Introduction
https://finanzasdomesticas.com/el-ere-de-bbva/ focuses financial and economic crisis one of the bank is currently passing through. Cutting off employees from wagers is one of the way companies strategically use to cope with growing expenses and market pressure. In this article, we will highlight the similar situation faced by bank of Spain during Covid-19 pandemic and recently in 2023 it had to fire almost 2500 to 3000 employees to keep its feet stable in the market.
https://finanzasdomesticas.com/el-ere-de-bbva/ uses term El ERE which is short form for Spanish word Expediente de Regulacion de Empleso. Translated into English gives Employment Regulation Plan or Employment Adjustment Plan. It is the legal term or procedure often companies occupy to fire employees collectively. Earlier in January 2021, Barclays reported that the best bank of world BBVA have to use ERE system to lay off employees. Since then https://finanzasdomesticas.com/el-ere-de-bbva/ and many other websites have made the way of their radar towards BBVA.
Context of BBVA’s ERE
Not only due to financial crisis and pandemics, financial institutes like BBVA use strategies like ERE to re-adjust and do some realignment to increase the amount of profit gain. Similarly, BBVA announced ERE in 2023. One of the main reason the most under discussion bank of Spain BBVA had to opt this mechanism because of increased digitalization, prolonged digitalization and low interest rates for longer period of time. Initially BBVA had laid off number of employees from worldwide by 2.2% and did that silently to gain the profit. But as soon as 800 employees went jobless it came into light and discussion.
Implementation of the ERE
The mechanism of ERE consists of different procedures starting discussion with labor unions and thoroughly discussing the reasons for laying off employees and the compensation arrangements for affectees.
The ERE focusses mainly on admin and operations sectors to enhance the bank’s internal work frame. This lay off provided bank with the streamlines of operations and to cope with increasingly negativity of interest rates. The procedure of ERE constituted upon the discussion over compensation payment to effectees and a surety of a chance in near future for re-employment in the same cadre.
Impact of the ERE
The ERE had significant impact on BBVA and its employees. For bank itself, the layoff procedure mechanism was opted to cut costs and improve operational efficiency to cope up with impact of COVID-19 on the banking sector. The impact of procedure from banking point of view was seen clear when the banking sector transformed from classical to digital financial industry.
For employees, the process created a sort of uncertainty in the environment. Despite, bank offering support program for specified period of time, it created chaos among the employees. The firing of 3000 employees of BBVA highlighted the issue of job security and demanded the necessary procedures to be opted during the signing of contract for a job.
Future Perspectives
Looking at the insights, the BBVA ERE definitely have positive impact for banking sectors and financial sectors to cope with the emergencies like COVID-19 pandemic. It is the basic need of every entity to operate with a leaner and have more agile HR. As banking sector’s point of view, this is the most crucial mechanism for bank to continue its way in ever evolving financial and digital world.
Conclusion
In the current times financial industry is moving towards digitalization and opting out automation systems for better work efficiency. The part of ERE has also negative effect as it creates unemployment and a sense of uncertainty among the employees whereas it has positive impact on banking sectors as for them it provides fresh and energetic faces for bank and helps in maintaining suitable interest rates. See More
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