Last November, like a lot of leaders in the battered financial sector, Scotiabank CEO Rick Waugh had to respond to questions from the media about the possibility of layoffs. "It's not in the way we do business at all," he says. Besides, the sheer size of the bank can help it be nimble and creative in tough times. With 69,000 employees in 50 countries, Scotiabank is one of the biggest 50 Best employers by far. "One of the advantages of a large organization is that you have more flexibility than a small one," says Waugh. At least some staff attrition is inevitable, and there are plenty of options for redeploying employees.
Turbulent economic conditions are nothing new for the bank, either. "We're 177 years old," says Waugh, "and banking adjusts all the time." Now 61, he began his career at a branch in Winnipeg in 1970, and the business "has come a long way from just walking in and cashing a cheque or getting a mortgage loan." In the 1980s, Ottawa removed regulatory barriers between banks, investment dealers and trust companies, and Scotiabank then bought the likes of brokerage firm McLeod, Young, Weir and National Trust. Scotiabank has long been the most international of Canada's Big Five banks as well, with historic roots in the Caribbean and Latin America, and growing interests in Asia.
Waugh says the diversity of the bank's operations and its staff is one of its biggest strengths. In many countries, Scotiabank is "a local bank," yet also a solid multinational. That helps it recruit the brightest talent, and keep providing employees with new opportunities.
So how does Scotiabank maintain consistency, especially when employees have to react quickly to events? Clear core values are essential. The bank distills these into five words: integrity, respect, commitment, insight and spirit.
Setting goals, communicating them and measuring results are critical as well, and Scotiabank has raised its HR game in recent years. "Historically, HR was pretty much an administrator and a record keeper," says Sylvia Chrominska, head of global human resources and communications. Now, the bank surveys all employees at least once a year to gauge satisfaction levels and look for possible improvements. It has also adopted the so-called Balanced Scorecard approach, which seeks to align individual employees' efforts with departmental goals and bank-wide objectives.
Direct contact with leaders is a huge help, too. In the month or so before sitting down for an interview with Report on Business magazine, Waugh travelled to Peru, El Salvador, Costa Rica, Thailand and China. That week, in addition to preparing for the release of financial results, he attended two evening events with clients and a United Way get-together with employees.