Investigating employee turnover in a department or division Wells Fargo Bank
Introduction
Wells Fargo is a public organization having expertise in financial products. The company has expanded across different regions thereby trying to attain globalization. It has been offering advices on investments, loans, insurance and several other business products. The company believes that their strong commitment towards work along with commitment by every employee had enabled them to reach great heights. Wells Fargo bank has large number of customers getting served financially on a daily basis. However, they have experienced financial issues recently which forced them to poor management of employees. Ultimately, the customer reactions were worst and they have suffered as much. The low employee morale in turn revealed the poor economic status prevailing in the organization and this indeed reflected their efficiency in operations management.
Wells Fargo’s expansion indicates a large size of the company and they have been operating in various market segments satisfying the demographical changes. It is the consultant of Wells Fargo bank being used here to gather relevant points for the research paper. Customer satisfaction is believed to be their strength but this was once their issue. Still, this has not been fulfilled completely. The impact of recession on Wells Fargo bank was relatively high such that they had faced worst situations where they lost clients and customers. The employee turnover was also less. It has recently been noticed that this company has taken attempts to overcome the issues faced as a result of recession and enable growth. The employee strengths were increased and their business lines were expanded so that their reach is vast.

Problem Statement The main aim of this research paper is to study the past and present functions of Wells Fargo bank in various aspects such as cultural, social, economical, political and environmental. One of the major finance organizations that had a rapid change in its function as a result of recession was Wells Fargo bank. So, this research paper will focus on the ways that Wells Fargo bank had attempted to compensate its bankers, clients and customers. Also, the research paper will gather information related to the employee morale of the company which in turn can help in gaining insight over motivational theories being used. This situation is one such example denoting the way change management was dealt.
The problem statement here is:
“How does Wells Fargo bank motivate its employees?”
The analysis will be investigating on the following key elements:
• Organizational behavior
• Implication of changes on the bankers
• Payment structure for bankers and employees
• Employee morale and performance
• Training and attempts taken to motivate employees
These elements are concentrated in the literature review followed by the analysis section.
Literature review
Review on basic business ethics
Business ethics is a critical one in every work environment. It is necessary to note the business ethics and the changes it has undergone over the years. Business ethics is a critical subject that clearly defines the actual structure of the business environment and highlights the major responsibilities that the employers need to adapt in order to run it efficiently. It is important as it influences the organizational structure, behavior, growth, market and a lot more. Without proper business ethics, an organization is a complete failure in all aspects (Ferrel et al, 2009).
1. Variations in the business ethics
The recent adoption of technology to recruit the people has seriously affected the original definition of business ethics. It supports the organization in onsite, offsite and any form of work environment as convenient for the individuals. In that case, people who are less aware of the new changes would be the affected ones. Also, the organization might lose its quality when considering its actual structure (Ferrel et al, 2009).
2. Ethical Decision Making and Its Effects
Ethical decision making is an important process that an organization has to take care of for the better functioning of the company. The following is an ethical decision making model that an organization has to follow: The process of decision making depends upon two major factors: decision quality and the effectiveness of its execution. A success in both these factors ensures success in the market too. In every step that has to be processed, it is required to frame proper ethical decision making by using efficient decision makers.
The term morale usually refers to the behavior. In this subject, the term employee morale signifies the spirit of an organization. An organization is said to comprise of workers and efficiency of the workers reflect the efficiency of the organization. Here, employee morale refers to the level of satisfaction of the workers in their jobs. Good employee morale means that the workers are much satisfied with their job.
Review on employee morale
The major factors that influence employee morale are:
• Work environment
• Feedback
• Work load in the organization
• Efficiency of teamwork
• Employee perks
• Corporate image
Factors influencing productivity are:
• Motivation of the employees
• Operational skills and efficiency
• Planning and scheduling
• Improving the control
Managing the workforce is a big deal when the switching takes place towards technology for the recruiting process. People would be engaged in on site and off site process. Maintaining a proper balance between them is the desired one of every organization. It is the complete responsibility of the human resource manager to handle the people in an effective manner.
The possible ways to enhance the interests of the people and manage their workloads are: providing compensation, additional perks, promotion and boost up methods.
Review on motivating employees
The common methods that are advised for enhancing the cognitive knowledge of individuals are (Bostrom, Sandberg, 2009):
• Enrichment of environment
• Mental development (this can be implemented with the help of visualization techniques where it can improve the performance)
• Conducting interactive sessions that can increase the comfort level of the environment
• Motivation sessions
• Computer based training (to ensure their ability to cope with recent technologies)
• Development of collective intelligence
Every organization should value the employees as they are the main sources of income to them. In addition to this point, they develop the organizational culture. So, it is necessary for the management to properly concentrate on the motivation and cognitive abilities of the employees. This can make them to perform beyond their expectations. Cognitive enhancement can develop confidence within their minds (Bostrom, Sandberg, 2009).
Behavioral techniques are also associated with the cognitive enhancement. These generate practical training and improve the skills of the employees. The best way to simulate the behavioral training is to conduct role plays or business games. Games and simulations are the best methods to teach them the environment of the organization in the near future. This can create a picture of the situations that are to be handled by them. On the other hand, the role plays can convey the actual roles, objectives and responsibilities that an individual is about to play on behalf of the organization.
Review on change management
The journals on change management are being reviewed due to the following reason: “it was the poor change management strategies employed by Wells Fargo bank that led them to huge loss”. It is important to remain in par with the market changes in order to manage them whenever there is a huge variation. For any financial institution such as Wells Fargo bank, employing change management techniques are indeed essential to ensure resistance. This can in a way enhance their motivation towards work.
Every organization aims at developing their key roles and thus, the change management appear to be important in those cases. These changes can occur in: technology, strategies, operations, personal behavior and mission. Change resistance mainly stresses on two important aspects namely perception and threat. Poor resistance towards changes can result in threat. Effective resistance can help in organizational development and develops a positive attitude among the employees in various management levels.
It is found that employees generally develop a degree of resistance towards changes because fear of failure or loss of job. However, employee resistance is vital as they influence the company’s status, structure and achievements. The generative strategy cycle and strategic doom cycle are two important structures that determine the change resistance in accordance to the competitiveness.
The employees can manage the changes by assuming corresponding roles and play it effectively (Preeti Kharti, Kapil Gulati, 2010). A positive attitude is important. The feat towards change competence has to be eliminated. People should share the healthy ideas for further development of an organization. The agendas need to be developed in such a way that they benefit the organization in a better way. The impact of changes should not act as a threat. Instead, the employees must create a mindset that adapts to that culture.
Change management suggests that it can act as a step to attain global presence (Preeti Kharti, Kapil Gulati, 2010). The subsequent parts in this discussion would focus on the motivational techniques followed by Wells Fargo bank and alternate ways to ensure globalization.
Analysis
Wells Fargo bank has been trying its best to cut down the costs by reducing the number of employees, consolidating various departments and cutting down unwanted expenditure. In order to increase its revenue, it has tried to expand across the world and strengthen their strategies towards investments. The buying of Wachovia bank has probably boosted up their market shares (Heidi, 2009). Hefty mortgage loans, regulatory capitals and long term customers have been looming its future. This seems to be one of their best decisions as a result of the business ethical decision making practices being followed. Still, it is important to analyze earlier issues that still exist in the market. This can be helpful in further development of the financial institution.
Poor customer service
Although Wells Fargo bank has attempted to satisfy the customers, they have constantly reported that the customer service of this bank is terrible. According to the recent rating outputs, it is found that this organization has ranked at 453rd position among 511 companies. This demonstrates a poor rating. The common issues found by the customers are:
• Poor administration and poor employee morale that leads to poor customer service
• Improper management of Wells Fargo when it tried collaborating with Wachovia
• Poor banker base
When investigated further into these issues, it is found that the compensations for the employees were less and this has made them to recruit even those people who lacked sufficient knowledge relevant to this industry.
Issues faced by customers The recession has made the company to stagnate the funds. Even those bankers who were in touch with them for a long time asked them for withdrawal, they have denied quoting their national policy. It states that funds will be released provided the bankruptcy trustee requests them to. The sudden financial loss as a result of recession forced them to revise their policies. But, these remained cruel to the bankers and customers. The scam rate was high and thereby caused a poor quality rating.
Motivation for employees One question that predominantly arises when analyzing the employee morale is: “Does Wells Fargo bank seriously provide special remuneration and motivational sessions to make employees comfortable?” There is no such evident information displaying the attempts taken by the company to motivate its employees. This is the root cause for the entire problem that it has faced. When it comes to finance, it is important that the employee’s performance are monitored and their comfort level is noted frequently. But, this is not done by this company. So, this issue has spread its roots to various other issues. It has influenced the company’s growth economically and culturally. This has indeed acted as a hindrance in its attempt to establish global presence. The human resources committee of Wells Fargo takes in charge of deciding the remuneration strategies. The corporate guidance is also deciding the remuneration plan. The incentive compensation risk management program is responsible for deciding compensations for the employees and bankers based on their overall performance. The three major groups of employees in Wells Fargo bank are:
• Senior managers who are liable for managing the day to day tasks as well as individual employees
• Senior managers who are liable for managing the legal and risk functions
• Risk takers who directly involve in entering into new consignments and take decisions that optimize the risk outputs
The remuneration components include base salary, variable remuneration, long term incentive and deferrals. The remuneration expenditure as in the year 2011 is represented below: The turnover problems are due to the lack of motivation that the employees are constantly facing. Whenever the environment changes or whenever they are subjected to a high risk environment, the company is duly responsible for engaging them in a proper position such that they are satisfied, safe and happy. The turnover problems can easily be overcome by employing appropriate motivational theories.

From the analysis section, it is evident that motivation is the root cause for several issues relating to employee turnover, strategies, change management and economic breakdown.
Solutions
There are several workable solutions that can guarantee better results for those issues faced by Wells Fargo bank. The workable solutions are:
• Motivating employees
• Revising the company’s strategies (especially in the remuneration department)
• Change management techniques
Among these workable solutions for Wells Fargo bank, the preferred solution is the motivation of employees.
The following picture shows the right environment that this institution has to create for its employees so that they are satisfied and do the work whole heartedly. To motivate employees, the implementation can involve the following key processes. Each of them, when implemented, can individually contribute towards strengthening the work environment as well as motivating them.
• Implement Maslow’s motivational theory that concerns the types of requirements of employees (Lindner, 1998). These need to be concentrated individually for further growth.
• Arranging group discussions so that employees get to know each other in a better way (this is a step to ensure satisfaction)
• Arrange lively sessions that arouses active participation of each and every employee. (training essential)
• Openly appreciate anyone for their work. This can motivate them more than anything.
• Appreciation can even be done through promotion or increase in salary or remuneration
• Improving leadership behavior
• Create a safe environment such that employees automatically get interested to work
• Employee morale can be enhanced through incentives, face to face communication and informal interaction
Managers and strategists need to concentrate on these respects in the environment (Lindner, 1998). These managers need to set their expectations before leading their team (Erin White, 2008). The probable advantages of these ideas are:
• Higher productivity
• Employee satisfaction and long term commitment
• High throughput and operations
• Easy to manage changes
• Globalization can be attained easily
• Right method to promote innovations
Hence, this solution is preferred among the other alternate ones suggested above as it has a direct implication over the change management issues and any other similar issues.
Reflection
This assignment does not only help me in understanding the changing patterns of market trends and its implications but also the importance of motivation for any employee. With respect to my personal view, I have learnt several things that an entrepreneur should know before setting up a company or trying to expand the company. Also, the significance of leadership behavior is much evident as it influences the growth in several aspects. From the academic perspective, it enabled me to learn specific motivation theories that are of great relevance for these situations. Further, it has given a clear idea on ways to restore the original position despite the financial breakdown. In my future, I am certain that I can demonstrate good leadership behavior in my society as well as in the organization’s environment.

References
A reason to stop banking with Wells Fargo. (2011). Retrieved from http://www.nakedcapitalism.com/2011/03/a-reason-to-stop-banking-with-wells-fargo.html.
Bostrom, N., Sandberg, A. (2009). Cognitive Enhancement: Methods, Ethics, Regulatory Challenge, Springer, Sci Eng Ethics, 15, 311–341.
Crane, A., & Matten, D. (2007). Business ethics, second edition.
Ferrell, O. C., Fraedrich, J., Ferrell, L. (2009). Business ethics: Ethical decision making and cases.
Kharti, P., & Gulati, K. (2010). Implanting change in organization successfully. Asian Journal of management research, 130-138.
Lindner. (1998). Understanding employee motivation. Journal of extension, 36 (3). Retrieved from http://www.customerservicescoreboard.com/Wells+Fargo.
Moore, H. N. (2009). Wells Fargo: Why a $3 billion profit doesn’t solve much, Wall Street Journal.
Remuneration at Wells Fargo Bank International. Retrieved from https://www.wellsfargo.com/downloads/pdf/com/international/Pillar_3_remuneration_disclosures.pdf.
White, E. (2008). How to motivate workers in tough times. Wall Street Journal