of the past and present employees offers an overwhelmingly good report about the company’s image. In addition, the employees received reasonable remuneration and competitive benefits at the entry and management level.
Unique circumstances highlighted the BOA’s commitment to the welfare of its employees. For example, the bank allowed its employees to take paid time off and take the coronavirus vaccine (“Bank of America,” 2022). The bank encouraged but did not force the employees to take the vaccine. Interestingly, the bank also improved its physical and mental health services with the emergence of the pandemic. The intervention was a critical aspect in improving the general welfare of the employees during the adverse times associated with the pandemic. The progressive intervention is to offer 24/7 call support to help the employees to address work-related stress (Bank of America, 2022a). Such requirements reflect the positive efforts by the management to improve the employees’ experience.
What the Bank should Change
BOA can improve in various aspects to optimize its relations with its employees. Although the company has had a positive impact in working with the employees, improvements are necessary. For example, a recent claim that the bank denied one of the mortgage applicants a home loan citing that the other party had to return to work first to complete the mortgage. Elements of discrimination were leveled against the company (Finkelstein, 2022). It was alleged that the company had breached fair housing laws. Although the lawsuit was settled, it was cited that the experience was not the first time that the bank had faced a discrimination suit.
Interestingly, a recent review highlights accusations of discrimination in denying mortgage and home equity loans to disabled persons (United States Department of Justice, 2020). The progressive approach to address the challenge included adopting a non-discriminatory loan policy. The intervention includes providing the employees with updated training to eliminate potential bias in mortgage loan processing. The institutional approaches adopted to address the challenge above have included the call to offer consistent reporting on discrimination claims to the Department of Justice for the next two years.
Remuneration forms another core area that needs improvement. Although the bank was cited as offering 99% of the payment to the female workers compared to the pay received by the male workers with equal qualifications, gender-based pay disparity exists (Hassan, 2022). The bank is prone to gender biases in the provision of pay. The bank can use codes devoid of one’s gender background to assess the necessary remuneration after a service is rendered. Such an approach can help the bank to ensure that operative inclusivity also means pay equity across the different gender groups. For example, the citation that women still receive less pay than men with parallel qualifications indicates the shortfalls within the bank’s labor relations, even with the laudable 99% balance in pay.
Processes and Policies that the Bank should Continue to Apply
Inclusivity has been a significant pillar at BOA. The population is increasingly aware of the diverse needs for inclusivity. The bank should engage in inclusive employment practices. Marginalized groups such as racial, ethnic, and sexual orientation minorities ought to be part of the bank’s workforce. The bank indicated that diversity is a critical pillar in the success of an organization after its report (Bank of America, 2021). The inclusivity would help the bank to make all the persons in the society feel that they are represented in the bank. In other words, the bank would be a reflection of the diversity in society. Such diversity should include junior, mid-level, and senior leadership positions. Thus, the bank should adopt proactive and affirmative action to engage in its long-standing inclusivity policy.
Mental health is a critical area in many large institutions. BOA has instituted progressive measures to accommodate the mental health needs of the employees. Although the toll-free line would offer support, the need to engage the employees remains critical in improving the employee’s experience (Shan et al., 2020). The process should include enhancing physical actions in the workplace. Such elements would make the workplace better designed to accommodate the different mental health needs of the employees. In addition, the process would build a culture of physical activities and exercises. Such elements would mean enhanced productivity for the company’s employees and better health outcomes.
The customers of the BOA and any other bank are oriented towards building a relationship. The underlying values of the bank should include a critical balance between technology and human input. Although technology can make operations more accessible and efficient, thorough human input is also necessary. People would respond positively if they feel that they are interacting with individuals. Thus, the company should strategically continue expanding its human resource even with the increase in the use of technology.
Conclusion
Labor relations are at the heart of BOA’s operations. The bank has had an inclusive process that enhances the employees’ best interests. The examples of the paid leave to offer the employees a chance to go and get a coronavirus jab was a positive indication of the company’s commitment to the best welfare of the employees. The almost equal pay between men and women in the company, coupled with positive reviews from former employees, further underlines good employee relations. Inclusivity in employment ought to be an area the bank will uphold in the future. The process must include racial and ethnic diversities at different positions within the company.
References
About Bank of America. (n.d.). About Bank of America. Bank of America. https://about.bankofamerica.com/en/making-an-impact/fortune-best
Bank of America (2022) Macro Trends https://www.macrotrends.net/stocks/charts/BAC/bank-of-america/number-of-employees
Bank of America (2022) Making an Impact. https://about.bankofamerica.com/en/making-an-impact/fortune-best
Bank of America, (2021) Bank of America Study Finds 95% of Employers Feel a Sense of Responsibility for Financial Wellness of Employeeshttps://www.prnewswire.com/news-releases/bank-of-america-study-finds-95-of-employers-feel-a-sense-of-responsibility-for-financial-wellness-of-employees-301382782.html
Bank of America. (n.d.). A Tradition of Excellence. Bank of America. https://promotions.bankofamerica.com/consumer/awards
Blanchflower, D. G., & Bryson, A. (2022). COVID and mental health in America. Plos one, 17(7), e0269855. https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0269855
Finkelstein, B. 2022. Bank of America Settles Fair Housing Discrimination Claim. American Banker. https://www.americanbanker.com/news/bank-of-america-settles-fair-housing-discrimination-claim
Hassan, S. (2022) Toward Being a Great Place to Work; How Bank of America Evaluate their Employee. DOI:10.13140/RG.2.2.35105.28002
Indeed. (n.d.). Bank of America Employee Reviews. Indeed. https://www.indeed.com/cmp/Bank-of-America/reviews
James, M., & James, B. R. (2002). The Story of Bank of America: Biography of a Bank. Beard Books. https://books.google.co.ke/books?hl=en&lr=&id=DwStGACTFTIC&oi=fnd&pg=PA1&dq=history+of+bank+of+america&ots=30f2DvS1dY&sig=rBr3d6kpums1qijwA-gNXeKvy4I&redir_esc=y#v=onepage&q=historyofbankofamerica&f=false
Melvin, M., & Taylor, M. P. (2009). The crisis in the foreign exchange market. Journal of International Money and finance, 28(8), 1317-1330. https://www.econstor.eu/bitstream/10419/30595/1/605747970.pdf
Norrestad, F. 2021. Bank of America Statistics and Facts. Statista. https://www.statista.com/topics/1245/bank-of-america/#dossierContents__outerWrapper
Osili, U., Clark, C., & Bergdoll, J. (2021). The 2021 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households. https://scholarworks.iupui.edu/bitstream/handle/1805/26654/bank-america-sept21.pdf
Reddy. C. 32 Reasons Why Bank of America is the Best Place to Work. Wisestep. https://content.wisestep.com/reasons-bank-america-best-place-work/
Shah, K. N., Fischman, E., Mathers, M., Miller, S., Sepulveres, A., & Zhao, Y. (2020). Investigating a Potential Relationship between Corporate Social Responsibility and Financial Growth. UF Journal of Undergraduate Research, 22. https://journals.flvc.org/UFJUR/article/view/121907
United States Department of Justice. 2020. Bank of America Settles Fair Housing Discrimination Claims and Agrees to Pay Damages to Victims. United States Department of Justice. https://www.justice.gov/usao-edny/pr/bank-america-settles-fair-housing-act-discrimination-claims-and-agrees-pay-damages#:~:text=TheBankhasendedits,compensatevictimsofitsconduct