Impacts of HR decision inside and outside the HR cycle - Wells Fargo case

  

This blogpost I am focusing on different cases that are considering the American bank Wells Fargo. A few years back there was a lot of news about how their company's structure very extremely out of control. According to this article the bank was demanding way too high sales expectations from their staff and even ask staff to open several accounts for their customer to get profit out of it (CNN News,2016.) If I would be a customer of that bank and have heard this kind of activity, I would switch my banking in somewhere else. There were plenty of articles regarding this same activity saying that Wells Fargo collected millions of fees from their customers with the accounts that they opened. They also got a big fine from this and because of all that happened they also fired 5000 employees. (BBC News,2016.)

 

Let’s dive little bit more into this from employee’s perspective. As pointed out in the articles employees were feeling enormous pressure from their employer and as this scandal spread in the news some facts saw the daylight too. Employees had to work extra hours without pay if they didn’t meet the company’s sale targets. I personally have experience how working in the bank is happening but that is just illegal what happened here in this case. I assume that employees were also too afraid to speak up and defend their rights and as Gourley (former employee) said he didn’t have a choice because he had two small kids at home. In the end they manage to fire Gourley after luring him to give a fake confession about unauthorized credit cards (CNN News,2016.) 

 

 I believe many people are suffering from bad HR experiences and sometimes these things happen without HR department even noticing it at all. After scandals like this it is usual that the boss will resign as happened in this case too but I think he should have notice these obstacles beforehand and act accordingly.

 

 

 

References

 

BBC News, 2016. Wells Fargo boss urged to resign over accounts scandal. URL: https://www.bbc.com/news/business-37419968. (Accessed 29.04.2021)

 

BBC News, 2016. Wells Fargo chief forfeits $41m amid corruption probe. URL: https://www.bbc.com/news/business-37491982. (Accessed 29.04.2021)

 

CNN Business,2016. Wells Fargo made me work overtime - without extra pay. URL: https://money.cnn.com/2016/09/30/investing/wells-fargo-workers-wage-theft-overtime/index.html.

(Accessed 29.04.2021)

 

CNN Business, 2016. Workers tell Wells Fargo horror stories. URL; https://money.cnn.com/2016/09/09/investing/wells-fargo-phony-accounts-culture/index.html. (Accessed 29.04.2021)

 

 

 

Comments

  1. ajaykrJanuary 14, 2022 at 4:46 AM

    Wonderful blog! Employee engagement is very important for the growth of the company or organization. Corporates are always looking for the employee engagement company in India, to help them in engaging their employees in various fun team-building, employee engagement activities

    ReplyDelete

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