Thursday, August 15, 2019
American Express Company Essay
American Express Company, sometimes known as AmEx, is a diversified global financial services company headquartered in New York City. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. At present, there are 58,300 employees worldwide working in American Express earning annual revenue of $24. 5 billion. Its assets are valued at $124 billion, with $620 billion in annual purchase volume on American Express Cards and $87. 9 million cards-in-force. Each day, American Express makes it easier, safer and more rewarding for consumers and businesses to purchase the things they need and for merchants to sell their goods and services. An engine of commerce, American Express provides innovative payment, travel and expense management solutions for individuals and businesses of all sizes. Most of all, it helps the customers realize their dreams and aspirations through industry-leading benefits, access to unique experiences, business-building insights, and global customer care. It enables its customers to do more and achieve more. The vision of American Express is to work hard every day to make American Express the worldÃ¢â¬â¢s most respected service brand. Ã¢â¬Å"Living up to our values is our first priority. Ã¢â¬ They believe in three operating principles they are: Offer superior value propositions to all of the customers Operate with best-in-class economics Support the American Express brand American Express is the worldÃ¢â¬â¢s largest card issuer by purchase volume. They process millions of transactions daily as the premium network for high-spending card-members. The American Express is also known for helping mall business owners succeed by delivering purchasing power, flexibility and financial control. Adding on to its roles American Express also provides commercial payment tools and expertise that help companies control their spending and save billions of dollars, offer marketing and information management insights that help merchants build their businesses. The American Express employees are customer loyal experts with industry-leading rewards programs and platforms. They operate the worldÃ¢â¬â¢s largest travel network serving consumers and businesses and are recognized as the most innovative company in our industries. They are dedicated to serving their customers, 24/7, around the world. The Values which they operate on reflect who the company is and what it stands for as a company. They believe in Customer Commitment, Quality, Integrity, Teamwork, Respect for People, Good Citizenship, Will to Win Personal and Accountability. Human Resource Practices at American Express Being a service industry firm, the employees form the base of all its operations and so the company gives a lot of importance to its HR practices which starts from assessing the need for new employees or new recruits. At American Express it starts with Projecting head counts, Assigning requisition number, identifying relevant profiles and estimating the number of candidates. The recruitment process starts with projecting the head counts i. e. by assessing how many candidates are required at a particular point in time in various departments. As per the requirements identified for different departments the company assigns a Requisition Number which differentiates various job requirements from one other. The Requisition Number is a unique code assigned by the company to different jobs which consists of the job description, minimum requirement for the job and the selection criteria. American Express then identifies the profiles that are relevant as per the requirements given by the Requisition Number and then estimates as to how many candidates will actually appear for the selection process. The company uses different sourcing channels for identifying relevant profiles as per its requirements. American Express uses both internal as well as external sources of recruitment. The Internal sources of the company consist of Employee Referral and Internal Sourcing Team under which the HR department asks its employees to refer the suitable candidates as per the job requirement. A candidate selected via an Employee Referral leads to the Employees getting a specific amount as a form of reward for contributing a resource to the Organization. As a part of the External sources the company contacts with External Vendors and Consultants and also goes to colleges for hiring. Beside this the company uses Job Postings also by advertising in job portals like www. Naukri. com, www. monsterindia. com etc. American Express also uses Social Networking Sites for inviting application by posting on www. facebook. com and www. linkedin. com . Beside the electronic media the company also advertise in newspapers like Times of India and Hindustan Times. American Express, for certain type of jobs, also invites walk-ins. After deciding when to hire and selecting different profiles as per the job advertisement given, the company goes for recruitment. For the recruitment process American Express generally prefers face to face interview. Face to face interview is given preference because of the fact that American Express being a service firm needs to test a candidateÃ¢â¬â¢s personality , his/her body language as how the person carries himself/ herself and his attitude towards work and also how he/she interacts with people. Face to face interview besides acting as a platform for assessing an applicant on the above mentioned parameters also allows the company to check the data provided by the candidate. The decisions regarding entry level staffing depends upon the attrition level of the company at a particular period of time. The entry level staffing is done in the form of bulk hiring and contacts from employment agencies are also utilized for the same. Wherein the company sends the required qualifications along with the Requisition Numbers for the vacant positions and then these requirements are matched up with the available candidatesÃ¢â¬â¢ profiles. American Express hires students from across Campuses of local colleges if they are invited for the same by that particular college for recruitment else they donÃ¢â¬â¢t go for hiring in campuses by their own judgement. The interviews are usually held on Fridays, but as the need may be, sometimes they are conducted on Saturdays and Sundays as well. The turn ups on weekend drive ranges from 300-350 for Non Voice Requirements and 150-200 for Voice Requirements. For executive hiring American Express has tie ups with employment agencies wherein experienced people are searched for the Organization. Along with executive hiring American Express is into head hunting as one of its processes for executive hiring to have talented pool of people for the organization. American Express also prefers people from IITs & IIMs for filling up their executive positions. In case of executive hiring American Express generally sells its profile to have good resources for the organization. Once the selection mode is finalized then the series of face to face interviews gets started as the further steps of selection process. Executive hiring is process which requires time duration of 3-4 months at least. American Express is into Bulk Hiring for Voice Process as well as Non-Voice Process. Apart from Bulk Hiring it is also into Executive Hiring. American Express follows a set process for conducting these various levels of interview. Since the number of turn ups for the Voice & Non-Voice Processes are largely high they avoid taking an initial HR Screening Process; the reason behind this is lack of time. The Requisition Numbers that they get have a deadline that need to be met hence a HR Screening Process becomes too time consuming so it is avoided in the cases of Bulk Hiring. American Express is very staunch when it comes to hiring any candidate per se. Hence they believe that a Face to Face Interview & interaction would be an ideal way to judge the candidate. The American Express has four Levels of Interview. First, Personal Introduction Round, where the candidate is required to give an elaborate insight into his Educational Background, his past Work Experience, a glimpse into his personality & the Attitudes and abilities he possesses. Next step is the Voice Assessment Test for Voice Process and the Written Test for the Non-Voice Process. Wherein the candidates are judged upon various parameters like, their Communication, Accent, Voice Modulation, Pronunciation, Vocabulary, Spelling, Grammer etc. The reason behind doing these tests is to find the right candidate for the right role i. e. f one would suit for a Voice or a Non-Voice Process. The third step is the Operational or the Technical Round. In this the candidate is assessed on the skills that they possess and that are crucial to meet that particular job requirements. The candidate is interviewed on his Technical competencies & abilities. Finally, they have something called the Offer Round. It is also called the Salary Negotiation Round. This round is all about the Compensation Discussion, a discussion between the HR Manager & the Candidate over the expected compensation & the industry set Compensation Level. Once this discussion comes to a pause a final compensation is decided and an offer is rolled out to the candidate. The Levels of Interview slightly differ in the case of Executive Hiring. The First step in Executive Hiring is matching the profile according to the Requisition Number. Here the one thing that we need to make a note of is the fact that, a stringent HR Screening Process is followed, where the HR Manager strictly follows an HR Screening Checklist, to check whether the candidate matches the requirement as has been mentioned in and by the Requisition Number and the Job Description. All the other levels and steps being the same the only difference lies in the fact that they do not take any Written Test or Voice Assessment Test. This Step is eliminated from the process of Executive Hiring. The reason being that, this level generally constitutes of Top Level Management Employees & Officials and their mode of operation differs from the base or Ground level Employees. Rest they go through the same levels and steps of the Interview Selection Process. American Express believes in On the Spot job offer for Bulk Hiring wherein once the interview process is completed the candidate is given an offer letter. Executive Hiring or Non Bulk Hiring Offer is rolled out in 2days. (Within which the CandidateÃ¢â¬â¢s Confirmation is required). When the company hires the candidates in bulk then the entire process of interviewing to offer takes around 2 days and after the completion all the selected candidates are offered a job-letter. To close each Requisition an Average of 2 months is required starting from the process of selecting the forms, short-listing the candidates then conducting group discussion and PI and finally closing up of interview takes around 2 months. Niche Skills and Top Level Security Profiles take approximately an average of 3-4months. The technical skills which are niche, uncommon and difficult in nature to find takes approximately around 3 months because in this the company looks for a specific quality which can be used for further growth and development of the organization. Profiles of Vanilla Skills take 2 months to close. The American Express conducts a thorough Criminal Background Check, education verification and work experience. All portions of the check are completed before the Employee can begin his/her employment with the Organization. These checks are often used by American Express as a means of objectively evaluating a job candidateÃ¢â¬â¢s qualifications, character, fitness, and to identify potential hiring risks for safety and security reasons. The Background check at American Express is also used to thoroughly investigate the Employees Background and past information in order to get a security clearance. So this background check is extremely crucial in American Express recruitment process. They give huge importance in the same. If any of the above mentioned criteria doesnÃ¢â¬â¢t match in this process or a failure to adhere to the background check norms could eventually lead to the cancellation of the Candidates offer and Blacklisting of the candidate. Wherein the company cancels the application of the candidate or the candidateÃ¢â¬â¢s selection is being closed. InformationÃ¢â¬â¢s which are being written in the resume has to be genuine and should be according to the actual background, experience of the candidate and basically those perfect information reflects the personality & the ability of the candidate. It is very easy for the candidate to prove or perform the same on the spot and simultaneously differentiate himself as the able candidate for the respective post. The American Express out sources its Background Check process to various firms. These are Syndicate firms which does the background check for its new hires in return for a fee amount. The On-Boarding Process begins when Candidate joins them for an informative firstÃ¢â¬âday orientation where they learn the ins and outs of American Express history and culture. On-Boarding involves integrating and acculturating new employees into the organisation and providing them with the tools, resources, and knowledge to become successful and productive. It is a 2 day process. On boarding includes orientation collection of documents such as the Experience Certificate or Letter, Reference Letter, Educational Documents, Identification Proof etc. Orientation at American Express is a social function which serves as a familiarization programme provided to new employees. It stands as a Ã¢â¬Ëgetting to know usÃ¢â¬â¢ programme. So they give information about their policies and working culture means how to work with American Express. In this on boarding process the new joiners are also made to fill various forms such as the provident fund and gratuity. A Separate Training Department with group or individual training in specified areas focused on carrying out assignments connected with related field they are working in which helps in improving the skills and knowledge of the employees. Special training is given to all the candidates from Campus Recruits to Bulk Hires to Executives who are recruited. This training focuses mainly on the rules and regulations the company follows and what all are the objectives the company has to achieve. The Training Methods or Forms of Training that American Express uses are vast. It comprises of Formal Training, for all employees whether they are new hires of existing employees. All and one have to undergo a formal training session in American Express. Another form of Training that American Express follows is Lectures and Classroom Trainings where in the Employees obtain training in a traditional classroom environment as per their convenience and time. It provides the employees with an environment that includes a lab, an instructor, and a structured approach to teaching. Another mode of Training that it follows is Online Training. This method is generally used in case of training the Top Level Officials and Managers. American Express Values every second of its Employees time especially when it is related to the Top management because they are involved with the major operations of the organization. So instead of disrespecting their time by calling them for a classroom session it looks for their convenience. They take up their training programs online which is quicker, simpler and convenient for them. The next form of Training method that they apply is Questionnaire. Where in the HR Manager floats a Questionnaire to it Employees / Trainees and they collect their responses and give them the feedback. Ã¢â¬Å"An unusual method of training its employees but it tends to be more effective than classroom sessionsÃ¢â¬ says Saumyajit K. Pal, HR Manager (MIS & Analytics), American Express.