Vault’s Verdict

OUR SURVEY SAYS

Nurturing Amex

American Express says the firm is a “great company to work for” and has a corporate culture that “nourishes diversity,” “values experience” and “mentors its youth.”  Insiders also call the corporate culture everything from “very relaxed” and “very family-oriented” to “conservative” and “employee-focused.”  One notes that the “corporate culture is quite good,” and although some sources have “culture conflicts,” “people are all nice to each other,” “with no bias at all.”  Another contact says, “The most positive aspect of my tenure has been the quality of the people I have worked with,” adding, “My current group is comprised of some of the most intelligent and genuinely decent people that I have ever worked with.”  One insider agrees, saying, “You can develop good friendships with the people at the company, and you’re always in a position to move around and try new things.  There are many opportunities at Amex.”

While the company has “some groups [that] can be much more political and have high school-like cliques,” “this is not universal, and even in those groups, you can find a few fantastic people.”  Another source says the culture is “extremely supportive and conducive to professional and personal growth.”

But in a company as large as American Express, it comes as no surprise that insiders have conflicting views of the company’s culture.  (Amex has operations in all 50 states plus the District of Columbia, so aspects such as pay, benefits and even culture will vary from region to region.)  One source uses a slew of adjectives—“smart, analytical, consensus - based, respectful, diverse [and] competitive”—to praise the company.  Others paint the picture of a company that is “bureaucratic and closed to new ideas unless those ideas come from upper management,” and trying to pull off impossibilities like “changing four tires on a car moving at 90 mph.”  One contact has this to say about the workplace culture: “Although everyone is very nice, there is a very passive-aggressive culture.  That creates an environment that is not very conducive to creative thinking.”

One former insider from the Midwest region says the “corporate culture was mostly Midwest in nature with a very strong emphasis on understanding diversity and cultural differences as a positive to the workforce.”  “I was very impressed with the people at American Express from top managers on down to my team members,” says another source.  “We were a very diverse group and all groups were very well represented and their needs were addressed in a very professional and caring way.”  One contact says the company “wants to win in the marketplace,” but notes, “Conflicting and overlapping efforts in separate business units often causes silo mentality and passive aggressive behaviors.”  Another critic calls American Express “a very poorly managed organization,” with “narrow-minded managers who are unwilling to learn from mistakes” and who “preach the latest buzzwords about diversity and teamwork but manage the old-fashioned way.”  However, the contact admits the firm is “making some progress towards reengineering its processes and systems.”  Another lauds the office’s open seating arrangement where managers are “visible and contactable at all times” and “are there to help and answer questions - and it’s common knowledge that the managers sit below us on the corporate pyramid and are there to support us.  Our customers are above us.”

Another contact, who has only positive things to say about the firm, brags that “working for Amex is great, especially in the finance department.”  The source explains, “The finance group consists of some of the best people I have worked with, all dedicated to their jobs, and leading innovation and business profitability using some of the most current theories in finance.”

Dressing down

The company allows for year-round business casual dress in most offices.  “Dress code is casual except when clients visit,” says a source.  You’ll have to do it by the book, though.  “We have a dress policy with specifics on what is acceptable ‘business casual’ and what is not,” says one insider.  “No denim of any kind, anytime, on any day.”  Another says it’s “formal always” where she works (in Minneapolis).  Still another adds that the dress code is “flexible,” and “every Friday and the day before any public holidays are casual days.”  One source calls the code “generally casual” and adds that “although women aren’t supposed to wear flip - flops in the summer, that rule is never enforced.”  As far as the aesthetics of the firm’s offices, one contact notes that it “varies by location” but says, “generally, they’re above average.”

Pretty accommodating

While working hours “depend on your team leader and your clients,” they are “flexible,” says one insider, adding that “you don’t need to come in at 9 a.m. strictly, and if you’re late, you can leave late to make it up.”  And “the needs of employees are very much attended to,” so “if you need to pick up your child early, arrangements are willingly made to accommodate all your needs.”  Staffers also have the “ability to work from home and teleconference into meetings.  Amex prides itself on maintaining a good work/life balance, and it shows.”

And although the company expects an honest day’s work, respondents say they aren’t locked in the office indefinitely.  “Most jobs don’t have any pressure to bill, and there is no requirement to stick around for ‘face time,’” says a source.  “However, jobs are meaty and often require long hours.  I generally work 55 to 60 hours a week.”  Others put the target a little lower, and most report never having to work weekends.  “Although there were times when extra hours were needed, the leadership model dictates that employees should be able to perform their weekly job functions within 35 hours,” remembers one former insider.  Special arrangements can be accommodated.  “The culture is fairly supportive of flexible work schedules,” says one source who takes advantage of the company’s generosity in this regard.  “Individuals are accountable for themselves.”

The 411 on salaries

Insiders have different takes when it comes to compensation.  One New York contact says that while “salaries are slightly lower than average for financial services,” employees still receive “four weeks vacation, plus holidays and four summer flex days, so it’s not too bad.”  Another source reports that “the salary is competitive with other major firms.  Bonuses are paid out on a bell curve so that only so many people will receive the highest possible.”  Sometimes it pays to come in from the outside.  “For experienced hires, salary ranges are wide for similar positions,” says an insider.  “This is because Amex has to pay market rates for external hires but pays less to people who transfer internally.  The result is that external hires make $10,000 to $12,000 more per year in the same position as an internal transfer.”

Pay is standard for entry-level hires and is based on competitive regional salary ranges.  Though one source comments that “employee benefits should be given more emphasis,” the company offers a variety of perks and benefits which include “tuition reimbursement; a variety of health care options, life insurance, stock options, vacation purchase plan, pensions, 401(k), many employee programs with large retailers and the opportunity to win tickets to Amex-sponsored events.”  There’s also a “lot of advancement opportunities across multiple lines of business” and an “excellent pay structure with peripheral benefits and perks.”

Great expectations

Insiders seem to have high hopes for Amex’s survival in the marketplace.  “I joined Amex because it has an unusual position in the business as a premium product, and the outlook on Wall Street is extremely strong,” says one insider.  “American Express is known for excelling at innovative product development and strong marketing.”  Another contact adds that American Express is “one of the top 10 most recognized brands in the world” and “one of the top 100 most preferred employers to work for.”  Yet another puts it succinctly—“the only place this company is going is up.”

However, with the current economic crisis, many employees believe that “business environment for 2009 will be very challenging.”  Though American Express is “one of the few financial companies that is still profitable, “it still a “challenge” due to “recent job cuts and cost-cutting measures” that “demonstrate how Amex is badly affected by the downturn in consumer and corporate expenditure.”  This is not to say that employee morale has been flagging; indeed, “employee morale is good,” and “most employees feel safe in their current jobs even in the midst of economic turmoil.”  A source sums it up by saying: “The business has strong leadership and a good record of maximizing opportunities at such times and I would expect them to come out stronger at the end of this.  Management also continues to invest and build the business so perhaps a couple of tough years but a good outlook for the long-term future.”

Take the opportunities

American Express is trying to quicken the pace when it comes to training.  “For several years, training was sparse,” reports one contact.  “It is picking up again, mainly because many of the midlevel managers haven’t ever attended appropriate training and it’s needed.”  Another insider says, “You are given endless opportunities to better your leadership skills and it is encouraged that you take part in a variety of training sessions.  Opportunities for advancement depend on the leadership teams working together, but there are always other areas that consider your knowledge and years of experience a bonus to the organization.”  Another notes that “opportunities for advancement seem hard,” and when it comes to promotions, superiors “only consider your management skills, but never consider how long you’ve been working here.”

One contact says that while “opportunities for advancement easily exist for analysts, there are not as many once you get to the director level, and vice president positions are very hard to come by.”  But another says, “Amex encourages you to move to a new position approximately every year, if you so desire,” and “they recognize that things may become stale and a new environment and new challenges can help you grow as an employee,” adding that they encourage staffers to explore international opportunities as well.  To advance, an MBA might be a good investment.  “An MBA is not required for upward movement,” says an insider.  “However, it seems anyone under 35 has one.  So do the math.”  Another insider notes that “if you have a strong desire to advance,” relocating might be an option—“especially to Amex’s offices in New York and Phoenix.”

Join the club

“There is plenty of diversity in this company,” assures one insider, adding that “American Express has diversity clubs and encourages employees to be a part of them.”  Still, another contact notes that “it should push and promote programs and initiatives that will give equal treatment to women and minorities.”  That contact adds that the firm should “support and encourage our lawmakers to pass bills that will guarantee employment and security of tenure to women.”  Another says that the firm is “receptive to all people,” and others praise the company’s efforts.  “My particular office consists of many foreign nationals of both genders,” says one employee.  “Some of the highest ranking finance officers in the company are women.”

Things can be different at a specific location.  “Overall, Amex is very diverse, but not necessarily in all locations,” notes a source.  Another notes that “there are many nationalities, religions and backgrounds.”  But one insider says that while there is “good diversity in terms of race and sex, you don’t see a lot of different opinions or ideas, because almost everyone comes from upper - middle - class or upper - class families and the same few business schools, banks and consulting firms.”