AmazonScience/document-haystack

1ESG review2Being a great place to work3To deliver our purpose, ambition and strategy 4we need the best people, performing at their 5best. Creating a great workplace helps us 6attract, retain and motivate our colleagues so 7they can deliver for our customers.8Underpinning this is our reward strategy, 9which we updated in 2022 to create an 10environment where the best people want to 11work. Our workforce proposition is rooted in 12our purpose and values, and the principles of 13rewarding colleagues responsibly, recognising 14colleagues’ success and supporting our 15colleagues to grow. 16Rewarding colleagues responsibly 17We believe in rewarding our colleagues 18responsibly, which means ensuring that our 19pay and benefits provide financial security 20for all. Our annual Performance and Reward 21survey measures several factors, including 22how colleagues feel about our reward 23proposition. In 2023, seven key performance 24indicators related to our year-end review 25improved by four or more percentage points, 26including a nine percentage point increase in 27colleagues who feel they are paid fairly for the 28work they do.29As part of our commitment to rewarding 30colleagues responsibly, we went beyond 31compliance in assessing statutory minimum 32wages, to ensure that all colleagues are paid at 33least a living wage.34A living wage should be sufficient to cover an 35adequate standard of living considering the 36cost of goods and services in each country 37and territory in which we operate. In 2023, 38we worked with the Fair Wage Network, 39which provided an independent source of 40wage levels. As a result, HSBC achieved 41accreditation as a global living wage employer 42in 2024. We will continue to review our pay 43levels to ensure that no colleague falls below a 44living wage level.45 For further details of our approach to colleague 46remuneration, see page 290.47Recognising colleagues’ success 48We are committed to recognising the 49achievements of our colleagues’ success. 50Variable pay, which forms part of total 51compensation alongside fixed pay, allows us 52to recognise the performance and behaviours 53of our colleagues.54At the beginning of each year, we ask 55colleagues to set goals with support from 56their line managers to ensure they are aligned 57with the overall Group strategy and business 58priorities. As a result, 87% of colleagues said 59they have a clear understanding of what is 60expected of them throughout the year.61We expect our people managers to hold 62regular performance and development 63conversations to review progress, incorporate 64feedback and discuss well-being. In 2023, 65our Snapshot survey revealed that 81% of 66colleagues said they had regular performance 67conversations with their manager, while 63% 68had them at least once a month, up from 57% 69in 2022. These conversations also provide an 70opportunity for colleagues to regularly revisit 71any goals set to maintain the right level of 72challenge in their day-to-day work. 73At year-end, employees are rated on both 74performance and behaviour. In our Pay and 75Benefits survey, 72% of colleagues said their 76year-end performance assessment fairly 77reflected their performance and 83% agreed 78that rating decisions were determined in an 79unbiased way, regardless of any protected 80characteristics or work patterns. In our 81Snapshot survey, 81% of employees said they 82receive feedback that helps them improve 83their performance, compared with 74% in 842022, and 81% feel motivated to do the best 85job they can, up from 78% last year.86We have continued to enhance our ‘At Our 87Best’ platform that allows colleagues to 88recognise each other’s contributions, by 89providing mobile access to encourage real-90time acts of appreciation. In 2023, colleagues 91made more than 1.4 million At Our Best 92recognitions, an increase of 13% from 2022.93Managers are encouraged to recognise 94colleagues’ service anniversaries every 95five years up to 40 years of service. This 96also includes the presentation of a special 97commemorative HSBC medallion. The 98At Our Best platform supports the global 99service recognition programme, which in 1002023 helped to celebrate more than 30,000 101service anniversaries. 102Share plans are another way to empower 103colleagues to participate in the Group’s 104success and to have a share in the rewards. 105In 2023, we expanded our global share plan 106to include the Philippines, making it available 107to 91% of colleagues globally. Our 2020 three-108year Sharesave plan, in which 42% of UK 109employees took part, matured in November 1102023. The share price at maturity represented 111more than double the option price, providing 112employees with significant share price growth. 113We ran information webinars, attended by 114more than 11,000 colleagues, and offered 115support resources to help our colleagues 116understand tax considerations and the choices 117available to them at maturity.118Supporting our colleagues to grow119To help our colleagues to grow personally and 120professionally, we are committed to providing 121flexibility and choice around how, when and 122where they work, supporting their well-being, 123and helping them develop skills. The sections 124on the next page detail the ways in which we 125support our colleagues. For further details of 126our approach to skills and career development, 127see page 83. 128Increasing social connection in the office129Since the Covid-19 pandemic and the return of colleagues to the office, we identified the 130need for changes to improve team cohesion and a sense of belonging among our colleagues 131in Hong Kong. To help address, this we created a new type of work and social space at the 132HSBC Centre office in Kowloon, Hong Kong.133‘The Hub’ is a flexible informal space that can be adapted to accommodate a range of 134different group activities and number of people, from large social events to smaller team 135training sessions. It is also designed to be a multi-level and interconnected space, with 136a central social meeting point to enhance the sense of community, improve levels of 137engagement and encourage greater social connection between colleagues.138HSBC Holdings plc Annual Report and Accounts 2023 81139Social