The Bankwatch

Tracking the consumer evolution of financial services

BBVA pays staff to take 5 years off

A very unusual and novel cost cutting measure from BBVA, the Spanish bank.  The 70% cost reduction, with a guaranteed pool of employees after the period is up is certainly a new approach.
vacation

Can’t help but think there will be unintended consequences after the 5 years are up, built certainly the immediate consequences will be more palatable than normal layoffs, which generate acrimony, as well as an expense one time charge.  This approach will drive accountants nuts.

It will allow the bank to make future hiring plans, and attrition management with some knowledge of the future.

Bank pays staff to take five years off | Daily Telegraph

Employees of BBVA, Spain’s second biggest bank, are being offered 30 per cent of their usual salary in return for staying away from work for between three and five years.

Anyone signing up to the scheme is guaranteed a job when their extended leave comes to an end. They will also have their health care costs covered for the length of their sabbatical.

Researched by Nobuyo Henderson

Written by Colin Henderson

June 3, 2009 at 23:50

Posted in Innovation

Tagged with ,

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